Florida Senate - 2010                             CS for SB 2578
       
       
       
       By the Committee on General Government Appropriations; and
       Senator Altman
       
       
       
       601-04797-10                                          20102578c1
    1                        A bill to be entitled                      
    2         An act relating to the advanced clean energy
    3         development tax credit; creating s. 220.194, F.S.;
    4         defining terms; authorizing a business to receive the
    5         advanced clean energy development tax credit for a
    6         project to conduct clean energy research in
    7         development within the territory of the John F.
    8         Kennedy Space Center; specifying amounts of the
    9         credit; requiring a business to apply to Space Florida
   10         for eligibility to receive the tax credit; requiring
   11         the applicant that is qualified to receive the credit
   12         to execute and deliver a written agreement to Space
   13         Florida which includes a binding commitment to
   14         complete an advanced clean energy research and
   15         development project; providing that only one business
   16         may receive the tax credit; specifying requirements
   17         for the application to Space Florida; providing for
   18         Space Florida to issue an order certifying that the
   19         business is qualified to receive the tax credit;
   20         specifying requirements that an application must
   21         satisfy in order to qualify to enter into an agreement
   22         with Space Florida to establish an advanced clean
   23         energy research and development project; authorizing
   24         the Department of Revenue to conduct reviews and
   25         investigations to verify the proper application of
   26         credits taken in a tax return; authorizing Space
   27         Florida to order the forfeiture of all or part of any
   28         previously claimed tax credits or credits available to
   29         be taken under certain circumstances; requiring Space
   30         Florida to notify the Department of Revenue of any
   31         order affecting a previously authorized tax credit;
   32         authorizing the Department of Revenue to issue a
   33         notice of deficiency to the certified business under
   34         certain circumstances; authorizing the Department of
   35         Revenue and Space Florida to adopt rules relating to
   36         the tax credit; providing an effective date.
   37  
   38  Be It Enacted by the Legislature of the State of Florida:
   39  
   40         Section 1. Section 220.194, Florida Statutes, is created to
   41  read:
   42         220.194 Advanced clean energy development tax credit.—
   43         (1) DEFINITIONS.—As used in this section, the term:
   44         (a)“Advanced clean energy research and development” means
   45  the investigation of the latest processes and technologies
   46  designed to improve efficiency, reduce cost, and limit emissions
   47  from gas turbines during the production of energy.
   48         (b)“Advanced clean energy research and development
   49  project” or “the project” means the combination of facilities,
   50  equipment, technology, personnel, and partnerships brought
   51  together to conduct advanced clean energy research and
   52  development so as to qualify a business to claim the tax credit
   53  provided under this section. A facility consists of a single
   54  building or structure, or a group of buildings or structures,
   55  which are under common ownership or control and located within
   56  the territory of the John F. Kennedy Space Center.
   57         (c)“Business” has the same meaning as provided in s.
   58  220.03. The term also includes an affiliated group of
   59  corporations that file a consolidated return in this state.
   60         (d)“Space Florida” means the entity created under s.
   61  331.302 to foster the growth and development of a sustainable
   62  and world-leading aerospace industry in this state.
   63         (2)TAX CREDIT.—
   64         (a)A business that is approved by Space Florida to receive
   65  the advanced clean energy tax credit pursuant to this section
   66  may apply the credit against the tax imposed by this chapter.
   67         (b)The credit consists of three components.
   68         1. Upon approval of an application and the execution of a
   69  written agreement with Space Florida, including a binding
   70  commitment to complete an advanced clean energy research and
   71  development project, the certified business is awarded a credit
   72  in the amount of $3 million annually which may be claimed
   73  beginning with the corporate tax year of the business in which
   74  the agreement is executed and ending in the 8th corporate tax
   75  year thereafter, for a total credit amount of $27 million.
   76         2. During the tax year of the business in which the
   77  application for the project is approved and the written
   78  agreement with Space Florida is executed, the business may claim
   79  a tax credit in the amount of $3 million.
   80         3. During the tax year of the business in which
   81  construction begins on the facility for the project within the
   82  territory of the John F. Kennedy Space Center, the business may
   83  claim a tax credit in the amount of $3 million.
   84         (c) The maximum tax credit amount that may be claimed by
   85  the approved business during any tax year is $6 million. If the
   86  business does not claim all of the credits for which it is
   87  eligible in any tax year, the unused amount may be carried
   88  forward for a period not to exceed 10 years following the date
   89  that the credit became available to be claimed, after which time
   90  the credit amount expires and may not be used. The business may
   91  claim the carryover credit in a subsequent year when the tax
   92  imposed by this chapter exceeds the credit for such year after
   93  applying any other credits and unused credit carryovers listed
   94  in s. 220.02(8).
   95         (d) A business that files a consolidated return in this
   96  state as a member of an affiliated group pursuant to s.
   97  220.131(1) may claim the credit on a consolidated return basis
   98  up to the amount of tax imposed on the consolidated group.
   99         (3) APPLICATION PROCESS.—A business seeking to be eligible
  100  for the tax credit under this section must submit an application
  101  to Space Florida by the date established by Space Florida, which
  102  may not be later than September 1, 2010. Space Florida shall
  103  make application forms and guidelines available to applicants by
  104  August 1, 2010.
  105         (a) Space Florida shall review applications in the order
  106  applications are received to determine whether an applicant is
  107  qualified to receive the credit and shall approve a qualifying
  108  application within 15 days after receipt. By December 1, 2010,
  109  the qualified applicant must execute and deliver a written
  110  agreement to Space Florida which includes a binding commitment
  111  to complete an advanced clean energy research and development
  112  project consistent with the requirements of this section. A
  113  business may submit only one complete application. Space Florida
  114  may not accept an incomplete or placeholder application. Space
  115  Florida may certify only one applicant as eligible for the tax
  116  credits under this section.
  117         (b)An application must contain:
  118         1. Documentation determined necessary by the applicant or
  119  Space Florida demonstrating the applicant’s ability to meet the
  120  requirements of paragraph (4)(b);
  121         2. Any other information or documentation prescribed by
  122  Space Florida affirmatively demonstrating that the applicant
  123  qualifies for the credit; and
  124         3. An affidavit certifying that the information contained
  125  in the application is correct.
  126         (c) Upon execution of the agreement, Space Florida shall
  127  issue an order to the qualified applicant and the Department of
  128  Revenue certifying that the applicant is qualified for the tax
  129  credits under this section. Thereafter, Space Florida shall
  130  issue an annual recertification order to the business and the
  131  Department of Revenue. The certified business must attach Space
  132  Florida’s most recent order to the tax return on which the
  133  credit is claimed.
  134         (d) Upon execution of the agreement and for each year
  135  during which the business claims a credit on a return, the
  136  business shall submit documentation required by Space Florida
  137  demonstrating activity consistent with the representations in
  138  the application and the requirements set forth in paragraph
  139  (4)(b). The documentation must include an affidavit certifying
  140  that the documentation submitted is correct.
  141         (e) Space Florida shall ensure that the amount of corporate
  142  income tax credits granted in this section does not exceed the
  143  limits provided in this section.
  144         (4) ELIGIBILITY REQUIREMENTS.—
  145         (a) The credit authorized by this section is reserved for a
  146  business that creates an advanced clean energy research and
  147  development project, has entered into a written agreement with
  148  Space Florida, and is certified to be eligible for tax credits
  149  by Space Florida.
  150         (b) Space Florida may not certify a business as eligible to
  151  receive a tax credit under this section unless it determines
  152  that the business’s application affirmatively demonstrates that
  153  the applicant agrees:
  154         1. To incur a liability of at least $50 million to plan,
  155  design, and construct the advanced clean energy research
  156  facility.
  157         2.To invest at least $20 million on the facility by 2014.
  158  This investment includes the hard and soft costs customarily
  159  associated with the use or acquisition of a site, site design
  160  and preparation and improvements to identified real property
  161  located within the territory of the John F. Kennedy Space
  162  Center, as well as the customary hard and soft costs associated
  163  with the lease or purchase of depreciable machinery and
  164  equipment, including attendant design services that are directly
  165  related to the project.
  166         3. That expenditures for the project will be allotted to
  167  Florida vendors whenever feasible.
  168         4.To enter into a sponsored research and development
  169  agreement for the term of the project which qualifies for
  170  certification pursuant to s. 220.15(2)(c).
  171         5. That new full-time equivalent employees hired to work on
  172  the project will receive a median hourly wage that is at least
  173  200 percent of the federal minimum wage.
  174         (5)ADMINISTRATION; AUDIT AUTHORITY; RECAPTURE OF CREDITS.
  175         (a)In addition to its existing audit authority, the
  176  Department of Revenue may perform any financial or technical
  177  review or investigation, including examining the accounts,
  178  books, and records of the business, which is necessary to verify
  179  the proper application of credits taken in a tax return and to
  180  ensure compliance with this chapter.
  181         (b)Space Florida may, by order, revoke or modify its order
  182  certifying a business as eligible for a tax credit under this
  183  section, and may also order the forfeiture of all or part of any
  184  previously claimed tax credits or credits available to be taken
  185  if, as the result of an audit, investigation, or examination, it
  186  is proven that information provided by the business in the
  187  application, or in a statement, representation, record, report,
  188  plan, or other document provided to Space Florida in an attempt
  189  to receive tax credits under this section, was false in a
  190  material respect at the time it was submitted and that a person
  191  acting on behalf of the business knew, or should have known,
  192  that the information submitted was false.
  193         (c)Space Florida may, by order, revoke or modify its order
  194  certifying a business as eligible for a tax credit under this
  195  section, and may also order the forfeiture of previously claimed
  196  tax credits or credits available to be taken, if Space Florida
  197  determines that the business has not incurred liabilities in the
  198  amounts or within the period specified in paragraph (4)(b). If
  199  actual expenditures are not made in the amounts or in the period
  200  specified in paragraph (4)(b), Space Florida may allow the
  201  business to provide adequate assurance that qualifying
  202  expenditures will be made within a reasonable time. Such
  203  adequate assurances require the business to provide proof of
  204  financial security to ensure repayment of any previously claimed
  205  tax credit. Until the qualifying expenditures are made, the
  206  business may not claim any tax credits under this section. The
  207  amount of any tax credits forfeited under this paragraph shall
  208  be an amount equal to such proportion as the required investment
  209  bears to the actual investment.
  210         (d)Space Florida must immediately notify the Department of
  211  Revenue of any order affecting a previously authorized tax
  212  credit. A business that is liable for unpaid taxes shall file
  213  with the Department of Revenue an amended return or such other
  214  report as the Department of Revenue prescribes by rule. The
  215  business shall pay any required tax and interest within 60 days
  216  after Space Florida notifies the business that previously
  217  approved credits have been forfeited or modified. If the
  218  forfeiture or modification order is contested, the business
  219  shall file an amended return or other report within 30 days
  220  after the order revoking or forfeiting tax credits becomes
  221  final. A business that is liable for taxes avoided must pay the
  222  tax due plus interest at the rate established under s. 220.807,
  223  computed from the date that tax would have been due if the
  224  credit had not been taken. The taxes and interest are due at the
  225  time the amended return is filed. A business that fails to pay
  226  the taxes and interest by the due date is subject to the
  227  penalties provided in s. 220.803.
  228         (e) The department may issue a notice of deficiency at any
  229  time within 3 years after the business claims a credit or
  230  receives a final order from Space Florida that previously
  231  approved tax credits have been revoked or modified.
  232         (6)RULES.—Space Florida and the department may adopt rules
  233  to administer this section, including rules relating to:
  234         (a)The forms and procedures required to apply for the
  235  credit and to review applications.
  236         (b) The forms required to claim a tax credit under this
  237  section, the requirements and basis for establishing an
  238  entitlement to a credit, and examination and audit procedures
  239  required to administer this section.
  240         Section 2. This act shall take effect July 1, 2010.