HB 423

1
A bill to be entitled
2An act relating to corporate income tax; creating s.
3220.194, F.S.; establishing credits against the corporate
4income tax for certain taxpayers that operate or provide
5investments for a spaceflight project; providing
6definitions for purposes of the tax credits; establishing
7eligibility requirements for the tax credits; allowing for
8the carryforward of tax credits under certain
9circumstances; providing application and certification
10requirements; requiring the Office of Tourism, Trade, and
11Economic Development to determine the eligibility of
12taxpayers; providing for the expiration and renewal of a
13taxpayer's eligibility for tax credits; providing for
14administration and auditing of tax credits by the
15Department of Revenue; requiring the return and deposit of
16tax credits under certain circumstances; requiring the
17office to consult with Space Florida and adopt rules for
18tax credit applications and certifications; authorizing
19the department to adopt rules for tax administration,
20claims and transfers of tax credits, auditing, and
21reporting; amending s. 14.2015, F.S.; revising the duties
22of the office to include administration of the tax credits
23created by the act; amending s. 220.02, F.S.; revising
24legislative intent relating to the order for applying tax
25credits; providing an effective date.
26
27Be It Enacted by the Legislature of the State of Florida:
28
29     Section 1.  Section 220.194, Florida Statutes, is created
30to read:
31     220.194  Corporate income tax credits for spaceflight
32projects.--
33     (1)  DEFINITIONS.--As used in this section, the term:
34     (a)  "Eligible costs" means all costs, fees, charges,
35expenses, and amounts incurred by a spaceflight business that
36are related to development of a spaceflight project.
37     (b)  "Job" means a full-time equivalent position resulting
38directly from a spaceflight project.
39     (c)  "Launch" means to place or attempt to place a launch
40vehicle or reentry vehicle and any payload from Earth into a
41suborbital trajectory, into Earth orbit in outer space, or
42otherwise into outer space.
43     (d)  "Launch service" means an activity related to the
44preparation of a launch vehicle and any payload for launch and
45the conduct of a launch.
46     (e)  "Outer space" means an altitude of at least 50 miles
47above the Earth's surface.
48     (f)  "Payload" means an object that a spaceflight business
49undertakes to place in outer space by means of a launch vehicle
50or reentry vehicle, including components of the vehicle
51specifically designed or adapted for the object.
52     (g)  "Reentry" means to return or attempt to return a
53reentry vehicle and any payload from Earth orbit, or from outer
54space, to Earth.
55     (h)  "Reentry service" means an activity related to the
56preparation of a reentry vehicle and any payload for reentry and
57conduct of the reentry.
58     (i)  "Spaceflight business" means a business that has its
59principal place of business in the state and that designs or
60manufactures a launch vehicle, reentry vehicle, or components
61thereof; that provides a launch service or reentry service; or
62that provides the payload for a launch vehicle or reentry
63vehicle.
64     (j)  "Spaceflight project" means an activity performed in a
65spaceport territory by a spaceflight business related to the
66launch or reentry of a launch vehicle or reentry vehicle. The
67term includes a launch service or reentry service.
68     (k)  "Spaceport territory" has the same meaning as defined
69in s. 331.303.
70     (l)  "Successful launch" means a launch that successfully
71places a launch vehicle or reentry vehicle and any payload from
72Earth into a suborbital trajectory, into Earth orbit in outer
73space, or otherwise into outer space.
74     (m)  "Taxpayer" has the same meaning as defined in s.
75220.03.
76     (2)  TAX CREDITS.--For tax years beginning on or after
77January 1, 2010:
78     (a)  A credit against the tax imposed by this chapter in an
79amount equal to the eligible costs, and the ad valorem taxes
80paid in a spaceport territory, shall be granted to a spaceflight
81business that:
82     1.  Creates and maintains at least 25 net new jobs in a
83spaceport territory during the previous 3 years; and
84     2.  Invests a cumulative total of at least $45 million in
85any spaceflight projects during the previous 3 years.
86     (b)  A credit against the tax imposed by this chapter shall
87be granted to a spaceflight business eligible for credit under
88paragraph (a) whose spaceflight project resulted in a successful
89launch within the previous 10 years and that incurs net
90operating losses. If credit granted under this paragraph is not
91fully used in any one tax year because of insufficient tax
92liability, the unused amount may be carried forward as provided
93in this paragraph. The amount of the credit is equal to:
94     1.  One hundred percent of the net operating losses
95incurred by a spaceflight business during the first year of
96operations in any spaceport territory. The unused amount of the
97credit may be carried forward for up to 10 years.
98     2.  One hundred percent of the net operating losses
99incurred by a spaceflight business during its second year of
100operations in any spaceport territory. The unused amount of the
101credit may be carried forward for up to 7 years.
102     3.  One hundred percent of the net operating losses
103incurred by a spaceflight business during its third year of
104operations in any spaceport territory. The unused amount of the
105credit may be carried forward for up to 6 years.
106     4.  Fifty percent of the net operating losses incurred by a
107spaceflight business during its fourth or subsequent year of
108operations in any spaceport territory. The unused amount of the
109credit may be carried forward for up to 5 years.
110
111A taxpayer or subsequent transferee allowed a tax credit under
112this paragraph may transfer any part of the credit to any
113taxpayer by written agreement. The transferee is entitled to
114apply the credits against the tax with the same effect as if the
115transferee had incurred the net operating losses.
116     (c)  A credit against the tax imposed by this chapter shall
117be granted to a spaceflight business that creates and maintains
118at least one net new job in a spaceport territory. The amount of
119the credit is equal to 10 percent of the annual wages paid by
120the spaceflight business to each employee in a new job, not to
121exceed $7,500 per employee. Credit for each new job may be
122claimed for 5 years.
123     (d)  A credit against the tax imposed by this chapter shall
124be granted to a taxpayer that invests a cumulative total of
125machinery and equipment of at least $500,000 in any spaceflight
126projects. The amount of the credit is equal to 7.5 percent of
127the annual investment of machinery and equipment, not to exceed
12850 percent of the taxpayer's tax liability. If credit granted
129under this paragraph is not fully used in any one tax year
130because of insufficient tax liability, the unused amount may be
131carried forward for up to 5 years.
132     (e)  Except as provided in paragraph (d), or unless
133transferred as provided in paragraph (b), credits awarded under
134this section may only be granted against the corporate income
135tax liability generated by or arising out of a spaceflight
136project.
137     (f)  Carryforward credit may be used in a subsequent year
138if the tax imposed by this chapter for that year exceeds the
139credit for which the taxpayer is eligible in that year after
140applying the other credits and unused carryovers in the order
141provided by s. 220.02(8).
142     (g)  A taxpayer that files a Florida consolidated return as
143a member of an affiliated group under s. 220.131(1) may be
144allowed the credit on a consolidated return basis up to the
145amount of tax imposed upon the consolidated group.
146     (h)  It is the responsibility of the taxpayer to
147affirmatively demonstrate to the satisfaction of the Department
148of Revenue that the taxpayer is eligible for credit under this
149section.
150     (3)  APPLICATION AND CERTIFICATION.--To claim credit under
151this section, a taxpayer must submit under oath to the Office of
152Tourism, Trade, and Economic Development an application for tax
153credit that includes the name and address of the taxpayer, the
154total amount of credits sought, and information necessary to
155demonstrate that the taxpayer meets the job creation,
156investment, and other requirements of this section. The director
157of the Office of Tourism, Trade, and Economic Development shall
158determine the taxpayer's eligibility for the credits sought and
159certify the determination to the Department of Revenue. The
160taxpayer must attach the director's certification to the tax
161return on which the credit is claimed.
162     (4)  SPACEFLIGHT BUSINESS; EXPIRATION OF CREDIT;
163RENEWAL.--Eligibility of a spaceflight business for credit under
164this section shall expire 10 years after the director of the
165Office of Tourism, Trade, and Economic Development certifies
166that the spaceflight business is eligible for credit or 10 years
167after the last successful launch that results from a spaceflight
168project, whichever occurs later. A spaceflight business whose
169eligibility expires under this subsection may renew its
170eligibility upon a successful launch that results from a
171spaceflight project.
172     (5)  ADMINISTRATION; AUDIT AUTHORITY; RECAPTURE OF
173CREDITS.--
174     (a)  In addition to its existing audit and investigative
175authority, the Department of Revenue may perform any additional
176financial and technical audits and investigations, including
177examining the accounts, books, and records of the tax credit
178applicant, that are necessary to verify the eligible costs
179included in the tax credit return and to ensure compliance with
180this section. The Office of Tourism, Trade, and Economic
181Development shall provide technical assistance when requested by
182the Department of Revenue on any technical audits or
183examinations performed under this subsection.
184     (b)  It is grounds for forfeiture of previously claimed and
185received tax credits if the Department of Revenue determines, as
186a result of either an audit or examination or from information
187received from the Office of Tourism, Trade, and Economic
188Development, that a taxpayer received tax credits under this
189section to which the taxpayer was not entitled. The taxpayer is
190responsible for returning forfeited tax credits to the
191Department of Revenue, and any returned funds shall be deposited
192in the General Revenue Fund.
193     (c)  The Office of Tourism, Trade, and Economic Development
194may revoke or modify any written decision granting eligibility
195for tax credits under this section if it is discovered that the
196tax credit applicant submitted any false statement,
197representation, or certification in any application, record,
198report, plan, or other document filed in an attempt to receive
199tax credits under this section. The Office of Tourism, Trade,
200and Economic Development shall immediately notify the Department
201of Revenue of any revoked or modified orders affecting
202previously granted tax credits. Additionally, the taxpayer must
203notify the Department of Revenue of any change in its tax credit
204claimed.
205     (d)  The taxpayer shall file with the Department of Revenue
206an amended return or other report as the department prescribes
207by rule and shall pay any required tax and interest within 60
208days after the taxpayer receives notification from the Office of
209Tourism, Trade, and Economic Development that previously
210approved tax credits have been revoked or modified. If the
211revocation or modification order is contested, the taxpayer
212shall file an amended return or other report as provided in this
213paragraph within 60 days after a final order is issued following
214proceedings.
215     (e)  A notice of deficiency may be issued by the Department
216of Revenue at any time within 3 years after the taxpayer
217receives formal notification from the Office of Tourism, Trade,
218and Economic Development that previously approved tax credits
219have been revoked or modified. If a taxpayer fails to notify the
220Department of Revenue of any changes to its tax credit claimed,
221a notice of deficiency may be issued at any time.
222     (6)  RULES.--
223     (a)  The Office of Tourism, Trade, and Economic
224Development, in consultation with Space Florida, shall adopt
225rules under ss. 120.536(1) and 120.54 to administer this
226section, including rules relating to the forms for certification
227of a taxpayer's eligibility to claim a tax credit under this
228section and the application and certification procedures,
229guidelines, and requirements necessary to administer this
230section.
231     (b)  The Department of Revenue may adopt rules under ss.
232120.536(1) and 120.54 to administer this section, including
233rules relating to:
234     1.  The forms required to claim a tax credit under this
235section, the requirements and basis for establishing an
236entitlement to a credit, and the examination and audit
237procedures required to administer this section.
238     2.  The implementation and administration of the provisions
239allowing a transfer of a tax credit, including rules prescribing
240forms, reporting requirements, and specific procedures,
241guidelines, and requirements necessary to transfer a tax credit.
242     Section 2.  Paragraph (f) of subsection (2) of section
24314.2015, Florida Statutes, is amended to read:
244     14.2015  Office of Tourism, Trade, and Economic
245Development; creation; powers and duties.--
246     (2)  The purpose of the Office of Tourism, Trade, and
247Economic Development is to assist the Governor in working with
248the Legislature, state agencies, business leaders, and economic
249development professionals to formulate and implement coherent
250and consistent policies and strategies designed to provide
251economic opportunities for all Floridians. To accomplish such
252purposes, the Office of Tourism, Trade, and Economic Development
253shall:
254     (f)1.  Administer the Florida Enterprise Zone Act under ss.
255290.001-290.016, the community contribution tax credit program
256under ss. 220.183 and 624.5105, the tax refund program for
257qualified target industry businesses under s. 288.106, the tax-
258refund program for qualified defense contractors and space
259flight business contractors under s. 288.1045, contracts for
260transportation projects under s. 288.063, the sports franchise
261facility program under s. 288.1162, the professional golf hall
262of fame facility program under s. 288.1168, the expedited
263permitting process under s. 403.973, the Rural Community
264Development Revolving Loan Fund under s. 288.065, the Regional
265Rural Development Grants Program under s. 288.018, the Certified
266Capital Company Act under s. 288.99, the Florida State Rural
267Development Council, the Rural Economic Development Initiative,
268the corporate income tax credits for spaceflight projects under
269s. 220.194, and other programs that are specifically assigned to
270the office by law, by the appropriations process, or by the
271Governor. Notwithstanding any other provisions of law, the
272office may expend interest earned from the investment of program
273funds deposited in the Grants and Donations Trust Fund to
274contract for the administration of the programs, or portions of
275the programs, enumerated in this paragraph or assigned to the
276office by law, by the appropriations process, or by the
277Governor. Such expenditures shall be subject to review under
278chapter 216.
279     2.  The office may enter into contracts in connection with
280the fulfillment of its duties concerning the Florida First
281Business Bond Pool under chapter 159, tax incentives under
282chapters 212 and 220, tax incentives under the Certified Capital
283Company Act in chapter 288, foreign offices under chapter 288,
284the Enterprise Zone program under chapter 290, the Seaport
285Employment Training program under chapter 311, the Florida
286Professional Sports Team License Plates under chapter 320,
287Spaceport Florida under chapter 331, Expedited Permitting under
288chapter 403, and in carrying out other functions that are
289specifically assigned to the office by law, by the
290appropriations process, or by the Governor.
291     Section 3.  Subsection (8) of section 220.02, Florida
292Statutes, is amended to read:
293     220.02  Legislative intent.--
294     (8)  It is the intent of the Legislature that credits
295against either the corporate income tax or the franchise tax be
296applied in the following order: those enumerated in s. 631.828,
297those enumerated in s. 220.191, those enumerated in s. 220.181,
298those enumerated in s. 220.183, those enumerated in s. 220.182,
299those enumerated in s. 220.1895, those enumerated in s. 221.02,
300those enumerated in s. 220.184, those enumerated in s. 220.186,
301those enumerated in s. 220.1845, those enumerated in s. 220.19,
302those enumerated in s. 220.185, those enumerated in s. 220.187,
303those enumerated in s. 220.192, and those enumerated in s.
304220.193, and those enumerated in s. 220.194.
305     Section 4.  This act shall take effect July 1, 2009.


CODING: Words stricken are deletions; words underlined are additions.