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A bill to be entitled

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An act relating to tax refunds for qualified space

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flight contractors; amending s. 288.1045, F.S.;

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including space flight contractors in the qualified

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defense contractor tax refund program; expanding the

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definition of "applicant" and "project" to include

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space flight business contracts; defining the terms

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"space flight business," "space flight business

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contract," "new space flight business contract," and

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"consolidation of a space flight business contract";

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providing that qualified defense contractors are, upon

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approval, eligible for specified tax refunds under

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certain circumstances; authorizing a qualified

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applicant to receive refunds from the account for

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certain taxes after entering into certain tax refund

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agreements; excluding certain taxes from the list of

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eligible taxes on which a refund may be based;

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expanding the requirements for an application for

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certification as a qualified defense contractor or

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space flight contractor; providing that an applicant

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may not apply for certification after a proposal has

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been submitted for a new space flight business contract

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or after the applicant has made the decision to

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consolidate an existing space flight business contract;

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requiring that an applicant establish certain

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information to qualify for review by the Office of

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Tourism, Trade, and Economic Development; requiring

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that certain types of applications contain certain

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information; requiring that the office review and

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evaluate each application based on specified criteria;

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requiring that the office forward its written findings

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regarding each application meeting certain requirements

33

to its director within a specified period; requiring

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that applications for certification based on the

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consolidation of a space flight business contract or a

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new space flight business contract be submitted to the

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office in the manner prescribed by the office;

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requiring that such contracts contain certain

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information; providing for the claiming of a tax refund

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by an applicant who has entered into a valid new space

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flight business contract or commenced the consolidation

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of a space flight business contract; prohibiting a tax

43

refund for a qualified defense contractor from being

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paid unless local financial support has been paid to

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the Economic Development Trust Fund for that refund;

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providing eligible sources of such local financial

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support; providing for certain reductions in the amount

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of such tax refunds and applicable limitations;

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providing that an applicant may not be certified after

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a specified date; deleting provisions relating to the

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submission of an annual report of the payment of

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certain tax refunds by the Office of Tourism, Trade,

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and Economic Development to the Governor, the President

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of the Senate, and the Speaker of the House of

55

Representatives; providing an effective date.

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Be It Enacted by the Legislature of the State of Florida:

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     Section 1.  Section 288.1045, Florida Statutes, is amended

60

to read:

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     288.1045 Qualified defense contractor and space flight

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contractor tax refund program.--

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     (1)  DEFINITIONS.--As used in this section:

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     (a)  "Consolidation of a Department of Defense contract"

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means the consolidation of one or more of an applicant's

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facilities under one or more Department of Defense contracts

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either from outside this state or from inside and outside this

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state, into one or more of the applicant's facilities inside this

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state.

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     (b)  "Average wage in the area" means the average of all

71

wages and salaries in the state, the county, or in the standard

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metropolitan area in which the business unit is located.

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     (c)  "Applicant" means any business entity that holds a

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valid Department of Defense contract or space flight business

75

contract, any business entity that is a subcontractor under a

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valid Department of Defense contract or space flight business

77

contract, or any business entity that holds a valid contract for

78

the reuse of a defense-related facility, including all members of

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an affiliated group of corporations as defined in s.

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220.03(1)(b).

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     (d)  "Office" means the Office of Tourism, Trade, and

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Economic Development.

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     (e)  "Department of Defense contract" means a competitively

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bid Department of Defense contract or subcontract or a

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competitively bid federal agency contract or subcontract issued

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on behalf of the Department of Defense for manufacturing,

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assembling, fabricating, research, development, or design with a

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duration of 2 or more years, but excluding any contract or

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subcontract to provide goods, improvements to real or tangible

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property, or services directly to or for any particular military

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base or installation in this state. The term includes contracts

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or subcontracts for products or services for military use or

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homeland security which contracts or subcontracts are approved by

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the United States Department of Defense, the United States

95

Department of State, or the United States Department of Homeland

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Security.

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     (f)  "New Department of Defense contract" means a Department

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of Defense contract entered into after the date application for

99

certification as a qualified applicant is made and after January

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1, 1994.

101

     (g)  "Jobs" means full-time equivalent positions, consistent

102

with the use of such terms by the Agency for Workforce Innovation

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for the purpose of unemployment compensation tax, created or

104

retained as a direct result of a project in this state. This

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number does not include temporary construction jobs involved with

106

the construction of facilities for the project.

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     (h)  "Nondefense production jobs" means employment

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exclusively for activities that, directly or indirectly, are

109

unrelated to the Department of Defense.

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     (i)  "Project" means any business undertaking in this state

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under a new Department of Defense contract, consolidation of a

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Department of Defense contract, new space flight business

113

contract, consolidation of a space flight business contract, or

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conversion of defense production jobs over to nondefense

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production jobs or reuse of defense-related facilities.

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     (j)  "Qualified applicant" means an applicant that has been

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approved by the director to be eligible for tax refunds pursuant

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to this section.

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     (k)  "Director" means the director of the Office of Tourism,

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Trade, and Economic Development.

121

     (l)  "Taxable year" means the same as in s. 220.03(1)(y).

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     (m)  "Fiscal year" means the fiscal year of the state.

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     (n)  "Business unit" means an employing unit, as defined in

124

s. 443.036, that is registered with the Agency for Workforce

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Innovation for unemployment compensation purposes or means a

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subcategory or division of an employing unit that is accepted by

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the Agency for Workforce Innovation as a reporting unit.

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     (o)  "Local financial support" means funding from local

129

sources, public or private, which is paid to the Economic

130

Development Trust Fund and which is equal to 20 percent of the

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annual tax refund for a qualified applicant. Local financial

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support may include excess payments made to a utility company

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under a designated program to allow decreases in service by the

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utility company under conditions, regardless of when application

135

is made. A qualified applicant may not provide, directly or

136

indirectly, more than 5 percent of such funding in any fiscal

137

year. The sources of such funding may not include, directly or

138

indirectly, state funds appropriated from the General Revenue

139

Fund or any state trust fund, excluding tax revenues shared with

140

local governments pursuant to law.

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     (p)  "Contract for reuse of a defense-related facility"

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means a contract with a duration of 2 or more years for the use

143

of a facility for manufacturing, assembling, fabricating,

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research, development, or design of tangible personal property,

145

but excluding any contract to provide goods, improvements to real

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or tangible property, or services directly to or for any

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particular military base or installation in this state. Such

148

facility must be located within a port, as defined in s. 313.21,

149

and have been occupied by a business entity that held a valid

150

Department of Defense contract or occupied by any branch of the

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Armed Forces of the United States, within 1 year of any contract

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being executed for the reuse of such facility. A contract for

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reuse of a defense-related facility may not include any contract

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for reuse of such facility for any Department of Defense contract

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for manufacturing, assembling, fabricating, research,

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development, or design.

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     (q)  "Local financial support exemption option" means the

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option to exercise an exemption from the local financial support

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requirement available to any applicant whose project is located

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in a county designated by the Rural Economic Development

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Initiative, if the county commissioners of the county in which

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the project will be located adopt a resolution requesting that

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the applicant's project be exempt from the local financial

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support requirement. Any applicant that exercises this option is

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not eligible for more than 80 percent of the total tax refunds

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allowed such applicant under this section.

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     (r) "Space flight business" means the manufacturing,

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processing, or assembly of space technology products, a space

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facility, space propulsion system, space vehicle, satellite, or

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station of any kind possessing the capacity for space flight, as

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defined in s. 212.02(23), or components thereof. The term also

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includes activities supporting space flight, including, but not

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limited to, vehicle launch activities, flight operations, ground

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control or ground support, and all administrative activities

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directly related thereto. The term does not include products that

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are designed or manufactured for general commercial aviation or

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other uses even though such products may also serve an incidental

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use in space applications.

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     (s) "Space flight business contract" means a competitively

180

bid federal agency contract or federal agency subcontract, an

181

awarded commercial contract, or an awarded commercial subcontract

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for space flight business having a duration of 2 years or longer.

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     (t) "New space flight business contract" means a space

184

flight business contract entered into after the date on which

185

application for certification as a qualified applicant is made

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and after January 1, 2007.

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     (u) "Consolidation of a space flight business contract"

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means the consolidation of one or more of an applicant's

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facilities, under one or more space flight business contracts,

190

from outside this state or from inside and outside this state

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into one or more of the applicant's facilities inside this state.

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     (2)  GRANTING OF A TAX REFUND; ELIGIBLE AMOUNTS.--

193

     (a)  There shall be allowed, from the Economic Development

194

Trust Fund, a refund to a qualified applicant for the amount of

195

eligible taxes certified by the director which were paid by such

196

qualified applicant. The total amount of refunds for all fiscal

197

years for each qualified applicant shall be determined pursuant

198

to subsection (3). The annual amount of a refund to a qualified

199

applicant shall be determined pursuant to subsection (5).

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     (b) Upon approval by the director, a qualified defense

201

contractor business shall be allowed tax refund payments equal to

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$3,000 multiplied by the number of jobs specified in the tax

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refund agreement under subparagraph (4)(a)1., or $6,000

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multiplied by the number of jobs if the project is located in a

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rural county or an enterprise zone. Further, a qualified defense

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contractor business shall be allowed additional tax refund

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payments equal to $1,000 multiplied by the number of jobs

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specified in the tax refund agreement under subparagraph

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(4)(a)1., if such jobs pay an annual average wage of at least 150

210

percent of the average private sector wage in the area, or $2,000

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multiplied by the number of jobs if such jobs pay an annual

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average wage of at least 200 percent of the average private

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sector wage in the area. A qualified applicant may not be

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qualified for any project to receive more than $5,000 times the

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number of jobs provided in the tax refund agreement pursuant to

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subparagraph (4)(a)1. A qualified applicant may not receive

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refunds of more than 25 percent of the total tax refunds provided

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in the tax refund agreement pursuant to subparagraph (4)(a)1. in

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any fiscal year, provided that no qualified applicant may receive

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more than $2.5 million in tax refunds pursuant to this section in

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any fiscal year.

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     (c)  A qualified applicant may not receive more than $7.5

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million in tax refunds pursuant to this section in all fiscal

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years.

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     (d)  Contingent upon an annual appropriation by the

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Legislature, the director may approve not more in tax refunds

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than the amount appropriated to the Economic Development Trust

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Fund for tax refunds, for a fiscal year pursuant to subsection

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(5) and s. 288.095.

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     (e)  For the first 6 months of each fiscal year, the

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director shall set aside 30 percent of the amount appropriated

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for refunds pursuant to this section by the Legislature to

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provide tax refunds only to qualified applicants who employ 500

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or fewer full-time employees in this state. Any unencumbered

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funds remaining undisbursed from this set-aside at the end of the

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6-month period may be used to provide tax refunds for any

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qualified applicants pursuant to this section.

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     (f)  After entering into a tax refund agreement pursuant to

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subsection (4), a qualified applicant may receive refunds from

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the Economic Development Trust Fund for the following taxes due

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and paid by the qualified applicant beginning with the

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applicant's first taxable year that begins after entering into

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the agreement:

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     1. Receive refunds from the account for corporate income

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taxes under chapter 220 due and paid by that business beginning

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with the first taxable year of the business which begins after

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entering into the agreement.

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     2. Receive refunds from the account for the following taxes

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due and paid by that business after entering into the agreement:

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     a. Taxes on sales, use, and other transactions under

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chapter 212.

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     b. Intangible personal property taxes under chapter 199.

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     c. Excise taxes on documents under chapter 201.

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     d. Ad valorem taxes paid, as defined in s. 220.03(1).

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     e. State communications services taxes administered under

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chapter 202. This sub-subparagraph does not apply to the gross

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receipts tax imposed under chapter 203 and administered under

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chapter 202 or the local communications services tax authorized

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under s. 202.19.

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     1. Taxes on sales, use, and other transactions paid

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pursuant to chapter 212.

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     2. Corporate income taxes paid pursuant to chapter 220.

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     3. Intangible personal property taxes paid pursuant to

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chapter 199.

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     4. Emergency excise taxes paid pursuant to chapter 221.

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     5. Excise taxes paid on documents pursuant to chapter 201.

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     6. Ad valorem taxes paid, as defined in s. 220.03(1)(a) on

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June 1, 1996.

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     7. State communications services taxes administered under

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chapter 202. This provision does not apply to the gross receipts

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tax imposed under chapter 203 and administered under chapter 202

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or the local communications services tax authorized under s.

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202.19.

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However, a qualified applicant may not receive a tax refund

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pursuant to this section for any amount of credit, refund, or

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exemption granted such contractor for any of such taxes. If a

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refund for such taxes is provided by the office, which taxes are

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subsequently adjusted by the application of any credit, refund,

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or exemption granted to the qualified applicant other than that

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provided in this section, the qualified applicant shall reimburse

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the Economic Development Trust Fund for the amount of such

283

credit, refund, or exemption. A qualified applicant must notify

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and tender payment to the office within 20 days after receiving a

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credit, refund, or exemption, other than that provided in this

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section. The addition of communications services taxes

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administered under chapter 202 is remedial in nature and

288

retroactive to October 1, 2001. The office may make supplemental

289

tax refund payments to allow for tax refunds for communications

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services taxes paid by an eligible qualified defense contractor

291

after October 1, 2001.

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     (g)  Any qualified applicant who fraudulently claims this

293

refund is liable for repayment of the refund to the Economic

294

Development Trust Fund plus a mandatory penalty of 200 percent of

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the tax refund which shall be deposited into the General Revenue

296

Fund. Any qualified applicant who fraudulently claims this refund

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commits a felony of the third degree, punishable as provided in

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s. 775.082, s. 775.083, or s. 775.084.

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     (h)  Funds made available pursuant to this section may not

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be expended in connection with the relocation of a business from

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one community to another community in this state unless the

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Office of Tourism, Trade, and Economic Development determines

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that without such relocation the business will move outside this

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state or determines that the business has a compelling economic

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rationale for the relocation which creates additional jobs.

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     (3)  APPLICATION PROCESS; REQUIREMENTS; AGENCY

307

DETERMINATION.--

308

     (a)  To apply for certification as a qualified applicant

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pursuant to this section, an applicant must file an application

310

with the office which satisfies the requirements of paragraphs

311

(b) and (e), paragraphs (c) and (e), or paragraphs (d) and (e),

312

or paragraphs (e) and (k). An applicant may not apply for

313

certification pursuant to this section after a proposal has been

314

submitted for a new Department of Defense contract, after the

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applicant has made the decision to consolidate an existing

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Department of Defense contract, after a proposal has been

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submitted for a new space flight business contract, after the

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applicant has made the decision to consolidate an existing space

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flight business contract in this state for which such applicant

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is seeking certification, or after the applicant has made the

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decision to convert defense production jobs to nondefense

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production jobs for which such applicant is seeking

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certification.

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     (b)  Applications for certification based on the

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consolidation of a Department of Defense contract or a new

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Department of Defense contract must be submitted to the office as

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prescribed by the office and must include, but are not limited

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to, the following information:

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     1.  The applicant's federal employer identification number,

330

the applicant's Florida sales tax registration number, and a

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notarized signature of an officer of the applicant.

332

     2.  The permanent location of the manufacturing, assembling,

333

fabricating, research, development, or design facility in this

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state at which the project is or is to be located.

335

     3.  The Department of Defense contract numbers of the

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contract to be consolidated, the new Department of Defense

337

contract number, or the "RFP" number of a proposed Department of

338

Defense contract.

339

     4.  The date the contract was executed or is expected to be

340

executed, and the date the contract is due to expire or is

341

expected to expire.

342

     5.  The commencement date for project operations under the

343

contract in this state.

344

     6.  The number of net new full-time equivalent Florida jobs

345

included in the project as of December 31 of each year and the

346

average wage of such jobs.

347

     7.  The total number of full-time equivalent employees

348

employed by the applicant in this state.

349

     8.  The percentage of the applicant's gross receipts derived

350

from Department of Defense contracts during the 5 taxable years

351

immediately preceding the date the application is submitted.

352

     9.  The number of full-time equivalent jobs in this state to

353

be retained by the project.

354

     10. The estimated amount of tax refunds to be claimed for

355

each fiscal year.

356

     10.11. A brief statement concerning the applicant's need

357

for tax refunds, and the proposed uses of such refunds by the

358

applicant.

359

     11.12. A resolution adopted by the governing board of the

360

county or municipality commissioners of the county in which the

361

project will be located, which recommends the applicant be

362

approved as a qualified applicant, and which indicates that the

363

necessary commitments of local financial support for the

364

applicant exist. Prior to the adoption of the resolution, the

365

county commission may review the proposed public or private

366

sources of such support and determine whether the proposed

367

sources of local financial support can be provided or, for any

368

applicant whose project is located in a county designated by the

369

Rural Economic Development Initiative, a resolution adopted by

370

the county commissioners of such county requesting that the

371

applicant's project be exempt from the local financial support

372

requirement.

373

     12.13. Any additional information requested by the office.

374

     (c)  Applications for certification based on the conversion

375

of defense production jobs to nondefense production jobs must be

376

submitted to the office as prescribed by the office and must

377

include, but are not limited to, the following information:

378

     1.  The applicant's federal employer identification number,

379

the applicant's Florida sales tax registration number, and a

380

notarized signature of an officer of the applicant.

381

     2.  The permanent location of the manufacturing, assembling,

382

fabricating, research, development, or design facility in this

383

state at which the project is or is to be located.

384

     3.  The Department of Defense contract numbers of the

385

contract under which the defense production jobs will be

386

converted to nondefense production jobs.

387

     4.  The date the contract was executed, and the date the

388

contract is due to expire or is expected to expire, or was

389

canceled.

390

     5.  The commencement date for the nondefense production

391

operations in this state.

392

     6.  The number of net new full-time equivalent Florida jobs

393

included in the nondefense production project as of December 31

394

of each year and the average wage of such jobs.

395

     7.  The total number of full-time equivalent employees

396

employed by the applicant in this state.

397

     8.  The percentage of the applicant's gross receipts derived

398

from Department of Defense contracts during the 5 taxable years

399

immediately preceding the date the application is submitted.

400

     9.  The number of full-time equivalent jobs in this state to

401

be retained by the project.

402

     10. The estimated amount of tax refunds to be claimed for

403

each fiscal year.

404

     10.11. A brief statement concerning the applicant's need

405

for tax refunds, and the proposed uses of such refunds by the

406

applicant.

407

     11.12. A resolution adopted by the governing board of the

408

county or municipality commissioners of the county in which the

409

project will be located, which recommends the applicant be

410

approved as a qualified applicant, and which indicates that the

411

necessary commitments of local financial support for the

412

applicant exist. Prior to the adoption of the resolution, the

413

county commission may review the proposed public or private

414

sources of such support and determine whether the proposed

415

sources of local financial support can be provided or, for any

416

applicant whose project is located in a county designated by the

417

Rural Economic Development Initiative, a resolution adopted by

418

the county commissioners of such county requesting that the

419

applicant's project be exempt from the local financial support

420

requirement.

421

     12.13. Any additional information requested by the office.

422

     (d)  Applications for certification based on a contract for

423

reuse of a defense-related facility must be submitted to the

424

office as prescribed by the office and must include, but are not

425

limited to, the following information:

426

     1.  The applicant's Florida sales tax registration number

427

and a notarized signature of an officer of the applicant.

428

     2.  The permanent location of the manufacturing, assembling,

429

fabricating, research, development, or design facility in this

430

state at which the project is or is to be located.

431

     3.  The business entity holding a valid Department of

432

Defense contract or branch of the Armed Forces of the United

433

States that previously occupied the facility, and the date such

434

entity last occupied the facility.

435

     4.  A copy of the contract to reuse the facility, or such

436

alternative proof as may be prescribed by the office that the

437

applicant is seeking to contract for the reuse of such facility.

438

     5.  The date the contract to reuse the facility was executed

439

or is expected to be executed, and the date the contract is due

440

to expire or is expected to expire.

441

     6.  The commencement date for project operations under the

442

contract in this state.

443

     7.  The number of net new full-time equivalent Florida jobs

444

included in the project as of December 31 of each year and the

445

average wage of such jobs.

446

     8.  The total number of full-time equivalent employees

447

employed by the applicant in this state.

448

     9.  The number of full-time equivalent jobs in this state to

449

be retained by the project.

450

     10. The estimated amount of tax refunds to be claimed for

451

each fiscal year.

452

     10.11. A brief statement concerning the applicant's need

453

for tax refunds, and the proposed uses of such refunds by the

454

applicant.

455

     11.12. A resolution adopted by the governing board of the

456

county or municipality commissioners of the county in which the

457

project will be located, which recommends the applicant be

458

approved as a qualified applicant, and which indicates that the

459

necessary commitments of local financial support for the

460

applicant exist. Prior to the adoption of the resolution, the

461

county commission may review the proposed public or private

462

sources of such support and determine whether the proposed

463

sources of local financial support can be provided or, for any

464

applicant whose project is located in a county designated by the

465

Rural Economic Development Initiative, a resolution adopted by

466

the county commissioners of such county requesting that the

467

applicant's project be exempt from the local financial support

468

requirement.

469

     12.13. Any additional information requested by the office.

470

     (e)  To qualify for review by the office, the application of

471

an applicant must, at a minimum, establish the following to the

472

satisfaction of the office:

473

     1.  The jobs proposed to be provided under the application,

474

pursuant to subparagraph (b)6., or subparagraph (c)6., or

475

subparagraph (k)6., must pay an estimated annual average wage

476

equaling at least 115 percent of the average wage in the area

477

where the project is to be located.

478

     2.  The consolidation of a Department of Defense contract

479

must result in a net increase of at least 25 percent in the

480

number of jobs at the applicant's facilities in this state or the

481

addition of at least 80 jobs at the applicant's facilities in

482

this state.

483

     3.  The conversion of defense production jobs to nondefense

484

production jobs must result in net increases in nondefense

485

employment at the applicant's facilities in this state.

486

     4. The Department of Defense contract or the space flight

487

business contract cannot allow the business to include the costs

488

of relocation or retooling in its base as allowable costs under a

489

cost-plus, or similar, contract.

490

     5.  A business unit of the applicant must have derived not

491

less than 60 percent of its gross receipts in this state from

492

Department of Defense contracts or space flight business

493

contracts over the applicant's last fiscal year, and must have

494

derived not less than an average of 60 percent of its gross

495

receipts in this state from Department of Defense contracts or

496

space flight business contracts over the 5 years preceding the

497

date an application is submitted pursuant to this section. This

498

subparagraph does not apply to any application for certification

499

based on a contract for reuse of a defense-related facility.

500

     6.  The reuse of a defense-related facility must result in

501

the creation of at least 100 jobs at such facility.

502

     7. The consolidation of a space flight business contract or

503

a new space flight business contract must result in net increases

504

in space flight business employment at the applicant's facilities

505

in the state.

506

     (f)  Each application meeting the requirements of paragraphs

507

(b) and (e), paragraphs (c) and (e), or paragraphs (d) and (e),

508

or paragraphs (e) and (k) must be submitted to the office for a

509

determination of eligibility. The office shall review and,

510

evaluate, and score each application based on, but not limited

511

to, the following criteria:

512

     1.  Expected contributions to the state strategic economic

513

development plan adopted by Enterprise Florida, Inc., taking into

514

account the extent to which the project contributes to the

515

state's high-technology base, and the long-term impact of the

516

project and the applicant on the state's economy.

517

     2.  The economic benefit of the jobs created or retained by

518

the project in this state, taking into account the cost and

519

average wage of each job created or retained, and the potential

520

risk to existing jobs.

521

     3.  The amount of capital investment to be made by the

522

applicant in this state.

523

     4.  The local commitment and support for the project and

524

applicant.

525

     5.  The impact of the project on the local community, taking

526

into account the unemployment rate for the county where the

527

project will be located.

528

     6.  The dependence of the local community on the defense

529

industry or space flight business.

530

     7.  The impact of any tax refunds granted pursuant to this

531

section on the viability of the project and the probability that

532

the project will occur in this state if such tax refunds are

533

granted to the applicant, taking into account the expected long-

534

term commitment of the applicant to economic growth and

535

employment in this state.

536

     8.  The length of the project, or the expected long-term

537

commitment to this state resulting from the project.

538

     (g)  The office shall forward its written findings and

539

evaluation on each application meeting the requirements of

540

paragraphs (b) and (e), paragraphs (c) and (e), or paragraphs (d)

541

and (e), or paragraphs (e) and (k) to the director within 60

542

calendar days after receipt of a complete application. The office

543

shall notify each applicant when its application is complete, and

544

when the 60-day period begins. In its written report to the

545

director, the office shall specifically address each of the

546

factors specified in paragraph (f), and shall make a specific

547

assessment with respect to the minimum requirements established

548

in paragraph (e). The office shall include in its report

549

projections of the tax refunds the applicant would be eligible to

550

receive in each fiscal year based on the creation and maintenance

551

of the net new Florida jobs specified in subparagraph (b)6.,

552

subparagraph (c)6., or subparagraph (d)7. as of December 31 of

553

the preceding state fiscal year.

554

     (h)  Within 30 days after receipt of the office's findings

555

and evaluation, the director shall issue a letter of

556

certification which either approves or disapproves an

557

application. The decision must be in writing and provide the

558

justifications for either approval or disapproval. If

559

appropriate, the director shall enter into a written agreement

560

with the qualified applicant pursuant to subsection (4).

561

     (i)  The director may not certify any applicant as a

562

qualified applicant when the value of tax refunds to be included

563

in that letter of certification exceeds the available amount of

564

authority to certify new businesses as determined in s.

565

288.095(3). A letter of certification that approves an

566

application must specify the maximum amount of a tax refund that

567

is to be available to the contractor for each fiscal year and the

568

total amount of tax refunds for all fiscal years.

569

     (j)  This section does not create a presumption that an

570

applicant should receive any tax refunds under this section.

571

     (k) Applications for certification based on the

572

consolidation of a space flight business contract or a new space

573

flight business contract must be submitted to the office in the

574

manner prescribed by the office and must include, but are not

575

limited to, the following information:

576

     1. The applicant's federal employer identification number,

577

the applicant's Florida sales tax registration number, and a

578

signature of an officer of the applicant.

579

     2. The permanent location of the space flight business

580

facility in this state at which the project is or is to be

581

located.

582

     3. The space flight business contract numbers of the

583

contract to be consolidated, the new space flight business

584

contract number, or the "RFP" number of a proposed space flight

585

business contract.

586

     4. The date on which the contract was executed, and the

587

date on which the contract is due to expire, is expected to

588

expire, or was canceled.

589

     5. The commencement date for project operations under the

590

contract for duties to be performed in this state.

591

     6. The number of net new full-time or equivalent Florida

592

jobs included in the project as of December 31 of each year and

593

the average wage of such jobs.

594

     7. The total number of full-time or equivalent employees

595

employed by the applicant in this state.

596

     8. The percentage of the applicant's gross receipts derived

597

from space flight business contracts during the 5 taxable years

598

immediately preceding the date on which the application is

599

submitted.

600

     9. The number of full-time or equivalent jobs in this state

601

to be retained by the project.

602

     10. A brief statement concerning the applicant's need for

603

tax refunds, and the proposed uses of such refunds by the

604

applicant.

605

     11. A resolution adopted by the governing board of the

606

county or municipality in which the project will be located which

607

recommends that the applicant be approved as a qualified

608

applicant and indicates the existence of the necessary

609

commitments of local financial support for the applicant. Before

610

the adoption of the resolution, the county commission may review

611

the proposed public or private sources of such support and

612

determine whether the proposed sources of local financial support

613

can be provided or, for any applicant whose project is located in

614

a county designated by the Rural Economic Development Initiative,

615

a resolution adopted by the county commissioners of such county

616

requesting that the applicant's project be exempt from the local

617

financial support requirement.

618

     12. Any additional information requested by the office.

619

     (4)  QUALIFIED DEFENSE CONTRACTOR TAX REFUND AGREEMENT.--

620

     (a)  A qualified applicant shall enter into a written

621

agreement with the office containing, but not limited to, the

622

following:

623

     1.  The total number of full-time equivalent jobs in this

624

state that are or will be dedicated to the qualified applicant's

625

project, the average wage of such jobs, the definitions that will

626

apply for measuring the achievement of these terms during the

627

pendency of the agreement, and a time schedule or plan for when

628

such jobs will be in place and active in this state.

629

     2.  The maximum amount of a refund that the qualified

630

applicant is eligible to receive for each fiscal year, based on

631

the job creation or retention and maintenance schedule specified

632

in subparagraph 1.

633

     3.  An agreement with the office allowing the office to

634

review and verify the financial and personnel records of the

635

qualified applicant to ascertain whether the qualified applicant

636

is complying with the requirements of this section.

637

     4.  The date by which, in each fiscal year, the qualified

638

applicant may file a claim pursuant to subsection (5) to be

639

considered to receive a tax refund in the following fiscal year.

640

     5.  That local financial support shall be annually available

641

and will be paid to the Economic Development Trust Fund.

642

     (b)  Compliance with the terms and conditions of the

643

agreement is a condition precedent for receipt of tax refunds

644

each year. The failure to comply with the terms and conditions of

645

the agreement shall result in the loss of eligibility for receipt

646

of all tax refunds previously authorized pursuant to this

647

section, and the revocation of the certification as a qualified

648

applicant by the director, unless the qualified applicant is

649

eligible to receive and elects to accept a prorated refund under

650

paragraph (5)(g) or the office grants the qualified applicant an

651

economic-stimulus exemption.

652

     1.  A qualified applicant may submit, in writing, a request

653

to the office for an economic-stimulus exemption. The request

654

must provide quantitative evidence demonstrating how negative

655

economic conditions in the qualified applicant's industry, the

656

effects of the impact of a named hurricane or tropical storm, or

657

specific acts of terrorism affecting the qualified applicant have

658

prevented the qualified applicant from complying with the terms

659

and conditions of its tax refund agreement.

660

     2.  Upon receipt of a request under subparagraph 1., the

661

director shall have 45 days to notify the requesting qualified

662

applicant, in writing, if its exemption has been granted or

663

denied. In determining if an exemption should be granted, the

664

director shall consider the extent to which negative economic

665

conditions in the requesting qualified applicant's industry, the

666

effects of the impact of a named hurricane or tropical storm, or

667

specific acts of terrorism affecting the qualified applicant have

668

prevented the qualified applicant from complying with the terms

669

and conditions of its tax refund agreement.

670

     3.  As a condition for receiving a prorated refund under

671

paragraph (5)(g) or an economic-stimulus exemption under this

672

paragraph, a qualified applicant must agree to renegotiate its

673

tax refund agreement with the office to, at a minimum, ensure

674

that the terms of the agreement comply with current law and

675

office procedures governing application for and award of tax

676

refunds. Upon approving the award of a prorated refund or

677

granting an economic-stimulus exemption, the office shall

678

renegotiate the tax refund agreement with the qualified applicant

679

as required by this subparagraph. When amending the agreement of

680

a qualified applicant receiving an economic-stimulus exemption,

681

the office may extend the duration of the agreement for a period

682

not to exceed 2 years.

683

     4.  A qualified applicant may submit a request for an

684

economic-stimulus exemption to the office in lieu of any tax

685

refund claim scheduled to be submitted after January 1, 2005, but

686

before July 1, 2006.

687

     5.  A qualified applicant that receives an economic-stimulus

688

exemption may not receive a tax refund for the period covered by

689

the exemption.

690

     (c)  The agreement shall be signed by the director and the

691

authorized officer of the qualified applicant.

692

     (d)  The agreement must contain the following legend,

693

clearly printed on its face in bold type of not less than 10

694

points:

695

696

"This agreement is neither a general obligation of the State of

697

Florida, nor is it backed by the full faith and credit of the

698

State of Florida. Payment of tax refunds are conditioned on and

699

subject to specific annual appropriations by the Florida

700

Legislature of funds sufficient to pay amounts authorized in s.

701

288.1045, Florida Statutes."

702

     (5)  ANNUAL CLAIM FOR REFUND FROM A QUALIFIED DEFENSE

703

CONTRACTOR.--

704

     (a)  To be eligible to claim any scheduled tax refund,

705

qualified applicants who have entered into a written agreement

706

with the office pursuant to subsection (4) and who have entered

707

into a valid new Department of Defense contract, entered into a

708

valid new space flight business contract, commenced the

709

consolidation of a space flight business contract, commenced the

710

consolidation of a Department of Defense contract, commenced the

711

conversion of defense production jobs to nondefense production

712

jobs, or entered into a valid contract for reuse of a defense-

713

related facility must apply by January 31 of each fiscal year to

714

the office for tax refunds scheduled to be paid from the

715

appropriation for the fiscal year that begins on July 1 following

716

the January 31 claims-submission date. The office may, upon

717

written request, grant a 30-day extension of the filing date. The

718

application must include a notarized signature of an officer of

719

the applicant.

720

     (b)  The claim for refund by the qualified applicant must

721

include a copy of all receipts pertaining to the payment of taxes

722

for which a refund is sought, and data related to achieving each

723

performance item contained in the tax refund agreement pursuant

724

to subsection (4). The amount requested as a tax refund may not

725

exceed the amount for the relevant fiscal year in the written

726

agreement entered pursuant to subsection (4).

727

     (c)  A tax refund may not be approved for any qualified

728

applicant unless local financial support has been paid to the

729

Economic Development Trust Fund for that refund. If the local

730

financial support is less than 20 percent of the approved tax

731

refund, the tax refund shall be reduced. The tax refund paid may

732

not exceed 5 times the local financial support received. Funding

733

from local sources includes tax abatement under s. 196.1995 or

734

the appraised market value of municipal or county land including

735

any improvements or structures conveyed or provided at a discount

736

via sale or lease to that business provided to a qualified

737

applicant. The amount of any tax refund for an applicant approved

738

under this section shall be reduced by the amount of any such tax

739

abatement granted or the value of the land including any

740

improvements or structures granted, and the limitations in

741

subsection (2) and paragraph (3)(h) shall be reduced by the

742

amount of any such tax abatement or the value of the land

743

including any improvements or structures granted. A report

744

listing all sources of the local financial support shall be

745

provided to the office when such support is paid to the Economic

746

Development Trust Fund.

747

     (d)  The director, with assistance from the office, the

748

Department of Revenue, and the Agency for Workforce Innovation,

749

shall, by June 30 following the scheduled date for submitting the

750

tax refund claim, specify by written order the approval or

751

disapproval of the tax refund claim and, if approved, the amount

752

of the tax refund that is authorized to be paid to the qualified

753

applicant for the annual tax refund. The office may grant an

754

extension of this date upon the request of the qualified

755

applicant for the purpose of filing additional information in

756

support of the claim.

757

     (e)  The total amount of tax refunds approved by the

758

director under this section in any fiscal year may not exceed the

759

amount authorized under s. 288.095(3).

760

     (f)  Upon approval of the tax refund pursuant to paragraphs

761

(c) and (d), the Chief Financial Officer shall issue a warrant

762

for the amount included in the written order. In the event of any

763

appeal of the written order, the Chief Financial Officer may not

764

issue a warrant for a refund to the qualified applicant until the

765

conclusion of all appeals of the written order.

766

     (g)  A prorated tax refund, less a 5 percent penalty, shall

767

be approved for a qualified applicant provided all other

768

applicable requirements have been satisfied and the applicant

769

proves to the satisfaction of the director that it has achieved

770

at least 80 percent of its projected employment and that the

771

average wage paid by the qualified applicant is at least 90

772

percent of the average wage specified in the tax refund

773

agreement, but in no case less than 115 percent of the average

774

private sector wage in the area available at the time of

775

certification. The prorated tax refund shall be calculated by

776

multiplying the tax refund amount for which the qualified

777

applicant would have been eligible, if all applicable

778

requirements had been satisfied, by the percentage of the average

779

employment specified in the tax refund agreement which was

780

achieved, and by the percentage of the average wages specified in

781

the tax refund agreement which was achieved.

782

     (h)  This section does not create a presumption that a tax

783

refund claim will be approved and paid.

784

     (6)  ADMINISTRATION.--

785

     (a)  The office may adopt rules pursuant to chapter 120 for

786

the administration of this section.

787

     (b)  The office may verify information provided in any claim

788

submitted for tax credits under this section with regard to

789

employment and wage levels or the payment of the taxes with the

790

appropriate agency or authority including the Department of

791

Revenue, the Agency for Workforce Innovation, or any local

792

government or authority.

793

     (c)  To facilitate the process of monitoring and auditing

794

applications made under this program, the office may provide a

795

list of qualified applicants to the Department of Revenue, to the

796

Agency for Workforce Innovation, or to any local government or

797

authority. The office may request the assistance of said entities

798

with respect to monitoring jobs, wages, and the payment of the

799

taxes listed in subsection (2).

800

     (d) By December 1 of each year, the office shall submit a

801

complete and detailed report to the Governor, the President of

802

the Senate, and the Speaker of the House of Representatives of

803

all tax refunds paid under this section, including analyses of

804

benefits and costs, types of projects supported, employment and

805

investment created, geographic distribution of tax refunds

806

granted, and minority business participation. The report must

807

indicate whether the moneys appropriated by the Legislature to

808

the qualified applicant tax refund program were expended in a

809

prudent, fiducially sound manner.

810

     (d)(e) Funds specifically appropriated for the tax refund

811

program under this section may not be used for any purpose other

812

than the payment of tax refunds authorized by this section.

813

     (7) WAIVER GRANTED UNDER CERTAIN

814

CIRCUMSTANCES.--Notwithstanding paragraphs (4)(a) and (5)(c), the

815

office may approve a waiver of the local financial support

816

requirement for a business located in any of the following

817

counties in which businesses received emergency loans

818

administered by the office in response to the named hurricanes of

819

2004: Bay, Brevard, Charlotte, DeSoto, Escambia, Flagler, Glades,

820

Hardee, Hendry, Highlands, Indian River, Lake, Lee, Martin,

821

Okaloosa, Okeechobee, Orange, Osceola, Palm Beach, Polk, Putnam,

822

Santa Rosa, Seminole, St. Lucie, Volusia, and Walton. A waiver

823

may be granted only if the office determines that the local

824

financial support cannot be provided or that doing so would

825

effect a demonstrable hardship on the unit of local government

826

providing the local financial support. If the office grants a

827

waiver of the local financial support requirement, the state

828

shall pay 100 percent of the refund due to an eligible business.

829

The waiver shall apply for tax refund applications made for

830

fiscal years 2004-2005, 2005-2006, and 2006-2007.

831

     (8)  EXPIRATION.--An applicant may not be certified as

832

qualified under this section after June 30, 2014 2010. A tax

833

refund agreement existing on that date shall continue in effect

834

in accordance with its terms.

835

     Section 2.  This act shall take effect July 1, 2008.