Florida Senate - 2009 SB 312
By Senator Ring
32-00440-09 2009312__
1 A bill to be entitled
2 An act relating to the entertainment industry;
3 amending s. 288.1254, F.S.; renaming the entertainment
4 industry financial incentive program as the
5 entertainment industry financial incentive and tax
6 credit program; revising the program to provide
7 qualified entertainment entities with a choice of
8 corporate income tax and sales and use tax credits or
9 reimbursement from appropriations; revising provisions
10 relating to definitions, creation and scope,
11 application procedures, approval process, eligibility,
12 required documents, qualified and certified
13 productions, queues, fraud, and annual reports;
14 providing duties and responsibilities of the Office of
15 Film and Entertainment, the Office of Tourism, Trade,
16 and Economic Development, and the Department of
17 Revenue relating to the tax credits; providing
18 criteria and limitations for awards of tax credits;
19 providing a total amount available for tax credits;
20 providing for uses, allocations, election,
21 distributions, and carryforward of the tax credits;
22 providing for use of consolidated returns; providing
23 for partnerships and noncorporate distributions of tax
24 credits; providing for succession of tax credits;
25 providing requirements for transfer of tax credits;
26 requiring a purchaser of transferred tax credits to
27 pay a percentage of the amount paid to fund specified
28 film education grants; providing priority allocation
29 of financial incentive and tax credits; providing for
30 withdrawal of tax credit eligibility; authorizing the
31 Office of Tourism, Trade, and Economic Development to
32 adopt rules, policies, and procedures; authorizing the
33 Department of Revenue to adopt rules and conduct
34 audits; providing for revocation and forfeiture of tax
35 credits; providing liability for reimbursement of
36 certain costs and fees associated with a fraudulent
37 claim; providing for future expiration of tax credit
38 authorization except for carryforward of tax credits
39 authorized prior to that date; creating s. 288.1256,
40 F.S.; establishing the Florida Graduate Film
41 Investment Program; requiring administration by the
42 Office of Film and Entertainment; providing for
43 deposit of funds; requiring that funds be used for
44 certain family friendly films; amending s. 288.1252,
45 F.S.; requiring the Florida Film and Entertainment
46 Advisory Council to advise on films produced under the
47 Florida Graduate Film Investment Program; amending s.
48 220.13, F.S.; including a portion of the entertainment
49 industry tax credit, as provided in s. 288.1254, F.S.,
50 for the purpose of calculating a taxpayer's net
51 income; amending s. 220.02, F.S.; including tax
52 credits enumerated in s. 288.1254, F.S., in the order
53 of application of credits against certain taxes;
54 amending s. 213.053, F.S.; authorizing the Department
55 of Revenue to provide tax credit information to the
56 Office of Film and Entertainment and the Office of
57 Tourism, Trade, and Economic Development; amending s.
58 212.08, F.S.; requiring electronic funds transfer for
59 the entertainment industry tax credit; providing
60 procedures; providing rulemaking authority; providing
61 for severability; providing an effective date.
62
63 Be It Enacted by the Legislature of the State of Florida:
64
65 Section 1. Section 288.1254, Florida Statutes, is amended
66 to read:
67 288.1254 Entertainment industry financial incentive and tax
68 credit program.—
69 (1) DEFINITIONS.—As used in this section, the term:
70 (a) “Certified production” means a qualified production
71 that has financial incentive funds allocated or tax credits
72 awarded to it by the Office of Tourism, Trade, and Economic
73 Development based on its estimated qualified expenditures. The
74 term excludes a production if its first day of principal
75 photography in this state occurred before the production is
76 certified by the Office of Tourism, Trade, and Economic
77 Development, unless the production spans more than 1 fiscal
78 year, was a certified production on the first day of such
79 photography, and is required to submit an application for
80 continuing the same production in the subsequent year.
81 (b) “Certified production company” means a qualified
82 production company that has received a financial incentive
83 allocation or a tax credit award for a certified production.
84 (c)(b) “Digital media project” means a production of
85 interactive entertainment which is produced for distribution in
86 commercial or educational markets, including a video game,
87 simulation, or animation, or a production intended for Internet
88 or wireless distribution. The term excludes a production deemed
89 by the Office of Film and Entertainment to contain obscene
90 content as defined in s. 847.001(10).
91 (d) “Financial incentive,” “financial incentive payment,”
92 or “incentive funding” means a monetary reimbursement for
93 qualified expenditures based upon legislative appropriation.
94 (e)(c) “High-impact television series” means a production
95 created to run multiple production seasons having an estimated
96 order of at least seven episodes per season and qualified
97 expenditures of at least $625,000 per episode.
98 (f)(d) “Off-season certified production” means a
99 production, other than a digital media project or an animated
100 production, which films 75 percent or more of its principal
101 photography days from June 1 through November 30.
102 (g)(e) “Production” means a theatrical, or direct-to-video,
103 or motion picture; a made-for-television motion picture; a
104 commercial; a music video; an industrial or educational film; an
105 infomercial; a documentary film; a television pilot program,
106 including; a presentation for a television pilot program; a
107 television series, including, but not limited to, a drama, a
108 reality show, a comedy, a soap opera, a telenovela, a game show,
109 or a miniseries production; or a digital media project by the
110 entertainment industry. One season of a television series is
111 considered one production. The term excludes a weather or market
112 program; a sporting event; a sports show; a gala; a production
113 that solicits funds; a home shopping program; a political
114 program; a political documentary; political advertising; a
115 gambling-related project or production; a concert production; a
116 pornographic production; or a local, regional, or Internet
117 distributed-only news show, current-events show, pornographic
118 production, or current-affairs show. A production may be
119 produced on or by film, tape, or otherwise by means of a motion
120 picture camera; electronic camera or device; tape device;
121 computer; any combination of the foregoing; or any other means,
122 method, or device now used or later adopted.
123 (h)(f) “Production expenditures” means the costs of
124 tangible and intangible property used and services performed
125 primarily and customarily in the production, including
126 preproduction and postproduction, excluding costs for
127 development, marketing, and distribution. Production
128 expenditures include, but are not limited to:
129 1. Wages, salaries, or other compensation, including
130 amounts paid through payroll service companies, for technical
131 and production crews, directors, producers, and performers.
132 2. Expenditures for sound stages, backlots, production
133 editing, digital effects, sound recordings, sets, and set
134 construction.
135 3. Expenditures for rental equipment, including, but not
136 limited to, cameras and grip or electrical equipment.
137 4. Expenditures for meals, travel, and accommodations.
138 (i)(g) “Qualified expenditures” means production
139 expenditures incurred in this state by a qualified production
140 for:
141 1. Goods purchased or leased from, or services provided by,
142 a vendor or supplier in this state which is registered with the
143 Department of State or the Department of Revenue and doing
144 business in this state.
145 2. Payments to residents of this state in the form of
146 salary, wages, or other compensation up to a maximum of $400,000
147 per resident for the general production queue and the
148 independent Florida filmmaker queue and up to a maximum of
149 $200,000 for the digital media queue.
150 For a qualified production involving an event, such as an awards
151 show, the term excludes expenditures solely associated with the
152 event itself and not directly required by the production. The
153 term excludes expenditures prior to certification, with the
154 exception of those incurred for a commercial, a music video, or
155 the pickup of additional episodes of a television series within
156 a single season.
157 (j)(h) “Qualified production” means a production in this
158 state meeting the requirements of this section and the minimum
159 qualified expenditures and requirements of its appropriate
160 queue. The term excludes a production:
161 1. In which less than 50 percent of the positions that make
162 up its production cast and below-the-line production crew are
163 filled by residents of this state, whose residency is
164 demonstrated by a valid Florida driver's license or other state
165 issued identification confirming residency, or students enrolled
166 full-time in a film-and-entertainment-related course of study at
167 an institution of higher education in this state; or
168 2. That is deemed by the Office of Film and Entertainment
169 to contain obscene content as defined in s. 847.001(10).
170 (k)(i) “Qualified production company” means a corporation,
171 limited liability company, partnership, or other legal entity
172 engaged in producing a qualified production.
173 (2) CREATION AND PURPOSE OF PROGRAM.—The entertainment
174 industry financial incentive and tax credit program is created
175 within the Office of Film and Entertainment. The purpose of this
176 program is to encourage the use of this state as a site for
177 filming and to develop and sustain the workforce and
178 infrastructure for film and entertainment production.
179 (3) APPLICATION PROCEDURE; APPROVAL PROCESS.—
180 (a) A qualified production company in this state producing
181 a qualified production may submit a program application to the
182 Office of Film and Entertainment for the purpose of determining
183 certification for a financial incentive or for an award of tax
184 credits authorized by this section. The applicant shall provide
185 the office with information required to determine whether the
186 production is a qualified production and to determine the
187 qualified expenditures and other information necessary for the
188 office to determine certification.
189 (b) The Office of Film and Entertainment shall develop an
190 application form for use in qualifying an applicant as a
191 qualified production. The form must include, but need not be
192 limited to, production-related information concerning employment
193 of residents in this state, a detailed budget of planned
194 qualified expenditures, and the applicant's signed affirmation
195 that the information on the form has been verified and is
196 correct. The Office of Film and Entertainment and local film
197 commissions shall distribute the form.
198 (c) The Office of Film and Entertainment shall establish a
199 process by which an application is accepted and reviewed for
200 certification for a financial incentive or for tax credit
201 eligibility and by which the amount of the financial incentive
202 or tax credit award is determined. The office may request
203 assistance from a duly appointed local film commission in
204 determining qualification for the financial incentive allocation
205 or tax credit award and compliance with this section.
206 (d) The Office of Film and Entertainment shall review the
207 application within 10 business days after receipt. Upon its
208 determination that the application contains all the information
209 required by this subsection and meets the criteria set out in
210 this section, the office shall qualify the applicant and
211 recommend to the Office of Tourism, Trade, and Economic
212 Development that the applicant for a financial incentive be
213 certified for a maximum amount of available funds and that the
214 applicant for a tax credit be certified for the tax credit and
215 for a maximum tax credit award amount. Within 5 business days
216 after receipt of the recommendation, the Office of Tourism,
217 Trade, and Economic Development shall reject the recommendation
218 or certify the applicant and shall certify the maximum
219 recommended tax credit award, if any, to the applicant and to
220 the executive director of the Department of Revenue.
221 (e) The Office of Film and Entertainment shall deny an
222 application if it determines that the application is not
223 complete or the production or the tax credit sought does not
224 meet the requirements of this section.
225 (f) The Office of Film and Entertainment shall develop a
226 process to verify the actual qualified expenditures of a
227 certified production. The process must require:
228 1. A certified production to submit, in a timely manner
229 after production ends and after making all of its qualified
230 expenditures, data substantiating each qualified expenditure to
231 an independent certified public accountant licensed in this
232 state;
233 2. Such accountant to conduct an audit, at the certified
234 production's expense, to substantiate each qualified expenditure
235 and submit the results as a report, along with all
236 substantiating data, to the Office of Film and Entertainment;
237 and
238 3. The Office of Film and Entertainment to review the
239 accountant's submittal and report to the Office of Tourism,
240 Trade, and Economic Development the final verified amount of
241 actual qualified expenditures made by the certified production.
242 (g)1.4. The Office of Tourism, Trade, and Economic
243 Development shall determine and approve the incentive amount or
244 the final amount of the tax credit award for to each certified
245 applicant. The Office of Tourism, Trade, and Economic
246 Development shall then notify the executive director of the
247 Department of Revenue that the certified production has met the
248 requirements of the financial incentive and tax credit program.
249 2. The Office of Tourism, Trade, and Economic Development
250 shall award all tax credits for the previous year by September
251 30.
252 (h)(g) The Office of Film and Entertainment shall ensure
253 that, as a condition of receiving incentive funding or a tax
254 credit under this section, marketing materials promoting this
255 state as a tourist destination or film and entertainment
256 production destination are included, when appropriate, at no
257 cost to the state, which must, at a minimum, include placement
258 in the end credits of a “Filmed in Florida” logo with size and
259 placement commensurate to other logos included in the end
260 credits or, if no logos are used, the statement “Filmed in
261 Florida using Florida's Entertainment Industry Financial
262 Incentive,” or a similar statement approved by the Office of
263 Film and Entertainment before such placement. The Office of Film
264 and Entertainment shall develop a “Filmed in Florida” logo and
265 supply it for the purposes specified in this paragraph.
266 (4) TAX CREDIT ELIGIBILITY; ELECTION AND DISTRIBUTION;
267 CARRYFORWARD; CONSOLIDATED RETURNS; PARTNERSHIP AND NONCORPORATE
268 DISTRIBUTIONS; MERGERS OR ACQUISITIONS.—
269 (a) Tax credit authorization.—For fiscal years beginning on
270 or after July 1, 2009, and ending June 30, 2012, a qualified
271 production is eligible for a tax credit against taxes due under
272 chapter 220 or taxes collected or accrued under chapter 212.
273 (b) Total tax credit.—The total amount of tax credits that
274 may be awarded under this section is $75 million, allocated $25
275 million each fiscal year the incentive remains in effect. If the
276 total amount of allocated credits applied for in any fiscal year
277 exceeds the aggregate amount of tax credits allowed for such
278 year under this section, such excess shall be treated as having
279 been applied for on the first day of the next fiscal year in
280 which credits are available. In any fiscal year, tax credits
281 that are not awarded or that are forfeited due to the withdrawal
282 of a certified production or to a production's actual qualified
283 expenditures being less than the certified amount shall be
284 available for award in subsequent fiscal years.
285 (c) Election and distribution of tax credits.—A certified
286 production company receiving a tax credit award under this
287 section shall, at the time the credit is awarded by the Office
288 of Tourism, Trade, and Economic Development after production is
289 completed and all requirements to receive a credit award have
290 been met, make an irrevocable election to apply the credit
291 against taxes due under chapter 220, against taxes collected or
292 accrued under chapter 212, or against a stated combination of
293 the two taxes. The election shall be binding upon any
294 distributee, successor, transferee, or purchaser. The Office of
295 Tourism, Trade, and Economic Development shall notify the
296 Department of Revenue of any election made pursuant to this
297 paragraph within 5 business days of such election.
298 (d) Tax credit carryforward.—If the certified production
299 company cannot use the entire tax credit in the taxable year or
300 reporting period in which the credit is awarded because of
301 insufficient tax liability on the part of the certified
302 production company, any excess amount may be carried forward to
303 a succeeding taxable year or reporting period. A tax credit
304 applied against taxes imposed under chapter 212 may be carried
305 forward for a maximum of 5 years following the date of award,
306 after which period the credit expires and may not be used. A tax
307 credit applied against taxes imposed under chapter 220 may be
308 carried forward for a maximum of 5 taxable years following the
309 qualified production company's taxable year in which the credit
310 was awarded, after which period the credit expires and may not
311 be used.
312 (e) Consolidated returns.—A certified production company
313 that files a Florida consolidated return as a member of an
314 affiliated group under s. 220.131(1) may be allowed the tax
315 credit on a consolidated return basis up to the amount of the
316 tax imposed upon the consolidated group under chapter 220.
317 (f) Partnership and noncorporate distributions.—A qualified
318 production company that is not a corporation as defined in s.
319 220.03 may elect to distribute tax credits awarded under this
320 section to its partners or members in proportion to their
321 respective distributive income or loss in the taxable year in
322 which the tax credits were awarded.
323 (g) Mergers or acquisitions.—Tax credits available under
324 this section to a certified production company may succeed to a
325 surviving or acquiring entity subject to the same conditions and
326 limitations as described in this section; however, they may not
327 be transferred again by the surviving or acquiring entity.
328 (5) TRANSFER OF TAX CREDITS.—
329 (a) Authorization.—Upon application to the Office of Film
330 and Entertainment and approval by the Office of Tourism, Trade,
331 and Economic Development, a certified production company, or a
332 partner or member that has received a distribution under
333 paragraph (4)(f), may elect to transfer, in whole or in part,
334 any unused tax credit amount granted under this section. An
335 election to transfer any unused tax credit amount under chapter
336 212 or chapter 220 must be made no later than 5 years from the
337 date the credit was awarded, after which period the credit
338 expires and may not be used. The Office of Tourism, Trade, and
339 Economic Development shall notify the Department of Revenue of
340 the election and transfer within 5 business days of such
341 election and transfer.
342 (b) Number of transfers permitted.—A certified production
343 company that has elected to apply a credit amount against taxes
344 remitted under chapter 212 is permitted a one-time transfer of
345 unused credits to one transferee. A certified production company
346 that has elected to apply a credit amount against taxes due
347 under chapter 220 is permitted a one-time transfer of unused
348 credits to no more than four transferees, and such transfers
349 shall occur in the same taxable year.
350 (c) Minimum consideration.—The transfer or purchase of any
351 amount of the tax credit shall not be exchanged for less than 75
352 percent of the credit's value.
353 (d) Transferee rights and limitations.—The transferee is
354 subject to the same rights and limitations as the certified
355 production company awarded the tax credit, except that the
356 transferee may not sell or otherwise transfer the tax credit.
357 (e) Written contractual notice.—No later than 3 business
358 days prior to the certified production company's election to
359 transfer its awarded tax credit, the Office of Film and
360 Entertainment shall receive written contractual notice, on a
361 form approved by the Office of Tourism, Trade, and Economic
362 Development and signed by both the certified production company
363 and the transferee, describing the terms of the transfer and the
364 intention of any purchaser to allocate payment for the film
365 education program under paragraph (f) at the time the transfer
366 is made.
367 (f) Film education fee.—
368 1. A purchaser of any transferred tax credit under this
369 subsection shall pay an amount equal to 5 percent of the total
370 amount paid for the tax credit into the Grants and Donations
371 Trust Fund within the Executive Office of the Governor for use
372 by the Office of Film and Entertainment within the Office of
373 Tourism, Trade, and Economic Development for film education
374 programs. The fees collected under this paragraph shall be
375 subject to specific appropriation by the Legislature.
376 a. Fifty percent of the fee collected under this paragraph
377 shall be made available to the Office of Film and Entertainment
378 for the purpose described in s. 288.1256.
379 b. Fifty percent of the fee collected under this paragraph
380 shall be transferred and provided to film and digital media
381 programs at Florida institutions of higher education approved by
382 the Office of Film and Entertainment to be applied as a grant
383 toward production costs for a student-made production. To be
384 eligible for this grant, a student-made production may not
385 contain obscene content as defined in s. 847.001(10). The
386 recipient of the transfer may choose the approved film or
387 digital media program to receive these funds.
388 2. This paragraph shall not apply to the transfer of tax
389 credits to an affiliated company of the certified production.
390 (6)(4) PRIORITY FOR INCENTIVE FUNDING AND ALLOCATION OF TAX
391 CREDITS; WITHDRAWAL OF ELIGIBILITY; QUEUES.—
392 (a) Priority for incentive funding and tax credit awards.
393 The priority of a qualified production for incentive funding or
394 a tax credit award must be determined on a first-come, first
395 served basis within its appropriate queue. Each qualified
396 production must be placed into the appropriate queue and is
397 subject to the requirements of that queue.
398 (b)(e) Withdrawal of eligibility Schedule.—Each qualified
399 production or certified production shall continue on a
400 reasonable schedule, which means beginning principal photography
401 in this state no more than 45 calendar days before or after the
402 date provided in the production's program program's application
403 under subsection (3). The Office of Tourism, Trade, and Economic
404 Development shall withdraw the eligibility of a qualified
405 production or a certified production for incentive funding or a
406 tax credit award if any such production does not continue on a
407 reasonable schedule. The office shall recertify the tax credits
408 to the next qualified or certified production or productions in
409 the respective queue that have not been certified for their full
410 maximum award and have not started principal photography before
411 the tax credits become available.
412 (c)(b) General production queue.—Eighty-five percent of
413 incentive funding appropriated or of all tax credits awarded
414 under this section in any state fiscal year must be dedicated to
415 the general production queue. A production certified under this
416 queue is eligible for a reimbursement or a tax credit award
417 equal to 15 percent of its actual qualified expenditures. Within
418 this queue:
419 1. A qualified production, excluding commercials, music
420 videos, and digital media projects, which demonstrates a minimum
421 of $625,000 in qualified expenditures is eligible for up to a
422 maximum of $8 million in incentive funding or a tax credit
423 award. A qualified production spanning multiple state fiscal
424 years may combine qualified expenditures from such fiscal years
425 to satisfy the threshold.
426 2. A qualified production company that produces national,
427 international, or regional commercials, or music videos may be
428 eligible for a maximum of $500,000 in incentive funding or a tax
429 credit award if it demonstrates a minimum of $100,000 in
430 qualified expenditures per national, international, or regional
431 commercial or music video and exceeds a combined threshold of
432 $500,000 after combining actual qualified expenditures from
433 qualified commercials and music videos during a single state
434 fiscal year. After a qualified production company that produces
435 commercials, music videos, or both reaches the threshold of
436 $500,000, it is eligible to apply for certification for
437 incentive funding or a tax credit award.
438 3. An off-season certified production is eligible for an
439 additional 5-percent incentive funding or tax credit award on
440 actual qualified expenditures. An off-season certified
441 production that does not complete 75 percent of principal
442 photography due to disruption caused by a hurricane or tropical
443 storm may not be disqualified from eligibility for the
444 additional 5-percent incentive or tax credit award as a result
445 of the disruption.
446 4. Each qualified production shall make a good faith effort
447 to use existing providers of infrastructure or equipment in this
448 state, including providers of camera gear, grip and lighting
449 equipment, vehicle providers, and postproduction services when
450 available in-state.
451 5. A qualified high-impact television series shall be
452 allowed first position in this queue for incentive funding or
453 tax credits not yet certified.
454 (d)(c) Independent Florida filmmaker queue.—Five percent of
455 incentive funding appropriated or tax credits available under
456 this section in any state fiscal year must be dedicated to the
457 independent Florida filmmaker queue. A production certified
458 under this queue is eligible for a financial incentive or tax
459 credit award reimbursement equal to 15 percent of its actual
460 qualified expenditures. An independent Florida film that meets
461 the criteria of this queue and demonstrates a minimum of
462 $100,000, but not more than $625,000, in total qualified
463 expenditures is eligible for incentive funding or a tax credit
464 award. To qualify for this queue, a qualified production must:
465 1. Be planned as a feature film or documentary of no less
466 than 70 minutes in length.
467 2. Provide evidence of 50 percent of the financing for its
468 total budget in an escrow account or other form dedicated to the
469 production.
470 3. Do all major postproduction in this state.
471 4. Employ Florida workers in at least six of the following
472 key positions: writer, director, producer, director of
473 photography, star or one of the lead actors, unit production
474 manager, editor, or production designer. As used in this
475 subparagraph, the term “Florida worker” means a person who has
476 been a resident of this state for at least 1 year before a
477 production's application under subsection (3) was submitted or a
478 person who graduated from a film school, college, university, or
479 community college in this state no more than 5 years before such
480 submittal or who is enrolled full-time in such a school,
481 college, or university.
482 (e)(d) Digital media projects queue.—Ten percent of
483 incentive funding appropriated or tax credits available under
484 this section in any state fiscal year shall be dedicated to the
485 digital media projects queue. A production certified under this
486 queue is eligible for a financial incentive or tax credit award
487 reimbursement equal to 10 percent of its actual qualified
488 expenditures. A qualified production that is a digital media
489 project that demonstrates a minimum of $300,000 in total
490 qualified expenditures is eligible for a maximum of $1 million
491 in incentive funding or a tax credit award. As used in this
492 paragraph, the term “qualified expenditures” means the wages or
493 salaries paid to a resident of this state for working on a
494 single qualified digital media project, up to a maximum of
495 $200,000 in wages or salaries paid per resident. A qualified
496 production company producing digital media projects may not
497 qualify for more than three projects in any 1 fiscal year.
498 Projects that extend beyond a fiscal year must reapply each
499 fiscal year in order to be eligible for incentive funding or a
500 tax credit award for that year.
501 (f) Family-friendly productions.—A certified production
502 determined by the Commissioner of Film and Entertainment, with
503 the advice of the Florida Film and Entertainment Advisory
504 Council, to be family friendly based on the review of the script
505 and an interview with the director is eligible for an additional
506 financial incentive or tax credit award reimbursement equal to 2
507 percent of its actual qualified expenditures. Family-friendly
508 productions are those that have cross-generational appeal; would
509 be considered suitable for viewing by children age 5 and older;
510 are appropriate in theme, content, and language for a broad
511 family audience; embody a responsible resolution of issues; and
512 do not exhibit any act of smoking, sex, nudity, or vulgar or
513 profane language.
514 (g) Productions in partnership with postsecondary education
515 programs.—A certified production determined by the Commissioner
516 of Film and Entertainment to have partnered with a state public
517 postsecondary film-and-entertainment-related educational program
518 in the production is eligible for an additional financial
519 incentive or tax credit of 10 percent of its actual qualified
520 expenditures. Productions in partnership with such postsecondary
521 educational programs are those that provide opportunities for
522 students through internships or in other capacities that will
523 assist students in their educational responsibilities and in
524 preparation for their future positions in the film and
525 entertainment industry upon graduation.
526 (7)(5) RULES, POLICIES, AND PROCEDURES.—
527 (a) The Office of Tourism, Trade, and Economic Development
528 may adopt rules under ss. 120.536(1) and 120.54 and develop
529 policies and procedures to administer this section, including,
530 but not limited to, rules specifying requirements for the
531 application and approval process; records required for
532 substantiation for incentive funding and tax credit awards;
533 procedures for making the election in paragraph (4)(c); the
534 manner and form of documentation required to claim tax credits
535 awarded or transferred under this section; the determination of,
536 qualification for, and certification for tax credits; the
537 implementation of the Florida Graduate Film Investment Program
538 in s. 288.1256; and marketing requirements for tax credit
539 recipients.
540 (b) The Department of Revenue may adopt rules pursuant to
541 ss. 120.536(1) and 120.54 prescribing the forms and
542 documentation needed to substantiate a claim for the tax credit
543 and the specific procedures and guidelines for claiming the tax
544 credit awarded or transferred under this section.
545 (8) AUDIT AUTHORITY; REVOCATION AND FORFEITURE OF TAX
546 CREDITS; FRAUDULENT CLAIMS.—
547 (a) Audit authority.—The Department of Revenue may conduct
548 examinations and audits as provided in s. 213.34 to verify that
549 tax credits under this section have been received, transferred,
550 and applied according to the requirements of this section. If
551 the Department of Revenue determines that tax credits have not
552 been received, transferred, or applied as required by this
553 section, it may, in addition to the remedies provided in this
554 subsection, pursue recovery of such funds pursuant to the laws
555 and rules governing the assessment of taxes.
556 (b) Revocation of tax credits.—The Office of Tourism,
557 Trade, and Economic Development may revoke or modify any written
558 decision qualifying, certifying, or otherwise granting
559 eligibility for tax credits under this section if it is
560 discovered that the tax credit applicant submitted any false
561 statement, representation, or certification in any application,
562 record, report, plan, or other document filed in an attempt to
563 receive tax credits under this section. The Office of Tourism,
564 Trade, and Economic Development shall immediately notify the
565 Department of Revenue of any revoked or modified orders
566 affecting previously certified tax credits.
567 (c) Forfeiture of tax credits.—A determination by the
568 Department of Revenue, as a result of an audit or examination by
569 the Department of Revenue or from information received from the
570 Office of Film and Entertainment, that an applicant received tax
571 credits pursuant to this section to which the applicant was not
572 entitled is grounds for forfeiture of previously claimed and
573 awarded tax credits. The applicant is responsible for
574 immediately returning forfeited tax credits to the Department of
575 Revenue, together with the appropriate interest and penalty,
576 computed from the date of receipt of such credits, and such
577 funds shall be paid into the General Revenue Fund of the state.
578 Tax credits purchased in good faith are not subject to
579 forfeiture unless the transferee submitted fraudulent
580 information in the purchase or failed to meet the requirements
581 in subsection (5). The Department of Revenue shall immediately
582 notify the Office of Tourism, Trade, and Economic Development of
583 the forfeiture of previously claimed and awarded tax credits.
584 (d)(7) Fraudulent claims FRAUD.—Any applicant that submits
585 information under this section that includes fraudulent
586 information is liable for reimbursement of the reasonable costs
587 and fees associated with the review, processing, investigation,
588 and prosecution of the fraudulent claim. An applicant that
589 obtains a financial an incentive payment or a tax credit amount
590 under this section through a claim that is fraudulent is liable
591 for reimbursement of the financial incentive payment or tax
592 credit amount plus a penalty in an amount double the financial
593 incentive payment or the tax credit amount claimed and
594 reimbursement of reasonable costs. The penalty is in addition to
595 any criminal penalty to which the applicant is liable for the
596 same acts. The applicant is also liable for costs and fees
597 incurred by the state in investigating and prosecuting the
598 fraudulent claim.
599 (9)(6) ANNUAL REPORT.—Each October 1, the Office of Film
600 and Entertainment shall provide an annual report for the
601 previous fiscal year to the Governor, the President of the
602 Senate, and the Speaker of the House of Representatives which
603 outlines the return on investment and economic benefits to the
604 state on funds expended pursuant to this section.
605 (10) TAX CREDIT EXPIRATION.—On July 1, 2012, tax credits
606 under this section may no longer be authorized, except that the
607 tax credit carryforward provided for in this section shall
608 continue to be valid for the period specified.
609 Section 2. Section 288.1256, Florida Statutes, is created
610 to read:
611 288.1256 Florida Graduate Film Investment Program.—
612 (1) The Office of Film and Entertainment shall create and
613 administer a program, using moneys deposited into the Grants and
614 Donations Trust Fund of the Executive Office of the Governor
615 pursuant to s. 288.1254(5)(f), to award either a grant or a loan
616 guarantee for films that are:
617 (a) Written, produced, and directed by Florida residents
618 who are graduates of an Office of Film and Entertainment
619 approved film program at a Florida institution of higher
620 education; and
621 (b) Determined by the Commissioner of Film and
622 Entertainment, with the advice of the Florida Film and
623 Entertainment Advisory Council, to be family friendly based on
624 the review of the script and a personal interview with the
625 director. Family friendly productions are those that have cross
626 generational appeal; would be considered suitable for viewing by
627 children age 5 and older; are appropriate in theme, content, and
628 language for a broad family audience; embody a responsible
629 resolution of issues; and do not exhibit any act of smoking,
630 sex, nudity, or vulgar or profane language.
631 (2) Films that are deemed by the Office of Film and
632 Entertainment to contain obscene content as defined in s.
633 847.001(10) are not eligible for this program.
634 Section 3. Paragraph (j) is added to subsection (5) of
635 section 288.1252, Florida Statutes, to read:
636 288.1252 Florida Film and Entertainment Advisory Council;
637 creation; purpose; membership; powers and duties.—
638 (5) POWERS AND DUTIES.—The Florida Film and Entertainment
639 Advisory Council shall have all the powers necessary or
640 convenient to carry out and effectuate the purposes and
641 provisions of this act, including, but not limited to, the power
642 to:
643 (j) Advise whether a film produced under s. 288.1256 meets
644 the criteria delineated in that section.
645 Section 4. Paragraph (a) of subsection (1) of section
646 220.13, Florida Statutes, is amended to read:
647 220.13 “Adjusted federal income” defined.—
648 (1) The term “adjusted federal income” means an amount
649 equal to the taxpayer's taxable income as defined in subsection
650 (2), or such taxable income of more than one taxpayer as
651 provided in s. 220.131, for the taxable year, adjusted as
652 follows:
653 (a) Additions.—There shall be added to such taxable income:
654 1. The amount of any tax upon or measured by income,
655 excluding taxes based on gross receipts or revenues, paid or
656 accrued as a liability to the District of Columbia or any state
657 of the United States which is deductible from gross income in
658 the computation of taxable income for the taxable year.
659 2. The amount of interest which is excluded from taxable
660 income under s. 103(a) of the Internal Revenue Code or any other
661 federal law, less the associated expenses disallowed in the
662 computation of taxable income under s. 265 of the Internal
663 Revenue Code or any other law, excluding 60 percent of any
664 amounts included in alternative minimum taxable income, as
665 defined in s. 55(b)(2) of the Internal Revenue Code, if the
666 taxpayer pays tax under s. 220.11(3).
667 3. In the case of a regulated investment company or real
668 estate investment trust, an amount equal to the excess of the
669 net long-term capital gain for the taxable year over the amount
670 of the capital gain dividends attributable to the taxable year.
671 4. That portion of the wages or salaries paid or incurred
672 for the taxable year which is equal to the amount of the credit
673 allowable for the taxable year under s. 220.181. This
674 subparagraph shall expire on the date specified in s. 290.016
675 for the expiration of the Florida Enterprise Zone Act.
676 5. That portion of the ad valorem school taxes paid or
677 incurred for the taxable year which is equal to the amount of
678 the credit allowable for the taxable year under s. 220.182. This
679 subparagraph shall expire on the date specified in s. 290.016
680 for the expiration of the Florida Enterprise Zone Act.
681 6. The amount of emergency excise tax paid or accrued as a
682 liability to this state under chapter 221 which tax is
683 deductible from gross income in the computation of taxable
684 income for the taxable year.
685 7. That portion of assessments to fund a guaranty
686 association incurred for the taxable year which is equal to the
687 amount of the credit allowable for the taxable year.
688 8. In the case of a nonprofit corporation which holds a
689 pari-mutuel permit and which is exempt from federal income tax
690 as a farmers' cooperative, an amount equal to the excess of the
691 gross income attributable to the pari-mutuel operations over the
692 attributable expenses for the taxable year.
693 9. The amount taken as a credit for the taxable year under
694 s. 220.1895.
695 10. Up to nine percent of the eligible basis of any
696 designated project which is equal to the credit allowable for
697 the taxable year under s. 220.185.
698 11. The amount taken as a credit for the taxable year under
699 s. 220.187.
700 12. The amount taken as a credit for the taxable year under
701 s. 220.192.
702 13. The amount taken as a credit for the taxable year under
703 s. 220.193.
704 14. Any amount in excess of $25,000 allowable as a
705 deduction for federal income tax purposes under s. 179 of the
706 Internal Revenue Code of 1986, as amended, for the taxable year.
707 15. Any amount allowable as a deduction for federal income
708 tax purposes under s. 167 or s. 168 of the Internal Revenue Code
709 of 1986, as amended, for the taxable year to the extent that
710 such amount includes bonus depreciation allowable as deduction
711 under s. 168(k).
712 16. The amount taken as a credit for the taxable year under
713 s. 288.1254.
714 Section 5. Subsection (8) of section 220.02, Florida
715 Statutes, is amended to read:
716 220.02 Legislative intent.—
717 (8) It is the intent of the Legislature that credits
718 against either the corporate income tax or the franchise tax be
719 applied in the following order: those enumerated in s. 631.828,
720 those enumerated in s. 220.191, those enumerated in s. 220.181,
721 those enumerated in s. 220.183, those enumerated in s. 220.182,
722 those enumerated in s. 220.1895, those enumerated in s. 221.02,
723 those enumerated in s. 220.184, those enumerated in s. 220.186,
724 those enumerated in s. 220.1845, those enumerated in s. 220.19,
725 those enumerated in s. 220.185, those enumerated in s. 220.187,
726 those enumerated in s. 220.192, and those enumerated in s.
727 220.193, and those enumerated in s. 288.1254. The Department of
728 Revenue may adopt rules pursuant to ss. 120.536(1) and 120.54
729 prescribing the forms and documentation needed to substantiate a
730 claim for the tax credit and the specific procedures and
731 guidelines for claiming the credit awarded or transferred under
732 s. 288.1254.
733 Section 6. Paragraph (z) is added to subsection (8) of
734 section 213.053, Florida Statutes, to read:
735 213.053 Confidentiality and information sharing.—
736 (8) Notwithstanding any other provision of this section,
737 the department may provide:
738 (z) Information relative to tax credits taken under s.
739 288.1254 to the Office of Film and Entertainment and the Office
740 of Tourism, Trade, and Economic Development.
741 Disclosure of information under this subsection shall be
742 pursuant to a written agreement between the executive director
743 and the agency. Such agencies, governmental or nongovernmental,
744 shall be bound by the same requirements of confidentiality as
745 the Department of Revenue. Breach of confidentiality is a
746 misdemeanor of the first degree, punishable as provided by s.
747 775.082 or s. 775.083.
748 Section 7. Paragraph (q) is added to subsection (5) of
749 section 212.08, Florida Statutes, to read:
750 212.08 Sales, rental, use, consumption, distribution, and
751 storage tax; specified exemptions.—The sale at retail, the
752 rental, the use, the consumption, the distribution, and the
753 storage to be used or consumed in this state of the following
754 are hereby specifically exempt from the tax imposed by this
755 chapter.
756 (5) EXEMPTIONS; ACCOUNT OF USE.—
757 (q) Entertainment industry tax credit; requirement for
758 electronic funds transfer.—
759 1. For the fiscal years beginning July 1, 2009, and ending
760 June 30, 2012, a qualified production, as defined in s.
761 288.1254(1)(j), is eligible for tax credits against its state
762 sales and use tax liabilities as provided in s. 288.1254.
763 2. The credit shall be deducted from any sales and use tax
764 remitted by the dealer to the department by electronic funds
765 transfer and can only be deducted on a sales and use tax return
766 initiated through electronic data interchange. The dealer shall
767 separately state the credit on the electronic return. The net
768 amount of tax due and payable must be remitted by electronic
769 funds transfer. If the credit for the qualified expenditures is
770 larger than the amount owed on the sales and use tax return, the
771 amount of the credit may be carried forward to a succeeding
772 reporting period. A dealer may only obtain a credit using the
773 method described in this subparagraph. A dealer is not
774 authorized to obtain a credit by applying for a refund.
775 3. The department may adopt rules pursuant to ss.
776 120.536(1) and 120.54 to implement and administer this
777 paragraph, including rules prescribing the forms and
778 documentation needed to substantiate a claim for the tax credit
779 and the specific procedures and guidelines for claiming the
780 credit awarded or transferred under this paragraph.
781 Section 8. If any provision of this act or the application
782 thereof to any person or circumstance is held invalid, the
783 invalidity shall not affect other provisions or applications of
784 the act which can be given effect without the invalid provision
785 or application, and to this end the provisions of this act are
786 declared severable.
787 Section 9. This act shall take effect July 1, 2009.