| 1 | A bill to be entitled |
| 2 | An act relating to stimulating small business growth; |
| 3 | authorizing a tax credit of a specified amount for |
| 4 | application against the corporate income tax for certain |
| 5 | corporations engaging in contractual business |
| 6 | relationships with certain small businesses; specifying |
| 7 | eligibility requirements; providing limitations on the use |
| 8 | of the tax credit; authorizing the Office of Tourism, |
| 9 | Trade, and Economic Development and the Department of |
| 10 | Revenue to adopt rules; providing an effective date. |
| 11 |
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| 12 | Be It Enacted by the Legislature of the State of Florida: |
| 13 |
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| 14 | Section 1. Corporate tax credit for corporations |
| 15 | contracting with small businesses.- |
| 16 | (1) A corporation, not including a financial organization |
| 17 | as defined in s. 220.15(6), Florida Statutes, or a bank, savings |
| 18 | association, international banking facility, or banking |
| 19 | organization as defined in s. 220.62, Florida Statutes, doing |
| 20 | business within this state that employs 300 full-time employees |
| 21 | in this state and executes a business contract for the provision |
| 22 | of goods or services with a small business that employs fewer |
| 23 | than 25 employees is eligible for a tax credit against corporate |
| 24 | income taxes imposed under s. 220.11, Florida Statutes, if: |
| 25 | (a) The corporation and the small business were not |
| 26 | engaged in a contractual business relationship before July 1, |
| 27 | 2011. |
| 28 | (b) The terms of the contract require the corporation to |
| 29 | pay at least $100,000 to the small business for goods or |
| 30 | services within 1 year after the date of execution of the |
| 31 | contract. |
| 32 | (c) The small business certifies within 60 days after |
| 33 | execution of the contract to the Office of Tourism, Trade, and |
| 34 | Economic Development and the Department of Revenue that for the |
| 35 | purpose of meeting its contractual obligations, it is necessary |
| 36 | to hire and maintain the employment of at least two additional |
| 37 | employees until completion of such contractual obligations. |
| 38 | (d) The corporation notifies the Office of Tourism, Trade, |
| 39 | and Economic Development and the Department of Revenue within 60 |
| 40 | days after execution of the contract that it intends to claim |
| 41 | the credit authorized under this section against its corporate |
| 42 | income tax liability under s. 220.11, Florida Statutes. |
| 43 | (2) The corporation may apply 10 percent of the payments |
| 44 | made to the small business under the terms of the contract |
| 45 | during the taxable year against its corporate income tax |
| 46 | liability under s. 220.11, Florida Statutes. |
| 47 | (3) A corporation may not claim a tax credit in excess of |
| 48 | its corporate income tax liability under s. 220.11, Florida |
| 49 | Statutes. If the credit granted under this section is not fully |
| 50 | used in any single year because of insufficient tax liability on |
| 51 | the part of the corporation, the unused amount may not be |
| 52 | carried forward or backward. |
| 53 | (4) A tax credit earned under this section may not be sold |
| 54 | or transferred. |
| 55 | (5) The Office of Tourism, Trade, and Economic Development |
| 56 | and the Department of Revenue may adopt rules to administer this |
| 57 | section. |
| 58 | Section 2. This act shall take effect July 1, 2011. |