HB 129

1
A bill to be entitled
2An act relating to community contribution tax credits;
3amending ss. 212.08, 220.183, and 624.5105, F.S.;
4increasing the total amount of tax credits authorized for
5community contribution tax credit programs; providing an
6effective date.
7
8Be It Enacted by the Legislature of the State of Florida:
9
10     Section 1.  Paragraph (p) of subsection (5) of section
11212.08, Florida Statutes, is amended to read:
12     212.08  Sales, rental, use, consumption, distribution, and
13storage tax; specified exemptions.--The sale at retail, the
14rental, the use, the consumption, the distribution, and the
15storage to be used or consumed in this state of the following
16are hereby specifically exempt from the tax imposed by this
17chapter.
18     (5)  EXEMPTIONS; ACCOUNT OF USE.--
19     (p)  Community contribution tax credit for donations.--
20     1.  Authorization.--Persons who are registered with the
21department under s. 212.18 to collect or remit sales or use tax
22and who make donations to eligible sponsors are eligible for tax
23credits against their state sales and use tax liabilities as
24provided in this paragraph:
25     a.  The credit shall be computed as 50 percent of the
26person's approved annual community contribution.
27     b.  The credit shall be granted as a refund against state
28sales and use taxes reported on returns and remitted in the 12
29months preceding the date of application to the department for
30the credit as required in sub-subparagraph 3.c. If the annual
31credit is not fully used through such refund because of
32insufficient tax payments during the applicable 12-month period,
33the unused amount may be included in an application for a refund
34made pursuant to sub-subparagraph 3.c. in subsequent years
35against the total tax payments made for such year. Carryover
36credits may be applied for a 3-year period without regard to any
37time limitation that would otherwise apply under s. 215.26.
38     c.  A person may not receive more than $200,000 in annual
39tax credits for all approved community contributions made in any
40one year.
41     d.  All proposals for the granting of the tax credit
42require the prior approval of the Office of Tourism, Trade, and
43Economic Development.
44     e.  The total amount of tax credits which may be granted
45for all programs approved under this paragraph and ss., s.
46220.183, and s. 624.5105 is $15 $10.5 million annually for
47projects that provide homeownership opportunities for low-income
48or very-low-income households as defined in s. 420.9071(19) and
49(28) and $3.5 million annually for all other projects.
50     f.  A person who is eligible to receive the credit provided
51for in this paragraph, s. 220.183, or s. 624.5105 may receive
52the credit only under the one section of the person's choice.
53     2.  Eligibility requirements.--
54     a.  A community contribution by a person must be in the
55following form:
56     (I)  Cash or other liquid assets;
57     (II)  Real property;
58     (III)  Goods or inventory; or
59     (IV)  Other physical resources as identified by the Office
60of Tourism, Trade, and Economic Development.
61     b.  All community contributions must be reserved
62exclusively for use in a project. As used in this sub-
63subparagraph, the term "project" means any activity undertaken
64by an eligible sponsor which is designed to construct, improve,
65or substantially rehabilitate housing that is affordable to low-
66income or very-low-income households as defined in s.
67420.9071(19) and (28); designed to provide commercial,
68industrial, or public resources and facilities; or designed to
69improve entrepreneurial and job-development opportunities for
70low-income persons. A project may be the investment necessary to
71increase access to high-speed broadband capability in rural
72communities with enterprise zones, including projects that
73result in improvements to communications assets that are owned
74by a business. A project may include the provision of museum
75educational programs and materials that are directly related to
76any project approved between January 1, 1996, and December 31,
771999, and located in an enterprise zone designated pursuant to
78s. 290.0065. This paragraph does not preclude projects that
79propose to construct or rehabilitate housing for low-income or
80very-low-income households on scattered sites. With respect to
81housing, contributions may be used to pay the following eligible
82low-income and very-low-income housing-related activities:
83     (I)  Project development impact and management fees for
84low-income or very-low-income housing projects;
85     (II)  Down payment and closing costs for eligible persons,
86as defined in s. 420.9071(19) and (28);
87     (III)  Administrative costs, including housing counseling
88and marketing fees, not to exceed 10 percent of the community
89contribution, directly related to low-income or very-low-income
90projects; and
91     (IV)  Removal of liens recorded against residential
92property by municipal, county, or special district local
93governments when satisfaction of the lien is a necessary
94precedent to the transfer of the property to an eligible person,
95as defined in s. 420.9071(19) and (28), for the purpose of
96promoting home ownership. Contributions for lien removal must be
97received from a nonrelated third party.
98     c.  The project must be undertaken by an "eligible
99sponsor," which includes:
100     (I)  A community action program;
101     (II)  A nonprofit community-based development organization
102whose mission is the provision of housing for low-income or
103very-low-income households or increasing entrepreneurial and
104job-development opportunities for low-income persons;
105     (III)  A neighborhood housing services corporation;
106     (IV)  A local housing authority created under chapter 421;
107     (V)  A community redevelopment agency created under s.
108163.356;
109     (VI)  The Florida Industrial Development Corporation;
110     (VII)  A historic preservation district agency or
111organization;
112     (VIII)  A regional workforce board;
113     (IX)  A direct-support organization as provided in s.
1141009.983;
115     (X)  An enterprise zone development agency created under s.
116290.0056;
117     (XI)  A community-based organization incorporated under
118chapter 617 which is recognized as educational, charitable, or
119scientific pursuant to s. 501(c)(3) of the Internal Revenue Code
120and whose bylaws and articles of incorporation include
121affordable housing, economic development, or community
122development as the primary mission of the corporation;
123     (XII)  Units of local government;
124     (XIII)  Units of state government; or
125     (XIV)  Any other agency that the Office of Tourism, Trade,
126and Economic Development designates by rule.
127
128In no event may a contributing person have a financial interest
129in the eligible sponsor.
130     d.  The project must be located in an area designated an
131enterprise zone or a Front Porch Florida Community pursuant to
132s. 20.18(6), unless the project increases access to high-speed
133broadband capability for rural communities with enterprise zones
134but is physically located outside the designated rural zone
135boundaries. Any project designed to construct or rehabilitate
136housing for low-income or very-low-income households as defined
137in s. 420.0971(19) and (28) is exempt from the area requirement
138of this sub-subparagraph.
139     e.(I)  If, during the first 10 business days of the state
140fiscal year, eligible tax credit applications for projects that
141provide homeownership opportunities for low-income or very-low-
142income households as defined in s. 420.9071(19) and (28) are
143received for less than the annual tax credits available for
144those projects, the Office of Tourism, Trade, and Economic
145Development shall grant tax credits for those applications and
146shall grant remaining tax credits on a first-come, first-served
147basis for any subsequent eligible applications received before
148the end of the state fiscal year. If, during the first 10
149business days of the state fiscal year, eligible tax credit
150applications for projects that provide homeownership
151opportunities for low-income or very-low-income households as
152defined in s. 420.9071(19) and (28) are received for more than
153the annual tax credits available for those projects, the office
154shall grant the tax credits for those applications as follows:
155     (A)  If tax credit applications submitted for approved
156projects of an eligible sponsor do not exceed $200,000 in total,
157the credits shall be granted in full if the tax credit
158applications are approved.
159     (B)  If tax credit applications submitted for approved
160projects of an eligible sponsor exceed $200,000 in total, the
161amount of tax credits granted pursuant to sub-sub-sub-
162subparagraph (A) shall be subtracted from the amount of
163available tax credits, and the remaining credits shall be
164granted to each approved tax credit application on a pro rata
165basis.
166     (II)  If, during the first 10 business days of the state
167fiscal year, eligible tax credit applications for projects other
168than those that provide homeownership opportunities for low-
169income or very-low-income households as defined in s.
170420.9071(19) and (28) are received for less than the annual tax
171credits available for those projects, the office shall grant tax
172credits for those applications and shall grant remaining tax
173credits on a first-come, first-served basis for any subsequent
174eligible applications received before the end of the state
175fiscal year. If, during the first 10 business days of the state
176fiscal year, eligible tax credit applications for projects other
177than those that provide homeownership opportunities for low-
178income or very-low-income households as defined in s.
179420.9071(19) and (28) are received for more than the annual tax
180credits available for those projects, the office shall grant the
181tax credits for those applications on a pro rata basis.
182     3.  Application requirements.--
183     a.  Any eligible sponsor seeking to participate in this
184program must submit a proposal to the Office of Tourism, Trade,
185and Economic Development which sets forth the name of the
186sponsor, a description of the project, and the area in which the
187project is located, together with such supporting information as
188is prescribed by rule. The proposal must also contain a
189resolution from the local governmental unit in which the project
190is located certifying that the project is consistent with local
191plans and regulations.
192     b.  Any person seeking to participate in this program must
193submit an application for tax credit to the office which sets
194forth the name of the sponsor, a description of the project, and
195the type, value, and purpose of the contribution. The sponsor
196shall verify the terms of the application and indicate its
197receipt of the contribution, which verification must be in
198writing and accompany the application for tax credit. The person
199must submit a separate tax credit application to the office for
200each individual contribution that it makes to each individual
201project.
202     c.  Any person who has received notification from the
203office that a tax credit has been approved must apply to the
204department to receive the refund. Application must be made on
205the form prescribed for claiming refunds of sales and use taxes
206and be accompanied by a copy of the notification. A person may
207submit only one application for refund to the department within
208any 12-month period.
209     4.  Administration.--
210     a.  The Office of Tourism, Trade, and Economic Development
211may adopt rules pursuant to ss. 120.536(1) and 120.54 necessary
212to administer this paragraph, including rules for the approval
213or disapproval of proposals by a person.
214     b.  The decision of the office must be in writing, and, if
215approved, the notification shall state the maximum credit
216allowable to the person. Upon approval, the office shall
217transmit a copy of the decision to the Department of Revenue.
218     c.  The office shall periodically monitor all projects in a
219manner consistent with available resources to ensure that
220resources are used in accordance with this paragraph; however,
221each project must be reviewed at least once every 2 years.
222     d.  The office shall, in consultation with the Department
223of Community Affairs and the statewide and regional housing and
224financial intermediaries, market the availability of the
225community contribution tax credit program to community-based
226organizations.
227     5.  Expiration.--This paragraph expires June 30, 2015;
228however, any accrued credit carryover that is unused on that
229date may be used until the expiration of the 3-year carryover
230period for such credit.
231     Section 2.  Paragraph (c) of subsection (1) of section
232220.183, Florida Statutes, is amended to read:
233     220.183  Community contribution tax credit.--
234     (1)  AUTHORIZATION TO GRANT COMMUNITY CONTRIBUTION TAX
235CREDITS; LIMITATIONS ON INDIVIDUAL CREDITS AND PROGRAM
236SPENDING.--
237     (c)  The total amount of tax credit which may be granted
238for all programs approved under this section and ss., s.
239212.08(5)(p)(q), and s. 624.5105 is $15 $10.5 million annually
240for projects that provide homeownership opportunities for low-
241income or very-low-income households as defined in s.
242420.9071(19) and (28) and $3.5 million annually for all other
243projects.
244     Section 3.  Paragraph (c) of subsection (1) of section
245624.5105, Florida Statutes, is amended to read:
246     624.5105  Community contribution tax credit; authorization;
247limitations; eligibility and application requirements;
248administration; definitions; expiration.--
249     (1)  AUTHORIZATION TO GRANT TAX CREDITS; LIMITATIONS.--
250     (c)  The total amount of tax credit which may be granted
251for all programs approved under this section and ss.
252212.08(5)(p)(q) and 220.183 is $15 $10.5 million annually for
253projects that provide homeownership opportunities for low-income
254or very-low-income households as defined in s. 420.9071(19) and
255(28) and $3.5 million annually for all other projects.
256     Section 4.  This act shall take effect July 1, 2007.


CODING: Words stricken are deletions; words underlined are additions.