| 1 | A bill to be entitled |
| 2 | An act relating to fast track economic stimulus for small |
| 3 | businesses; creating part XIII of ch. 288, F.S., |
| 4 | consisting of s. 288.991, F.S.; providing a short title; |
| 5 | establishing the New Markets Development Program; |
| 6 | providing a purpose; providing definitions; providing for |
| 7 | a tax credit for making certain qualified equity |
| 8 | investments; specifying a credit amount; providing for |
| 9 | uses of the credit; prohibiting sale or transfer of such |
| 10 | credits; authorizing allocation of the credit; specifying |
| 11 | limitations on such credits; specifying application and |
| 12 | certification requirements and procedures for the Office |
| 13 | of Tourism, Trade, and Economic Development to qualify |
| 14 | certain equity investments as eligible for tax credits; |
| 15 | providing for application fees; providing duties and |
| 16 | responsibilities of the Department of Revenue; limiting |
| 17 | the amount of investments the office may certify; |
| 18 | providing requirements and limitations on issuance of |
| 19 | certified equity investments; providing for calculation of |
| 20 | tax credits; limiting the amount of the tax credit that |
| 21 | may be redeemed in a fiscal year; providing for carryover |
| 22 | of unredeemed tax credits under certain circumstances; |
| 23 | providing for redemption of tax credits; specifying how |
| 24 | tax credits may be claimed by insurance companies; |
| 25 | requiring the calculations to be certified and accompanied |
| 26 | by audited financial statements and notarized affidavits; |
| 27 | providing requirements for recapture of tax credits under |
| 28 | certain circumstances; requiring notice of proposed |
| 29 | recapture; providing requirements for compliance and |
| 30 | audits of qualified equity investments; providing annual |
| 31 | reporting requirements for certain community development |
| 32 | entities; providing annual reporting requirements for the |
| 33 | office; authorizing the office to conduct certain |
| 34 | examinations; authorizing the office to revoke or modify |
| 35 | tax credit authorizations under certain circumstances; |
| 36 | providing for taxpayer liability for reimbursement of |
| 37 | fraudulently claimed tax credits; providing penalties; |
| 38 | authorizing the office and the department to adopt rules; |
| 39 | providing for future repeal of the tax credit program; |
| 40 | amending s. 220.02, F.S.; revising legislative intent with |
| 41 | respect to the order of tax credits to include the New |
| 42 | Markets Development Program tax credit; amending s. |
| 43 | 220.13, F.S.; revising a definition; amending s. 213.053, |
| 44 | F.S.; authorizing the Department of Revenue to share |
| 45 | certain confidential taxpayer information with the Office |
| 46 | of Tourism, Trade, and Economic Development; preserving |
| 47 | certain confidentiality of such information; providing for |
| 48 | application; providing an effective date. |
| 49 |
|
| 50 | Be It Enacted by the Legislature of the State of Florida: |
| 51 |
|
| 52 | Section 1. Part XIII of chapter 288, Florida Statutes, |
| 53 | consisting of section 288.991, is created to read: |
| 54 | PART XIII |
| 55 | NEW MARKETS DEVELOPMENT |
| 56 | 288.991 New Markets Development Program.-- |
| 57 | (1) SHORT TITLE.--This section may be cited as the "New |
| 58 | Markets Development Program." |
| 59 | (2) ESTABLISHMENT; PURPOSE.--The New Markets Development |
| 60 | Program is established to encourage capital investment in low- |
| 61 | income communities in rural and urban areas by allowing state |
| 62 | taxpayers to earn credits applicable against specified state |
| 63 | taxes by investing in community development entities that make |
| 64 | qualified low-income community investments in qualified active |
| 65 | low-income community businesses that create jobs. |
| 66 | (3) DEFINITIONS.--As used in this section: |
| 67 | (a) "Applicable percentage" means zero percent for each of |
| 68 | the first two credit allowance dates, 7 percent for the third |
| 69 | credit allowance date, and 8 percent for the next four credit |
| 70 | allowance dates. |
| 71 | (b) "Credit allowance date" means, with respect to any |
| 72 | qualified equity investment: |
| 73 | 1. The date on which such investment is initially made. |
| 74 | 2. Each of the six anniversary dates of such date |
| 75 | thereafter. |
| 76 | (c) "Department" means the Department of Revenue. |
| 77 | (d) "Long-term debt security" means any debt instrument |
| 78 | issued by a qualified community development entity, at par value |
| 79 | or a premium, with an original maturity date of at least 7 years |
| 80 | after the date of its issuance and with no acceleration of |
| 81 | repayment, amortization, or prepayment features prior to its |
| 82 | original maturity date. |
| 83 | (e) "Low-income community" means any population census |
| 84 | tract within this state in which: |
| 85 | 1. The poverty rate is at least 20 percent; or |
| 86 | 2. In the case of a tract that is: |
| 87 | a. Not located within a metropolitan area, the median |
| 88 | family income does not exceed 80 percent of statewide median |
| 89 | family income; or |
| 90 | b. Located within a metropolitan area, the median family |
| 91 | income does not exceed 80 percent of the greater of statewide |
| 92 | median family income or the metropolitan area median income. |
| 93 | (f) "Office" means the Office of Tourism, Trade, and |
| 94 | Economic Development. |
| 95 | (g) "Purchase price" means the amount of cash paid to a |
| 96 | qualified community development entity that issues a qualified |
| 97 | equity investment for such qualified equity investment. |
| 98 | (h) "Qualified active low-income community business" has |
| 99 | the same meaning provided in s. 45D of the Internal Revenue Code |
| 100 | of 1986, as amended. A business shall be considered a qualified |
| 101 | active low-income business for the duration of the qualified |
| 102 | community development entity's investment in, or loan to, the |
| 103 | business if the entity reasonably expects, at the time it makes |
| 104 | the investment or loan, the business to continue to satisfy the |
| 105 | requirements for being a qualified active low-income community |
| 106 | business throughout the entire period of the investment or loan. |
| 107 | The subsequent insolvency, including reorganization or |
| 108 | liquidation in bankruptcy, receivership, winding up, or |
| 109 | dissolution of a business, does not disqualify the business from |
| 110 | being a qualified active low-income community business if the |
| 111 | other provisions of this section continue to be met. The term |
| 112 | excludes any business that: |
| 113 | 1. Derives or projects to derive 15 percent or more of its |
| 114 | annual revenue from the rental or sale of real estate. This |
| 115 | exclusion does not apply to a business that is controlled by, or |
| 116 | under common control with, another business if the second |
| 117 | business does not derive or project to derive 15 percent or more |
| 118 | of its annual revenue from the rental or sale of real estate and |
| 119 | is the primary tenant of the real estate leased from the first |
| 120 | business; |
| 121 | 2. Engages predominantly in the development or holding of |
| 122 | intangibles for sale or license; |
| 123 | 3. Operates a private or commercial golf course, country |
| 124 | club, massage establishment, hot tub facility, tanning facility, |
| 125 | racetrack, or other facility used for gambling or any store the |
| 126 | principal business of which is the sale of alcoholic beverages |
| 127 | for consumption off premises; or |
| 128 | 4. The principal activity of which is farming if the sum |
| 129 | of the aggregate unadjusted bases or, if greater, the fair |
| 130 | market value of the assets owned by the business that are used |
| 131 | in such trade or business, plus the aggregate value of the |
| 132 | assets leased by the business used in such trade or business, |
| 133 | exceeds $500,000. For the purposes of this paragraph, two or |
| 134 | more trades or businesses shall be treated as a single trade or |
| 135 | business. |
| 136 | (i) "Qualified community development entity" has the same |
| 137 | meaning as provided s. 45D of the Internal Revenue Code of 1986, |
| 138 | as amended; provided such entity has entered into, or is |
| 139 | controlled by an entity that has entered into, an allocation |
| 140 | agreement with the Community Development Financial Institutions |
| 141 | Fund of the United States Treasury Department with respect to |
| 142 | credits authorized by s. 45D of the Internal Revenue Code of |
| 143 | 1986, as amended, which includes this state within the service |
| 144 | area set forth in such allocation agreement. |
| 145 | (j) "Qualified equity investment" means any equity |
| 146 | investment in, or long-term debt security issued by, a qualified |
| 147 | community development entity that: |
| 148 | 1. Is acquired after the effective date of this section at |
| 149 | its original issuance solely in exchange for cash. |
| 150 | 2. Has at least 85 percent of its cash purchase price used |
| 151 | by the issuer to make qualified low-income community investments |
| 152 | in qualified active low-income community businesses located in |
| 153 | this state. |
| 154 | 3. Is designated by the issuer as a qualified equity |
| 155 | investment under this section and is certified by the office as |
| 156 | a qualified equity investment pursuant to this section. This |
| 157 | term shall include any qualified equity investment that does not |
| 158 | meet the provisions of subparagraph 1. if such investment was a |
| 159 | qualified equity investment in the hands of a prior holder. |
| 160 | (k) "Qualified low-income community investment" means any |
| 161 | capital or equity investment in or loan to any qualified active |
| 162 | low-income community business made after July 1, 2009. |
| 163 | (l) "Tax credit" means a credit against any corporate |
| 164 | income or franchise taxes or insurance premium or retaliatory |
| 165 | taxes otherwise due under the laws of this state. |
| 166 | (m) "Taxpayer" means any entity subject to any corporate |
| 167 | income or franchise taxes or insurance premium or retaliatory |
| 168 | tax under the laws of this state. |
| 169 | (4) CREDIT ESTABLISHED.--A person or entity that makes a |
| 170 | qualified equity investment earns a vested tax credit against |
| 171 | taxes imposed by s. 220.11 or s. 624.509 equal to 39 percent of |
| 172 | the purchase price of the qualified equity investment. The tax |
| 173 | credit may be used as follows: |
| 174 | (a) The holder of the qualified equity investment on a |
| 175 | particular credit allowance date of such qualified equity |
| 176 | investment, whether the original purchaser or a subsequent |
| 177 | holder of the qualified equity investment, may use a portion of |
| 178 | the tax credit against its tax liability, for the taxable year |
| 179 | that includes such credit allowance date, equal to the |
| 180 | applicable percentage for such credit allowance date multiplied |
| 181 | by the purchase price paid for such qualified equity investment. |
| 182 | (b) A taxpayer may not claim a tax credit under this |
| 183 | section for a particular year in excess of its state tax |
| 184 | liability for such tax year. Any tax credit a taxpayer does not |
| 185 | use may be carried forward for use in any subsequent tax year; |
| 186 | however, all unused credits tax credits expire on December 31, |
| 187 | 2022. |
| 188 | (c) Tax credits for taxpayers who are insurance companies |
| 189 | subject to the insurance premium tax under s. 624.509 must be |
| 190 | used against the insurance premium tax. An insurance company |
| 191 | using a credit against the insurance premium tax is not required |
| 192 | to pay any additional retaliatory tax levied pursuant to s. |
| 193 | 624.5091. Because credits under this section are available to an |
| 194 | insurance company, s. 624.5091 does not limit such credit in any |
| 195 | manner. |
| 196 | (5) TRANSFERABILITY.--A tax credit earned under this |
| 197 | section may not be sold or transferred. Tax credits that a |
| 198 | partnership, limited liability company, subchapter S |
| 199 | corporation, or other pass-through entity may use may be |
| 200 | allocated to the partners, members, or shareholders of such |
| 201 | entity for direct use in accordance with the provisions of any |
| 202 | agreement between such partners, members, or shareholders. |
| 203 | (6) LIMITATIONS.-- |
| 204 | (a) After the office has certified a cumulative amount of |
| 205 | qualified equity investments that can result in the use of $20 |
| 206 | million of tax credits in any tax year, the office may not |
| 207 | certify any more qualified equity investments. Such limitation |
| 208 | shall be based upon the scheduled use of tax credits without |
| 209 | regard to the potential for taxpayers to carry forward tax |
| 210 | credits to later tax years. |
| 211 | (b) The qualified community development entity that issues |
| 212 | a long-term debt security may not make cash interest payments on |
| 213 | such security during the period commencing with the issuance of |
| 214 | the security and ending on the final credit allowance date of |
| 215 | the security in excess of the sum of such cash interest payments |
| 216 | and the cumulative operating income, as defined in the |
| 217 | regulations adopted under s. 45D of the Internal Revenue Code of |
| 218 | 1986, as amended, of such qualified community development entity |
| 219 | for the same period. Such limitation shall in no way limit the |
| 220 | security holder's ability to accelerate payments on the security |
| 221 | in situations where the qualified community development entity |
| 222 | has defaulted on covenants designed to ensure compliance with |
| 223 | this section or s. 45D of the Internal Revenue Code of 1986, as |
| 224 | amended. |
| 225 | (c) With respect to any one qualified active low-income |
| 226 | community business, the maximum amount of qualified low-income |
| 227 | community investments that may be made in such business, on a |
| 228 | collective basis with all of its affiliates, with the proceeds |
| 229 | of qualified equity investments that have been certified under |
| 230 | this section shall be $10 million, whether made by one or |
| 231 | several qualified community development entities. |
| 232 | (d) The qualified community development entity shall keep |
| 233 | sufficiently detailed books and records with respect to the |
| 234 | investments made with the proceeds of the qualified equity |
| 235 | investments to allow the direct tracing of such proceeds into |
| 236 | qualified low-income community investments in qualified active |
| 237 | low-income businesses in this state. |
| 238 | (7) APPLICATION AND CERTIFICATION PROCEDURE.-- |
| 239 | (a) The office shall designate a comprehensive list of |
| 240 | industries using the North American Industry Classification |
| 241 | System, in consultation with Enterprise Florida, Inc., that will |
| 242 | be used to direct qualified low-income community investments for |
| 243 | the program and that will produce strong positive impacts on or |
| 244 | benefits to the state, regional, and local economies. The office |
| 245 | shall submit a copy of the list to the President of the Senate |
| 246 | and the Speaker of the House of Representatives upon completion |
| 247 | of the list and any modifications to the list. The office may |
| 248 | waive such requirement if the office determines an investment |
| 249 | would have a positive impact on a community. |
| 250 | (b) A qualified community development entity that seeks to |
| 251 | have an equity investment or long-term debt security certified |
| 252 | as a qualified equity investment and eligible for tax credits |
| 253 | must apply to the office. The qualified community development |
| 254 | entity must submit an application on a form provided by the |
| 255 | office that includes: |
| 256 | 1. The entity's name, business address, tax identification |
| 257 | number, and evidence of the entity's certification as a |
| 258 | qualified community development entity. |
| 259 | 2. A copy of an allocation agreement executed by the |
| 260 | entity, or its controlling entity, and the Community Development |
| 261 | Financial Institutions Fund, which includes this state in its |
| 262 | service area. |
| 263 | 3. A certificate executed by an executive officer of the |
| 264 | entity attesting that such allocation agreement remains in |
| 265 | effect and has not been revoked or canceled by the Community |
| 266 | Development Financial Institutions Fund. |
| 267 | 4. A description of the proposed amount, structure, and |
| 268 | purchaser of the equity investment or long-term debt security. |
| 269 | 5. The name and tax identification number of any person or |
| 270 | entity eligible to use tax credits earned as a result of the |
| 271 | issuance of the qualified equity investment. |
| 272 | 6. Information regarding the proposed use of proceeds from |
| 273 | the issuance of the qualified equity investment. |
| 274 | 7. A nonrefundable application fee of $1,000. This fee |
| 275 | shall be paid to the department and shall be required for each |
| 276 | application submitted. |
| 277 | 8. A statement setting forth the entity's plans to invest |
| 278 | in only those entities engaged in industries identified as |
| 279 | targeted qualified low-income community businesses for the |
| 280 | program by the office. |
| 281 | 9. A statement setting forth the entity's plans for the |
| 282 | development of relationships with community-based organizations, |
| 283 | local community development offices and organizations, and |
| 284 | economic development organizations, as well as any steps the |
| 285 | entity has taken to implement such relationships. |
| 286 | 10. A statement declaring that jobs created will pay an |
| 287 | average wage no less than 115 percent of the federal poverty |
| 288 | guideline for a family of four as defined by the Federal |
| 289 | Register of the United States Department of Health and Human |
| 290 | Services. |
| 291 | (c) Within 30 days after receipt of a completed |
| 292 | application containing the information necessary for the office |
| 293 | to certify a potential qualified equity investment, including |
| 294 | the payment of the application fee, the office shall grant or |
| 295 | deny the application in full or in part. If the office denies |
| 296 | any part of the application, the office shall inform the |
| 297 | qualified community development entity of the grounds for the |
| 298 | denial. If the qualified community development entity provides |
| 299 | any additional information required by the office or otherwise |
| 300 | completes its application within 15 days after the notice of |
| 301 | denial, the application shall be considered complete as of the |
| 302 | original date of submission. If the qualified community |
| 303 | development entity fails to provide the information or complete |
| 304 | its application within the 15-day period, the application |
| 305 | remains denied and must be resubmitted in full with a new |
| 306 | submission date. |
| 307 | (d) If the application is deemed complete, the office |
| 308 | shall certify the proposed equity investment or long-term debt |
| 309 | security as a qualified equity investment and eligible for tax |
| 310 | credits under this section, subject to the limitations contained |
| 311 | in subsection (5). The office shall provide written notice of |
| 312 | the certification to the qualified community development entity |
| 313 | and the department. The notice shall include the names of those |
| 314 | taxpayers who are eligible to use the credits and their |
| 315 | respective credit amounts. If the names of the persons or |
| 316 | entities that are eligible to use the credits change due to a |
| 317 | transfer of a qualified equity investment or a change in an |
| 318 | allocation pursuant to subsection (4), the qualified community |
| 319 | development entity shall notify the department of such change. |
| 320 | (e) Within 60 days after receiving notice of |
| 321 | certification, the qualified community development entity shall |
| 322 | issue the qualified equity investment and receive payment in the |
| 323 | amount of the certified purchase price. The qualified community |
| 324 | development entity shall provide the office with evidence of the |
| 325 | receipt of the cash investment within 30 business days after |
| 326 | receipt. If the qualified community development entity does not |
| 327 | receive the cash investment and issue the qualified equity |
| 328 | investment within 60 days following receipt of the certification |
| 329 | notice, the certification shall lapse and the entity may not |
| 330 | issue the qualified equity investment without reapplying to the |
| 331 | office for certification. A certification that lapses reverts to |
| 332 | the office and may be reissued only in accordance with the |
| 333 | application process outlined in this section. |
| 334 | (f) The office shall certify qualified equity investments |
| 335 | in the order applications are received by the department. |
| 336 | Applications received on the same day shall be deemed to have |
| 337 | been received simultaneously. For applications received on the |
| 338 | same day and deemed complete, the office shall certify, |
| 339 | consistent with remaining tax credit capacity, qualified equity |
| 340 | investments in proportionate percentages based upon the ratio of |
| 341 | the amount of qualified equity investment requested in an |
| 342 | application to the total amount of qualified equity investments |
| 343 | requested in all applications received on the same day. If a |
| 344 | pending request cannot be fully certified because of the |
| 345 | limitations of subsection (5), the office shall certify the |
| 346 | portion that may be certified unless the qualified community |
| 347 | development entity elects to withdraw its request rather than |
| 348 | receive partial credit. |
| 349 | (8) RECAPTURE.-- |
| 350 | (a) The office may direct the department to recapture any |
| 351 | portion of a tax credit allowed under this section if: |
| 352 | 1. Any amount of federal tax credit that might be |
| 353 | available with respect to the qualified equity investment that |
| 354 | generated the tax credit under this section is recaptured under |
| 355 | s. 45D of the Internal Revenue Code of 1986, as amended. In such |
| 356 | case, the department's recapture shall be proportionate to the |
| 357 | federal recapture with respect to such qualified equity |
| 358 | investment; |
| 359 | 2. The qualified community development entity redeems or |
| 360 | makes a principal repayment with respect to the qualified equity |
| 361 | investment that generated the tax credit prior to the final |
| 362 | credit allowance date of such qualified equity investment. In |
| 363 | such case the department's recapture shall be proportionate to |
| 364 | the amount of the redemption or repayment with respect to such |
| 365 | qualified equity investment; |
| 366 | 3. The qualified community development entity fails to |
| 367 | invest at least 85 percent of the purchase price of the |
| 368 | qualified equity investment in qualified low-income community |
| 369 | investments in qualified active low-income community businesses |
| 370 | located in this state within 12 months after the issuance of the |
| 371 | qualified equity investment and maintain such level of |
| 372 | investment in qualified low-income community investments in |
| 373 | qualified active low-income community businesses located in this |
| 374 | state until the last credit allowance date for such qualified |
| 375 | equity investment. For purposes of calculating the amount of |
| 376 | qualified low-income community investments held by a qualified |
| 377 | community development entity, an investment shall be considered |
| 378 | held by the qualified community development entity even if the |
| 379 | investment has been sold or repaid, provided the qualified |
| 380 | community development entity reinvests an amount equal to the |
| 381 | capital returned to or recovered from the original investment, |
| 382 | exclusive of any profits realized, in another qualified active |
| 383 | low-income community business in this state within 12 months |
| 384 | after the receipt of such capital. A qualified community |
| 385 | development entity shall not be required to reinvest capital |
| 386 | returned from qualified low-income community investments after |
| 387 | the sixth anniversary of the issuance of the qualified equity |
| 388 | investment, the proceeds of which were used to make the |
| 389 | qualified low-income community investment, and the qualified |
| 390 | low-income community investment shall be considered held by the |
| 391 | issuer through the qualified equity investment's final credit |
| 392 | allowance date; |
| 393 | 4. The qualified community development entity fails to |
| 394 | provide to the office and the department any of the information |
| 395 | or reports required by this section; or |
| 396 | 5. The office determines as a result of a state single |
| 397 | audit or an examination by the office that a taxpayer received |
| 398 | tax credits pursuant to this section to which the taxpayer was |
| 399 | not entitled. |
| 400 | (b) The office shall provide notice to the qualified |
| 401 | community development entity and the department of any proposed |
| 402 | recapture of tax credits pursuant to this section. The entity |
| 403 | shall have 90 days to cure any deficiency indicated in the |
| 404 | office's original recapture notice and avoid such recapture. If |
| 405 | the entity fails or is unable to cure such deficiency within the |
| 406 | 90-day period, the office shall provide the entity, the |
| 407 | department, and the taxpayer from whom the credit is to be |
| 408 | recaptured with a final order of recapture. Any tax credit for |
| 409 | which a final recapture order has been issued shall be |
| 410 | recaptured by the department from the taxpayer who claimed the |
| 411 | tax credit on a tax return, or in the case of multiple |
| 412 | succeeding entities in the order of tax-credit succession, and |
| 413 | such funds shall be paid into the General Revenue Fund. Such |
| 414 | action by the department does not constitute an audit or |
| 415 | otherwise alter the department's ability to audit the taxpayer. |
| 416 | (9) COMPLIANCE AND AUDIT PROVISIONS.-- |
| 417 | (a) Within 30 days after each credit allowance date, each |
| 418 | qualified community development entity shall submit to the |
| 419 | office the following with respect to each qualified equity |
| 420 | investment issued by the entity: |
| 421 | 1. A listing, certified by an executive officer of the |
| 422 | qualified community development entity, of all qualified low- |
| 423 | income community investments made by the qualified community |
| 424 | development entity with the proceeds of a qualified equity |
| 425 | investment and held as of the credit allowance date, which shall |
| 426 | include the name of each qualified active low-income business |
| 427 | funded, the location of the principal office of each such |
| 428 | business, and the amount of the qualified low-income community |
| 429 | investment in each such business. |
| 430 | 2. Bank records, wire transfer records, or other similar |
| 431 | documents that reflect the investments listed under subparagraph |
| 432 | 1. |
| 433 | 3. An attestation from the qualified community development |
| 434 | entity's chief financial officer or accounting officer that no |
| 435 | redemption or principal payment was made with respect to the |
| 436 | qualified equity investment since the previous credit allowance |
| 437 | date. |
| 438 | 4. Any information with respect to a recapture of the |
| 439 | federal tax credits available with respect to a qualified equity |
| 440 | investment that the qualified community development entity has |
| 441 | received since the prior credit allowance date. |
| 442 | (b) Within 20 days after receipt of the information listed |
| 443 | in paragraph (a), the office shall certify in writing to the |
| 444 | qualified community development entity and to the department the |
| 445 | amount of credit that is eligible for use for such credit |
| 446 | allowance date. The notice shall include a listing of the |
| 447 | taxpayers eligible to redeem the tax credit for such credit |
| 448 | allowance date. |
| 449 | (c) A qualified community development entity that receives |
| 450 | an annual allocation of tax credits in an amount equal to or in |
| 451 | excess of $500,000 shall be treated as a recipient and required |
| 452 | to participate in a state single audit pursuant to s. 215.97. |
| 453 | The office shall be the state awarding agency and coordinating |
| 454 | agency. In addition to the required financial reporting package, |
| 455 | the audit must attest to the entity's adherence to the |
| 456 | performance conditions enumerated in this section as such |
| 457 | conditions relate to the recapture of the tax credit under |
| 458 | subsection (8). Taxpayers that are not qualified community |
| 459 | development entities may not be treated as subrecipients or |
| 460 | otherwise required to participate in the state single audit |
| 461 | program. |
| 462 | (10) ANNUAL REPORTING.-- |
| 463 | (a) Within 120 days after the end of a calendar year that |
| 464 | includes a credit allowance date, each community development |
| 465 | entity that has an equity investment or long-term debt security |
| 466 | certified as a qualified equity investment under this section |
| 467 | shall provide the office with: |
| 468 | 1. The entity's annual financial statements for the |
| 469 | immediately preceding tax year, audited by an independent |
| 470 | certified public accountant. |
| 471 | 2. Using the North American Industry Classification System |
| 472 | Code, the types of businesses funded, the counties where the |
| 473 | qualified active low-income community businesses are located, |
| 474 | the amount of money invested, and the number of jobs created and |
| 475 | retained by qualified active low-income community businesses |
| 476 | funded, in a form satisfactory to the office. |
| 477 | 3. A statement describing the relationships the entity has |
| 478 | established with community-based organizations, local community |
| 479 | development offices and organizations, and economic development |
| 480 | organizations and a summary of the outcomes resulting from such |
| 481 | relationships. |
| 482 | 4. Other information as prescribed by the office and |
| 483 | documentation to demonstrate continued certification by the |
| 484 | federal program. |
| 485 | (b) The office shall prepare an annual report of all |
| 486 | qualified low-income community investments made in this state |
| 487 | from the proceeds of qualified equity investments, which shall |
| 488 | include relevant statistics from the North American Industry |
| 489 | Classification System Code, the county or counties where the |
| 490 | qualified low-income community investments are located, the |
| 491 | amount of money invested, the number of jobs created and |
| 492 | retained by businesses in which qualified low-income community |
| 493 | investments have been made, and the value of applicable state |
| 494 | tax credits claimed for the latest year for which such |
| 495 | information is available. The office shall submit a copy to the |
| 496 | Governor, the President of the Senate, and the Speaker of the |
| 497 | House of Representatives each July 1, beginning in 2011, and may |
| 498 | post the annual report on the office's website. |
| 499 | (11) EXAMINATION.-- |
| 500 | (a) The office may conduct examinations to verify that tax |
| 501 | credits under this section have been received and applied |
| 502 | according to the requirements of this section and to verify |
| 503 | information provided by qualified community development entities |
| 504 | to the office. |
| 505 | (b) The office may revoke or modify any written decision |
| 506 | qualifying, certifying, or otherwise granting eligibility for |
| 507 | tax credits under this section if it is discovered that the |
| 508 | qualified community development entity submitted any false |
| 509 | statement, representation, or certification in any application, |
| 510 | record, report, plan, or other document filed in an attempt to |
| 511 | receive the tax credits. |
| 512 | (c) A qualified community development entity that submits |
| 513 | information under this section that includes fraudulent |
| 514 | information is liable for reimbursement of the reasonable costs |
| 515 | and fees associated with the review, processing, investigation, |
| 516 | and prosecution of the fraudulent claim plus a penalty in an |
| 517 | amount double the credit amount certified and claimed by the |
| 518 | holders of the entity's qualified equity investments, which |
| 519 | penalty is in addition to any criminal penalty to which the |
| 520 | taxpayer is liable for the same acts. |
| 521 | (12) RULEMAKING.--The office and the department may adopt |
| 522 | rules pursuant to ss. 120.536(1) and 120.54 to administer this |
| 523 | section. |
| 524 | (13) EXPIRATION.--This section is repealed December 31, |
| 525 | 2021. |
| 526 | Section 2. Subsection (8) of section 220.02, Florida |
| 527 | Statutes, is amended to read: |
| 528 | 220.02 Legislative intent.-- |
| 529 | (8) It is the intent of the Legislature that credits |
| 530 | against either the corporate income tax or the franchise tax be |
| 531 | applied in the following order: those enumerated in s. 631.828, |
| 532 | those enumerated in s. 220.191, those enumerated in s. 220.181, |
| 533 | those enumerated in s. 220.183, those enumerated in s. 220.182, |
| 534 | those enumerated in s. 220.1895, those enumerated in s. 221.02, |
| 535 | those enumerated in s. 220.184, those enumerated in s. 220.186, |
| 536 | those enumerated in s. 220.1845, those enumerated in s. 220.19, |
| 537 | those enumerated in s. 220.185, those enumerated in s. 220.187, |
| 538 | those enumerated in s. 220.192, and those enumerated in s. |
| 539 | 220.193; and those enumerated in s. 288.991. |
| 540 | Section 3. Paragraph (a) of subsection (1) of section |
| 541 | 220.13, Florida Statutes, is amended to read: |
| 542 | 220.13 "Adjusted federal income" defined.-- |
| 543 | (1) The term "adjusted federal income" means an amount |
| 544 | equal to the taxpayer's taxable income as defined in subsection |
| 545 | (2), or such taxable income of more than one taxpayer as |
| 546 | provided in s. 220.131, for the taxable year, adjusted as |
| 547 | follows: |
| 548 | (a) Additions.--There shall be added to such taxable |
| 549 | income: |
| 550 | 1. The amount of any tax upon or measured by income, |
| 551 | excluding taxes based on gross receipts or revenues, paid or |
| 552 | accrued as a liability to the District of Columbia or any state |
| 553 | of the United States which is deductible from gross income in |
| 554 | the computation of taxable income for the taxable year. |
| 555 | 2. The amount of interest which is excluded from taxable |
| 556 | income under s. 103(a) of the Internal Revenue Code or any other |
| 557 | federal law, less the associated expenses disallowed in the |
| 558 | computation of taxable income under s. 265 of the Internal |
| 559 | Revenue Code or any other law, excluding 60 percent of any |
| 560 | amounts included in alternative minimum taxable income, as |
| 561 | defined in s. 55(b)(2) of the Internal Revenue Code, if the |
| 562 | taxpayer pays tax under s. 220.11(3). |
| 563 | 3. In the case of a regulated investment company or real |
| 564 | estate investment trust, an amount equal to the excess of the |
| 565 | net long-term capital gain for the taxable year over the amount |
| 566 | of the capital gain dividends attributable to the taxable year. |
| 567 | 4. That portion of the wages or salaries paid or incurred |
| 568 | for the taxable year which is equal to the amount of the credit |
| 569 | allowable for the taxable year under s. 220.181. This |
| 570 | subparagraph shall expire on the date specified in s. 290.016 |
| 571 | for the expiration of the Florida Enterprise Zone Act. |
| 572 | 5. That portion of the ad valorem school taxes paid or |
| 573 | incurred for the taxable year which is equal to the amount of |
| 574 | the credit allowable for the taxable year under s. 220.182. This |
| 575 | subparagraph shall expire on the date specified in s. 290.016 |
| 576 | for the expiration of the Florida Enterprise Zone Act. |
| 577 | 6. The amount of emergency excise tax paid or accrued as a |
| 578 | liability to this state under chapter 221 which tax is |
| 579 | deductible from gross income in the computation of taxable |
| 580 | income for the taxable year. |
| 581 | 7. That portion of assessments to fund a guaranty |
| 582 | association incurred for the taxable year which is equal to the |
| 583 | amount of the credit allowable for the taxable year. |
| 584 | 8. In the case of a nonprofit corporation which holds a |
| 585 | pari-mutuel permit and which is exempt from federal income tax |
| 586 | as a farmers' cooperative, an amount equal to the excess of the |
| 587 | gross income attributable to the pari-mutuel operations over the |
| 588 | attributable expenses for the taxable year. |
| 589 | 9. The amount taken as a credit for the taxable year under |
| 590 | s. 220.1895. |
| 591 | 10. Up to nine percent of the eligible basis of any |
| 592 | designated project which is equal to the credit allowable for |
| 593 | the taxable year under s. 220.185. |
| 594 | 11. The amount taken as a credit for the taxable year |
| 595 | under s. 220.187. |
| 596 | 12. The amount taken as a credit for the taxable year |
| 597 | under s. 220.192. |
| 598 | 13. The amount taken as a credit for the taxable year |
| 599 | under s. 220.193. |
| 600 | 14. Any amount in excess of $25,000 allowable as a |
| 601 | deduction for federal income tax purposes under s. 179 of the |
| 602 | Internal Revenue Code of 1986, as amended, for the taxable year. |
| 603 | 15. Any amount allowable as a deduction for federal income |
| 604 | tax purposes under s. 167 or s. 168 of the Internal Revenue Code |
| 605 | of 1986, as amended, for the taxable year to the extent that |
| 606 | such amount includes bonus depreciation allowable as deduction |
| 607 | under s. 168(k). |
| 608 | 16. Any portion of a qualified equity investment, as |
| 609 | defined in s. 288.991, that is claimed as a deduction by the |
| 610 | taxpayer for the purpose of calculating the taxpayer's net |
| 611 | income. |
| 612 | Section 4. Subsection (19) is added to section 213.053, |
| 613 | Florida Statutes, to read: |
| 614 | 213.053 Confidentiality and information sharing.-- |
| 615 | (19) Information relative to tax credits taken by a |
| 616 | taxpayer pursuant to s. 288.991 may be disclosed to the Office |
| 617 | of Tourism, Trade, and Economic Development or its employees or |
| 618 | agents that have been identified in writing by the office to the |
| 619 | department for use in the performance of their official duties. |
| 620 | All information disclosed under this subsection is subject to |
| 621 | the same requirements of confidentiality and the same penalties |
| 622 | for violation of the requirements as the department. |
| 623 | Section 5. This act shall take effect July 1, 2009. |