CS/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 a
16total 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 purchaser 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)  "Certified production" means a qualified production
72that has tax credits allocated to it based on its estimated
73qualified expenditures, up to its maximum certified amount of
74tax credits, by the Office of Tourism, Trade, and Economic
75Development. A qualified production is not a certified
76production if its first day of principal photography in the
77state occurs before it is certified by the Office of Tourism,
78Trade, and Economic Development, unless it is a previously
79certified production spanning fiscal years and required to make
80an application for continuing the same production in the
81subsequent year.
82     (b)  "Digital media project" means a production of
83interactive entertainment, including a video game, simulation,
84or animation, including a production intended for Internet or
85wireless distribution, that is produced for commercial or
86educational distribution. The term "digital media project" does
87not include a production deemed by the Office of Film and
88Entertainment to contain obscene content as defined in s.
90     (c)  "High-impact television series" means a production
91created to run multiple production seasons with an estimated
92order of at least seven episodes per season and qualified
93expenditures of at least $625,000 per episode.
94     (d)  "Off-season certified production" means a certified
95production, other than a digital media project or an animated
96production, that films 75 percent or more of its principal
97photography days from June 1 through November 30.
98     (e)  "Production" means a theatrical or direct-to-video
99motion picture, a made-for-television motion picture, a
100commercial, a music video, an industrial or educational film, an
101infomercial, a documentary film, a television pilot, a
102presentation for a television pilot, a television series,
103including, but not limited to, a drama, a reality, a comedy, a
104soap opera, a telenovela, a game show, miniseries production, or
105a digital media project by the entertainment industry. One
106season of a television series is considered one production. The
107term "production" does not include a weather or market program,
108a sporting event, a sports show, a gala, a production that
109solicits funds, a home shopping program, a political program, a
110political documentary, political advertising, a gambling-related
111project or production, a concert production, or a local,
112regional, or Internet-only news show, current events show, or
113current affairs show. A production may be produced on or by
114film, tape, or otherwise and produced by means of a motion
115picture camera, electronic camera or device, tape device,
116computer, any combination of the foregoing, or any other means,
117method, or device now used or that may hereafter be adopted.
118     (f)  "Production expenditures" means the costs of tangible
119and intangible property used and services performed primarily
120and customarily in the production, including pre-production and
121post-production, excluding development, marketing, and
122distribution costs. Production expenditures generally include,
123but are not limited to:
124     1.  Wages, salaries, or other compensation, including
125amounts paid through payroll service companies, for technical
126and production crews, directors, producers, and performers.
127     2.  Expenditures for sound stages, backlots, production
128editing, digital effects, sound recordings, sets, and set
130     3.  Expenditures for rental equipment, including, but not
131limited to, cameras and grip or electrical equipment.
132     4.  Expenditures for meals, travel, and accommodations.
133     (g)  "Qualified expenditures" means production expenditures
134incurred in this state by a qualified production for the
136     1.  Goods purchased or leased from, or services provided
137by, a Florida vendor or supplier who is registered with the
138Department of State or the Department of Revenue and doing
139business in this state.
140     2.  Payments to residents of this state in the form of
141salary, wages, or other compensation up to a maximum of $400,000
142per resident for the general production queue and the
143independent Florida filmmaker queue and up to a maximum of
144$200,000 for the digital media queue.
146For a qualified production involving an event, such as an awards
147show, qualified expenditures exclude expenditures solely
148associated with the event itself and not directly required by
149the production. A qualified production's expenditures made prior
150to certification shall not be considered qualified expenditures,
151with the exception of those incurred by a commercial, a music
152video, or the pickup of additional episodes of a television
153series within a single season.
154     (h)  "Qualified production" means a production in this
155state that meets the requirements of this section and the
156minimum qualified expenditures and requirements of its
157appropriate queue. A qualified production's combined production
158cast and below-the-line production crew positions must be filled
159by at least 50 percent Florida residents or students enrolled
160full-time in a film and entertainment-related course of study at
161a Florida institution of higher education, or a combination
162thereof. For purposes of this section, proof of Florida
163residency is a valid Florida driver's license or other state-
164issued Florida identification confirming residency in the state.
165Productions that are deemed by the Office of Film and
166Entertainment to contain obscene content as defined in s.
167847.001(10) are not qualified productions.
168     (i)  "Qualified production company" means a corporation,
169limited liability company, partnership, or other legal entity
170engaged in producing a qualified production.
172     (a)  Program application.--A qualified production company
173in this state producing a qualified production may submit a
174program application to the Office of Film and Entertainment for
175the purpose of determining qualification for an award of tax
176credits authorized by this section no earlier than 1 year before
177the anticipated production start date. The office must be
178provided information required to determine whether the
179production is a qualified production and to determine the
180qualified expenditures and other information necessary for the
181office to determine eligibility for the tax credits.
182     (b)  Required documentation.--The Office of Film and
183Entertainment shall develop a program application form for use
184in qualifying an applicant as a qualified production. The
185program application form for qualifying an applicant as a
186qualified production must include, but need not be limited to,
187production-related information on Florida resident employment, a
188detailed budget of planned qualified expenditures, and a signed
189affirmation from the applicant that the information on the
190program application form has been verified and is correct. The
191program application form shall be distributed to applicants by
192the Office of Film and Entertainment or by local film
194     (c)  Application process.--The Office of Film and
195Entertainment shall establish a process by which a program
196application is accepted and reviewed and by which tax credit
197eligibility and amount are determined. The Office of Film and
198Entertainment may request assistance from a duly appointed local
199film commission in determining qualification for the tax credit
200and compliance with the provisions of this section.
201     (d)  Certification.--Within 10 business days after receipt
202of a program application, the Office of Film and Entertainment
203shall review the application and upon its determination that the
204program application contains all the information required by
205this subsection and meets the criteria set out in this section,
206the Office of Film and Entertainment shall qualify the applicant
207and recommend to the Office of Tourism, Trade, and Economic
208Development that the applicant be certified for the tax credit
209and suggest a maximum tax credit award amount. Within 5 business
210days after its receipt of the recommendation, the Office of
211Tourism, Trade, and Economic Development shall reject or shall
212certify the maximum recommended tax credit award, if any, to the
213applicant and to the executive director of the Department of
215     (e)  Grounds for denial.--The Office of Film and
216Entertainment shall deny an application if it determines that:
217     1.  The application is not complete or does not meet the
218requirements of this section; or
219     2.  The tax credit sought does not meet the requirements of
220this section.
221     (f)  Verification of actual qualified expenditures.--The
222Office of Film and Entertainment shall develop a process by
223which a certified production shall submit, in a timely manner
224after production ends and after making all of its qualified
225expenditures, data substantiating each qualified expenditure to
226an independent Florida-licensed certified public accountant. The
227accountant shall conduct an audit, at the certified production's
228expense, to substantiate each qualified expenditure and shall
229submit the results and all substantiating data to the Office of
230Film and Entertainment, which shall review and report to the
231Office of Tourism, Trade, and Economic Development the final
232verified amount of actual qualified expenditures made by the
233certified production. The Office of Tourism, Trade, and Economic
234Development shall then notify the executive director of the
235Department of Revenue that the certified production has met the
236requirements of the incentive program and shall approve the
237final amount of the tax credit award. The Office of Tourism,
238Trade, and Economic Development shall award all tax credits for
239the previous fiscal year by September 30.
240     (g)  Promoting Florida.--The Office of Film and
241Entertainment shall ensure that, as a condition of receiving a
242tax credit under this section, marketing materials promoting
243this state as a tourist destination or film and entertainment
244production destination are included, when appropriate, at no
245cost to the state, which shall include, at a minimum, placement
246in the end credits of a Filmed in Florida logo, the look and
247content of which shall be developed and supplied by the Office
248of Film and Entertainment, with size and placement commensurate
249to other logos included in the end credits. If no logos are
250used, the end credits shall include "Filmed in Florida utilizing
251Florida's Entertainment Industry Financial Incentive" or a
252similar statement preapproved by the Office of Film and
257     (a)  Tax credit authorization.--For fiscal years beginning
258on or after July 1, 2007, and ending June 30, 2010, a qualified
259production is eligible for a tax credit against taxes due under
260chapter 220 or taxes collected or accrued under chapter 212.
261     (b)  Total tax credit.--The total amount of tax credits
262allowed under this section is $75 million. The tax credits
263available for each fiscal year shall be as follows: 40 percent
264of the total for fiscal year 2007-2008, 50 percent of the total
265for fiscal year 2008-2009, and the remainder of the total for
266fiscal year 2009-2010. In any fiscal year, tax credits that are
267not awarded or that are forfeited due to withdrawal of a
268certified production or to a production's actual qualified
269expenditures being less than the certified amount shall be
270available for award in subsequent fiscal years.
271     (c)  Election and distribution of tax credits.--A certified
272production company receiving a tax credit award under this
273section shall, at the time the credit is awarded by the Office
274of Tourism, Trade, and Economic Development after production is
275completed and all requirements to receive a credit award have
276been met, make an irrevocable election to apply the credit
277against taxes due under chapter 220, against taxes collected or
278accrued under chapter 212, or against a stated combination of
279the two taxes. The election shall be binding upon any
280distributee, successor, transferee, or purchaser.
281     (d)  Tax credit carryforward.--If the certified production
282company cannot use the entire tax credit in the taxable year or
283reporting period in which the credit is awarded because of
284insufficient tax liability on the part of the certified
285production, any excess amount may be carried forward to a
286succeeding taxable year or reporting period. A tax credit
287awarded under this section and applied against taxes imposed
288under chapter 212 or chapter 220 may be carried forward for a
289maximum of 5 taxable years following the taxable year in which
290the credit was awarded, after which period the credit expires
291and may not be used.
292     (e)  Consolidated returns.--A certified production company
293that files a Florida consolidated return as a member of an
294affiliated group under s. 220.131(1) may be allowed the credit
295on a consolidated return basis up to the amount of the tax
296imposed upon the consolidated group under chapter 220.
297     (f)  Partnership and noncorporate distributions.--A
298qualified production company that is not a corporation as
299defined in s. 220.03 may elect to distribute tax credits awarded
300under this section to its partners or members in proportion to
301their respective distributive income or loss in the taxable
302fiscal year in which the tax credits were awarded.
303     (g)  Mergers or acquisitions.--Tax credits available under
304this section to a certified production company may succeed to a
305surviving or acquiring entity subject to the same conditions and
306limitations as described in this section; however, they may not
307be transferred again by the surviving or acquiring entity.
309     (a)  Authorization.--Upon application to the Office of Film
310and Entertainment and approval by the Office of Tourism, Trade,
311and Economic Development, a certified production company may
312elect to transfer, in whole or in part, any unused credit amount
313granted under this section. An election to transfer any unused
314tax credit amount under chapter 212 or chapter 220 must be made
315no later than 5 years from the date the credit was awarded,
316after which period the credit expires and may not be used. The
317Office of Tourism, Trade, and Economic Development shall notify
318the Department of Revenue of the election and transfer.
319     (b)  Number of transfers permitted.--A certified production
320company that has elected to apply a credit amount against taxes
321remitted under chapter 212 is permitted a one-time transfer of
322unused credits to one transferee. A certified production company
323that has elected to apply a credit amount against taxes due
324under chapter 220 is permitted a one-time transfer of unused
325credits to no more than four transferees, and such transfers
326shall occur in the same taxable year.
327     (c)  Minimum consideration.--The transfer or purchase of
328any amount of the tax credit shall not be exchanged for less
329than 75 percent of the credit's value.
330     (d)  Transferee rights and limitations.--The transferee is
331subject to the same rights and limitations as the certified
332production company awarded the tax credit, except that the
333transferee may not sell or otherwise transfer the tax credit.
334     (e)  Written contractual notice.--No more than 5 business
335days prior to the certified production company's election to
336transfer its awarded tax credit, the Office of Film and
337Entertainment shall receive written contractual notice, on a
338form approved by the Office of Tourism, Trade, and Economic
339Development and signed by both the certified production and the
340transferee, describing the terms of the transfer and the
341intention of any purchaser to allocate payment for the film
342education program under paragraph (f) at the time the transfer
343is made.
344     (f)  Film education fee.--
345     1.  A purchaser of any transferred tax credit under this
346subsection shall pay an amount equal to 5 percent of the total
347amount paid for the tax credit into the Grants and Donations
348Trust Fund under s. 14.2015(2)(f) administered by the Office of
349Tourism, Trade, and Economic Development for film education
350programs. The fees collected under this paragraph shall be
351subject to specific appropriation by the Legislature.
352     a.  Fifty percent of the fee collected under this paragraph
353shall be made available to the Office of Film and Entertainment
354for the purpose described in s. 288.1256.
355     b.  Fifty percent of the fee collected under this paragraph
356shall be transferred and provided to film and digital media
357programs at Florida institutions of higher education approved by
358the Office of Film and Entertainment to be applied as a grant
359toward production costs for a student-made production. To be
360eligible for this grant, a student-made production may not
361contain obscene content as defined in s. 847.001(10). The
362recipient of the transfer may choose the approved film or
363digital media program to receive these funds.
364     2.  This paragraph shall not apply to the transfer of tax
365credits to an investor, an investment company, or an affiliated
366company of the certified production.
367     (g)  Rulemaking.--The Department of Revenue may adopt rules
368pursuant to ss. 120.536(1) and 120.54 to administer this
369subsection, as provided in subsection (7).
372     (a)  Tax credit priority.--Eligibility of a qualified
373production for a tax credit award shall be determined on a
374first-come, first-served basis within its appropriate queue. A
375qualified production shall be placed into the appropriate queue
376and subject to the requirements of that queue.
377     (b)  Withdrawal of tax credit eligibility.--A qualified or
378certified production shall continue on a reasonable schedule,
379which means beginning principal photography in the state no
380sooner than 45 calendar days before and no later than 45
381calendar days after the date provided in the production's
382program application. The Office of Tourism, Trade, and Economic
383Development shall withdraw the eligibility of a qualified or
384certified production that does not continue on a reasonable
385schedule and recertify the tax credits to the next qualified or
386certified production or productions in the respective queue that
387have not been certified for their full maximum award and have
388not started principal photography before the tax credits become
390     (c)  Queues.--
391     1.  General production queue.--
392     a.  A qualified production, excluding commercials, music
393videos, and digital media projects, that demonstrates a minimum
394of $625,000 in total qualified expenditures shall be eligible
395for tax credits equal to 15 percent of its actual qualified
396expenditures up to a maximum of $8 million. A qualified
397production spanning state fiscal years may combine qualified
398expenditures from state fiscal years to satisfy the threshold.
399     b.  A qualified production company that produces national
400or regional commercials, music videos, or both may be eligible
401for a tax credit award if it demonstrates a minimum of $100,000
402in qualified expenditures per national or regional commercial or
403music video and exceeds a combined threshold of $500,000 after
404combining actual qualified expenditures from qualified
405commercials, music videos, or both during a single state fiscal
406year. After a qualified production company that produces
407commercials, music videos, or both reaches the threshold of
408$500,000, it shall be eligible to apply for certification for a
409tax credit award. The maximum tax credit award shall be equal to
41015 percent of its actual qualified expenditures up to a maximum
411of $500,000.
412     c.  Eighty-five percent of all tax credits available under
413this section in any state fiscal year shall be dedicated to this
415     d.  An off-season certified production in this queue shall
416be eligible for an additional 5-percent tax credit on actual
417qualified expenditures. An off-season certified production that
418does not complete 75 percent of principal photography as a
419result of a hurricane or tropical storm disruption shall not be
420disqualified from eligibility for the additional 5-percent
421credit as a result of the disruption.
422     e.  A certified production within this queue that spans
423state fiscal years shall have all qualified expenditures
424certified for the state fiscal year in which the last actual
425qualified expenditure is anticipated to be made.
426     f.  A qualified production in this queue shall make a good
427faith effort to utilize Florida's existing infrastructure of
428equipment providers, including camera gear, grip and lighting
429equipment, vehicle providers, and post-production services when
430available in-state.
431     g.  A qualified high-impact television series shall be
432allowed first position in this queue for tax credits not yet
434     2.  Independent Florida filmmaker queue.--An independent
435Florida film that meets the criteria of this queue and
436demonstrates a minimum of $100,000, but not more than $625,000,
437in total qualified expenditures shall be eligible for tax
438credits equal to 15 percent of its actual qualified
439expenditures. Five percent of all tax credits available under
440this section in any state fiscal year shall be dedicated to this
441queue. To qualify for this queue, a qualified production must:
442     a.  Be planned as a feature film or documentary of no less
443than 70 minutes in length.
444     b.  Provide evidence of 50 percent of the financing for its
445total budget in an escrow account or other form dedicated to the
447     c.  Do all major post-production in this state.
448     d.  Employ Florida workers in at least six of the following
449eight key positions:
450     (I)  Writer.
451     (II)  Director.
452     (III)  Producer.
453     (IV)  Director of Photography.
454     (V)  Star or one of the lead actors.
455     (VI)  Unit Production Manager.
456     (VII)  Editor.
457     (VIII)  Production Designer.
459For purposes of this sub-subparagraph, a "Florida worker" means
460a person who has been a resident of this state for at least 1
461year prior to a production's application or a person who is
462attending a Florida film school or Florida college, university,
463or community college full-time or has graduated from such
464school, college, university, or community college within 5 years
465prior to the production's application. Projects that extend
466beyond a fiscal year must reapply each fiscal year in order to
467be eligible for a tax credit award for that year.
468     3.  Digital media projects queue.--A qualified production
469that is a digital media project that demonstrates a minimum of
470$300,000 in total qualified expenditures shall be eligible for a
471tax credit equal to 10 percent of its actual qualified
472expenditures up to a maximum of $1 million. Ten percent of all
473tax credits available under this section in any state fiscal
474year shall be dedicated to this queue.
475     a.  For purposes of this subparagraph, "qualified
476expenditures" are the wages or salaries paid to Florida resident
477labor working on a single qualified digital media project.
478     b.  A qualified production company producing digital media
479projects may not qualify for more than three projects in any one
480fiscal year. Projects that extend beyond a fiscal year must
481reapply each fiscal year in order to be eligible for a tax
482credit award for that year.
484     (a)  The Office of Tourism, Trade, and Economic Development
485may adopt rules pursuant to ss. 120.536(1) and 120.54 and
486develop policies and procedures to implement and administer this
487section, including, but not limited to, rules specifying
488requirements for the application and approval process, records
489required for substantiation for tax credits, procedures for
490making the election in paragraph (4)(c), and the manner and form
491of documentation required to claim tax credits awarded or
492transferred under this section, determination of, qualification
493for, and certification for tax credits, implementation of the
494Florida Graduate Film Investment Fund in s. 288.1256, and
495marketing requirements for tax credit recipients.
496     (b)  The Department of Revenue may adopt rules pursuant to
497ss. 120.536(1) and 120.54 to administer this section, including
498rules governing the examination and audit procedures required to
499administer this section and the manner and form of documentation
500required to claim tax credits awarded or transferred under this
504     (a)  Audit authority.--The Department of Revenue may
505conduct examinations and audits as provided in s. 213.34 to
506verify that tax credits under this section have been received,
507transferred, and applied according to the requirements of this
508section. This information is subject to the confidentiality
509requirements of chapter 213. If the Department of Revenue
510determines that tax credits have not been received, transferred,
511or applied as required by this section, it may, in addition to
512the remedies provided in this subsection, pursue recovery of
513such funds pursuant to the laws and rules governing the
514assessment of taxes.
515     (b)  Revocation of tax credits.--The Office of Tourism,
516Trade, and Economic Development may revoke or modify any written
517decision qualifying, certifying, or otherwise granting
518eligibility for tax credits under this section if it is
519discovered that the tax credit applicant submitted any false
520statement, representation, or certification in any application,
521record, report, plan, or other document filed in an attempt to
522receive tax credits under this section. The Office of Film and
523Entertainment shall immediately notify the Department of Revenue
524of any revoked or modified orders affecting previously granted
525tax credits. Additionally, the applicant must notify the
526Department of Revenue of any change in its tax credit claimed.
527     (c)  Forfeiture of tax credits.--A determination by the
528Department of Revenue, as a result of an audit or examination by
529the Department of Revenue or from information received from the
530Office of Film and Entertainment, that an applicant received tax
531credits pursuant to this section to which the applicant was not
532entitled is grounds for forfeiture of previously claimed and
533received tax credits. The applicant is responsible for returning
534forfeited tax credits to the Department of Revenue, and such
535funds shall be paid into the General Revenue Fund of the state.
536Tax credits purchased in good faith are not subject to
537forfeiture unless the transferee submitted fraudulent
538information in the purchase or failed to meet the requirements
539in subsection (5).
540     (d)  Fraudulent claims.--Any applicant that submits
541information under this section that includes fraudulent
542information is liable for reimbursement of the reasonable costs
543and fees associated with the review, processing, investigation,
544and prosecution of the fraudulent claim. An applicant that
545obtains a credit payment under this section through a claim that
546is fraudulent is liable for reimbursement of the credit amount
547claimed plus a penalty in an amount double the credit amount
548claimed and reimbursement of reasonable costs, which penalty is
549in addition to any criminal penalty to which the applicant is
550liable for the same acts. The applicant is also liable for costs
551and fees incurred by the state in investigating and prosecuting
552the fraudulent claim.
553     (9)  ANNUAL REPORT.--The Office of Film and Entertainment
554shall provide an annual report for the previous fiscal year, due
555October 1, to the Governor, the President of the Senate, and the
556Speaker of the House of Representatives outlining the return on
557investment to the state on funds expended pursuant to this
559     (10)  REPEAL.--This section is repealed July 1, 2010,
560except that the tax credit carryforward provided in this section
561shall continue to be valid for the period specified.
562     Section 2.  Section 288.1256, Florida Statutes, is created
563to read:
564     288.1256  Florida Graduate Film Investment Fund.--
565     (1)  The Office of Film and Entertainment shall create and
566administer a program, using moneys deposited into the Office of
567Tourism, Trade, and Economic Development's Grants and Donations
568Trust Fund pursuant to s. 288.1254(5)(f), to award either a
569grant or a loan guarantee for films that are:
570     (a)  Written, produced, and directed by Florida residents
571who are graduates of an Office of Film and Entertainment
572approved film program at a Florida institution of higher
573education; and
574     (b)  Determined by the Commissioner of Film and
575Entertainment, with the advice of the Florida Film and
576Entertainment Advisory Council, to be family friendly based on
577the review of the script and a personal interview with the
578director. Family-friendly productions are those that have cross-
579generational appeal; would be considered suitable for viewing by
580children age 5 and older; are appropriate in theme, content, and
581language for a broad family audience; embody a responsible
582resolution of issues; and do not exhibit any act of smoking,
583sex, nudity, or vulgar or profane language.
584     (2)  Films that are deemed by the Office of Film and
585Entertainment to contain obscene content as defined in s.
586847.001(10) are not eligible for this program.
587     Section 3.  Paragraph (j) is added to subsection (5) of
588section 288.1252, Florida Statutes, to read:
589     288.1252  Florida Film and Entertainment Advisory Council;
590creation; purpose; membership; powers and duties.--
591     (5)  POWERS AND DUTIES.--The Florida Film and Entertainment
592Advisory Council shall have all the powers necessary or
593convenient to carry out and effectuate the purposes and
594provisions of this act, including, but not limited to, the power
596     (j)  Advise whether a film produced under s. 288.1256 meets
597the criteria delineated in that section.
598     Section 4.  Subsection (8) of section 220.02, Florida
599Statutes, is amended to read:
600     220.02  Legislative intent.--
601     (8)  It is the intent of the Legislature that credits
602against either the corporate income tax or the franchise tax be
603applied in the following order: those enumerated in s. 631.828,
604those enumerated in s. 220.191, those enumerated in s. 220.181,
605those enumerated in s. 220.183, those enumerated in s. 220.182,
606those enumerated in s. 220.1895, those enumerated in s. 221.02,
607those enumerated in s. 220.184, those enumerated in s. 220.186,
608those enumerated in s. 220.1845, those enumerated in s. 220.19,
609those enumerated in s. 220.185, those enumerated in s. 220.187,
610those enumerated in s. 220.192, and those enumerated in s.
611220.193, and those enumerated in s. 288.1254.
612     Section 5.  Paragraph (z) is added to subsection (8) of
613section 213.053, Florida Statutes, to read:
614     213.053  Confidentiality and information sharing.--
615     (8)  Notwithstanding any other provision of this section,
616the department may provide:
617     (z)  Information relative to tax credits taken under s.
618288.1254 to the Office of Film and Entertainment and the Office
619of Tourism, Trade, and Economic Development.
621Disclosure of information under this subsection shall be
622pursuant to a written agreement between the executive director
623and the agency. Such agencies, governmental or nongovernmental,
624shall be bound by the same requirements of confidentiality as
625the Department of Revenue. Breach of confidentiality is a
626misdemeanor of the first degree, punishable as provided by s.
627775.082 or s. 775.083.
628     Section 6.  Paragraph (q) is added to subsection (5) of
629section 212.08, Florida Statutes, to read:
630     212.08  Sales, rental, use, consumption, distribution, and
631storage tax; specified exemptions.--The sale at retail, the
632rental, the use, the consumption, the distribution, and the
633storage to be used or consumed in this state of the following
634are hereby specifically exempt from the tax imposed by this
637     (q)  Entertainment industry tax credit; requirement for
638electronic funds transfer.--
639     1.  For the fiscal years beginning July 1, 2007, and ending
640June 30, 2010, a qualified production, as defined in s.
641288.1254(2)(h), is eligible for tax credits against its state
642sales and use tax liabilities as provided in s. 288.1254.
643     2.  The credit shall be deducted from any sales and use tax
644remitted by the dealer to the department by electronic funds
645transfer and can only be deducted on a sales and use tax return
646initiated through electronic data interchange. The dealer shall
647separately state the credit on the electronic return. The net
648amount of tax due and payable must be remitted by electronic
649funds transfer. If the credit for the qualified expenditures is
650larger than the amount owed on the sales and use tax return, the
651amount of the credit may be carried forward to a succeeding
652reporting period. A dealer may only obtain a credit using the
653method described in this subparagraph. A dealer is not
654authorized to obtain a credit by applying for a refund.
655     Section 7.  Section 288.1255, Florida Statutes, is
657     Section 8.  This act shall take effect July 1, 2007.

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