Florida Senate - 2009 SB 350
By Senator Haridopolos
26-00275-09 2009350__
1 A bill to be entitled
2 An act relating to entertainment industry economic
3 development; amending s. 288.1254, F.S.; revising the
4 entertainment industry financial incentive program to
5 provide corporate income tax and sales and use tax
6 credits to qualified entertainment entities rather
7 than reimbursements from appropriations; revising
8 provisions relating to definitions, creation and
9 scope, application procedures, approval process,
10 eligibility, required documents, qualified and
11 certified productions, and annual reports; providing
12 duties and responsibilities of the Office of Film and
13 Entertainment, the Office of Tourism, Trade, and
14 Economic Development, and the Department of Revenue
15 relating to the tax credits; providing criteria and
16 limitations for awards of tax credits; providing for
17 uses, allocations, election, distributions, and
18 carryforward of the tax credits; providing for
19 withdrawal of tax credit eligibility; providing for
20 use of consolidated returns; providing for partnership
21 and noncorporate distributions of tax credits;
22 providing for succession of tax credits; providing
23 requirements for transfer of tax credits; authorizing
24 the Office of Tourism, Trade, and Economic Development
25 to adopt rules, policies, and procedures; authorizing
26 the Department of Revenue to adopt rules and conduct
27 audits; providing for revocation and forfeiture of tax
28 credits; providing liability for reimbursement of
29 certain costs and fees associated with a fraudulent
30 claim; requiring an annual report to the Governor and
31 the Legislature; providing for future repeal; amending
32 s. 220.02, F.S.; including tax credits enumerated in
33 s. 288.1254, F.S., in the order of application of
34 credits against certain taxes; amending s. 213.053,
35 F.S.; authorizing the Department of Revenue to provide
36 tax credit information to the Office of Film and
37 Entertainment and the Office of Tourism, Trade, and
38 Economic Development; amending s. 212.08, F.S.;
39 requiring electronic funds transfer for the
40 entertainment industry tax credit; providing
41 procedures; providing for severability; providing an
42 effective date.
43
44 Be It Enacted by the Legislature of the State of Florida:
45
46 Section 1. Section 288.1254, Florida Statutes, is amended
47 to read:
48 (Substantial rewording of section. See
49 s. 288.1254, F.S., for present text.)
50 288.1254 Entertainment industry financial incentive
51 program.—
52 (1) DEFINITIONS.—As used in this section, the term:
53 (a) “Certified production” means a qualified production
54 that has tax credits allocated to it by the Office of Tourism,
55 Trade, and Economic Development based on its estimated qualified
56 expenditures, up to its maximum certified amount of tax credits,
57 by the Office of Tourism, Trade, and Economic Development. The
58 term excludes a production if its first day of principal
59 photography in this state occurred before the production is
60 certified by the Office of Tourism, Trade, and Economic
61 Development.
62 (b) “Digital media project” means a production of
63 interactive entertainment which is produced for distribution in
64 commercial or educational markets, including a video game,
65 simulation, or animation, or a production intended for Internet
66 or wireless distribution. The term excludes a production deemed
67 by the Office of Film and Entertainment to contain obscene
68 content as defined in s. 847.001(10).
69 (c) “Off-season certified production” means a production,
70 other than a digital media project or an animated production,
71 which films 75 percent or more of its principal photography days
72 from June 1 through November 30.
73 (d) “Production” means a theatrical or direct-to-video
74 motion picture; a made-for-television motion picture; a
75 commercial; a music video; an industrial or educational film; an
76 infomercial; a documentary film; a television pilot program; a
77 presentation for a television pilot program; a television
78 series, including, but not limited to, a drama, a reality show,
79 a comedy, a soap opera, a telenovela, a game show, or a
80 miniseries production; or a digital media project by the
81 entertainment industry. One season of a television series is
82 considered one production. The term excludes a weather or market
83 program; a sporting event; a sports show; a gala; a production
84 that solicits funds; a home shopping program; a political
85 program; a political documentary; political advertising; a
86 gambling-related project or production; a concert production; a
87 pornographic production; or a local, regional, or Internet
88 distributed-only news show, current-events show, pornographic
89 production, or current-affairs show. A production may be
90 produced on or by film, tape, or otherwise by means of a motion
91 picture camera; electronic camera or device; tape device;
92 computer; any combination of the foregoing; or any other means,
93 method, or device now used or later adopted.
94 (e) “Production expenditures” means the costs of tangible
95 and intangible property used and services performed primarily
96 and customarily in production, including preproduction and
97 postproduction, excluding costs for development, marketing, and
98 distribution. Production expenditures include, but are not
99 limited to:
100 1. Wages, salaries, or other compensation, including
101 amounts paid through payroll service companies, for technical
102 and production crews, directors, producers, and performers.
103 2. Expenditures for sound stages, backlots, production
104 editing, digital effects, sound recordings, sets, and set
105 construction.
106 3. Expenditures for rental equipment, including, but not
107 limited to, cameras and grip or electrical equipment.
108 4. Costs of computer software and hardware, including
109 servers, data processing, and visualization technologies used
110 exclusively in the state for the production of digital media.
111 5. Expenditures for meals, travel, and accommodations.
112 (f) “Qualified expenditures” means production expenditures
113 incurred in this state by a qualified production for:
114 1. Goods purchased or leased from, or services provided by,
115 a vendor or supplier, including a payroll services company, in
116 this state which is registered with the Department of State or
117 the Department of Revenue and doing business in this state.
118 2. Payments to residents of this state in the form of
119 salary, wages, or other compensation up to a maximum of $1
120 million per resident unless otherwise specified in subsection
121 (4).
122 For a qualified production involving an event, such as an awards
123 show, the term excludes expenditures solely associated with the
124 event itself and not directly required by the production. The
125 term excludes expenditures prior to certification, with the
126 exception of those incurred for a commercial, a music video, or
127 the pickup of additional episodes of a television series within
128 a single season.
129 (g) “Qualified production” means a production in this state
130 meeting the requirements of this section. The term excludes a
131 production:
132 1. In which less than 50 percent of the positions that make
133 up its production cast and below-the-line production crew are
134 filled by residents of this state, whose residency is
135 demonstrated by a valid Florida driver's license or other state
136 issued identification confirming residency, or students enrolled
137 full-time in a film-and-entertainment-related course of study at
138 an institution of higher education in this state; or
139 2. That is deemed by the Office of Film and Entertainment
140 to contain obscene content as defined in s. 847.001(10).
141 (h) “Qualified production company” means a corporation,
142 limited liability company, partnership, or other legal entity
143 engaged in a production or productions.
144 (2) CREATION AND PURPOSE OF PROGRAM.—The entertainment
145 industry financial incentive program is created within the
146 Office of Film and Entertainment. The purpose of this program is
147 to encourage the use of this state as a site for filming and to
148 develop and sustain the workforce and infrastructure for film
149 and entertainment production.
150 (3) APPLICATION PROCEDURE; APPROVAL PROCESS.—
151 (a) Program application.—A qualified production company in
152 this state producing a qualified production may submit a program
153 application to the Office of Film and Entertainment for the
154 purpose of determining qualification for an award of tax credits
155 authorized by this section no earlier than 6 months before the
156 anticipated production start date. The applicant shall provide
157 the office with information required to determine whether the
158 production is a qualified production and to determine the
159 qualified expenditures and other information necessary for the
160 office to determine eligibility for the tax credit.
161 (b) Required documentation.—The Office of Film and
162 Entertainment shall develop an application form for qualifying
163 an applicant as a qualified production. The form must include,
164 but need not be limited to, production-related information
165 concerning employment of residents in this state, a detailed
166 budget of planned qualified expenditures, and the applicant's
167 signed affirmation that the information on the form has been
168 verified and is correct. The Office of Film and Entertainment
169 and local film commissions shall distribute the form.
170 (c) Application process.—The Office of Film and
171 Entertainment shall establish a process by which an application
172 is accepted and reviewed and by which tax credit eligibility and
173 amount are determined. The office may request assistance from a
174 duly appointed local film commission in determining compliance
175 with this section.
176 (d) Certification.—The Office of Film and Entertainment
177 shall review the application within 10 business days after
178 receipt. Upon its determination that the application contains
179 all the information required by this subsection and meets the
180 criteria set out in this section, the office shall qualify the
181 applicant and recommend to the Office of Tourism, Trade, and
182 Economic Development that the applicant be certified for the
183 maximum tax credit award amount. Within 5 business days after
184 receipt of the recommendation, the Office of Tourism, Trade, and
185 Economic Development shall reject the recommendation or certify
186 the maximum recommended tax credit award, if any, to the
187 applicant and to the executive director of the Department of
188 Revenue.
189 (e) Grounds for denial.—The Office of Film and
190 Entertainment shall deny an application if it determines that
191 the application is not complete, the production does not meet
192 the requirements of this section, or the tax credit sought does
193 not meet the requirements of this section.
194 (f) Verification of actual qualified expenditures.—
195 1. The Office of Film and Entertainment shall develop a
196 process to verify the actual qualified expenditures of a
197 certified production. The process must require:
198 a. A certified production to submit, in a timely manner
199 after production ends and after making all of its qualified
200 expenditures, data substantiating each qualified expenditure to
201 an independent certified public accountant licensed in this
202 state;
203 b. Such accountant to conduct an audit, at the certified
204 production's expense, to substantiate each qualified expenditure
205 and submit the results as a report, along with all
206 substantiating data, to the Office of Film and Entertainment;
207 and
208 c. The Office of Film and Entertainment to review the
209 accountant's submittal and report to the Office of Tourism,
210 Trade, and Economic Development the final verified amount of
211 actual qualified expenditures made by the certified production.
212 2. The Office of Tourism, Trade, and Economic Development
213 shall determine and approve the final tax credit award amount to
214 each certified applicant based on the final verified amount of
215 actual qualified expenditures and shall then notify the
216 executive director of the Department of Revenue that the
217 certified production has met the requirements of the incentive
218 program and of the final amount of the tax credit award.
219 (g) Promoting Florida.—The Office of Film and Entertainment
220 shall ensure that, as a condition of receiving a tax credit
221 under this section, marketing materials promoting this state as
222 a tourist destination or film and entertainment production
223 destination are included, when appropriate, at no cost to the
224 state, which must, at a minimum, include placement in the end
225 credits of a “Filmed in Florida” logo with size and placement
226 commensurate to other logos included in the end credits or, if
227 no logos are used, the statement “Filmed in Florida using
228 Florida's Entertainment Industry Financial Incentive,” or a
229 similar statement approved by the Office of Film and
230 Entertainment before such placement. The Office of Film and
231 Entertainment shall develop a “Filmed in Florida” logo and
232 supply it for the purposes specified in this paragraph.
233 (4) TAX CREDIT ELIGIBILITY; ELECTION AND DISTRIBUTION;
234 CARRYFORWARD; CONSOLIDATED RETURNS; PARTNERSHIP AND NONCORPORATE
235 DISTRIBUTIONS; MERGERS AND ACQUISITIONS.—
236 (a) Tax credit award.—Tax credits awarded under this
237 section in a fiscal year shall be made to qualified productions
238 according to the principal photography start date of the
239 productions, except for digital media projects, which shall be
240 based on the start date of the productions.
241 (b) Tax credit eligibility.—
242 1. A qualified production, excluding commercials, music
243 videos, digital media projects, and independent Florida films,
244 that demonstrates a minimum of $500,000 in qualified
245 expenditures is eligible for tax credits equal to 20 percent of
246 its actual qualified expenditures.
247 2. An off-season certified production is eligible for an
248 additional 5 percent tax credit on actual qualified
249 expenditures. An off-season certified production that does not
250 complete 75 percent of principal photography due to disruption
251 caused by a hurricane or tropical storm may not be disqualified
252 from eligibility for the additional 5 percent credit as a result
253 of the disruption.
254 3. A qualified production company that produces national or
255 regional commercials or music videos may be eligible for a tax
256 credit award if it demonstrates a minimum of $100,000 in
257 qualified expenditures per national or regional commercial or
258 music video and exceeds a combined threshold of $500,000 after
259 combining actual qualified expenditures from qualified
260 commercials and music videos during a single state fiscal year.
261 After a qualified production company that produces commercials,
262 music videos, or both reaches the threshold of $500,000, it is
263 eligible to apply for certification for a tax credit award. The
264 maximum credit award shall be equal to 10 percent of its actual
265 qualified expenditures up to a maximum of $500,000.
266 4. A qualified production that is a digital media project
267 that demonstrates a minimum of $300,000 in total qualified
268 expenditures is eligible for a tax credit equal to 20 percent of
269 its actual qualified expenditures. As used in this subparagraph,
270 the term “qualified expenditures” means the wages or salaries
271 paid to a resident of this state for working on a single
272 qualified digital media project, up to a maximum of $200,000 in
273 wages or salaries paid per resident. A qualified production
274 company producing digital media projects may not qualify for
275 more than three projects in a fiscal year. A project that
276 extends beyond a fiscal year must reapply each fiscal year in
277 order to be eligible for a tax credit award for that year.
278 5. An independent Florida film that meets the criteria of
279 this subparagraph and demonstrates a minimum of $100,000, but
280 not more than $625,000, in total qualified expenditures is
281 eligible for tax credits equal to 15 percent of its actual
282 qualified expenditures. To qualify for this tax credit, a
283 qualified production must:
284 a. Be planned as a feature film or documentary of no less
285 than 70 minutes in length.
286 b. Provide evidence of 50 percent of the financing for its
287 total budget in an escrow account or other form dedicated to the
288 production.
289 c. Do all major postproduction in this state.
290 d. Employ Florida workers in at least six of the following
291 key positions: writer, director, producer, director of
292 photography, star or one of the lead actors, unit production
293 manager, editor, or production designer. As used in this sub
294 subparagraph, the term “Florida worker” means a person who has
295 been a resident of this state for at least 1 year before a
296 production's application under subsection (3) was submitted or a
297 person who graduated from a film school, college, university, or
298 community college in this state no more than 5 years before such
299 submittal or who is enrolled full time in such a school,
300 college, or university.
301 6. A certified production determined by the Commissioner of
302 Film and Entertainment, with the advice of the Florida Film and
303 Entertainment Advisory Council, to be family friendly, based on
304 the review of the script and an interview with the director, is
305 eligible for an additional tax credit equal to 2 percent of its
306 actual qualified expenditures. Family friendly productions are
307 those that have cross-generational appeal; would be considered
308 suitable for viewing by children age 5 or older; are appropriate
309 in theme, content, and language for a broad family audience;
310 embody a responsible resolution of issues; and do not exhibit
311 any act of smoking, sex, nudity, or vulgar or profane language.
312 Each qualified production under this paragraph shall make a good
313 faith effort to use existing providers of infrastructure or
314 equipment in this state, including, but not limited to,
315 providers of camera gear, grip and lighting equipment, vehicle
316 providers, and postproduction services when available in-state.
317 (c) Withdrawal of tax credit eligibility.—A qualified or
318 certified production shall continue on a reasonable schedule,
319 which means beginning principal photography or in the case of a
320 digital media project the start date of the production, in this
321 state no more than 45 calendar days before or after the date
322 provided in the production's program application. The Office of
323 Tourism, Trade, and Economic Development shall withdraw the
324 eligibility of a qualified or certified production that does not
325 continue on a reasonable schedule.
326 (d) Election and distribution of tax credits.—A certified
327 production company receiving a tax credit award under this
328 section shall, at the time the credit is awarded by the Office
329 of Tourism, Trade, and Economic Development after production is
330 completed and all requirements to receive a credit award have
331 been met, make an irrevocable election to apply the credit
332 against taxes due under chapter 220, against taxes collected or
333 accrued under chapter 212, or against a stated combination of
334 the two taxes. The election shall be binding upon any
335 distributee, successor, transferee, or purchaser. The Office of
336 Tourism, Trade, and Economic Development shall notify the
337 Department of Revenue of any election made pursuant to this
338 paragraph.
339 (e) Tax credit carryforward.—If the certified production
340 company cannot use the entire tax credit in the taxable year or
341 reporting period in which the credit is awarded, any excess
342 amount may be carried forward to a succeeding taxable year or
343 reporting period. A tax credit applied against taxes imposed
344 under chapter 212 may be carried forward for a maximum of 5
345 years following the date of award. A tax credit applied against
346 taxes imposed under chapter 220 may be carried forward for a
347 maximum of 5 years following the year in which the credit was
348 awarded, after which the credit expires and may not be used.
349 (f) Consolidated returns.—A certified production company
350 that files a Florida consolidated return as a member of an
351 affiliated group under s. 220.131(1) may be allowed the credit
352 on a consolidated return basis up to the amount of the tax
353 imposed upon the consolidated group under chapter 220.
354 (g) Partnership and noncorporate distributions.—A qualified
355 production company that is not a corporation as defined in s.
356 220.03 may elect to distribute tax credits awarded under this
357 section to its partners or members in proportion to their
358 respective distributive income or loss in the taxable fiscal
359 year in which the tax credits were awarded.
360 (h) Mergers or acquisitions.—Tax credits available under
361 this section to a certified production company may succeed to a
362 surviving or acquiring entity subject to the same conditions and
363 limitations as described in this section; however, they may not
364 be transferred again by the surviving or acquiring entity.
365 (5) TRANSFER OF TAX CREDITS.—
366 (a) Authorization.—Upon application to the Office of Film
367 and Entertainment and approval by the Office of Tourism, Trade,
368 and Economic Development, a certified production company, or a
369 partner or member that has received a distribution under
370 paragraph (4)(g), may elect to transfer, in whole or in part,
371 any unused credit amount granted under this section. An election
372 to transfer any unused tax credit amount under chapter 212 or
373 chapter 220 must be made no later than 5 years from the date the
374 credit was awarded, after which period the credit expires and
375 may not be used. The Office of Tourism, Trade, and Economic
376 Development shall notify the Department of Revenue of the
377 election and transfer.
378 (b) Number of transfers permitted.—A certified production
379 company that has elected to apply a credit amount against taxes
380 remitted under chapter 212 is permitted a one-time transfer of
381 unused credits to one transferee. A certified production company
382 that has elected to apply a credit amount against taxes due
383 under chapter 220 is permitted a one-time transfer of unused
384 credits to no more than four transferees, and such transfers
385 shall occur in the same taxable year.
386 (c) Transferee rights and limitations.—The transferee is
387 subject to the same rights and limitations as the certified
388 production company awarded the tax credit, except that the
389 transferee may not sell or otherwise transfer the tax credit.
390 (d) Rulemaking.—The Department of Revenue may adopt rules
391 pursuant to ss. 120.536(1) and 120.54 to administer this
392 subsection, as provided in subsection (6).
393 (6) RULES, POLICIES, AND PROCEDURES.—
394 (a) The Office of Tourism, Trade, and Economic Development
395 may adopt rules pursuant to ss. 120.536(1) and 120.54 and
396 develop policies and procedures to implement and administer this
397 section, including, but not limited to, rules specifying
398 requirements for the application and approval process, records
399 required for substantiation for tax credits, procedures for
400 making the election in paragraph (4)(d), the manner and form of
401 documentation required to claim tax credits awarded or
402 transferred under this section, and marketing requirements for
403 tax credit recipients.
404 (b) The Department of Revenue may adopt rules pursuant to
405 ss. 120.536(1) and 120.54 to administer this section, including
406 rules governing the examination and audit procedures required to
407 administer this section and the manner and form of documentation
408 required to claim tax credits awarded or transferred under this
409 section.
410 (7) AUDIT AUTHORITY; REVOCATION AND FORFEITURE OF TAX
411 CREDITS; FRAUDULENT CLAIMS.—
412 (a) Audit authority.—The Department of Revenue may conduct
413 examinations and audits as provided in s. 213.34 to verify that
414 tax credits under this section have been received, transferred,
415 and applied according to the requirements of this section. If
416 the Department of Revenue determines that tax credits have not
417 been received, transferred, or applied as required by this
418 section, it may, in addition to the remedies provided in this
419 subsection, pursue recovery of such funds pursuant to the laws
420 and rules governing the assessment of taxes.
421 (b) Revocation of tax credits.—The Office of Tourism,
422 Trade, and Economic Development may revoke or modify any written
423 decision qualifying, certifying, or otherwise granting
424 eligibility for tax credits under this section if it is
425 discovered that the tax credit applicant submitted any false
426 statement, representation, or certification in any application,
427 record, report, plan, or other document filed in an attempt to
428 receive tax credits under this section. The Office of Tourism,
429 Trade, and Economic Development shall immediately notify the
430 Department of Revenue of any revoked or modified orders
431 affecting previously granted tax credits. Additionally, the
432 applicant must notify the Department of Revenue of any change in
433 its tax credit claimed.
434 (c) Forfeiture of tax credits.—A determination by the
435 Department of Revenue, as a result of an audit or examination by
436 the Department of Revenue or from information received from the
437 Office of Film and Entertainment, that an applicant received tax
438 credits pursuant to this section to which the applicant was not
439 entitled is grounds for forfeiture of previously claimed and
440 received tax credits. The applicant is responsible for returning
441 forfeited tax credits to the Department of Revenue, and such
442 funds shall be paid into the General Revenue Fund of the state.
443 Tax credits purchased in good faith are not subject to
444 forfeiture unless the transferee submitted fraudulent
445 information in the purchase or failed to meet the requirements
446 in subsection (5).
447 (d) Fraudulent claims.—Any applicant that submits
448 information under this section that includes fraudulent
449 information is liable for reimbursement of the reasonable costs
450 and fees associated with the review, processing, investigation,
451 and prosecution of the fraudulent claim. An applicant that
452 obtains a credit payment under this section through a claim that
453 is fraudulent is liable for reimbursement of the credit amount
454 plus a penalty in an amount double the credit amount. The
455 penalty is in addition to any criminal penalty to which the
456 applicant is liable for the same acts. The applicant is also
457 liable for costs and fees incurred by the state in investigating
458 and prosecuting the fraudulent claim.
459 (8) ANNUAL REPORT.—Each October 1, the Office of Film and
460 Entertainment shall provide an annual report for the previous
461 fiscal year to the Governor, the President of the Senate, and
462 the Speaker of the House of Representatives which outlines the
463 return on investment and economic benefits to the state.
464 (9) REPEAL.—This section is repealed July 1, 2014, except
465 that the tax credit carryforward provided in this section shall
466 continue to be valid for the period specified.
467 Section 2. Subsection (8) of section 220.02, Florida
468 Statutes, is amended to read:
469 220.02 Legislative intent.—
470 (8) It is the intent of the Legislature that credits
471 against either the corporate income tax or the franchise tax be
472 applied in the following order: those enumerated in s. 631.828,
473 those enumerated in s. 220.191, those enumerated in s. 220.181,
474 those enumerated in s. 220.183, those enumerated in s. 220.182,
475 those enumerated in s. 220.1895, those enumerated in s. 221.02,
476 those enumerated in s. 220.184, those enumerated in s. 220.186,
477 those enumerated in s. 220.1845, those enumerated in s. 220.19,
478 those enumerated in s. 220.185, those enumerated in s. 220.187,
479 those enumerated in s. 220.192, and those enumerated in s.
480 220.193, and those enumerated in s. 288.1254.
481 Section 3. Paragraph (z) is added to subsection (8) of
482 section 213.053, Florida Statutes, to read:
483 213.053 Confidentiality and information sharing.—
484 (8) Notwithstanding any other provision of this section,
485 the department may provide:
486 (z) Information relative to tax credits taken under s.
487 288.1254 to the Office of Film and Entertainment and the Office
488 of Tourism, Trade, and Economic Development.
489 Disclosure of information under this subsection shall be
490 pursuant to a written agreement between the executive director
491 and the agency. Such agencies, governmental or nongovernmental,
492 shall be bound by the same requirements of confidentiality as
493 the Department of Revenue. Breach of confidentiality is a
494 misdemeanor of the first degree, punishable as provided by s.
495 775.082 or s. 775.083.
496 Section 4. Paragraph (q) is added to subsection (5) of
497 section 212.08, Florida Statutes, to read:
498 212.08 Sales, rental, use, consumption, distribution, and
499 storage tax; specified exemptions.—The sale at retail, the
500 rental, the use, the consumption, the distribution, and the
501 storage to be used or consumed in this state of the following
502 are hereby specifically exempt from the tax imposed by this
503 chapter.
504 (5) EXEMPTIONS; ACCOUNT OF USE.—
505 (q) Entertainment industry tax credit; authorization;
506 eligibility for credits.—
507 1. For the fiscal years beginning July 1, 2009, and ending
508 June 30, 2014, a qualified production company as defined in s.
509 288.1254(1)(g), is eligible for tax credits against its sales
510 and use tax liabilities as provided in s. 288.1254.
511 2. The credit shall be deducted from any sales and use tax
512 remitted by the dealer to the department by electronic funds
513 transfer and can only be deducted on a sales and use tax return
514 initiated through electronic data interchange. The dealer shall
515 separately state the credit on the electronic return. The net
516 amount of tax due and payable must be remitted by electronic
517 funds transfer. If the credit for the qualified expenditures is
518 larger than the amount owed on the sales and use tax return, the
519 amount of the credit may be carried forward to a succeeding
520 reporting period. A dealer may obtain a credit using only the
521 method described in this subparagraph. A dealer is not
522 authorized to obtain a credit by applying for a refund.
523 Section 5. If any provision of this act or the application
524 thereof to any person or circumstance is held invalid, the
525 invalidity shall not affect other provisions or applications of
526 the act which can be given effect without the invalid provision
527 or application, and to this end the provisions of this act are
528 declared severable.
529 Section 6. This act shall take effect July 1, 2009.