HB 1325

A bill to be entitled
2An act relating to entertainment industry economic
3development; amending s. 288.1254, F.S.; revising the
4entertainment industry financial incentive program to
5provide corporate income tax and sales and use tax credits
6to qualified entertainment entities rather than
7reimbursements from appropriations; revising provisions
8relating to definitions, creation and scope, application
9procedures, approval process, eligibility, required
10documents, qualified and certified productions, and annual
11reports; providing duties and responsibilities of the
12Office of Film and Entertainment, the Office of Tourism,
13Trade, and Economic Development, and the Department of
14Revenue relating to the tax credits; providing criteria
15and limitations for awards of tax credits; providing total
16aggregate amount available for tax credits; providing for
17uses, allocations, election, distributions, and
18carryforward of the tax credits; providing for use of
19consolidated returns; providing for partnership and
20noncorporate distributions of tax credits; providing for
21succession of tax credits; providing requirements for
22transfer of tax credits; requiring a recipient of
23transferred tax credits to pay a percentage of the amount
24paid to fund specified film education grants; providing
25priority allocation of tax credits; providing for
26withdrawal of tax credit eligibility; establishing queues;
27authorizing the Office of Tourism, Trade, and Economic
28Development to adopt rules, policies, and procedures;
29authorizing the Department of Revenue to adopt rules and
30conduct audits; providing for revocation and forfeiture of
31tax credits; providing liability for reimbursement of
32certain costs and fees associated with a fraudulent claim;
33requiring an annual report to the Governor and the
34Legislature; providing for future repeal; creating s.
35288.1256, F.S.; establishing the Florida Graduate Film
36Investment Fund; requiring administration by the Office of
37Film and Entertainment; providing for deposit of funds;
38requiring that funds be used for certain family-friendly
39films; amending s. 288.1252, F.S.; requiring the Florida
40Film and Entertainment Advisory Council to advise on films
41produced under the Florida Graduate Film Investment Fund;
42amending s. 220.02, F.S.; including tax credits enumerated
43in s. 288.1254, F.S., in the order of application of
44credits against certain taxes; amending s. 213.053, F.S.;
45authorizing the Department of Revenue to provide tax
46credit information to the Office of Film and Entertainment
47and the Office of Tourism, Trade, and Economic
48Development; amending s. 212.08, F.S.; requiring
49electronic funds transfer for the entertainment industry
50tax credit; providing procedures; repealing s. 288.1255,
51F.S., to remove the requirement that annual funding for
52the entertainment industry financial incentive program be
53subject to legislative appropriation; providing an
54effective date.
56Be It Enacted by the Legislature of the State of Florida:
58     Section 1.  Section 288.1254, Florida Statutes, is amended
59to read:
60(Substantial rewording of section. See s. 288.1254,
61F.S., for present text.)
62     288.1254  Entertainment industry financial incentive
64     (1)  CREATION AND PURPOSE OF PROGRAM.--There is created
65within the Office of Film and Entertainment an entertainment
66industry financial incentive program. The purpose of this
67program is to encourage the use of this state as a site for
68filming and to develop and sustain the workforce and
69infrastructure for film and entertainment production.
70     (2)  DEFINITIONS.--As used in this section, the term:
71     (a)  "Production" means a theatrical or direct-to-video
72motion picture, a made-for-television motion picture, a
73commercial, a music video, an industrial or educational film, an
74infomercial, a documentary film, a television pilot, a
75presentation for a television pilot, a television series,
76including, but not limited to, a drama, a reality, a comedy, a
77soap opera, a telenovela, a game show, miniseries production, or
78a digital media project by the entertainment industry. One
79season of a television series is considered one production. The
80term "production" does not include a weather or market program,
81a sporting event, a sports show, a gala, a production that
82solicits funds, a home shopping program, a political program, a
83political documentary, political advertising, a gambling-related
84project or production, a concert production, or a local,
85regional, or Internet-only news show, current events show, or
86current affairs show. A production may be produced on or by
87film, tape, or otherwise and produced by means of a motion
88picture camera, electronic camera or device, tape device,
89computer, any combination of the foregoing, or any other means,
90method, or device now used or that may hereafter be adopted.
91     (b)  "Digital media project" means a production of
92interactive entertainment, including a video game, simulation,
93or animation, including a production intended for Internet or
94wireless distribution, that is produced for commercial or
95education distribution. The term "digital media project" does
96not include a production deemed by the Office of Film and
97Entertainment to contain obscene content as defined by the
98United States Supreme Court.
99     (c)  "Production expenditures" means the costs of tangible
100and intangible property used and services performed primarily
101and customarily in the production, including pre-production and
102post-production, excluding development and distribution costs.
103Production expenditures generally include, but are not limited
105     1.  Wages, salaries, or other compensation, including
106amounts paid through payroll service companies, for technical
107and production crews, directors, producers, and performers.
108     2.  Expenditures for sound stages, backlots, production
109editing, digital effects, sound recordings, sets, and set
111     3.  Expenditures for rental equipment, including, but not
112limited to, cameras and grip or electrical equipment.
113     4.  Expenditures for meals, travel, and accommodations.
114     (d)  "Qualified expenditures" means production expenditures
115incurred in this state by a qualified production for the
117     1.  Goods purchased or leased from, or services provided
118by, a Florida vendor or supplier who is registered with the
119Department of State or the Department of Revenue and doing
120business in this state.
121     2.  Payments to residents of this state in the form of
122salary, wages, or other compensation up to a maximum of $400,000
123per resident.
125For a qualified production involving an event, such as an awards
126show, qualified expenditures exclude expenditures solely
127associated with the event itself and not directly required by
128the production. A qualified production's expenditures made prior
129to certification shall not be considered qualified expenditures,
130with the exception of those incurred by a commercial, a music
131video, or the pickup of additional episodes of a television
132series within a single season.
133     (e)  "Qualified production" means a production in this
134state that meets the requirements of this section and the
135minimum qualified expenditures and requirements of its
136appropriate queue. A qualified production's combined production
137cast and below-the-line production crew positions must be filled
138by at least 50 percent Florida residents or students enrolled
139full-time in a film and entertainment-related course of study at
140a Florida institution of higher education, or a combination
141thereof. For purposes of this section, proof of Florida
142residency is a valid Florida driver's license or other state-
143issued Florida identification confirming residency in the state.
144Productions that are deemed by the Office of Film and
145Entertainment to contain obscene content as defined by the
146United States Supreme Court are not qualified productions.
147     (f)  "Certified production" means a qualified production
148that has tax credits allocated to it based on its estimated
149qualified expenditures, up to its maximum certified amount of
150tax credits, by the Office of Tourism, Trade, and Economic
151Development. A qualified production is not a certified
152production if its first day of principal photography in the
153state occurs before it is certified by the Office of Tourism,
154Trade, and Economic Development, unless it is a previously
155certified production spanning fiscal years and required to make
156an application for continuing the same production in the
157subsequent year.
158     (g)  "Qualified production company" means a corporation,
159limited liability company, partnership, or other legal entity
160engaged in producing a qualified production.
161     (h)  "Off-season certified production" means a certified
162production, other than a digital media project or an animated
163production, that films 75 percent or more of its principal
164photography days from June 1 through November 30.
166     (a)  Program application.--A qualified production company
167in this state producing a qualified production may submit a
168program application to the Office of Film and Entertainment for
169the purpose of determining qualification for an award of tax
170credits authorized by this section. The office must be provided
171information required to determine whether the production is a
172qualified production and to determine the qualified expenditures
173and other information necessary for the office to determine
174eligibility for the tax credits.
175     (b)  Required documentation.--The Office of Film and
176Entertainment shall develop a program application form for use
177in qualifying an applicant as a qualified production. The
178program application form for qualifying an applicant as a
179qualified production must include, but need not be limited to,
180production-related information on Florida resident employment, a
181detailed budget of planned qualified expenditures, and a signed
182affirmation from the applicant that the information on the
183program application form has been verified and is correct. The
184program application form shall be distributed to applicants by
185the Office of Film and Entertainment or by local film
187     (c)  Application process.--The Office of Film and
188Entertainment shall establish a process by which a program
189application is accepted and reviewed and by which tax credit
190eligibility and amount are determined. The Office of Film and
191Entertainment may request assistance from a duly appointed local
192film commission in determining qualification for the tax credit
193and compliance with the provisions of this section.
194     (d)  Certification.--Within 10 business days after receipt
195of a program application, the Office of Film and Entertainment
196shall review the application. Upon its determination that the
197program application contains all the information required by
198this subsection and meets the criteria set out in this section,
199the Office of Film and Entertainment shall qualify the applicant
200and recommend to the Office of Tourism, Trade, and Economic
201Development that the applicant be certified for the tax credit
202and suggest a maximum tax credit award amount. Within 5 business
203days after its receipt of the recommendation, the Office of
204Tourism, Trade, and Economic Development shall reject or shall
205certify the maximum recommended tax credit award, if any, to the
206applicant and to the executive director of the Department of
208     (e)  Grounds for denial.--The Office of Film and
209Entertainment shall deny an application if it determines that:
210     1.  The application is not complete or does not meet the
211requirements of this section; or
212     2.  The tax credit sought does not meet the requirements of
213this section.
214     (f)  Verification of actual qualified expenditures.--The
215Office of Film and Entertainment shall develop a process by
216which a certified production shall submit, in a timely manner
217after production ends and after making all of its qualified
218expenditures, data substantiating each qualified expenditure to
219an independent Florida-licensed certified public accountant. The
220accountant shall conduct an audit, at the certified production's
221expense, to substantiate each qualified expenditure and shall
222submit the results and all substantiating data to the Office of
223Film and Entertainment, which shall review and report to the
224Office of Tourism, Trade, and Economic Development the final
225verified amount of actual qualified expenditures made by the
226certified production. The Office of Tourism, Trade, and Economic
227Development shall then notify the executive director of the
228Department of Revenue that the certified production has met the
229requirements of the incentive program and shall recommend the
230final amount of the tax credit award.
231     (g)  Promoting Florida.--The Office of Film and
232Entertainment shall ensure that, as a condition of receiving a
233tax credit under this section, appropriate marketing materials,
234including, but not limited to, promotions of this state as a
235tourist or film and entertainment production destination, are
236included in any production when appropriate. The Office of Film
237and Entertainment may consult with promotional agencies and
238other appropriate entities for the development and
239implementation of marketing materials.
243     (a)  Tax credit authorization.--For fiscal years beginning
244on or after July 1, 2007, and ending June 30, 2010, qualified
245production is eligible for a tax credit against taxes due under
246chapter 220 or taxes collected or accrued under chapter 212.
247     (b)  Total aggregate tax credit.--The aggregate amount of
248the tax credits allowed under this section in any state fiscal
249year is a minimum of $75 million.
250     (c)  Election and distribution of tax credits.--A certified
251production company receiving a tax credit award under this
252section shall, at the time the credit is awarded by the
253Department of Revenue after production is completed and all
254requirements to receive a credit award have been met, make an
255irrevocable election to apply the credit against taxes due under
256chapter 220, against taxes collected or accrued under chapter
257212, or against a stated combination of the two taxes. The
258election shall be binding upon any distributee, successor,
259transferee, or purchaser.
260     (d)  Tax credit carryforward.--If the certified production
261company cannot use the entire tax credit in the taxable year or
262reporting period in which the credit is awarded because of
263insufficient tax liability on the part of the certified
264production, any excess amount may be carried forward to a
265succeeding taxable year or reporting period. A tax credit
266awarded under this section and applied against taxes imposed
267under chapter 212 or chapter 220 may be carried forward only for
268a maximum of 5 taxable years following the taxable year in which
269the credit was awarded, after which period the credit expires
270and may not be used.
271     (e)  Consolidated returns.--A certified production company
272that files a Florida consolidated return as a member of an
273affiliated group under s. 220.131(1) may be allowed the credit
274on a consolidated return basis up to the amount of the tax
275imposed upon the consolidated group under chapter 220.
276     (f)  Partnership and noncorporate distributions.--A
277qualified production company that is not a corporation as
278defined in s. 220.03 may elect to distribute tax credits awarded
279under this section to its partners or members in proportion to
280their respective distributive income or loss in the taxable
281fiscal year in which the tax credits were awarded.
282     (g)  Mergers or acquisitions.--Tax credits available under
283this section to a certified production company may succeed to a
284surviving or acquiring entity subject to the same conditions and
285limitations as described in this section; however, they may not
286be transferred again by the surviving or acquiring entity.
288     (a)  Authorization.--Upon application to the Office of Film
289and Entertainment and approval by the Office of Tourism, Trade,
290and Economic Development, a certified production company may
291elect to transfer, in whole or in part, any unused credit amount
292granted under this section. An election to transfer any unused
293tax credit amount under chapter 212 must be made at the time the
294tax credit is awarded. An election to transfer any unused tax
295credit amount under chapter 220 must be made no later than 5
296years from the date the credit was awarded, after which period
297the credit expires and may not be used. The Office of Tourism,
298Trade, and Economic Development shall notify the Department of
299Revenue of the election and transfer.
300     (b)  Number of transfers permitted.--A certified production
301company that has elected to apply a credit amount against taxes
302remitted under chapter 212 is permitted a one-time transfer of
303that amount to one transferee. A certified production company
304that has elected to apply a credit amount against taxes due
305under chapter 220 is permitted a one-time transfer of that
306amount to no more than three transferees, and such transfers
307shall occur in the same taxable year.
308     (c)  Minimum consideration.--The transfer of any amount of
309the tax credit shall not be exchanged for consideration received
310by the certified production of less than 75 percent of the
311transferred amount of the tax credit.
312     (d)  Transferee rights and limitations.--The transferee is
313subject to the same rights and limitations as the certified
314production company awarded the tax credit, except that the
315transferee may not sell or otherwise transfer the tax credit.
316     (e)  Film education.--
317     1.  A recipient of any transferred tax credit under this
318subsection shall pay an amount equal to 5 percent of the total
319amount paid for the tax credit as a film education grant,
320divided equally between the following two programs:
321     a.  One-half of the total film education grant shall be
322paid into the Grants and Donations Trust Fund under s.
32314.2015(2)(f) administered by the Office of Tourism, Trade, and
324Economic Development and applied by the Office of Film and
325Entertainment for the purpose described in s. 288.1256.
326     b.  One-half of the total film education grant shall be
327paid directly to an Office of Film and Entertainment-approved
328film program at a Florida institution of higher education to be
329applied as a grant toward production costs for a student-made
331     2.  The Office of Film and Entertainment shall ensure that
332the transferee has made full cash payment of the film education
333grant before the Office of Tourism, Trade, and Economic
334Development approves the tax credit transfer.
335     3.  An affiliated recipient company of a transferred tax
336credit by a certified production shall not be subject to this
337subsection, nor shall certified productions in the independent
338Florida filmmaker queue.
339     (f)  Rulemaking.--The Department of Revenue may adopt rules
340pursuant to ss. 120.536(1) and 120.54 to administer this
341subsection, as provided in subsection (7).
344     (a)  Tax credit priority.--Eligibility of a qualified
345production for a tax credit award shall be determined on a
346first-come, first-served basis within its appropriate queue. A
347qualified production shall be placed into the appropriate queue
348and subject to the requirements of that queue.
349     (b)  Withdrawal of tax credit eligibility.--A qualified or
350certified production shall continue on a reasonable schedule,
351which means opening its production office in the state no sooner
352than 30 calendar days before and no later than 30 days after the
353date provided in the production's program application, and
354beginning principal photography in the state no sooner than 30
355calendar days before and no later than 30 days after the date
356provided in the production's program application. The Office of
357Tourism, Trade, and Economic Development shall withdraw the
358eligibility of a qualified or certified production that does not
359continue on a reasonable schedule and recertify the tax credits
360to the next qualified or certified production or productions in
361the respective queue that have not been certified for their full
362maximum award and have not started principal photography before
363the tax credits become available.
364     (c)  Queues.--
365     1.  General production queue.--
366     a.  A qualified production, excluding commercials, music
367videos, and digital media projects, that demonstrates a minimum
368of $625,000 in total qualified expenditures shall be eligible
369for tax credits equal to 15 percent of its actual qualified
370expenditures up to a maximum of $8 million. A qualified
371production spanning state fiscal years may combine qualified
372expenditures from both state fiscal years to satisfy the
374     b.  A qualified production company that produces national
375or regional commercials, music videos, or both may be eligible
376for a tax credit award if it demonstrates a minimum of $100,000
377in qualified expenditures per national or regional commercial or
378music video and exceeds a combined threshold of $500,000 after
379combining actual qualified expenditures from qualified
380commercials, music videos, or both during a single state fiscal
381year. The maximum tax credit award shall be equal to 15 percent
382of its actual qualified expenditures up to a maximum of
383$500,000. After a qualified production company that produces
384commercials, music videos, or both reaches the threshold of
385$500,000, it shall be eligible to apply for certification for a
386tax credit award.
387     c.  At least 85 percent of all tax credits available under
388this section in any state fiscal year shall be dedicated to this
390     d.  An off-season certified production in this queue shall
391be eligible for an additional 5-percent tax credit on actual
392qualified expenditures. An off-season certified production that
393does not complete 75 percent of principal photography as a
394result of a hurricane or tropical storm disruption shall not be
395disqualified from eligibility for the additional 5-percent
396credit as a result of the disruption.
397     e.  If the total amount of tax credits certified to this
398queue exceeds the aggregate amount of the tax credits authorized
399annually, such excess shall be treated as having been applied
400for on the first day of the next state fiscal year in which tax
401credits remain available for allocation to this queue.
402     f.  A certified production within this queue that spans
403state fiscal years shall have all qualified expenditures
404certified for the state fiscal year in which the last actual
405qualified expenditure is anticipated to be made.
406     g.  A qualified production in this queue shall make a good
407faith effort to utilize Florida's existing infrastructure of
408equipment providers, including camera gear, grip and lighting
409equipment, vehicle providers, and post-production services when
410available in-state.
411     2.  Independent Florida filmmaker queue.--An independent
412Florida film that meets the criteria of this queue and
413demonstrates a minimum of $100,000, but not more than $625,000,
414in total qualified expenditures shall be eligible for tax
415credits equal to 15 percent of its actual qualified
416expenditures. Five percent of all tax credits available under
417this section in any state fiscal year shall be dedicated to this
418queue, but not more than $2 million in any state fiscal year. To
419qualify for this queue, a qualified production must:
420     a.  Be planned as a feature film or documentary of no less
421than 70 minutes in length.
422     b.  Provide evidence of 50 percent of the financing for its
423total budget in an escrow account or other form dedicated to the
425     c.  Do all major post-production in this state.
426     d.  Employ Florida workers in at least six of the following
427eight key positions:
428     (I)  Writer.
429     (II)  Director.
430     (III)  Producer.
431     (IV)  Director of Photography.
432     (V)  Star or one of the lead actors.
433     (VI)  Unit Production Manager.
434     (VII)  Editor.
435     (VIII)  Production Designer.
437For purposes of this sub-subparagraph, a "Florida worker" means
438a person who has been a resident of this state for at least 1
439year prior to a production's application or a person who is
440attending a Florida film school or Florida college, university,
441or community college full-time or has graduated from such
442school, college, university, or community college within 5 years
443prior to the production's application.
444     3.  Digital media projects queue.--A qualified production
445that is a digital media project that demonstrates a minimum of
446$300,000 in total qualified expenditures shall be eligible for a
447tax credit equal to 10 percent of its actual qualified
448expenditures up to a maximum of $1 million. Ten percent of all
449tax credits available under this section in any state fiscal
450year shall be dedicated to this queue.
451     a.  For purposes of this subparagraph, "qualified
452expenditures" are the wages or salaries paid to Florida resident
453labor working on a single qualified digital media project, up to
454a maximum of $200,000 in wages or salaries paid per resident of
455this state.
456     b.  A qualified production company producing digital media
457projects may not qualify for more than three projects in any one
458fiscal year. Projects that extend beyond a fiscal year must
459reapply each fiscal year in order to be eligible for a tax
460credit award for that year.
462     (a)  The Office of Tourism, Trade, and Economic Development
463may adopt rules pursuant to ss. 120.536(1) and 120.54 and
464develop policies and procedures to implement and administer this
465section, including, but not limited to, rules specifying
466requirements for the application and approval process, records
467required for substantiation for tax credits, procedures for
468making the election in paragraph (4)(c), and the manner and form
469of documentation required to claim tax credits awarded or
470transferred under this section, determination of, qualification
471for, and certification for tax credits, implementation of the
472Florida Graduate Film Investment Fund in s. 288.1256, and
473marketing requirements for tax credit recipients.
474     (b)  The Department of Revenue may adopt rules pursuant to
475ss. 120.536(1) and 120.54 to administer this section, including
476rules governing the examination and audit procedures required to
477administer this section and the manner and form of documentation
478required to claim tax credits awarded or transferred under this
482     (a)  Audit authority.--The Department of Revenue may
483conduct examinations and audits as provided in s. 213.34 to
484verify that tax credits under this section have been received,
485transferred, and applied according to the requirements of this
486section. This information is subject to the confidentiality
487requirements of chapter 213. If the Department of Revenue
488determines that tax credits have not been received, transferred,
489or applied as required by this section, it may, in addition to
490the remedies provided in this subsection, pursue recovery of
491such funds pursuant to the laws and rules governing the
492assessment of taxes.
493     (b)  Revocation of tax credits.--The Office of Tourism,
494Trade, and Economic Development may revoke or modify any written
495decision qualifying, certifying, or otherwise granting
496eligibility for tax credits under this section if it is
497discovered that the tax credit applicant submitted any false
498statement, representation, or certification in any application,
499record, report, plan, or other document filed in an attempt to
500receive tax credits under this section. The Office of Film and
501Entertainment shall immediately notify the Department of Revenue
502of any revoked or modified orders affecting previously granted
503tax credits. Additionally, the taxpayer must notify the
504Department of Revenue of any change in its tax credit claimed.
505     (c)  Forfeiture of tax credits.--A determination by the
506Department of Revenue, as a result of an audit or examination by
507the Department of Revenue or from information received from the
508Office of Film and Entertainment, that a taxpayer received tax
509credits pursuant to this section to which the taxpayer was not
510entitled is grounds for forfeiture of previously claimed and
511received tax credits. The taxpayer is responsible for returning
512forfeited tax credits to the Department of Revenue, and such
513funds shall be paid into the General Revenue Fund of the state.
514In the event the credit provided for under this section is
515reduced as a result of an examination or audit by the Department
516of Revenue, the tax deficiency shall be recovered from the first
517entity or the surviving or acquiring entity to have claimed the
518credit up to the amount of the credit taken. Any subsequent
519deficiencies shall be assessed against any entity acquiring and
520claiming the credit or, in the case of multiple succeeding
521entities, in the order of tax credit succession.
522     (d)  Fraudulent claims.--Any applicant who submits
523information under this section that includes fraudulent
524information is liable for reimbursement of the reasonable costs
525and fees associated with the review, processing, investigation,
526and prosecution of the fraudulent claim. An eligible entity,
527qualified production company, or certified production that
528obtains a credit payment under this section through a claim that
529is fraudulent is liable for reimbursement of the credit amount
530claimed plus a penalty in an amount double the credit amount
531claimed and reimbursement of reasonable costs, which penalty is
532in addition to any criminal penalty to which the eligible
533entity, qualified production company, or certified production is
534liable for the same acts. The entity or company is also liable
535for costs and fees incurred by the state in investigating and
536prosecuting the fraudulent claim.
537     (9)  ANNUAL REPORT.--The Office of Film and Entertainment
538shall provide an annual report for the previous fiscal year, due
539October 1, to the Governor, the President of the Senate, and the
540Speaker of the House of Representatives outlining the return on
541investment to the state on funds expended pursuant to this
543     (10)  REPEAL.--This section is repealed July 1, 2010,
544except that the tax credit carryforward provided in this section
545shall continue to be valid for the period specified.
546     Section 2.  Section 288.1256, Florida Statutes, is created
547to read:
548     288.1256  Florida Graduate Film Investment Fund.--
549     (1)  The Office of Film and Entertainment shall create and
550administer a program, using moneys deposited into the Office of
551Tourism, Trade, and Economic Development's Grants and Donations
552Trust Fund pursuant to s. 288.1254(5)(e), to award either a
553grant or a loan guarantee for films that are:
554     (a)  Written, produced, and directed by Florida residents
555who are graduates of an Office of Film and Entertainment
556approved film program at a Florida institution of higher
557education; and
558     (b)  Determined by the Commissioner of Film and
559Entertainment, with the advice of the Florida Film and
560Entertainment Advisory Council, to be family friendly based on
561the review of the script and a personal interview with the
563     (2)  Films that are deemed by the Office of Film and
564Entertainment to contain obscene content as defined by the
565United States Supreme Court are not eligible for this program.
566     Section 3.  Paragraph (j) is added to subsection (5) of
567section 288.1252, Florida Statutes, to read:
568     288.1252  Florida Film and Entertainment Advisory Council;
569creation; purpose; membership; powers and duties.--
570     (5)  POWERS AND DUTIES.--The Florida Film and Entertainment
571Advisory Council shall have all the powers necessary or
572convenient to carry out and effectuate the purposes and
573provisions of this act, including, but not limited to, the power
575     (j)  Advise whether a film produced under s. 288.1256 meets
576the criteria delineated in that section.
577     Section 4.  Subsection (8) of section 220.02, Florida
578Statutes, is amended to read:
579     220.02  Legislative intent.--
580     (8)  It is the intent of the Legislature that credits
581against either the corporate income tax or the franchise tax be
582applied in the following order: those enumerated in s. 631.828,
583those enumerated in s. 220.191, those enumerated in s. 220.181,
584those enumerated in s. 220.183, those enumerated in s. 220.182,
585those enumerated in s. 220.1895, those enumerated in s. 221.02,
586those enumerated in s. 220.184, those enumerated in s. 220.186,
587those enumerated in s. 220.1845, those enumerated in s. 220.19,
588those enumerated in s. 220.185, those enumerated in s. 220.187,
589those enumerated in s. 220.192, and those enumerated in s.
590220.193, and those enumerated in s. 288.1254.
591     Section 5.  Paragraph (z) is added to subsection (8) of
592section 213.053, Florida Statutes, to read:
593     213.053  Confidentiality and information sharing.--
594     (8)  Notwithstanding any other provision of this section,
595the department may provide:
596     (z)  Information relative to tax credits taken under s.
597288.1254 to the Office of Film and Entertainment and the Office
598of Tourism, Trade, and Economic Development.
600Disclosure of information under this subsection shall be
601pursuant to a written agreement between the executive director
602and the agency. Such agencies, governmental or nongovernmental,
603shall be bound by the same requirements of confidentiality as
604the Department of Revenue. Breach of confidentiality is a
605misdemeanor of the first degree, punishable as provided by s.
606775.082 or s. 775.083.
607     Section 6.  Paragraph (q) is added to subsection (5) of
608section 212.08, Florida Statutes, to read:
609     212.08  Sales, rental, use, consumption, distribution, and
610storage tax; specified exemptions.--The sale at retail, the
611rental, the use, the consumption, the distribution, and the
612storage to be used or consumed in this state of the following
613are hereby specifically exempt from the tax imposed by this
616     (q)  Entertainment industry tax credit; requirement for
617electronic funds transfer.--
618     1.  For the fiscal years beginning July 1, 2007, and ending
619June 30, 2010, a qualified production, as defined in s.
620288.1254(2)(e), is eligible for tax credits against its state
621sales and use tax liabilities as provided in s. 288.1254.
622     2.  The credit shall be deducted from any sales and use tax
623remitted by the dealer to the department by electronic funds
624transfer and can only be deducted on a sales and use tax return
625initiated through electronic data interchange. The dealer shall
626separately state the credit on the electronic return. The net
627amount of tax due and payable must be remitted by electronic
628funds transfer. If the credit for the qualified expenditures is
629larger than the amount owed on the sales and use tax return, the
630amount of the credit may be carried forward to a succeeding
631reporting period. A dealer may only obtain a credit using the
632method described in this subparagraph. A dealer is not
633authorized to obtain a credit by applying for a refund.
634     Section 7.  Section 288.1255, Florida Statutes, is
636     Section 8.  This act shall take effect July 1, 2007.

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