| 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 |
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| 61 | Be It Enacted by the Legislature of the State of Florida: |
| 62 |
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| 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. |