1 | A bill to be entitled |
2 | An act relating to insurance premium and corporate income |
3 | tax credits; creating part XII of ch. 288, F.S., |
4 | consisting of ss. 288.991 and 288.992, F.S.; providing |
5 | definitions; providing that taxpayers who hold a qualified |
6 | equity investment on a credit allowance date of the |
7 | investment are entitled to a nonrefundable, |
8 | nontransferable tax credit for the taxable year in which |
9 | the credit allowance date falls; providing for calculating |
10 | the amount of the tax credit; limiting the amount of the |
11 | tax credit that may be redeemed in a fiscal year; |
12 | authorizing a taxpayer to carryover any amount of the tax |
13 | credit that the taxpayer is prohibited from redeeming in a |
14 | taxable year to any subsequent taxable year; providing for |
15 | the redemption of tax credits earned by certain business |
16 | entities and by the partners, members, or shareholders of |
17 | those entities; authorizing the Office of Tourism, Trade, |
18 | and Economic Development to qualify equity investments as |
19 | eligible for tax credits; providing an application |
20 | process; requiring a fee; requiring the office to limit |
21 | the monetary amount of qualified equity investments to a |
22 | level necessary to limit the use of tax credits to a |
23 | specified amount in each fiscal year; providing a basis |
24 | for such limitation; authorizing the office to adjust tax |
25 | credits under certain circumstances; requiring |
26 | certifications to be accompanied by audited financial |
27 | statements and other information; requiring taxpayers to |
28 | make an election as to the taxes to which to apply the |
29 | credit; requiring the office to order and the Department |
30 | of Revenue to recapture tax credits from certain taxpayers |
31 | under certain circumstances; requiring the office to |
32 | administer the allocation of tax credits for certain |
33 | qualified investments in a specified manner; requiring |
34 | certain community development entities to report certain |
35 | information to the office; requiring the office to file |
36 | annual reports on certain community investments; |
37 | authorizing the office to conduct examinations and audits |
38 | to verify receipt and application of tax credits; |
39 | authorizing the department to pursue recovery of certain |
40 | funds; providing notice requirements; providing annual |
41 | reporting requirements for community development entities; |
42 | requiring the office to file annual reports on certain |
43 | investments; authorizing the office to conduct |
44 | examinations to verify receipt and application of tax |
45 | credits; authorizing the office to revoke or modify |
46 | certain decisions relating to eligibility for tax credits |
47 | under certain circumstances; providing for liability for |
48 | certain costs and fees relating to investigations of |
49 | fraudulent claims; providing for taxpayer liability for |
50 | reimbursement of fraudulently claimed tax credits; |
51 | providing a penalty; providing application; requiring the |
52 | office and department to adopt rules; providing for future |
53 | repeal; amending s. 213.053, F.S.; providing for |
54 | disclosure of certain tax credit information to the Office |
55 | of Tourism, Trade, and Economic Development for certain |
56 | purpose; amending s. 220.02, F.S.; revising legislative |
57 | intent with respect to the order of tax credits to |
58 | conform; amending s. 220.13, F.S.; revising a definition |
59 | to conform; providing an effective date. |
60 |
|
61 | Be It Enacted by the Legislature of the State of Florida: |
62 |
|
63 | Section 1. Part XII of chapter 288, Florida Statutes, |
64 | consisting of sections 288.991 and 288.992, is created to read: |
65 | 288.991 New Markets Tax Credit Act.--This part may be |
66 | cited as the "New Markets Tax Credit Act." |
67 | 288.992 New markets tax credit.-- |
68 | (1) DEFINITIONS.--As used in this section, the term: |
69 | (a) "Adjusted purchase price" means the product of the |
70 | amount paid at issuance for a qualified equity investment and a |
71 | fraction the numerator of which is the dollar amount of |
72 | qualified low-income community investments in this state made |
73 | with the proceeds of the issuance of the qualified equity |
74 | investment and held by the qualified community development |
75 | entity on the applicable credit allowance date and the |
76 | denominator of which is the total dollar amount of qualified |
77 | low-income community investments made with the proceeds of the |
78 | issuance of the qualified equity investment held by the |
79 | qualified community development entity on such date. |
80 | (b) "Credit allowance date" means: |
81 | 1. The first anniversary of the date on which any |
82 | qualified equity investment is initially made; and |
83 | 2. Each of the five subsequent anniversaries of such date. |
84 | (c) "Long-term debt security" means any debt instrument |
85 | issued by a qualified community development entity, at par value |
86 | or a premium, having an original maturity date of at least 7 |
87 | years after the date of its issuance, with no acceleration of |
88 | repayment, amortization, or prepayment features before its |
89 | original maturity date, and having no distribution, payment, or |
90 | interest features related to the profitability of the qualified |
91 | community development entity or the performance of the qualified |
92 | community development entity's investment portfolio. This |
93 | paragraph does not limit the holder's ability to accelerate |
94 | payments on the debt instrument in situations in which the |
95 | qualified community development entity has defaulted on |
96 | covenants designed to ensure compliance with this section or s. |
97 | 45D of the Internal Revenue Code of 1986, as amended. |
98 | (d) "Low-income community" means any population census |
99 | tract within this state for which: |
100 | 1. The federal individual poverty rate of such tract is at |
101 | least 20 percent; or |
102 | 2.a. In the case of a tract not located within a |
103 | metropolitan area, the median family income for such tract does |
104 | not exceed 80 percent of statewide median family income; or |
105 | b. In the case of a tract located within a metropolitan |
106 | area, the median family income for such a tract does not exceed |
107 | 80 percent of the greater of statewide median family income or |
108 | the metropolitan area median income. |
109 | (e) "Qualified active low-income community business" has |
110 | the same meaning as in s. 45D of the Internal Revenue Code of |
111 | 1986, as amended, provided the term "qualified active low-income |
112 | community business" does not include any trade or business: |
113 | 1. That derives or projects to derive 15 percent or more |
114 | of its annual revenue from the rental or sale of real estate; |
115 | 2. That consists predominantly of the development or |
116 | holding of intangibles for sale or license; |
117 | 3. That consists of the operation of any private or |
118 | commercial golf course, country club, massage parlor, hot tub |
119 | facility, tanning facility, racetrack or other facility used for |
120 | gambling, or any store the principal business of which is the |
121 | sale of alcoholic beverages for consumption off premises; or |
122 | 4. The principal activity of which is farming if the sum |
123 | of the aggregate unadjusted bases or, if greater, the fair |
124 | market value of the assets owned by the business that are used |
125 | in such trade or business and the aggregate value of the assets |
126 | leased by the business used in such trade or business exceeds |
127 | $500,000. For the purposes of this paragraph, two or more trades |
128 | or businesses will be treated as a single trade or business. |
129 | (f) "Qualified community development entity" means any |
130 | entity that has been certified as a qualified community |
131 | development entity by the Community Development Financial |
132 | Institutions Fund of the United States Treasury Department |
133 | pursuant to s. 45D of the Internal Revenue Code of 1986, as |
134 | amended, whose certification has not been revoked and who has |
135 | entered into an allocation agreement with the Community |
136 | Development Financial Institutions Fund with respect to tax |
137 | credits authorized by s. 45D of the Internal Revenue Code of |
138 | 1986, as amended. |
139 | (g) "Qualified equity investment" means any equity |
140 | investment or long-term debt security issued by a qualified |
141 | community development entity that: |
142 | 1. Is acquired on or after July 1, 2007, at its original |
143 | issuance solely in exchange for cash; |
144 | 2. Has at least 85 percent of its cash purchase price used |
145 | by the qualified community development entity to make qualified |
146 | low-income community investments within the 12-month period |
147 | beginning on the date the cash is paid by the taxpayer to the |
148 | community development entity; and |
149 | 3. Is certified by the Office of Tourism, Trade, and |
150 | Economic Development as a qualified equity investment pursuant |
151 | to this section. |
152 | (h) "Qualified low-income community investment" means any |
153 | capital or equity investment in or loan to any qualified active |
154 | low-income community business made after July 1, 2007. With |
155 | respect to any one qualified active low-income community |
156 | business, the maximum amount of debt or equity issued by it, on |
157 | a collective basis with all of its affiliates, that may be |
158 | included in the calculation of any numerator described in |
159 | paragraph (1)(a) shall be $10 million, whether such investments |
160 | are issued to one or more qualified community development |
161 | entities. |
162 | (i) "Office" means the Office of Tourism, Trade, and |
163 | Economic Development. |
164 | (2) AUTHORIZATION OF TAX CREDITS.-- |
165 | (a) A taxpayer holding a qualified equity investment on a |
166 | credit allowance date of such qualified equity investment shall |
167 | be entitled to a tax credit against the taxes imposed by s. |
168 | 220.11 or s. 624.509 during the tax year that includes the |
169 | credit allowance date. The tax credit amount is equal to 8.33 |
170 | percent of the adjusted purchase price of the qualified equity |
171 | investment. |
172 | (b) A taxpayer may not redeem any portion of such tax |
173 | credit in any tax year that exceeds the taxpayer's state tax |
174 | liability for such tax year. Any amount of the tax credit that |
175 | the taxpayer is so prohibited from redeeming in a tax year may |
176 | be carried forward for use in any subsequent tax year; however, |
177 | all unused tax credits shall expire on December 31, 2028. |
178 | (c) The taxpayer's cash investment received by the |
179 | community development entity is treated as invested in a |
180 | qualified low-income community investment only to the extent |
181 | that the cash is so invested within the 12-month period |
182 | beginning on the date the cash is paid by the taxpayer to the |
183 | community development entity. |
184 | (d) A tax credit authorized under this section is not |
185 | refundable or transferable. However, if a qualified equity |
186 | investment is transferred, the tax credits for future credit |
187 | allowance dates, if any, shall transfer with the qualified |
188 | equity investment. Credit amounts, including any carryover |
189 | amounts, from credit allowance dates prior to the date of |
190 | transfer do not transfer with the qualified equity investment. |
191 | Tax credits earned by a partnership, limited liability company, |
192 | S corporation, or other pass-through entity may be allocated to |
193 | the partners, members, or shareholders of such entity for their |
194 | direct redemption in accordance with the provisions of any |
195 | agreement among the partners, members, or shareholders. |
196 | (3) DESIGNATION OF QUALIFIED EQUITY INVESTMENTS.-- |
197 | (a) Any qualified community development entity that |
198 | desires to have an equity investment or long-term debt security |
199 | designated as a qualified equity investment and eligible for tax |
200 | credits under this section shall apply to the office. The |
201 | qualified community development entity shall file an application |
202 | on a form which the office may prescribe by rule, which shall |
203 | include, but not be limited to, the following: |
204 | 1. The name, address, tax identification number of the |
205 | entity, and evidence of the entity's certification as a |
206 | qualified community development entity by the Community |
207 | Development Financial Institutions Fund of the United States |
208 | Department of Treasury. |
209 | 2. A copy of an allocation agreement executed by the |
210 | qualified community development entity and the Community |
211 | Development Financial Institutions Fund with respect to an |
212 | allocation of tax credits under s. 45D of the Internal Revenue |
213 | Code of 1986, as amended. |
214 | 3. A certificate, executed by an executive of the |
215 | qualified community development entity, attesting that such |
216 | allocation agreement remains in effect and has not been revoked |
217 | or cancelled by the Community Development Financial Institutions |
218 | Fund. |
219 | 4. A description of the proposed amount, structure, and |
220 | purchaser of the equity investment or long-term debt security. |
221 | 5. The name and tax identification number of any person or |
222 | entity that will be eligible to redeem tax credits earned as a |
223 | result of the issuance of the qualified equity investment. |
224 | 6. Information regarding the proposed use of proceeds from |
225 | the issuance of the qualified equity investment, which shall |
226 | include the types of qualified active low-income community |
227 | businesses that will be funded and an estimate of the percentage |
228 | of qualified low-income community investments that will be made |
229 | in the state with the proceeds of the qualified equity |
230 | investment. In addition, the entity shall submit a nonrefundable |
231 | application fee of $1,000 to the office in connection with each |
232 | application filed with the office. |
233 | 7. A statement setting forth the applicant's plans for the |
234 | development of relationships with community-based organizations, |
235 | local community development offices and organizations, and |
236 | economic development organizations, as well as any steps the |
237 | community development entity has taken to implement these |
238 | relationships. |
239 | (b) Within 30 days after receipt of a completed |
240 | application containing all information necessary for the office |
241 | to certify a potential qualified equity investment, including |
242 | payment of the application fee, the office shall grant or deny |
243 | the application in full or in part. If the office denies any |
244 | part of the application, it shall inform the qualified community |
245 | development entity of the grounds for the denial. If the |
246 | qualified community development entity provides any additional |
247 | information required by the office or otherwise completes its |
248 | application within 15 days' notice of denial, the application |
249 | shall be considered completed as of its original date of |
250 | submission. If the qualified community development entity fails |
251 | to provide such information or complete its application within |
252 | this 15-day period, the application will remain denied and will |
253 | be required to be resubmitted in full with a new submission |
254 | date. |
255 | (c) If an application is deemed complete by the office, it |
256 | shall certify the proposed equity investment or long-term debt |
257 | security as a qualified equity investment and eligible for tax |
258 | credits under this section. The office shall provide written |
259 | notice of that certification to the qualified community |
260 | development entity and the Department of Revenue. The written |
261 | notice shall include the maximum amount of tax credits that may |
262 | be earned as a result of the issuance of the qualified equity |
263 | investment, which shall be calculated with reference to the |
264 | percentage of qualified low-income community investments |
265 | estimated to be made in this state by the qualified community |
266 | development entity in its application, and the names of those |
267 | taxpayers who are eligible to redeem the credits and their |
268 | respective credit amounts. The office shall certify qualified |
269 | equity investments in the order which applications for their |
270 | certification are received. Any applications received on the |
271 | same day shall be deemed to have been received simultaneously. |
272 | (d) Once the office has certified qualified equity |
273 | investments on a cumulative basis that are eligible for $105 |
274 | million in tax credits, of which no more than $15 million may be |
275 | claimed per state fiscal year, exclusive of tax credits carried |
276 | forward, and on or after June 30, 2014, the office may not |
277 | certify any more qualified equity investments. Tax credits |
278 | subject to appropriations in any year must be approved and |
279 | enacted by the Legislature. If a pending request for |
280 | certification of a qualified equity investment can be partially |
281 | certified but not fully certified because of the application of |
282 | this section, the office shall certify that portion of the |
283 | qualified equity investment that may be certified unless the |
284 | qualified community development entity elects to withdraw its |
285 | request rather than receive partial credits. |
286 | (e) Within 30 days' notice of certification from the |
287 | office, the qualified community development entity must issue |
288 | the qualified equity investment and receive cash in the amount |
289 | of the certified amount. The qualified community development |
290 | entity shall provide the office with evidence of the receipt of |
291 | the investment within 10 business days after its receipt. If the |
292 | qualified community development entity does not issue the |
293 | qualified equity investment and receive the cash investment |
294 | within the 30 days after receipt of the certification notice, |
295 | the certification shall lapse and the qualified community |
296 | development entity shall no longer be entitled to issue such |
297 | qualified equity investment without reapplying to the office for |
298 | certification. Any certifications that lapse pursuant to the |
299 | preceding sentence shall revert back to the office and may be |
300 | reissued in accordance with the application process outlined in |
301 | this section. |
302 | (f) On the date on which a qualified equity investment is |
303 | initially made, the purchaser thereof shall make an election to |
304 | apply the credit against taxes due under chapter 220 or chapter |
305 | 624 or against a stated combination of the two taxes and shall |
306 | provide notice of such election to the office and Department of |
307 | Revenue. A purchaser, subsequent holder of the qualified equity |
308 | investment, or member, partner, or shareholder of the holder who |
309 | is eligible to take the credit may not alter this election |
310 | without prior notice to and approval by the Department of |
311 | Revenue. |
312 | (4) ANNUAL CALCULATION OF CREDIT.-- |
313 | (a) Within 30 days after each credit allowance date, each |
314 | qualified community development entity shall submit to the |
315 | office the following with respect to each qualified equity |
316 | investment issued by it, including, but not limited to: |
317 | 1. A listing, certified by an executive officer of the |
318 | qualified community development entity, of all qualified low- |
319 | income community investments made by the qualified community |
320 | development entity with the proceeds of a qualified equity |
321 | investment and held as of the credit allowance date, which shall |
322 | include the name of each qualified active low-income business |
323 | funded, the location of the principal office of each such |
324 | business, the type of business and the amount of the qualified |
325 | low-income community investment in each such business, and the |
326 | total of qualified low-income community investments by all |
327 | community development entities in each such business. |
328 | 2. Bank records, wire transfer records, or other similar |
329 | documents that reflect the investments listed in subparagraph 1. |
330 | 3. A calculation certified by the chief financial officer |
331 | or accounting officer of the qualified community development |
332 | entity of the amount of qualified low-income community |
333 | investments in this state made with the proceeds of the issuance |
334 | of the qualified equity investment held by the qualified |
335 | community development entity as of the credit allowance date and |
336 | the total qualified low-income community investments made with |
337 | the proceeds of the issuance of the qualified equity investment |
338 | held by the qualified community development entity on the credit |
339 | allowance date. In making this calculation, an investment in |
340 | this state shall be deemed to be held by a qualified community |
341 | development entity, even if the investment has been sold or |
342 | repaid, if the qualified community development entity reinvests |
343 | an amount equal to the capital returned to or recovered from the |
344 | original investment, exclusive of any profits realized, in |
345 | another qualified low-income community investment in this state |
346 | within 12 months after receipt of such capital. A qualified |
347 | community development entity is not required to reinvest capital |
348 | returned from qualified low-income community investments after |
349 | the sixth anniversary of the issuance of the qualified equity |
350 | investment for which the proceeds were used to make the |
351 | qualified low-income community investment. The qualified low- |
352 | income community investment shall be deemed to be held by the |
353 | qualified community development entity through the seventh |
354 | anniversary of the qualified equity investment's issuance. |
355 | 4. An attestation from the qualified community development |
356 | entity's chief financial or accounting officer that no |
357 | redemption or principal payment was made with respect to the |
358 | qualified equity investment since the previous credit allowance |
359 | date. |
360 | 5. Any information with respect to a recapture of the |
361 | federal tax credits available with respect to a qualified equity |
362 | investment that the qualified community development entity has |
363 | received since the prior credit allowance date. |
364 | (b) Within 20 days after receipt of the information listed |
365 | in paragraph (a), the office shall certify in writing to the |
366 | qualified community development entity and to the Department of |
367 | Revenue the amount of credit that is eligible for use for such |
368 | credit allowance date. The notice shall include a listing of |
369 | those taxpayers that are eligible to redeem the tax credit for |
370 | such credit allowance date. |
371 | (5) AUDIT AND RECAPTURE.-- |
372 | (a) A qualified community development entity that receives |
373 | an annual allocation of tax credits in an amount equal to or in |
374 | excess of $500,000 shall be treated as a recipient pursuant to |
375 | s. 215.97(2) and required to participate in a state single audit |
376 | pursuant to the provisions of s. 215.97. In addition to the |
377 | financial reporting package required therein, the audit shall |
378 | attest to the qualified community development entity's adherence |
379 | to the performance conditions enumerated in this section as they |
380 | relate to the potential for recapture of the tax credit required |
381 | by paragraph (b). The office shall be deemed the state awarding |
382 | agency and state coordinating agency pursuant to s. 215.97(2). |
383 | Taxpayers that are not qualified community development entities |
384 | shall not be treated as subrecipients pursuant to s. 215.97(2) |
385 | or otherwise required to participate in the state single audit |
386 | program as a result of their receipt of tax credits that were |
387 | allocated to the qualified community development entity since |
388 | such persons do not control adherence to the performance |
389 | standards of this program. |
390 | (b) The office shall order recapture of any tax credit |
391 | allowed under this section with respect to a qualified equity |
392 | investment if: |
393 | 1. Any amount of the federal tax credit available with |
394 | respect to a qualified equity investment that is eligible for a |
395 | tax credit under this section is recaptured under s. 45D of the |
396 | Internal Revenue Code of 1986, as amended; |
397 | 2. The qualified community development entity redeems or |
398 | makes any principal repayment with respect to a qualified equity |
399 | investment before the seventh anniversary of the issuance of the |
400 | qualified equity investment; |
401 | 3. The qualified community development entity fails to |
402 | maintain at least 85 percent of the proceeds of the qualified |
403 | equity investment in qualified low-income community investments |
404 | at any time before the seventh anniversary of the issuance of |
405 | the qualified equity investment and remains in compliance with |
406 | subparagraph (1)(g)2.; |
407 | 4. The qualified community development entity fails to |
408 | provide to the office and the Department of Revenue any of the |
409 | information or reports required by this section; or |
410 | 5. The office determines, as a result of a state single |
411 | audit or an examination by the office, that a taxpayer received |
412 | tax credits pursuant to this section to which the taxpayer was |
413 | not entitled. |
414 | (c) The office shall provide notice to the qualified |
415 | community development entity and to the Department of Revenue of |
416 | any proposed recapture of tax credits pursuant to this section. |
417 | The qualified community development entity shall have 90 days to |
418 | cure any deficiency indicated in the office's original recapture |
419 | notice and avoid such recapture. If the qualified community |
420 | development entity fails or is unable to cure such deficiency |
421 | within such 90-day period, the office shall provide the |
422 | qualified community development entity and the Department of |
423 | Revenue with a final order of recapture. The qualified community |
424 | development entity shall be responsible for providing copies of |
425 | such final order of recapture to persons owning the tax credits |
426 | at issue. |
427 | (d) Any tax credit for which a final recapture order has |
428 | been issued shall be recaptured by the Department of Revenue |
429 | from the taxpayer who claimed the tax credit on a tax return, or |
430 | in the case of multiple succeeding entities, in the order of tax |
431 | credit succession, and such funds shall be paid into the General |
432 | Revenue Fund. Such action by the Department of Revenue shall not |
433 | constitute an audit or otherwise alter the Department of |
434 | Revenue's ability to audit the taxpayer. |
435 | (6) ANNUAL REPORTING.--Within 120 days after the end of a |
436 | calendar year which includes a credit allowance date, each |
437 | community development entity that has an equity investment or |
438 | long-term debt security certified as a qualified equity |
439 | investment under this section shall provide the office, but |
440 | shall not be limited to: |
441 | (a)1. Annual financial statements of the qualified |
442 | community development entity for the immediately preceding |
443 | calendar year, audited by an firm of independent certified |
444 | public accountants. |
445 | 2. Using the North American Industry Classification System |
446 | Code, the types of businesses funded, the counties where the |
447 | qualified active low-income community businesses are located, |
448 | the dollars invested, and the number of jobs created and |
449 | retained by qualified active low-income businesses funded, in a |
450 | form satisfactory to the office. |
451 | 3. A statement detailing a description of the |
452 | relationships the community development entity has established |
453 | with community-based organizations, local community development |
454 | offices and organizations, and economic development |
455 | organizations and a summary of the outcomes resulting from those |
456 | relationships. |
457 | (b) The office shall file an annual report on all |
458 | qualified low-income community investments made in this state |
459 | with the proceeds of qualified equity investments that includes |
460 | relevant statistics from the North American Industry |
461 | Classification System Code, the county or counties where the |
462 | qualified low-income community investments are located, the |
463 | dollars invested, the number of jobs created and retained by |
464 | business in which qualified low-income community investments |
465 | have been made, and the value of applicable state tax credits |
466 | claimed the latest year for which such information is available. |
467 | The office shall submit a copy to the Governor, the President of |
468 | the Senate, and the Speaker of the House of Representatives each |
469 | July 1, beginning in 2009, and also may post the annual report |
470 | on the office's website. |
471 | (7) EXAMINATION.-- |
472 | (a) The office may conduct examinations to verify that tax |
473 | credits under this section have been received and applied |
474 | according to the requirements of this section and to verify |
475 | information provided by qualified community development entities |
476 | to the office. |
477 | (b) The office may revoke or modify any written decision |
478 | qualifying, certifying, or otherwise granting eligibility for |
479 | tax credits under this section if it is discovered that the |
480 | qualified community development entity submitted any false |
481 | statement, representation, or certification in any application, |
482 | record, report, plan, or other document filed in an attempt to |
483 | receive tax credits under this section. |
484 | (c) Any qualified community development entity that |
485 | submits information under this section that includes fraudulent |
486 | information is liable for reimbursement of the reasonable costs |
487 | and fees associated with the review, processing, investigation, |
488 | and prosecution of the fraudulent claim plus a penalty in an |
489 | amount double the credit amount certified and claimed by the |
490 | holders of its qualified equity investments, which penalty is in |
491 | addition to any criminal penalty to which the taxpayer is liable |
492 | for the same acts. |
493 | (8) APPLICATION.--This section does not apply for any |
494 | fiscal year unless funds sufficient to offset the tax credits to |
495 | be allocated by the Department of Revenue have been appropriated |
496 | from the General Revenue Fund for that fiscal year. |
497 | (9) RULEMAKING AUTHORITY.-- |
498 | (a) The office may adopt rules pursuant to ss. 120.536(1) |
499 | and 120.54 to implement the provisions of this section. |
500 | (b) The Department of Revenue may adopt rules pursuant to |
501 | ss. 120.536(1) and 120.54 to implement the provisions of this |
502 | section. |
503 | (10) REPEAL.--This section is repealed December 31, 2028. |
504 | Section 2. Subsection (19) is added to section 213.053, |
505 | Florida Statutes, to read: |
506 | 213.053 Confidentiality and information sharing.-- |
507 | (19) Information relative to tax credits taken by a |
508 | taxpayer under s. 288.992 may be disclosed to the Office of |
509 | Tourism, Trade, and Economic Development, or its employees or |
510 | agents that are identified in writing by the office to the |
511 | department, for use in performance of their official duties. The |
512 | office shall be bound by the same requirements of |
513 | confidentiality as the department. |
514 | Section 3. Subsection (8) of section 220.02, Florida |
515 | Statutes, is amended to read: |
516 | 220.02 Legislative intent.-- |
517 | (8) It is the intent of the Legislature that credits |
518 | against either the corporate income tax or the franchise tax be |
519 | applied in the following order: those enumerated in s. 631.828, |
520 | those enumerated in s. 220.191, those enumerated in s. 220.181, |
521 | those enumerated in s. 220.183, those enumerated in s. 220.182, |
522 | those enumerated in s. 220.1895, those enumerated in s. 221.02, |
523 | those enumerated in s. 220.184, those enumerated in s. 220.186, |
524 | those enumerated in s. 220.1845, those enumerated in s. 220.19, |
525 | those enumerated in s. 220.185, those enumerated in s. 220.187, |
526 | those enumerated in s. 220.192, and those enumerated in s. |
527 | 220.193, and those enumerated in s. 288.992. |
528 | Section 4. Paragraph (a) of subsection (1) of section |
529 | 220.13, Florida Statutes, is amended to read: |
530 | 220.13 "Adjusted federal income" defined.-- |
531 | (1) The term "adjusted federal income" means an amount |
532 | equal to the taxpayer's taxable income as defined in subsection |
533 | (2), or such taxable income of more than one taxpayer as |
534 | provided in s. 220.131, for the taxable year, adjusted as |
535 | follows: |
536 | (a) Additions.--There shall be added to such taxable |
537 | income: |
538 | 1. The amount of any tax upon or measured by income, |
539 | excluding taxes based on gross receipts or revenues, paid or |
540 | accrued as a liability to the District of Columbia or any state |
541 | of the United States which is deductible from gross income in |
542 | the computation of taxable income for the taxable year. |
543 | 2. The amount of interest which is excluded from taxable |
544 | income under s. 103(a) of the Internal Revenue Code or any other |
545 | federal law, less the associated expenses disallowed in the |
546 | computation of taxable income under s. 265 of the Internal |
547 | Revenue Code or any other law, excluding 60 percent of any |
548 | amounts included in alternative minimum taxable income, as |
549 | defined in s. 55(b)(2) of the Internal Revenue Code, if the |
550 | taxpayer pays tax under s. 220.11(3). |
551 | 3. In the case of a regulated investment company or real |
552 | estate investment trust, an amount equal to the excess of the |
553 | net long-term capital gain for the taxable year over the amount |
554 | of the capital gain dividends attributable to the taxable year. |
555 | 4. That portion of the wages or salaries paid or incurred |
556 | for the taxable year which is equal to the amount of the credit |
557 | allowable for the taxable year under s. 220.181. This |
558 | subparagraph shall expire on the date specified in s. 290.016 |
559 | for the expiration of the Florida Enterprise Zone Act. |
560 | 5. That portion of the ad valorem school taxes paid or |
561 | incurred for the taxable year which is equal to the amount of |
562 | the credit allowable for the taxable year under s. 220.182. This |
563 | subparagraph shall expire on the date specified in s. 290.016 |
564 | for the expiration of the Florida Enterprise Zone Act. |
565 | 6. The amount of emergency excise tax paid or accrued as a |
566 | liability to this state under chapter 221 which tax is |
567 | deductible from gross income in the computation of taxable |
568 | income for the taxable year. |
569 | 7. That portion of assessments to fund a guaranty |
570 | association incurred for the taxable year which is equal to the |
571 | amount of the credit allowable for the taxable year. |
572 | 8. In the case of a nonprofit corporation which holds a |
573 | pari-mutuel permit and which is exempt from federal income tax |
574 | as a farmers' cooperative, an amount equal to the excess of the |
575 | gross income attributable to the pari-mutuel operations over the |
576 | attributable expenses for the taxable year. |
577 | 9. The amount taken as a credit for the taxable year under |
578 | s. 220.1895. |
579 | 10. Up to nine percent of the eligible basis of any |
580 | designated project which is equal to the credit allowable for |
581 | the taxable year under s. 220.185. |
582 | 11. The amount taken as a credit for the taxable year |
583 | under s. 220.187. |
584 | 12. The amount taken as a credit for the taxable year |
585 | under s. 220.192. |
586 | 13. The amount taken as a credit for the taxable year |
587 | under s. 220.193. |
588 | 14. Any portion of a qualified equity investment, as |
589 | defined in s. 288.992(1)(g), that has been claimed as a |
590 | deduction by the taxpayer for purposes of computing the |
591 | taxpayer's net income. |
592 | Section 5. This act shall take effect July 1, 2007, and |
593 | shall apply to tax years ending after December 31, 2007. |