Florida Senate - 2011                                    SB 1894
       
       
       
       By Senator Latvala
       
       
       
       
       16-01442-11                                           20111894__
    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
    5         certain corporations engaging in contractual business
    6         relationships with certain small businesses;
    7         specifying eligibility requirements; providing
    8         limitations on the use of the tax credit; authorizing
    9         the Office of Tourism, Trade, and Economic Development
   10         and the Department of Revenue to adopt rules;
   11         providing an effective date.
   12  
   13  Be It Enacted by the Legislature of the State of Florida:
   14  
   15         Section 1. Corporate tax credit for corporations
   16  contracting with small businesses.—
   17         (1) A corporation, not including a financial organization
   18  as defined in s. 220.15(6), Florida Statutes, or a bank, savings
   19  association, international banking facility, or banking
   20  organization as defined in s. 220.62, Florida Statutes, doing
   21  business within this state that employs 300 full-time employees
   22  in this state and executes a business contract for the provision
   23  of goods or services with a small business that employs fewer
   24  than 25 employees is eligible for a tax credit against corporate
   25  income taxes imposed under s. 220.11, Florida Statutes, if:
   26         (a) The corporation and the small business were not engaged
   27  in a contractual business relationship before July 1, 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.