Florida Senate - 2009 SB 2668 By Senator Baker 20-01834-09 20092668__ 1 A bill to be entitled 2 An act relating to corporate income tax credits for 3 small business corporations; requiring the Department 4 of Revenue to establish a corporate income tax credit 5 program for certain small businesses; providing a 6 definition; requiring the department to provide tax 7 credit applications on its website; providing for 8 department approval of tax credit applications; 9 requiring the department to file copies of approved 10 applications and send copies to applicants; providing 11 criteria and requirements for and limitations on the 12 tax credit; authorizing not-for-profit small business 13 corporations to auction eligible tax credits to 14 certain entities; specifying uses of proceeds of 15 auctioned credits; requiring the department to develop 16 a plan to auction tax credits; requiring the 17 department to establish a workgroup for certain 18 purposes; authorizing the department to adopt rules; 19 requiring the Office of Program Policy Analysis and 20 Government Accountability to review the program and 21 report to the Legislature; providing an effective 22 date. 23 24 Be It Enacted by the Legislature of the State of Florida: 25 26 Section 1. (1) The Department of Revenue shall establish a 27 program to grant to small business corporations a credit against 28 the tax imposed under chapter 220, Florida Statutes, as provided 29 in this section. 30 (2) For purposes of this section, the term “small business 31 corporation” means a for-profit or not-for-profit corporation 32 registered with the Department of State that employs fewer than 33 250 employees and is doing business in this state. 34 (3) The Department of Revenue shall make available on its 35 website to small business corporations an application for the 36 tax credit authorized by this section. 37 (4) Upon receipt of a completed application from an 38 eligible small business corporation that meets the requirements 39 of this section for a credit, the department shall approve the 40 application and shall place a copy of the approved application 41 on file with the corporation’s tax file and send a copy of the 42 approved application to the corporation seeking the credit. 43 (5) Each small business corporation is eligible to receive 44 a credit against the tax imposed under chapter 220, Florida 45 Statutes, in an amount equal to 75 percent of each dollar the 46 applicant can demonstrate, through methods acceptable and 47 approved by the department, that the applicant invested in 48 employee training, expansion of employment of up to 15 new 49 positions, and investment in the purchase of new or used 50 business equipment for the year in which the investment 51 occurred. 52 (6) The total amount of the tax credit available to any 53 small business corporation is limited to $100,000 for each such 54 corporation. 55 (7)(a) A not-for-profit small business corporation may 56 auction any tax credit the corporation is eligible to receive to 57 any private investor and the funds generated from the sale of 58 the tax credit shall be used by such corporation as matching 59 funds for grants, Medicaid waivers, or investments in staff 60 training, construction of new buildings or renovation of current 61 buildings, purchase of new or used business equipment, or 62 expansions of its workforce. 63 (b) The purchase of a tax credit auctioned by a not-for 64 profit small business corporation is limited to corporations 65 registered in this state or individuals that operate or live in 66 this state. 67 (c) The department shall develop a plan for auctioning tax 68 credits and shall make available on its website information as 69 to how individuals or corporations can participate in the 70 process. 71 (8) The department shall create a workgroup of advocates, 72 business leaders, and stakeholders to provide direction and 73 assistance with the development of rules required to implement 74 this program. 75 (9) The department may any adopt rules necessary to 76 implement the requirements of this section. 77 (10) The Office of Program Policy Analysis and Government 78 Accountability shall review the impact of the program on 79 stimulating economic expansion and investment in equipment, not 80 for-profits, and workforce development and provide a report to 81 the President of the Senate and the Speaker of the House of 82 Representatives no later than January 1, 2012. 83 Section 2. This act shall take effect July 1, 2009.