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 |
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50 | Be It Enacted by the Legislature of the State of Florida: |
51 |
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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. |