Florida Senate - 2009 CS for SB 1502 By the Committee on Commerce; and Senators Fasano, Haridopolos, Richter, and Bennett 577-02950-09 20091502c1 1 A bill to be entitled 2 An act relating to Fast Track Economic Stimulus for 3 Small Businesses; establishing the New Markets 4 Development Program; amending s. 213.053, F.S.; 5 authorizing the Department of Revenue to disclose 6 information relating to certain tax credits to the 7 Office of Tourism, Trade, and Economic Development; 8 authorizing penalties for unlawful disclosure of the 9 information; amending s. 220.02, F.S.; revising the 10 order in which credits against the corporate income 11 tax or franchise tax must be applied; amending s. 12 220.013, F.S.; revising the definition of the term 13 “adjusted federal income” to include the amount of 14 certain tax credits; creating s. 288.991, F.S.; 15 providing a short title; creating s. 288.9912, F.S.; 16 encouraging capital investment in certain communities 17 to create and retain jobs through the use of tax 18 credits; creating s. 288.9913, F.S.; providing 19 definitions; creating s. 288.9914, F.S.; requiring the 20 Office of Tourism, Trade, and Economic Development to 21 identify industries in which certain investments may 22 be made; providing for a waiver of the limitation; 23 requiring a qualified community development entity to 24 submit an application for approval of an investment as 25 a qualified investment; requiring the Office of 26 Tourism, Trade, and Economic Development to review and 27 approve or deny the applications; providing for 28 partial approval of applications under certain 29 circumstances; requiring a qualified community 30 development entity to issue a qualified investment 31 within a certain time period; requiring a qualified 32 community development entity to report the issuance of 33 a qualified investment within a certain time period; 34 creating s. 288.9915, F.S.; prohibiting certain 35 interest payments on certain qualified investments for 36 a certain time period; requiring qualified community 37 development entities to maintain certain records; 38 limiting the amount of low-income community 39 investments that may be received by a qualified active 40 low-income community business; creating s. 288.9916, 41 F.S.; creating the new markets tax credit; specifying 42 the amount of the credit; specifying certain tax years 43 in which the tax credit may be used; requiring certain 44 insurance companies to apply the tax credit against 45 certain taxes; limiting transferability of the tax 46 credit; creating s. 288.9917, F.S.; requiring a 47 qualified community development entity to submit 48 certain reports to the Office of Tourism, Trade, and 49 Economic Development after a credit allowance date; 50 requiring the Office of Tourism, Trade, and Economic 51 Development to certify the tax credit amount that may 52 be taken by a taxpayer; creating s. 288.9918, F.S.; 53 requiring a qualified community development entity to 54 submit annual reports to the Office of Tourism, Trade, 55 and Economic Development; creating s. 288.9919, F.S.; 56 subjecting qualified community development entities to 57 audits under the State Single Audit Act; authorizing 58 the Office of Tourism, Trade, and Economic Development 59 to conduct examinations to verify compliance with the 60 New Markets Development Program Act; creating s. 61 288.9920, F.S.; authorizing the Office of Tourism, 62 Trade, and Economic Development to recapture tax 63 credits under certain circumstances; requiring the 64 Office of Tourism, Trade, and Economic Development to 65 issue a proposed notice of recapture; providing an 66 opportunity to cure a deficiency prior to recapture; 67 authorizing penalties for submitting fraudulent 68 information to the Office of Tourism, Trade, and 69 Economic Development; creating s. 288.9921, F.S.; 70 authorizing the Office of Tourism, Trade, and Economic 71 Development to adopt rules; creating s. 288.9922, 72 F.S.; providing for the expiration of the New Markets 73 Development Program Act on a certain date; providing 74 an effective date. 75 76 Be It Enacted by the Legislature of the State of Florida: 77 78 Section 1. Subsection (19) is added to section 213.053, 79 Florida Statutes, to read: 80 213.053 Confidentiality and information sharing.— 81 (19) The department may disclose information relative to 82 tax credits taken by a taxpayer pursuant to s. 288.9916 to the 83 Office of Tourism, Trade, and Economic Development or its 84 employees or agents. Such employees must be identified in 85 writing by the office to the department. All information 86 disclosed under this subsection is subject to the same 87 requirements of confidentiality and the same penalties for 88 violation of the requirements as the department. 89 Section 2. Subsection (8) of section 220.02, Florida 90 Statutes, is amended to read: 91 220.02 Legislative intent.— 92 (8) It is the intent of the Legislature that credits 93 against either the corporate income tax or the franchise tax be 94 applied in the following order: those enumerated in s. 631.828, 95 those enumerated in s. 220.191, those enumerated in s. 220.181, 96 those enumerated in s. 220.183, those enumerated in s. 220.182, 97 those enumerated in s. 220.1895, those enumerated in s. 221.02, 98 those enumerated in s. 220.184, those enumerated in s. 220.186, 99 those enumerated in s. 220.1845, those enumerated in s. 220.19, 100 those enumerated in s. 220.185, those enumerated in s. 220.187, 101 those enumerated in s. 220.192,andthose enumerated in s. 102 220.193 and those enumerated in s. 288.9916. 103 Section 3. Paragraph (a) of subsection (1) of section 104 220.13, Florida Statutes, is amended to read: 105 220.13 “Adjusted federal income” defined.— 106 (1) The term “adjusted federal income” means an amount 107 equal to the taxpayer’s taxable income as defined in subsection 108 (2), or such taxable income of more than one taxpayer as 109 provided in s. 220.131, for the taxable year, adjusted as 110 follows: 111 (a) Additions.—There shall be added to such taxable income: 112 1. The amount of any tax upon or measured by income, 113 excluding taxes based on gross receipts or revenues, paid or 114 accrued as a liability to the District of Columbia or any state 115 of the United States which is deductible from gross income in 116 the computation of taxable income for the taxable year. 117 2. The amount of interest which is excluded from taxable 118 income under s. 103(a) of the Internal Revenue Code or any other 119 federal law, less the associated expenses disallowed in the 120 computation of taxable income under s. 265 of the Internal 121 Revenue Code or any other law, excluding 60 percent of any 122 amounts included in alternative minimum taxable income, as 123 defined in s. 55(b)(2) of the Internal Revenue Code, if the 124 taxpayer pays tax under s. 220.11(3). 125 3. In the case of a regulated investment company or real 126 estate investment trust, an amount equal to the excess of the 127 net long-term capital gain for the taxable year over the amount 128 of the capital gain dividends attributable to the taxable year. 129 4. That portion of the wages or salaries paid or incurred 130 for the taxable year which is equal to the amount of the credit 131 allowable for the taxable year under s. 220.181. This 132 subparagraph shall expire on the date specified in s. 290.016 133 for the expiration of the Florida Enterprise Zone Act. 134 5. That portion of the ad valorem school taxes paid or 135 incurred for the taxable year which is equal to the amount of 136 the credit allowable for the taxable year under s. 220.182. This 137 subparagraph shall expire on the date specified in s. 290.016 138 for the expiration of the Florida Enterprise Zone Act. 139 6. The amount of emergency excise tax paid or accrued as a 140 liability to this state under chapter 221 which tax is 141 deductible from gross income in the computation of taxable 142 income for the taxable year. 143 7. That portion of assessments to fund a guaranty 144 association incurred for the taxable year which is equal to the 145 amount of the credit allowable for the taxable year. 146 8. In the case of a nonprofit corporation which holds a 147 pari-mutuel permit and which is exempt from federal income tax 148 as a farmers’ cooperative, an amount equal to the excess of the 149 gross income attributable to the pari-mutuel operations over the 150 attributable expenses for the taxable year. 151 9. The amount taken as a credit for the taxable year under 152 s. 220.1895. 153 10. Up to nine percent of the eligible basis of any 154 designated project which is equal to the credit allowable for 155 the taxable year under s. 220.185. 156 11. The amount taken as a credit for the taxable year under 157 s. 220.187. 158 12. The amount taken as a credit for the taxable year under 159 s. 220.192. 160 13. The amount taken as a credit for the taxable year under 161 s. 220.193. 162 14. Any amount in excess of $25,000 allowable as a 163 deduction for federal income tax purposes under s. 179 of the 164 Internal Revenue Code of 1986, as amended, for the taxable year. 165 15. Any amount allowable as a deduction for federal income 166 tax purposes under s. 167 or s. 168 of the Internal Revenue Code 167 of 1986, as amended, for the taxable year to the extent that 168 such amount includes bonus depreciation allowable as deduction 169 under s. 168(k). 170 16. Any portion of a qualified investment, as defined in s. 171 288.9913, which is claimed as a deduction by the taxpayer and 172 taken as a credit against income tax pursuant to s.288.9913. 173 Section 4. Section 288.991, Florida Statutes, is created to 174 read: 175 288.991 Short title.—Sections 288.991 through 288.9922 may 176 be cited as the “New Markets Development Program Act.” 177 Section 5. Section 288.9912, Florida Statutes, is created 178 to read: 179 288.9912 New Markets Development Program; purpose.—The New 180 Markets Development Program is established to encourage capital 181 investment in rural and urban low-income communities by allowing 182 taxpayers to earn credits against specified taxes by investing 183 in qualified community development entities that make qualified 184 low-income community investments in qualified active low-income 185 community businesses to create and retain jobs. 186 Section 6. Section 288.9913, Florida Statutes, is created 187 to read: 188 288.9913 Definitions.—As used in sections 288.991 through 189 288.9922, the term: 190 (1) “Credit allowance date” means: 191 (a) The date on which a qualified investment is made; and 192 (b) Each of the six anniversaries of that date. 193 (2) “Department” means the Department of Revenue. 194 (3) “Long-term debt security” means a debt instrument 195 issued by a qualified community development entity at par value 196 or a premium which has a maturity date of at least 7 years 197 following the date of its issuance, with no acceleration of 198 repayment, amortization, or prepayment features prior to its 199 original maturity date, except in instances of default. 200 (4) “Low-income community” means any population census 201 tract within the State of Florida where: 202 1. The poverty rate of such tract is at least 20 percent; 203 or 204 2. In the case of a tract that is: 205 a. Not located within a metropolitan area, the median 206 family income for such tract does not exceed 80 percent of the 207 statewide median family income; or 208 b. Located within a metropolitan area, the median family 209 income for such a tract does not exceed 80 percent of the 210 greater of the statewide median family income or the 211 metropolitan area median income. 212 (5) “Office” means the Office of Tourism, Trade, and 213 Economic Development. 214 (6) “Purchase price” means the amount of cash paid to a 215 qualified community development entity in exchange for a 216 qualified investment. 217 (7) “Qualified active low-income community business” means 218 a corporation, including a nonprofit corporation, or partnership 219 that: 220 (a)1. Derives at least 50 percent of its total gross income 221 from the active conduct of business within any low-income 222 community for any taxable year; 223 2. Uses a substantial portion of its tangible property, 224 whether owned or leased, within any low-income community for any 225 taxable year; 226 3. Performs a substantial portion of its services through 227 its employees in a low-income community for any taxable year; 228 4. Attributes less than 5 percent of the average of the 229 aggregate unadjusted bases of the property of the entity to 230 collectibles, as defined in 26 U.S.C. s. 408(m)(2), other than 231 collectibles that are held primarily for sale to customers in 232 the ordinary course of the business for any taxable year; and 233 5. Attributes less than 5 percent of the average of the 234 aggregate unadjusted bases of the property of the entity to 235 nonqualified financial property, as defined in 26 U.S.C. s. 236 1397C(e), for any taxable year. 237 (b) Is reasonably expected by a qualified community 238 development entity at the time of an investment to continue to 239 satisfy the requirements of paragraphs (a), (b), (c), and (d) 240 for the duration of the investment. 241 (c) Satisfies the requirements of paragraph (a) and 242 paragraph (b), but does not: 243 1. Derive or project to derive 15 percent or more of its 244 annual revenue from the rental or sale of real estate; 245 2. Engage predominantly in the development or holding of 246 intangibles for sale or license; 247 3. Operate a private or commercial golf course, country 248 club, massage parlor, hot tub facility, suntan facility, 249 racetrack, gambling facility, or a store, the principal business 250 of which is the sale of alcoholic beverages for consumption off 251 premises; or 252 4. Engage principally in farming and owns or leases assets 253 the sum of the aggregate unadjusted bases or the fair market 254 value of which exceeds $500,000. 255 (d) Will create or retain jobs that pay an average wage of 256 at least 115 percent of the federal poverty guideline for a 257 family of four. 258 (8) “Qualified community development entity” means an 259 entity that: 260 (a) Is certified by the United States Department of the 261 Treasury as a qualified community development entity under 26 262 U.S.C. s. 45D; and 263 (b) Has entered into, or is controlled by an entity that 264 has entered into, an allocation agreement with the Community 265 Development Financial Institutions Fund of the United States 266 Department of the Treasury with respect to tax credits under 26 267 U.S.C. 45D and is authorized to serve businesses in this state 268 under the agreement. 269 (9) “Qualified investment” means an equity investment in, 270 or a long-term debt security issued by, a qualified community 271 development entity that: 272 (a) Is issued solely in exchange for cash; and 273 (b) Is designated by the qualified community development 274 entity as a qualified investment under this paragraph and is 275 approved by the office as a qualified investment. 276 (10) “Qualified low-income community investment” means a 277 capital or equity investment in, or loan to, any qualified 278 active low-income community business. 279 Section 7. Section 288.9914, Florida Statutes, is created 280 to read: 281 288.9914 Certification of qualified investments; investment 282 issuance reporting.— 283 (1) ELIGIBLE INDUSTRIES.— 284 (a) The office, in consultation with Enterprise Florida, 285 Inc., shall designate industries using the North American 286 Industry Classification System which are eligible to receive 287 low-income community investments. The designated industries must 288 be those industries that have the greatest potential to create 289 strong positive impacts on or benefits to the state, regional, 290 and local economies. 291 (b) A qualified community development entity may not make a 292 qualified low-income community investment in a business unless 293 the principal activities of the business are within an eligible 294 industry. The office may waive this limitation if the office 295 determines that the investment will have a positive impact on a 296 community. 297 (2) APPLICATION.—A qualified community development entity 298 must submit an application to the office to approve a proposed 299 investment as a qualified investment. The application must 300 include: 301 (a) The name, address, and tax identification number of the 302 qualified community development entity. 303 (b) Proof of certification as a qualified community 304 development entity under 26 U.S.C. s. 45D. 305 (c) A copy of an allocation agreement executed by the 306 entity, or its controlling entity, and the Community Development 307 Financial Institutions Fund, which authorizes the entity to 308 serve businesses in this state. 309 (d) A verified statement by the chief executive officer of 310 the entity that the allocation agreement remains in effect. 311 (e) A description of the proposed amount, structure, and 312 purchaser of an equity investment or long-term debt security. 313 (f) The name and tax identification number of any person 314 authorized to claim a tax credit earned as a result of the 315 purchase of the proposed qualified investment. 316 (g) A detailed explanation of the proposed use of the 317 proceeds from a proposed qualified investment. 318 (h) A nonrefundable application fee of $1,000, payable to 319 the office. 320 (i) A statement that the entity will invest only in the 321 industries designated by the office. 322 (j) The entity’s plans for the development of relationships 323 with community-based organizations, local community development 324 offices and organizations, and economic development 325 organizations. The entity must also explain steps it has taken 326 to implement its plans to develop these relationships. 327 (k) A statement that the entity will not invest in a 328 qualified active low-income community business unless the 329 business will create or retain jobs that pay an average wage of 330 at least 115 percent of the federal poverty guideline for a 331 family of four. 332 (3) REVIEW.— 333 (a) The office shall review applications to approve an 334 investment as a qualified investment in the order received. The 335 office shall approve or deny an application within 30 days after 336 receipt. 337 (b) If the office intends to deny the application, the 338 office shall inform the applicant of the basis of the proposed 339 denial. The applicant shall have 15 days after it receives the 340 notice of the intent to deny the application to submit a revised 341 application to the office. The office shall issue a final order 342 approving or denying the revised application within 30 days 343 after receipt. 344 (c) The office may not approve a cumulative amount of 345 qualified investments that may result in the claim of more than 346 $97.5 million in tax credits during the existence of the program 347 or more than $20 million in tax credits in a single state fiscal 348 year. However, the potential for a taxpayer to carry forward an 349 unused tax credit may not be considered in calculating the 350 annual limit. 351 (4) APPROVAL.— 352 (a) The office shall provide a copy of the final order 353 approving an investment as a qualified investment to the 354 qualified community development entity and to the department. 355 The notice shall include the identity of the taxpayers who are 356 eligible to claim the tax credits and the amount that may be 357 claimed by each taxpayer. 358 (b) The office shall approve an application for part of the 359 amount of the proposed investment if the amount of tax credits 360 available are insufficient. 361 (c) If more than one application is found to comply with 362 subsection (3) on the same day and the amount of tax credits 363 available are insufficient for all of the applications, the tax 364 credits available to each applicant shall be in proportion to 365 the proposed purchase price to the total purchase price of all 366 of the proposed investments. 367 (5) DURATION OF APPROVAL.—The qualified community 368 development entity must issue the qualified investment in 369 exchange for cash within 60 days after it receives the order 370 approving an investment as a qualified investment, otherwise the 371 order is void. 372 (6) REPORT OF ISSUANCE OF A QUALIFIED INVESTMENT.—The 373 qualified community development entity must provide the office 374 with evidence of the receipt of the cash in exchange for the 375 qualified investment within 30 business days after receipt. 376 Section 8. Section 288.9915, Florida Statutes, is created 377 to read: 378 288.9915 Use of proceeds from qualified investments; 379 recordkeeping.— 380 (1) A qualified community development entity may not make 381 cash interest payments on a long-term debt security that is a 382 qualified investment in excess of the entity’s operating income 383 for 6 years following the issuance of the security. 384 (2) A qualified community development entity shall keep 385 detailed records showing the use of proceeds from qualified 386 investments to fund qualified low-income community investments. 387 (3) A qualified active low-income community business, 388 including its affiliates, may not receive more than $10 million 389 in qualified low-income community investments under the New 390 Markets Development Program Act. 391 Section 9. Section 288.9916, Florida Statutes, is created 392 to read: 393 288.9916 New markets tax credit.— 394 (1) A person or entity that makes a qualified investment 395 earns a vested tax credit pursuant to the New Markets 396 Development Program Act against taxes under s. 220.11 or s. 397 624.509 equal to 39 percent of the purchase price of the 398 qualified investment. The holder of a qualified investment may 399 claim the tax credit as follows: 400 (a) The holder may apply 7 percent of the purchase price 401 against its tax liability in the tax year containing the third 402 credit allowance date. 403 (b) The holder may apply 8 percent of the purchase price 404 against its tax liability in the tax years containing the fourth 405 through seventh credit allowance dates. 406 (c) A taxpayer may not claim a tax credit in excess of the 407 taxpayer’s tax liability. If the credit granted pursuant to this 408 section is not fully used in any one year because of 409 insufficient tax liability on the part of the taxpayer, the 410 unused amount may be carried forward for a period not to exceed 411 5 years. The carryover credit may be used in a subsequent year 412 when the tax imposed for such year exceeds the credit for such 413 year, after applying the other credits and unused credit 414 carryovers in the order provided in s. 220.02(8). Carryover 415 credit amounts shall be treated as unused credits for purposes 416 of the transfer of unused credits pursuant to paragraph (2)(b). 417 (d) An insurance company that is subject to the insurance 418 premium tax under s. 624.509 must apply the tax credit against 419 the insurance premium tax. An insurer that claims a credit 420 against premium-tax liability earned by making a qualified 421 investment under this section need not pay any additional 422 retaliatory tax levied under s. 642.5091, as a result of 423 claiming the tax credit. If the credit granted pursuant to this 424 section is not fully used in any one year because of 425 insufficient tax liability on the part of the taxpayer, the 426 unused amount may be carried forward for a period not to exceed 427 5 years. The carryover credit may be used in a subsequent year 428 when the tax imposed for such year exceeds the credit for such 429 year, after applying the other credits and unused credit 430 carryovers in the order provided in s. 220.02(8). Carryover 431 credit amounts shall be treated as unused credits for purposes 432 of the transfer of unused credits pursuant to section 433 288.9916(2)(b). 434 (2) A tax credit earned under this section may not be sold 435 or transferred, except as provided in this subsection. 436 (a) A partner, member, or shareholder of a partnership, 437 limited liability company, S-corporation, or other “pass 438 through” entity may claim the tax credit pursuant to an 439 agreement among the partners, members, or shareholders. Any 440 change in the allocation of a tax credit under the agreement 441 must be reported to the office and to the department. 442 (b) Eligibility to claim a tax credit transfers to 443 subsequent purchasers of a qualified investment. Such transfers 444 must be reported to the office and to the department along with 445 the identity, tax identification number, and tax credit amount 446 allocated to a taxpayer pursuant to paragraph (a). The notice of 447 transfer also must state whether unused tax credits are being 448 transferred and the amount of unused tax credits being 449 transferred. 450 Section 10. Section 288.9917, Florida Statutes, is created 451 to read: 452 288.9917 Community development entity reporting after a 453 credit allowance date; certification of tax credit amount.— 454 (1) A qualified community development entity that has 455 issued a qualified investment shall submit the following to the 456 office within 30 days after each credit allowance date: 457 (a) A list of all qualified active low-income community 458 businesses in which a qualified low-income community investment 459 was made since the last credit allowance date. The list shall 460 also describe the type and amount of investment in each business 461 and the address of the principal location of each business. The 462 list must be verified by the chief executive officer of the 463 community development entity. 464 (b) Bank records, wire transfer records, or similar 465 documents that provide evidence of the qualified low-income 466 community investments made since the last credit allowance date. 467 (c) A verified statement by the chief financial or 468 accounting officer of the community development entity that no 469 redemption or principal repayment was made with respect to the 470 qualified investment since the previous credit allowance date. 471 (d) Information relating to the recapture of the federal 472 new markets tax credit since the last credit allowance date. 473 (2) The office shall certify in writing to the qualified 474 community development entity and to the department the amount of 475 the tax credit authorized for each taxpayer eligible to claim 476 the tax credit in the tax year containing the last credit 477 allowance date. 478 Section 11. Section 288.9918, Florida Statutes, is created 479 to read: 480 288.9918 Annual reporting by a community development 481 entity.—A community development entity that has issued a 482 qualified investment shall submit an annual report to the office 483 by April 30 after the end of each year which includes a credit 484 allowance date. The report shall include: 485 (1) The entity’s annual financial statements for the 486 preceding tax year, audited by an independent certified public 487 accountant. 488 (2) The identity of the types of industries, identified by 489 the North American Industry Classification System Code, in which 490 qualified low-income community investments were made. 491 (3) The names of the counties in which the qualified active 492 low-income businesses are located which received qualified low 493 income community investments. 494 (4) The number of jobs created and retained by qualified 495 active low-income community businesses receiving qualified low 496 income community investments, including a verification that the 497 average wages paid meet or exceed 115 percent of the federal 498 poverty guideline for a family of four. 499 (5) A description of the relationships that the entity has 500 established with community-based organizations, local community 501 development offices and organizations, and a summary of the 502 outcomes resulting from those relationships. 503 (6) Other information and documentation required by the 504 office to verify continued certification as a qualified 505 community development entity under 26 U.S.C. 45D. 506 Section 12. Section 288.9919, Florida Statutes, is created 507 to read: 508 288.9919 Audits and examinations; penalties.— 509 (1) AUDITS.—A qualified community development entity that 510 issues an investment approved by the office as a qualified 511 investment shall be deemed a recipient of state financial 512 assistance under s. 215.97, the Florida Single Audit Act. 513 However, an entity that makes a qualified investment or receives 514 a qualified low-income community investment is not a 515 subrecipient for the purposes of s. 215.97. 516 (2) EXAMINATIONS.—The office may conduct examinations to 517 verify compliance with the New Markets Development Program Act. 518 Section 13. Section 288.9920, Florida Statutes, is created 519 to read: 520 288.9920 Recapture and penalties.— 521 (1) Notwithstanding s. 95.091, the office shall direct the 522 department, at any time before December 31, 2022, to recapture 523 all or a portion of a tax credit authorized pursuant to the New 524 Markets Development Program Act if one or more of the following 525 occurs: 526 (a) The Federal Government recaptures any portion of the 527 federal new markets tax credit. The recapture by the department 528 shall equal the recapture by the Federal Government. 529 (b) The qualified community development entity redeems or 530 makes a principal repayment on a qualified investment before the 531 final allowance date. The recapture by the department shall 532 equal the redemption or principal repayment divided by the 533 purchase price and multiplied by the tax credit authorized to a 534 taxpayer for the qualified investment. 535 (c)1. The qualified community development entity fails to 536 invest at least 85 percent of the purchase price in qualified 537 low-income community investments within 12 months after the 538 issuance of a qualified investment; or 539 2. The qualified community development entity fails to 540 maintain 85 percent of the purchase price in qualified low 541 income community investments until the last credit allowance 542 date for a qualified investment. 543 544 For the purposes of this paragraph, an investment by a qualified 545 community development entity includes principal recovered from 546 an investment for 12 months after its recovery or principal 547 recovered after the sixth credit allowance date. Principal held 548 for longer than 12 months or recovered before the sixth credit 549 allowance date is not an investment unless it is reinvested in a 550 qualified low-income community investment. 551 (d) The qualified community development entity fails to 552 provide the office with information, reports, or documentation 553 required by the New Markets Development Program Act. 554 (e) The office determines that a taxpayer received tax 555 credits to which the taxpayer was not entitled. 556 (2) The office shall provide notice to the qualified 557 community development entity and the department of a proposed 558 recapture of a tax credit. The entity shall have 90 days 559 following the receipt of the notice to cure a deficiency 560 identified in the notice and avoid recapture. The department 561 shall issue a final order of recapture if the entity fails to 562 cure a deficiency within the 90-day period. The final order of 563 recapture shall be provided to the entity, the department, and a 564 taxpayer otherwise authorized to claim the tax credit. 565 Recaptured funds shall be deposited into the General Revenue 566 Fund. 567 (3) An entity that submits fraudulent information to the 568 office is liable for the costs associated with the investigation 569 and prosecution of the fraudulent claim plus a penalty in an 570 amount equal to double the tax credits claimed by investors in 571 the entity’s qualified investments. This penalty is in addition 572 to any other penalty that may be imposed by law. 573 Section 14. Section 288.9921, Florida Statutes, is created 574 to read: 575 288.9921 Rulemaking.—The office and the department may 576 adopt rules pursuant to ss. 120.536(1) and 120.54 to administer 577 this section. 578 Section 15. Section 288.9922, Florida Statutes, is created 579 to read: 580 288.9922 Expiration of the New Markets Development Program 581 Act.—Sections 288.991 through 288.9922 expire on December 31, 582 2022. 583 Section 16. This act shall take effect July 1, 2009.