Florida Senate - 2010                             CS for SB 1430
       
       
       
       By the Committee on Commerce; and Senators Haridopolos, Justice,
       and Gaetz
       
       
       
       577-03657-10                                          20101430c1
    1                        A bill to be entitled                      
    2         An act relating to entertainment industry economic
    3         development; amending s. 288.1254, F.S.; revising the
    4         entertainment industry financial incentive program to
    5         provide corporate income tax and sales and use tax
    6         credits to qualified entertainment entities rather
    7         than reimbursements from appropriations; revising
    8         provisions relating to definitions, creation and
    9         scope, application procedures, approval process,
   10         eligibility, required documents, qualified and
   11         certified productions, and annual reports; providing
   12         duties and responsibilities of the Office of Film and
   13         Entertainment, the Office of Tourism, Trade, and
   14         Economic Development, and the Department of Revenue
   15         relating to the tax credits; providing criteria and
   16         limitations for awards of tax credits; providing for
   17         uses, allocations, election, distributions, and
   18         carryforward of the tax credits; providing for
   19         withdrawal of tax credit eligibility; providing for
   20         use of consolidated returns; providing for partnership
   21         and noncorporate distributions of tax credits;
   22         providing for succession of tax credits; providing
   23         requirements for transfer of tax credits; authorizing
   24         the Office of Tourism, Trade, and Economic Development
   25         to adopt rules, policies, and procedures; authorizing
   26         the Department of Revenue to adopt rules and conduct
   27         audits; providing for revocation and forfeiture of tax
   28         credits; providing liability for reimbursement of
   29         certain costs and fees associated with a fraudulent
   30         claim; requiring an annual report to the Governor and
   31         the Legislature; providing for future repeal; amending
   32         s. 220.02, F.S.; including tax credits enumerated in
   33         s. 288.1254, F.S., in the order of application of
   34         credits against certain taxes; amending s. 213.053,
   35         F.S.; authorizing the Department of Revenue to provide
   36         tax credit information to the Office of Film and
   37         Entertainment and the Office of Tourism, Trade, and
   38         Economic Development; amending s. 212.08, F.S.;
   39         limiting application of the entertainment industry tax
   40         credits; providing procedures; providing for
   41         severability; providing an effective date.
   42  
   43  Be It Enacted by the Legislature of the State of Florida:
   44  
   45         Section 1. Section 288.1254, Florida Statutes, is amended
   46  to read:
   47         (Substantial rewording of section. See
   48         s. 288.1254, F.S., for present text.)
   49         288.1254 Entertainment industry financial incentive
   50  program.—
   51         (1) DEFINITIONS.—As used in this section, the term:
   52         (a) “Certified production” means a qualified production
   53  that has tax credits allocated to it by the Office of Tourism,
   54  Trade, and Economic Development based on the production’s
   55  estimated qualified expenditures, up to the production’s maximum
   56  certified amount of tax credits, by the Office of Tourism,
   57  Trade, and Economic Development. The term does not include a
   58  production if the first date that it incurs production
   59  expenditures in this state occurs before the production is
   60  certified by the Office of Tourism, Trade, and Economic
   61  Development.
   62         (b) “Digital media project” means a production of
   63  interactive entertainment that is produced for distribution in
   64  commercial or educational markets. The term includes a video
   65  game or production intended for Internet or wireless
   66  distribution. The term does not include a production deemed by
   67  the Office of Film and Entertainment to contain obscene content
   68  as defined in s. 847.001(10).
   69         (c) “High-impact television series” means a production
   70  created to run multiple production seasons and having an
   71  estimated order of at least seven episodes per season and
   72  qualified expenditures of at least $625,000 per episode.
   73         (d) “Off-season certified production” means a production,
   74  other than a digital media project or an animated production,
   75  commercial, music video, or documentary, which films 75 percent
   76  or more of its principal photography days from June 1 through
   77  November 30.
   78         (e) “Principal photography” means the filming of major or
   79  significant components of the qualified production which involve
   80  lead actors.
   81         (f) “Production” means a theatrical or direct-to-video
   82  motion picture; a made-for-television motion picture; visual
   83  effects or digital animation sequences produced in conjunction
   84  with a motion picture; a commercial; a music video; an
   85  industrial or educational film; an infomercial; a documentary
   86  film; a television pilot program; a presentation for a
   87  television pilot program; a television series, including, but
   88  not limited to, a drama, a reality show, a comedy, a soap opera,
   89  a telenovela, a game show, or a miniseries production; or a
   90  digital media project by the entertainment industry. One season
   91  of a television series is considered one production. The term
   92  does not include a weather or market program; a sporting event;
   93  a sports show; a gala; a production that solicits funds; a home
   94  shopping program; a political program; a political documentary;
   95  political advertising; a gambling-related project or production;
   96  a concert production; or a local, regional, or Internet
   97  distributed-only news show, current-events show, pornographic
   98  production, or current-affairs show. A production may be
   99  produced on or by film, tape, or otherwise by means of a motion
  100  picture camera; electronic camera or device; tape device;
  101  computer; any combination of the foregoing; or any other means,
  102  method, or device now used or later adopted.
  103         (g) “Production expenditures” means the costs of tangible
  104  and intangible property used for, and services performed
  105  primarily and customarily in, production, including
  106  preproduction and postproduction, but excluding costs for
  107  development, marketing, and distribution. The term includes, but
  108  is not limited to:
  109         1. Wages, salaries, or other compensation paid to legal
  110  residents of this state, including amounts paid through payroll
  111  service companies, for technical and production crews,
  112  directors, producers, and performers.
  113         2. Expenditures for sound stages, backlots, production
  114  editing, digital effects, sound recordings, sets, and set
  115  construction.
  116         3. Expenditures for rental equipment, including, but not
  117  limited to, cameras and grip or electrical equipment.
  118         4. Up to $300,000 of the costs of newly purchased computer
  119  software and hardware unique to the project, including servers,
  120  data processing, and visualization technologies, which are
  121  located in and used exclusively in the state for the production
  122  of digital media.
  123         5. Expenditures for meals, travel, and accommodations.
  124         (h) “Qualified expenditures” means production expenditures
  125  incurred in this state by a qualified production for:
  126         1. Goods purchased or leased from, or services, including,
  127  but not limited to, insurance costs and bonding, payroll
  128  services, and legal fees, which are provided by a vendor or
  129  supplier in this state which is registered with the Department
  130  of State or the Department of Revenue, is doing business in the
  131  state, and whose primary employees involved in facilitating the
  132  transaction are legal residents of and doing business in this
  133  state.
  134         2. Payments to legal residents of this state in the form of
  135  salary, wages, or other compensation up to a maximum of $650,000
  136  per resident unless otherwise specified in subsection (4).
  137  
  138  For a qualified production involving an event, such as an awards
  139  show, the term does not include expenditures solely associated
  140  with the event itself and not directly required by the
  141  production. The term does not include expenditures incurred
  142  before certification, with the exception of those incurred for a
  143  commercial, a music video, or the pickup of additional episodes
  144  of a high-impact television series within a single season.
  145         (i) “Qualified production” means a production in this state
  146  meeting the requirements of this section. The term does not
  147  include a production:
  148         1. In which, for the first 2 years of the incentive
  149  program, less than 50 percent, and, thereafter, less than 60
  150  percent, of the positions that make up its production cast and
  151  below-the-line production crew, or, in the case of digital media
  152  projects, less than 75 percent of such positions, are filled by
  153  legal residents of this state, whose residency is demonstrated
  154  by a valid Florida driver’s license or other state-issued
  155  identification confirming residency, or students enrolled full
  156  time in a film-and-entertainment-related course of study at an
  157  institution of higher education in this state; or
  158         2. That is deemed by the Office of Film and Entertainment
  159  to contain obscene content as defined in s. 847.001(10).
  160         (j) “Qualified production company” means a corporation,
  161  limited liability company, partnership, or other legal entity
  162  engaged in one or more productions in this state.
  163         (2) CREATION AND PURPOSE OF PROGRAM.—The entertainment
  164  industry financial incentive program is created within the
  165  Office of Film and Entertainment. The purpose of this program is
  166  to encourage the use of this state as a site for filming, for
  167  the digital production of films, and to develop and sustain the
  168  workforce and infrastructure for film, digital media, and
  169  entertainment production.
  170         (3) APPLICATION PROCEDURE; APPROVAL PROCESS.—
  171         (a) Program application.—A qualified production company
  172  producing a qualified production in this state may submit a
  173  program application to the Office of Film and Entertainment for
  174  the purpose of determining qualification for an award of tax
  175  credits authorized by this section no earlier than 6 months
  176  before the first date that production expenditures are incurred
  177  in this state. The applicant shall provide the Office of Film
  178  and Entertainment with information required to determine whether
  179  the production is a qualified production and to determine the
  180  qualified expenditures and other information necessary for the
  181  office to determine eligibility for the tax credit.
  182         (b) Required documentation.—The Office of Film and
  183  Entertainment shall develop an application form for qualifying
  184  an applicant as a qualified production. The form must include,
  185  but need not be limited to, production-related information
  186  concerning employment of residents in this state, a detailed
  187  budget of planned qualified expenditures, and the applicant’s
  188  signed affirmation that the information on the form has been
  189  verified and is correct. The Office of Film and Entertainment
  190  and local film commissions shall distribute the form.
  191         (c) Application process.—The Office of Film and
  192  Entertainment shall establish a process by which an application
  193  is accepted and reviewed and by which tax credit eligibility and
  194  the award amount are determined. The Office of Film and
  195  Entertainment may request assistance from a duly appointed local
  196  film commission in determining compliance with this section.
  197         (d) Certification.—The Office of Film and Entertainment
  198  shall review the application within 15 business days after
  199  receipt. Upon its determination that the application contains
  200  all the information required by this subsection and meets the
  201  criteria set out in this section, the Office of Film and
  202  Entertainment shall qualify the applicant and recommend to the
  203  Office of Tourism, Trade, and Economic Development that the
  204  applicant be certified for the maximum tax credit award amount.
  205  Within 5 business days after receipt of the recommendation, the
  206  Office of Tourism, Trade, and Economic Development shall reject
  207  the recommendation or certify the maximum recommended tax credit
  208  award, if any, to the applicant and to the executive director of
  209  the Department of Revenue.
  210         (e) Grounds for denial.—The Office of Film and
  211  Entertainment shall deny an application if it determines that
  212  the application is incomplete or the production or application
  213  does not meet the requirements of this section.
  214         (f) Verification of actual qualified expenditures.
  215         1. The Office of Film and Entertainment shall develop a
  216  process to verify the actual qualified expenditures of a
  217  certified production. The process must require:
  218         a. A certified production to submit, in a timely manner
  219  after principal photography, digital production, or the digital
  220  media project ends and after making all of its qualified
  221  expenditures, data substantiating each qualified expenditure to
  222  an independent certified public accountant licensed in this
  223  state;
  224         b. Such accountant to conduct a compliance audit, at the
  225  certified production’s expense, to substantiate each qualified
  226  expenditure and submit the results as a report, along with the
  227  required substantiating data, to the Office of Film and
  228  Entertainment; and
  229         c. The Office of Film and Entertainment to review the
  230  accountant’s submittal and report to the Office of Tourism,
  231  Trade, and Economic Development the final verified amount of
  232  actual qualified expenditures made by the certified production.
  233         2. The Office of Tourism, Trade, and Economic Development
  234  shall determine and approve the final tax credit award amount to
  235  each certified applicant based on the final verified amount of
  236  actual qualified expenditures and shall notify the executive
  237  director of the Department of Revenue in writing that the
  238  certified production has met the requirements of the incentive
  239  program and of the final amount of the tax credit award. The
  240  final tax credit award amount may not exceed the maximum tax
  241  credit award amount certified under paragraph (d).
  242         (g) Promoting Florida.—The Office of Film and Entertainment
  243  shall ensure that, as a condition of receiving a tax credit
  244  under this section, marketing materials promoting this state as
  245  a tourist destination or film and entertainment production
  246  destination are included, when appropriate, at no cost to the
  247  state, which must, at a minimum, include placement of a “Filmed
  248  in Florida” or “Produced in Florida” logo in the opening credits
  249  and end credits and on all packaging material and hard media,
  250  unless prohibited by licensing or other contractual obligations.
  251  The size and placement of such logo shall be commensurate to
  252  other logos used. If no logos are used, the statement “Filmed in
  253  Florida using Florida’s Entertainment Industry Financial
  254  Incentive,” or a similar statement approved by the Office of
  255  Film and Entertainment, shall be used. The Office of Film and
  256  Entertainment shall provide a logo and supply it for the
  257  purposes specified in this paragraph.
  258         (4) TAX CREDIT ELIGIBILITY; TAX CREDIT AWARDS; QUEUES;
  259  ELECTION AND DISTRIBUTION; CARRYFORWARD; CONSOLIDATED RETURNS;
  260  PARTNERSHIP AND NONCORPORATE DISTRIBUTIONS; MERGERS AND
  261  ACQUISITIONS.—
  262         (a) Priority for tax credit award.—The priority of a
  263  qualified production for tax credit awards must be determined on
  264  a first-come, first-served basis within its appropriate queue.
  265  Each qualified production must be placed into the appropriate
  266  queue and is subject to the requirements of that queue.
  267         (b) Tax credit eligibility.
  268         1. General production queue.—Ninety-four percent of tax
  269  credits authorized in any state fiscal year must be dedicated to
  270  the general production queue. The general production queue
  271  consists of all qualified productions other than those eligible
  272  for the commercial and music video queue or the independent
  273  production queue. A qualified production that demonstrates a
  274  minimum of $625,000 in qualified expenditures is eligible for
  275  tax credits equal to 20 percent of its actual qualified
  276  expenditures, up to a maximum of $8 million. A qualified
  277  production that incurs qualified expenditures during multiple
  278  state fiscal years may combine those expenditures to satisfy the
  279  $625,000 minimum threshold.
  280         a. An off-season certified production that is a feature
  281  film, independent film, or television series or pilot is
  282  eligible for an additional 5 percent tax credit on actual
  283  qualified expenditures. An off-season certified production that
  284  does not complete 75 percent of principal photography due to a
  285  disruption caused by a hurricane or tropical storm may not be
  286  disqualified from eligibility for the additional 5 percent
  287  credit as a result of the disruption.
  288         b. A qualified high-impact television series shall be
  289  allowed first position in this queue for tax credit awards not
  290  yet certified.
  291         2. Commercial and music video queue.—Three percent of tax
  292  credits authorized in any state fiscal year must be dedicated to
  293  the commercial and music video queue. A qualified production
  294  company that produces national or regional commercials or music
  295  videos may be eligible for a tax credit award if it demonstrates
  296  a minimum of $100,000 in qualified expenditures per national or
  297  regional commercial or music video and exceeds a combined
  298  threshold of $500,000 after combining actual qualified
  299  expenditures from qualified commercials and music videos during
  300  a single state fiscal year. After a qualified production company
  301  that produces commercials, music videos, or both reaches the
  302  threshold of $500,000, it is eligible to apply for certification
  303  for a tax credit award. The maximum credit award shall be equal
  304  to 20 percent of its actual qualified expenditures up to a
  305  maximum of $500,000. If there is a surplus at the end of a
  306  fiscal year after the Office of Film and Entertainment certifies
  307  and determines the tax credits for all qualified commercial and
  308  video projects, such surplus tax credits shall be carried
  309  forward to the following fiscal year and be available to any
  310  eligible qualified productions under the general production
  311  queue.
  312         3. Independent production queue.—Three percent of tax
  313  credits authorized in any state fiscal year must be dedicated to
  314  the independent production queue. An independent Florida film or
  315  digital media project that meets the criteria of this
  316  subparagraph and demonstrates a minimum of $100,000, but not
  317  more than $625,000, in total qualified expenditures is eligible
  318  for tax credits equal to 20 percent of its actual qualified
  319  expenditures. To qualify for this tax credit, a qualified
  320  production must:
  321         a. Be planned as a feature film or documentary of at least
  322  70 minutes in length or be a digital media project.
  323         b. Employ legal residents of this state in at least two of
  324  the following key positions: writer, director, producer, star,
  325  or composer; or, in the case of a digital media project, employ
  326  legal residents of this state in at least two positions
  327  functionally equivalent to the positions of writer, director,
  328  producer, star, or composer.
  329         4. Family friendly productions.—A certified production
  330  determined by the Commissioner of Film and Entertainment, with
  331  the advice of the Florida Film and Entertainment Advisory
  332  Council, to be family friendly, based on the review of the
  333  script and the review of the final release version, is eligible
  334  for an additional tax credit equal to 5 percent of its actual
  335  qualified expenditures. Family friendly productions are those
  336  that have cross-generational appeal; would be considered
  337  suitable for viewing by children age 5 or older; are appropriate
  338  in theme, content, and language for a broad family audience;
  339  embody a responsible resolution of issues; and do not exhibit or
  340  imply any act of smoking, sex, nudity, gratuitous violence, or
  341  vulgar or profane language.
  342         (c) Withdrawal of tax credit eligibility.—A qualified or
  343  certified production must continue on a reasonable schedule,
  344  which means beginning principal photography, or, in the case of
  345  a digital media project, the start date of the production, in
  346  this state no more than 45 calendar days before or after the
  347  date provided in the production’s program application. The
  348  Office of Tourism, Trade, and Economic Development shall
  349  withdraw the eligibility of a qualified or certified production
  350  that does not continue on a reasonable schedule.
  351         (d) Election and distribution of tax credits.
  352         1. A certified production company receiving a tax credit
  353  award under this section shall, at the time the credit is
  354  awarded by the Office of Tourism, Trade, and Economic
  355  Development after production is completed and all requirements
  356  to receive a credit award have been met, make an irrevocable
  357  election to apply the credit against taxes due under chapter
  358  220, against taxes collected or accrued under chapter 212,
  359  except that the credit authorized under this section may not be
  360  applied against discretionary sales surtaxes authorized under s.
  361  212.055, or against a stated combination of the two taxes. The
  362  election is binding upon any distributee, successor, transferee,
  363  or purchaser. The Office of Tourism, Trade, and Economic
  364  Development shall notify the Department of Revenue of any
  365  election made pursuant to this paragraph.
  366         2. For the fiscal years beginning July 1, 2010, and ending
  367  June 30, 2015, a qualified production company is eligible for
  368  tax credits against its sales and use tax liabilities and
  369  corporate income tax liabilities as provided in this section.
  370  However, tax credits awarded under this section may not be
  371  claimed against sales and use tax liabilities or corporate
  372  income tax liabilities for any tax period beginning before July
  373  1, 2011, regardless of when the credits are applied for or
  374  awarded.
  375         (e) Tax credit carryforward.—If the certified production
  376  company cannot use the entire tax credit in the taxable year or
  377  reporting period in which the credit is awarded, any excess
  378  amount may be carried forward to a succeeding taxable year or
  379  reporting period. A tax credit applied against taxes imposed
  380  under chapter 212 may be carried forward for a maximum of 5
  381  years after the date the credit is awarded. A tax credit applied
  382  against taxes imposed under chapter 220 may be carried forward
  383  for a maximum of 5 years after the date the credit is awarded,
  384  after which the credit expires and may not be used.
  385         (f) Consolidated returns.—A certified production company
  386  that files a Florida consolidated return as a member of an
  387  affiliated group under s. 220.131(1) may be allowed the credit
  388  on a consolidated return basis up to the amount of the tax
  389  imposed upon the consolidated group under chapter 220.
  390         (g) Partnership and noncorporate distributions.—A qualified
  391  production company that is not a corporation as defined in s.
  392  220.03 may elect to distribute tax credits awarded under this
  393  section to its partners or members in proportion to their
  394  respective distributive income or loss in the taxable fiscal
  395  year in which the tax credits were awarded.
  396         (h) Mergers or acquisitions.—Tax credits available under
  397  this section to a certified production company may succeed to a
  398  surviving or acquiring entity subject to the same conditions and
  399  limitations as described in this section; however, they may not
  400  be transferred again by the surviving or acquiring entity.
  401         (5) TRANSFER OF TAX CREDITS.—
  402         (a) Authorization.—Upon application to the Office of Film
  403  and Entertainment and approval by the Office of Tourism, Trade,
  404  and Economic Development, a certified production company, or a
  405  partner or member that has received a distribution under
  406  paragraph (4)(g), may elect to transfer, in whole or in part,
  407  any unused credit amount granted under this section. An election
  408  to transfer any unused tax credit amount under chapter 212 or
  409  chapter 220 must be made no later than 5 years after the date
  410  the credit is awarded, after which period the credit expires and
  411  may not be used. The Office of Tourism, Trade, and Economic
  412  Development shall notify the Department of Revenue of the
  413  election and transfer.
  414         (b) Number of transfers permitted.—A certified production
  415  company that elects to apply a credit amount against taxes
  416  remitted under chapter 212 is permitted a one-time transfer of
  417  unused credits to one transferee. The credit against sales tax
  418  is available to the transferee only through a refund of
  419  previously paid taxes pursuant to s. 212.08(5)(g). A certified
  420  production company that elects to apply a credit amount against
  421  taxes due under chapter 220 is permitted a one-time transfer of
  422  unused credits to no more than four transferees, and such
  423  transfers must occur in the same taxable year.
  424         (c) Transferee rights and limitations.—The transferee is
  425  subject to the same rights and limitations as the certified
  426  production company awarded the tax credit, except that the
  427  transferee may not sell or otherwise transfer the tax credit.
  428         (d) Rulemaking.—The Department of Revenue may adopt rules
  429  to administer this subsection, as provided in subsection (7).
  430         (6) ANNUAL ALLOCATION OF TAX CREDITS.—
  431         (a) The aggregate amount of the tax credits that may be
  432  certified pursuant to paragraph (3)(d) may not exceed $75
  433  million per fiscal year.
  434         (b) Any portion of the maximum amount of tax credits
  435  established per fiscal year in paragraph (a) which is not
  436  certified as of the end of a fiscal year shall be carried
  437  forward and made available for certification during the
  438  following two fiscal years in addition to the amounts available
  439  for certification under paragraph (a) for those fiscal years.
  440         (c) Upon approval of the final tax credit award amount
  441  pursuant to subparagraph (3)(f)2., an amount equal to the
  442  difference between the maximum tax credit award amount
  443  previously certified under paragraph (3)(d) and the approved
  444  final tax credit award amount shall immediately be available for
  445  recertification during the current and following fiscal years in
  446  addition to the amounts available for certification under
  447  paragraph (a) for those fiscal years. Credit amounts are
  448  available for recertification only once under this paragraph.
  449         (d) If, during a fiscal year, the total amount of credits
  450  applied for, pursuant to paragraph (3)(a), exceeds the amount of
  451  credits available for certification in that fiscal year, such
  452  excess shall be treated as having been applied for on the first
  453  day of the next fiscal year in which credits remain available
  454  for certification.
  455         (7) RULES, POLICIES, AND PROCEDURES.—
  456         (a) The Office of Tourism, Trade, and Economic Development
  457  may adopt rules pursuant to ss. 120.536(1) and 120.54 and
  458  develop policies and procedures to implement and administer this
  459  section, including, but not limited to, rules specifying
  460  requirements for the application and approval process, records
  461  required for substantiation for tax credits, procedures for
  462  making the election in paragraph (4)(d), the manner and form of
  463  documentation required to claim tax credits awarded or
  464  transferred under this section, and marketing requirements for
  465  tax credit recipients.
  466         (b) The Department of Revenue may adopt rules pursuant to
  467  ss. 120.536(1) and 120.54 to administer this section, including
  468  rules governing the examination and audit procedures required to
  469  administer this section and the manner and form of documentation
  470  required to claim tax credits awarded or transferred under this
  471  section.
  472         (8) AUDIT AUTHORITY; REVOCATION AND FORFEITURE OF TAX
  473  CREDITS; FRAUDULENT CLAIMS.—
  474         (a) Audit authority.—The Department of Revenue may conduct
  475  examinations and audits as provided in s. 213.34 to verify that
  476  tax credits under this section are received, transferred, and
  477  applied according to the requirements of this section. If the
  478  Department of Revenue determines that tax credits are not
  479  received, transferred, or applied as required by this section,
  480  it may, in addition to the remedies provided in this subsection,
  481  pursue recovery of such funds pursuant to the laws and rules
  482  governing the assessment of taxes.
  483         (b) Revocation of tax credits.—The Office of Tourism,
  484  Trade, and Economic Development may revoke or modify any written
  485  decision qualifying, certifying, or otherwise granting
  486  eligibility for tax credits under this section if it is
  487  discovered that the tax credit applicant submitted any false
  488  statement, representation, or certification in any application,
  489  record, report, plan, or other document filed in an attempt to
  490  receive tax credits under this section. The Office of Tourism,
  491  Trade, and Economic Development shall immediately notify the
  492  Department of Revenue of any revoked or modified orders
  493  affecting previously granted tax credits. Additionally, the
  494  applicant must notify the Department of Revenue of any change in
  495  its tax credit claimed.
  496         (c) Forfeiture of tax credits.—A determination by the
  497  Department of Revenue, as a result of an audit or examination by
  498  the Department of Revenue or from information received from the
  499  Office of Film and Entertainment, that an applicant received tax
  500  credits pursuant to this section to which the applicant was not
  501  entitled is grounds for forfeiture of previously claimed and
  502  received tax credits. The applicant is responsible for returning
  503  forfeited tax credits to the Department of Revenue, and such
  504  funds shall be paid into the General Revenue Fund of the state.
  505  Tax credits purchased in good faith are not subject to
  506  forfeiture unless the transferee submitted fraudulent
  507  information in the purchase or failed to meet the requirements
  508  in subsection (5).
  509         (d) Fraudulent claims.—Any applicant that submits
  510  fraudulent information under this section is liable for
  511  reimbursement of the reasonable costs and fees associated with
  512  the review, processing, investigation, and prosecution of the
  513  fraudulent claim. An applicant that obtains a credit payment
  514  under this section through a claim that is fraudulent is liable
  515  for reimbursement of the credit amount plus a penalty in an
  516  amount double the credit amount. The penalty is in addition to
  517  any criminal penalty to which the applicant is liable for the
  518  same acts. The applicant is also liable for costs and fees
  519  incurred by the state in investigating and prosecuting the
  520  fraudulent claim.
  521         (9) ANNUAL REPORT.—Each October 1, the Office of Film and
  522  Entertainment shall provide an annual report for the previous
  523  fiscal year to the Governor, the President of the Senate, and
  524  the Speaker of the House of Representatives which outlines the
  525  return on investment and economic benefits to the state.
  526         (10) REPEAL.—This section is repealed July 1, 2015, except
  527  that the tax credit carryforward provided in this section shall
  528  continue to be valid for the period specified.
  529         Section 2. Subsection (8) of section 220.02, Florida
  530  Statutes, is amended to read:
  531         220.02 Legislative intent.—
  532         (8) It is the intent of the Legislature that credits
  533  against either the corporate income tax or the franchise tax be
  534  applied in the following order: those enumerated in s. 631.828,
  535  those enumerated in s. 220.191, those enumerated in s. 220.181,
  536  those enumerated in s. 220.183, those enumerated in s. 220.182,
  537  those enumerated in s. 220.1895, those enumerated in s. 221.02,
  538  those enumerated in s. 220.184, those enumerated in s. 220.186,
  539  those enumerated in s. 220.1845, those enumerated in s. 220.19,
  540  those enumerated in s. 220.185, those enumerated in s. 220.187,
  541  those enumerated in s. 220.192, those enumerated in s. 220.193,
  542  and those enumerated in s. 288.9916, and those enumerated in s.
  543  288.1254.
  544         Section 3. Paragraph (z) is added to subsection (8) of
  545  section 213.053, Florida Statutes, to read:
  546         213.053 Confidentiality and information sharing.—
  547         (8) Notwithstanding any other provision of this section,
  548  the department may provide:
  549         (z) Information relative to tax credits taken under s.
  550  288.1254 to the Office of Film and Entertainment and the Office
  551  of Tourism, Trade, and Economic Development.
  552  
  553  Disclosure of information under this subsection shall be
  554  pursuant to a written agreement between the executive director
  555  and the agency. Such agencies, governmental or nongovernmental,
  556  shall be bound by the same requirements of confidentiality as
  557  the Department of Revenue. Breach of confidentiality is a
  558  misdemeanor of the first degree, punishable as provided by s.
  559  775.082 or s. 775.083.
  560         Section 4. Paragraph (q) of subsection (5) of section
  561  212.08, Florida Statutes,is added to that subsection, to read:
  562         212.08 Sales, rental, use, consumption, distribution, and
  563  storage tax; specified exemptions.—The sale at retail, the
  564  rental, the use, the consumption, the distribution, and the
  565  storage to be used or consumed in this state of the following
  566  are hereby specifically exempt from the tax imposed by this
  567  chapter.
  568         (5) EXEMPTIONS; ACCOUNT OF USE.—
  569         (q)Entertainment industry tax credit; authorization;
  570  eligibility for credits.—The credit against sales tax authorized
  571  pursuant to s. 288.1254 is available to the holder of a
  572  certificate only through a refund of previously paid taxes. To
  573  receive a refund, a transferee must submit an application for
  574  refund to the Department of Revenue within 12 months after
  575  receipt of the transferred credit. Refunds shall be paid from
  576  the General Revenue Fund. If the credit for the qualified
  577  expenditures is larger than the amount owed on the sales and use
  578  tax return on which the credit may be claimed, the unused amount
  579  of the credit may be carried forward to a succeeding reporting
  580  period as provided in s. 288.1254(4)(e).
  581         Section 5. If any provision of this act or the application
  582  thereof to any person or circumstance is held invalid, the
  583  invalidity shall not affect other provisions or applications of
  584  the act which can be given effect without the invalid provision
  585  or application, and to this end the provisions of this act are
  586  severable.
  587         Section 6. This act shall take effect July 1, 2010.