HB 873

1	A bill to be entitled
2	An act relating to corporate tax credits for spaceflight
3	projects; amending s. 14.2015, F.S.; authorizing the
4	Office of Tourism, Trade, and Economic Development to
5	administer corporate income tax credits for spaceflight
6	projects; amending s. 213.053, F.S.; authorizing the
7	Department of Revenue to share information relating to
8	corporate income tax credits for spaceflight projects with
9	the Office of Tourism, Trade, and Economic Development;
10	amending s. 220.02, F.S.; revising the order in which
11	credits against the corporate income tax or franchise tax
12	may be taken to include credits for spaceflight projects;
13	amending s. 220.13, F.S.; requiring that the amount taken
14	as a credit for a spaceflight project be added to taxable
15	income; prohibiting a deduction from taxable income for
16	any net operating loss taken as a credit against corporate
17	income taxes or transferred; amending s. 220.16, F.S.;
18	requiring that the amount of payments received in exchange
19	for transferring a net operating loss for spaceflight
20	projects be allocated to the state; creating s. 220.194,
21	F.S.; providing a short title; providing legislative
22	purpose; defining terms; authorizing a certified
23	spaceflight business to take or transfer corporate income
24	tax credits related to spaceflight projects carried out in
25	this state; specifying tax credit amounts and business
26	eligibility criteria; providing limitations; requiring a
27	business to demonstrate to the satisfaction of the office
28	and the department its eligibility to claim a tax credit;
29	requiring a business to submit an application to the
30	office for approval to earn credits; specifying the
31	required contents of the application; requiring the office
32	to approve or deny an application within 60 days after
33	receipt; specifying the approval process; requiring a
34	spaceflight business to submit an application for
35	certification to the office; specifying the required
36	contents of an application for certification; specifying
37	the approval process; requiring the office to submit a
38	copy of an approved certification to the department;
39	providing procedures for transferring a tax credit to a
40	taxpayer; authorizing the department to perform audits and
41	investigations necessary to verify the accuracy of returns
42	relating to the tax credit; specifying circumstances under
43	which the office may revoke or modify a certification that
44	grants eligibility for tax credits; requiring a certified
45	spaceflight business to file an amended return and pay any
46	required tax within 60 days after receiving notice that
47	previously approved tax credits have been revoked or
48	modified; authorizing the department to assess additional
49	taxes, interest, or penalties; authorizing the office and
50	the department to adopt rules; requiring the office to
51	submit an annual report to the Governor and Legislature
52	regarding the Florida Space Business Incentives Act;
53	providing for application; providing an effective date.
54
55	Be It Enacted by the Legislature of the State of Florida:
56
57	Section 1.  Paragraph (f) of subsection (2) of section
58	14.2015, Florida Statutes, is amended to read:
59	14.2015  Office of Tourism, Trade, and Economic
60	Development; creation; powers and duties.-
61	(2)  The purpose of the Office of Tourism, Trade, and
62	Economic Development is to assist the Governor in working with
63	the Legislature, state agencies, business leaders, and economic
64	development professionals to formulate and implement coherent
65	and consistent policies and strategies designed to provide
66	economic opportunities for all Floridians. To accomplish such
67	purposes, the Office of Tourism, Trade, and Economic Development
68	shall:
69	(f)1.  Administer the Florida Enterprise Zone Act under ss.
70	290.001-290.016, the community contribution tax credit program
71	under ss. 220.183 and 624.5105, the tax refund program for
72	qualified target industry businesses under s. 288.106, the tax-
73	refund program for qualified defense contractors and space
74	flight business contractors under s. 288.1045, contracts for
75	transportation projects under s. 288.063, the sports franchise
76	facility programs under ss. 288.1162 and 288.11621, the
77	professional golf hall of fame facility program under s.
78	288.1168, the expedited permitting process under s. 403.973, the
79	Rural Community Development Revolving Loan Fund under s.
80	288.065, the Regional Rural Development Grants Program under s.
81	288.018, the Certified Capital Company Act under s. 288.99, the
82	Florida State Rural Development Council, the Rural Economic
83	Development Initiative, the corporate income tax credits for
84	spaceflight projects under s. 220.194, and other programs that
85	are specifically assigned to the office by law, by the
86	appropriations process, or by the Governor.
87	1.  Notwithstanding any other provisions of law, the office
88	may expend interest earned from the investment of program funds
89	deposited in the Grants and Donations Trust Fund to contract for
90	the administration of the programs, or portions of the programs,
91	enumerated in this paragraph or assigned to the office by law,
92	by the appropriations process, or by the Governor. Such
93	expenditures are shall be subject to review under chapter 216.
94	2.  The office may enter into contracts in connection with
95	the fulfillment of its duties concerning the Florida First
96	Business Bond Pool under chapter 159, tax incentives under
97	chapters 212 and 220, tax incentives under the Certified Capital
98	Company Act in chapter 288, foreign offices under chapter 288,
99	the Enterprise Zone program under chapter 290, the Seaport
100	Employment Training program under chapter 311, the Florida
101	Professional Sports Team License Plates under chapter 320,
102	Spaceport Florida under chapter 331, Expedited Permitting under
103	chapter 403, and in carrying out other functions that are
104	specifically assigned to the office by law, by the
105	appropriations process, or by the Governor.
106	Section 2.  Paragraph (cc) is added to subsection (8) of
107	section 213.053, Florida Statutes, to read:
108	213.053  Confidentiality and information sharing.-
109	(8)  Notwithstanding any other provision of this section,
110	the department may provide:
111	(cc)  Information relating to tax credits taken under s.
112	220.194 to the Office of Tourism, Trade, and Economic
113	Development or to Space Florida.
114
115	Disclosure of information under this subsection shall be
116	pursuant to a written agreement between the executive director
117	and the agency. Such agencies, governmental or nongovernmental,
118	shall be bound by the same requirements of confidentiality as
119	the Department of Revenue. Breach of confidentiality is a
120	misdemeanor of the first degree, punishable as provided by s.
121	775.082 or s. 775.083.
122	Section 3.  Subsection (8) of section 220.02, Florida
123	Statutes, is amended to read:
124	220.02  Legislative intent.-
125	(8)  It is the intent of the Legislature that credits
126	against either the corporate income tax or the franchise tax be
127	applied in the following order: those enumerated in s. 631.828,
128	those enumerated in s. 220.191, those enumerated in s. 220.181,
129	those enumerated in s. 220.183, those enumerated in s. 220.182,
130	those enumerated in s. 220.1895, those enumerated in s. 221.02,
131	those enumerated in s. 220.184, those enumerated in s. 220.186,
132	those enumerated in s. 220.1845, those enumerated in s. 220.19,
133	those enumerated in s. 220.185, those enumerated in s. 220.1875,
134	those enumerated in s. 220.192, those enumerated in s. 220.193,
135	those enumerated in s. 288.9916, those enumerated in s.
136	220.1899, and those enumerated in s. 220.1896, and those
137	enumerated in s. 220.194.
138	Section 4.  Paragraphs (a) and (b) of subsection (1) of
139	section 220.13, Florida Statutes, are amended to read:
140	220.13  "Adjusted federal income" defined.-
141	(1)  The term "adjusted federal income" means an amount
142	equal to the taxpayer's taxable income as defined in subsection
143	(2), or such taxable income of more than one taxpayer as
144	provided in s. 220.131, for the taxable year, adjusted as
145	follows:
146	(a)  Additions.-The following There shall be added to such
147	taxable income:
148	1.  The amount of any tax upon or measured by income,
149	excluding taxes based on gross receipts or revenues, paid or
150	accrued as a liability to the District of Columbia or any state
151	of the United States which is deductible from gross income in
152	the computation of taxable income for the taxable year.
153	2.  The amount of interest which is excluded from taxable
154	income under s. 103(a) of the Internal Revenue Code or any other
155	federal law, less the associated expenses disallowed in the
156	computation of taxable income under s. 265 of the Internal
157	Revenue Code or any other law, excluding 60 percent of any
158	amounts included in alternative minimum taxable income, as
159	defined in s. 55(b)(2) of the Internal Revenue Code, if the
160	taxpayer pays tax under s. 220.11(3).
161	3.  In the case of a regulated investment company or real
162	estate investment trust, an amount equal to the excess of the
163	net long-term capital gain for the taxable year over the amount
164	of the capital gain dividends attributable to the taxable year.
165	4.  That portion of the wages or salaries paid or incurred
166	for the taxable year which is equal to the amount of the credit
167	allowable for the taxable year under s. 220.181. This
168	subparagraph expires shall expire on the date specified in s.
169	290.016 for the expiration of the Florida Enterprise Zone Act.
170	5.  That portion of the ad valorem school taxes paid or
171	incurred for the taxable year which is equal to the amount of
172	the credit allowable for the taxable year under s. 220.182. This
173	subparagraph expires shall expire on the date specified in s.
174	290.016 for the expiration of the Florida Enterprise Zone Act.
175	6.  The amount of emergency excise tax paid or accrued as a
176	liability to this state under chapter 221 which tax is
177	deductible from gross income in the computation of taxable
178	income for the taxable year.
179	7.  That portion of assessments to fund a guaranty
180	association incurred for the taxable year which is equal to the
181	amount of the credit allowable for the taxable year.
182	8.  In the case of a nonprofit corporation that which holds
183	a pari-mutuel permit and which is exempt from federal income tax
184	as a farmers' cooperative, an amount equal to the excess of the
185	gross income attributable to the pari-mutuel operations over the
186	attributable expenses for the taxable year.
187	9.  The amount taken as a credit for the taxable year under
188	s. 220.1895.
189	10.  Up to nine percent of the eligible basis of any
190	designated project which is equal to the credit allowable for
191	the taxable year under s. 220.185.
192	11.  The amount taken as a credit for the taxable year
193	under s. 220.1875. The addition in this subparagraph is intended
194	to ensure that the same amount is not allowed for the tax
195	purposes of this state as both a deduction from income and a
196	credit against the tax. This addition is not intended to result
197	in adding the same expense back to income more than once.
198	12.  The amount taken as a credit for the taxable year
199	under s. 220.192.
200	13.  The amount taken as a credit for the taxable year
201	under s. 220.193.
202	14.  Any portion of a qualified investment, as defined in
203	s. 288.9913, which is claimed as a deduction by the taxpayer and
204	taken as a credit against income tax pursuant to s. 288.9916.
205	15.  The costs to acquire a tax credit pursuant to s.
206	288.1254(5) which that are deducted from or otherwise reduce
207	federal taxable income for the taxable year.
208	16.  The amount taken as a credit for the taxable year
209	pursuant to s. 220.194.
210	(b)  Subtractions.-
211	1.  The following There shall be subtracted from such
212	taxable income:
213	a.  The net operating loss deduction allowable for federal
214	income tax purposes under s. 172 of the Internal Revenue Code
215	for the taxable year, except that any net operating loss that is
216	taken as a credit to corporate income taxes owed or that is
217	transferred pursuant to s. 220.194(3)(b) may not be deducted by
218	the seller;
219	b.  The net capital loss allowable for federal income tax
220	purposes under s. 1212 of the Internal Revenue Code for the
221	taxable year;,
222	c.  The excess charitable contribution deduction allowable
223	for federal income tax purposes under s. 170(d)(2) of the
224	Internal Revenue Code for the taxable year;, and
225	d.  The excess contributions deductions allowable for
226	federal income tax purposes under s. 404 of the Internal Revenue
227	Code for the taxable year.
228
229	However, a net operating loss and a capital loss may not shall
230	never be carried back as a deduction to a prior taxable year,
231	but all deductions attributable to such losses shall be deemed
232	net operating loss carryovers and capital loss carryovers,
233	respectively, and treated in the same manner, to the same
234	extent, and for the same time periods as are prescribed for such
235	carryovers in ss. 172 and 1212, respectively, of the Internal
236	Revenue Code.
237	2.  The following There shall be subtracted from such
238	taxable income any amount to the extent included therein the
239	following:
240	a.  Dividends treated as received from sources without the
241	United States, as determined under s. 862 of the Internal
242	Revenue Code.
243	b.  All amounts included in taxable income under s. 78 or
244	s. 951 of the Internal Revenue Code.
245
246	However, as to any amount subtracted under this subparagraph,
247	there shall be added to such taxable income all expenses
248	deducted on the taxpayer's return for the taxable year which are
249	attributable, directly or indirectly, to such subtracted amount.
250	Further, no amount may shall be subtracted with respect to
251	dividends paid or deemed paid by a Domestic International Sales
252	Corporation.
253	3.  In computing "adjusted federal income" for taxable
254	years beginning after December 31, 1976, there shall be allowed
255	as a deduction the amount of wages and salaries paid or incurred
256	within this state for the taxable year for which no deduction is
257	allowed pursuant to s. 280C(a) of the Internal Revenue Code,
258	(relating to credit for employment of certain new employees,
259	shall be allowed as a deduction).
260	4.  There shall be subtracted from such taxable income Any
261	amount of nonbusiness income included therein shall be
262	subtracted from such taxable income.
263	5.  There shall be subtracted Any amount of taxes of
264	foreign countries allowable as credits for taxable years
265	beginning on or after September 1, 1985, under s. 901 of the
266	Internal Revenue Code to any corporation that which derived less
267	than 20 percent of its gross income or loss for its taxable year
268	ended in 1984 shall be subtracted from sources within the United
269	States, as described in s. 861(a)(2)(A) of the Internal Revenue
270	Code, not including credits allowed under ss. 902 and 960 of the
271	Internal Revenue Code, withholding taxes on dividends within the
272	meaning of sub-subparagraph 2.a., and withholding taxes on
273	royalties, interest, technical service fees, and capital gains.
274	6.  Notwithstanding any other provision of this code,
275	except with respect to amounts subtracted pursuant to
276	subparagraphs 1. and 3., any increment of any apportionment
277	factor which is directly related to an increment of gross
278	receipts or income which is deducted, subtracted, or otherwise
279	excluded in determining adjusted federal income shall be
280	excluded from both the numerator and denominator of such
281	apportionment factor. Further, all valuations made for
282	apportionment factor purposes shall be made on a basis
283	consistent with the taxpayer's method of accounting for federal
284	income tax purposes.
285	Section 5.  Subsection (5) is added to section 220.16,
286	Florida Statutes, to read:
287	220.16  Allocation of nonbusiness income.-Nonbusiness
288	income shall be allocated as follows:
289	(5)  The amount of payments received in exchange for
290	transferring a net operating loss authorized by s. 220.194 is
291	allocable to the state.
292	Section 6.  Section 220.194, Florida Statutes, is created
293	to read:
294	220.194  Corporate income tax credits for spaceflight
295	projects.-
296	(1)  SHORT TITLE.-This section may be cited as the "Florida
297	Space Business Incentives Act."
298	(2)  PURPOSE.-The purpose of this section is to create
299	incentives to attract launch, payload, research and development,
300	and other space business to this state.
301	(3)  DEFINITIONS.-As used in this section, the term:
302	(a)  "Administrative support" means that 51 percent or more
303	of an activity supports a certified spaceflight business.
304	(b)  "Certified" means that a spaceflight business has been
305	certified by the office as meeting all of the requirements
306	necessary to obtain at least one of the approved tax credits
307	available under this section, including approval to transfer a
308	credit.
309	(c)  "Department" means the Department of Revenue.
310	(d)  "New employee" means a state resident who begins or
311	maintains full-time employment in this state with a spaceflight
312	business on or after October 1, 2011. The term does not include
313	a person who is a partner, majority stockholder, or owner of the
314	business or a person who is employed in a temporary construction
315	job or primarily involved with the construction of real
316	property.
317	(e)  "New job" means the full-time employment of an
318	employee in a manner that is consistent with terms used by the
319	Agency for Workforce Innovation and the United States Department
320	of Labor for purposes of unemployment compensation tax
321	administration and employment estimation. In order to meet the
322	requirement for certification specified in paragraph (5)(b), a
323	new job must:
324	1.  Pay new employees at least 115 percent of the statewide
325	or countywide average annual private-sector wage for the 3
326	taxable years immediately preceding filing an application for
327	certification;
328	2.  Require a new employee to perform duties on a regular
329	full-time basis in this state for an average of at least 36
330	hours per week each month for the 3 taxable years immediately
331	preceding filing an application for certification; and
332	3.  Not be held by a person who has previously been
333	included as a new employee on an application for any credit
334	authorized under this section.
335	(f)  "Office" means the Office of Tourism, Trade, and
336	Economic Development.
337	(g)  "Payload" means an object built or assembled in this
338	state to be placed into earth's upper atmospheres or space.
339	(h)  "Reentry" means to return or attempt to return an
340	object from earth's upper atmospheres or space.
341	(i)  "Reentry service" means an activity conducted in this
342	state related to preparing a reentry vehicle and any payload for
343	reentry and the reentry.
344	(j)  "Space vehicle" means any spacecraft, satellite, space
345	station, upper-stage, launch vehicle, reentry vehicle, and
346	related ground-support systems and equipment.
347	(k)  "Spaceflight business" means a business that:
348	1.  Is registered with the Secretary of State to do
349	business in this state; and
350	2.  Is currently engaged in a spaceflight project. A
351	spaceflight business may participate in more than one
352	spaceflight project at a time and may conduct work on a
353	commercial, governmental, or United States defense-related
354	spaceflight project.
355	(l)  "Spaceflight project" means any of the following
356	activities performed in this state:
357	1.  Designing, manufacturing, testing, or assembling a
358	space vehicle or components thereof;
359	2.  Providing a launch service, payload processing service,
360	or reentry service; or
361	3.  Providing the payload for a launch vehicle or reentry
362	space vehicle, administrative support, and tourism activities
363	related to these activities.
364	(m)  "Taxpayer" has the same meaning as provided in s.
365	220.03.
366	(n)  "Total tax credits" means, for any state fiscal year,
367	the sum of the tax credits approved for taxpayers whose taxable
368	year begins on or after January 1 of the calendar year preceding
369	the start of the applicable state fiscal year.
370	(4)  TAX CREDITS.-
371	(a)  If approved and certified pursuant to subsection (5),
372	the following tax credits may be taken on a final return for a
373	taxable year beginning on or after October 1, 2014:
374	1.  A certified spaceflight business may take a
375	nontransferable corporate income tax credit tax credit for up to
376	50 percent of the business's tax liability under this chapter
377	for the taxable year in which the credit is taken. The maximum
378	nontransferable tax credit amount that may be approved per
379	taxpayer for a taxable year is $1 million, and the total tax
380	credits that may be approved for any state fiscal year pursuant
381	to this subparagraph may not exceed $10 million.
382	2.  A certified spaceflight business may transfer, in whole
383	or in part, its Florida net operating loss that would otherwise
384	be available to be taken on a return filed under this chapter.
385	The maximum transferable tax credit amount that may be approved
386	per taxpayer for a taxable year is $2.5 million; the total tax
387	credits that may be approved for any state fiscal year pursuant
388	to this subparagraph may not exceed $25 million. However, any
389	outstanding credit that is carried forward by a transferee may
390	not be used to calculate the annual limit.
391	a.  In order to transfer the credit, the business must:
392	(I)  Have been approved to transfer the tax credit for the
393	taxable year in which it is transferred;
394	(II)  Have incurred a qualifying net operating loss on
395	activity in this state directly associated with one or more
396	space flight projects in any of its 3 previous taxable years;
397	(III)  Not be 50 percent or more owned or controlled,
398	directly or indirectly, by another corporation that has
399	demonstrated positive net income in any of the 3 previous
400	taxable years of ongoing operations; and
401	(IV)  Not be part of a consolidated group of affiliated
402	corporations, as filed for federal income tax purposes, which in
403	the aggregate demonstrated positive net income in any of the 3
404	previous taxable years.
405	b.  The amount that may be claimed and transferred by a
406	business is equal to:
407	(I)  One hundred percent of the net operating loss that
408	could otherwise be claimed on a return filed under this chapter
409	during its first full year of operations in this state.
410	(II)  One hundred percent of the net operating loss that
411	could otherwise be claimed on a return filed under this chapter
412	during its second full year of operations in this state.
413	(III)  One hundred percent of the net operating loss that
414	could otherwise be claimed on a return filed under this chapter
415	during its third full year of operations in this state.
416	(b)  Each business may be approved for only one credit per
417	state fiscal year and may not claim any credit more than once.
418	(c)  Unless transferred pursuant to this section, credits
419	may be granted only against the corporate income tax liability
420	generated by or arising out of a spaceflight project in this
421	state, as documented in the certified spaceflight business's
422	annual audit prepared by a certified public accountant licensed
423	to do business in this state and as verified by the office.
424	(d)  A certified spaceflight business may not file a
425	consolidated return in order to claim the tax incentives
426	described in this subsection.
427	(e)  The certified spaceflight business or transferee must
428	demonstrate to the satisfaction of the office and the department
429	that it is eligible to take the credits approved under this
430	section.
431	(5)  APPLICATION AND CERTIFICATION.-
432	(a)  In order to claim a tax credit under this section, a
433	spaceflight business must first submit an application to the
434	office for approval to earn credits. The application must be
435	filed by the date established by the office. In addition to any
436	information that the office may require, the applicant must
437	provide a complete description of the activity in this state
438	which demonstrates to the office the applicant's likelihood to
439	be certified to take or transfer a credit. The applicant must
440	also provide a description of the total amount and type of
441	credits for which approval is sought. The office may consult
442	with Space Florida regarding the qualifications of an applicant.
443	The applicant shall provide an affidavit certifying that all
444	information contained in the application is true and correct.
445	1.  Approval of the credits shall be provided on a first-
446	come, first-served basis, based on the date the completed
447	applications are received by the office. A taxpayer may not
448	submit more than one completed application per state fiscal
449	year. The office may not accept an incomplete placeholder
450	application, and the submission of such an application will not
451	secure a place in the first-come, first-served application line.
452	2.  The office has 60 days after the receipt of a completed
453	application within which to issue a notice of intent to deny or
454	approve an application for credits. If a business does not
455	receive approval for a tax credit due to the exhaustion of the
456	annual total tax credit authorizations, the business may reapply
457	the following year and shall have priority over other applicants
458	notwithstanding the first-come, first-served policy. The office
459	shall determine the eligibility of an applicant and approve the
460	credits that the applicant may later be certified to take. The
461	office must ensure that the corporate income tax credits
462	approved each fiscal year for all applicants does not exceed the
463	limits provided in this section.
464	(b)  In order to take, and thereafter, if applicable, to
465	transfer an approved credit, a spaceflight business must submit
466	an application for certification to the office along with a
467	nonrefundable $250 fee.
468	1.  The application must include:
469	a.  The name and physical in-state address of the taxpayer.
470	b.  Documentation demonstrating to the satisfaction of the
471	office that:
472	(I)  The taxpayer is a spaceflight business.
473	(II)  The business has engaged in a qualifying spaceflight
474	project before taking a credit under this section.
475	c.  In addition to any requirement specific to a credit,
476	documentation that the business has:
477	(I)  Created 35 new jobs in this state directly associated
478	with spaceflight projects during its immediately preceding 3
479	taxable years. The business shall be deemed to have created new
480	jobs if the number of jobs on the application for certification
481	is greater than the total number of full-time jobs located in
482	this state as stated on an application for approval to earn
483	credits;
484	(II)  Invested a total of at least $15 million in this
485	state on a spaceflight project during its immediately preceding
486	3 taxable years; and
487	d.  The total amount and types of credits sought.
488	e.  An acknowledgment that a transfer of a tax credit is to
489	be accomplished pursuant to subsection (5).
490	f.  A copy of an audit or audits of the preceding 3 taxable
491	years, prepared by a certified public accountant licensed to
492	practice in this state, which identifies that portion of the
493	business's activities in this state related to spaceflight
494	projects in this state.
495	g.  An acknowledgement that the business must file an
496	annual report on the spaceflight project's progress with the
497	office.
498	h.  Any other information necessary to demonstrate that the
499	applicant meets the job creation, investment, and other
500	requirements of this section.
501	2.  Within 60 days after receipt of the application for
502	certification, the office shall evaluate the application and
503	recommend the business for certification or denial. The
504	executive director of the office must approve or deny the
505	application within 30 days after receiving the recommendation.
506	If approved, the office must provide a letter of certification
507	to the applicant consistent with any restrictions imposed. If
508	the office denies any part of the requested credit, the office
509	must inform the applicant of the grounds for the denial. A copy
510	of the certification shall be submitted to the department within
511	10 days after the executive director's approval.
512	(6) TRANSFERABILITY OF CREDIT.-
513	(a) A certified spaceflight business allowed to transfer an
514	approved credit, in whole or in part, to a taxpayer by written
515	agreement may do so without transferring any ownership interest
516	in the property generating the credit or any interest in the
517	entity owning such property. The transferee may apply the
518	credits against the tax with the same effect as if the
519	transferee had incurred the eligible costs.
520	(b)  In order to perfect the transfer, the transferor shall
521	provide the department with a written transfer statement that
522	has been approved by the office notifying the department of the
523	transferor's intent to transfer the tax credits to the
524	transferee; the date that the transfer is effective; the
525	transferee's name, address, and federal taxpayer identification
526	number; the tax period; and the amount of tax credits to be
527	transferred. Upon receipt of the approved transfer statement,
528	the department shall provide the transferee and the office with
529	a certificate reflecting the tax credit amounts transferred. A
530	copy of the certificate must be attached to each tax return for
531	which the transferee seeks to apply the credits.
532	(7)  AUDIT AUTHORITY; RECAPTURE OF CREDITS.-
533	(a)  In addition to its existing audit and investigative
534	authority, the department may perform any additional financial
535	and technical audits and investigations, including examining the
536	accounts, books, and financial records of the tax credit
537	applicant, which are necessary for verifying the accuracy of the
538	return and to ensure compliance with this section. If requested
539	by the department, the office and Space Florida must provide
540	technical assistance for any technical audits or examinations
541	performed under this subsection.
542	(b)  Grounds for forfeiture of previously claimed tax
543	credits approved under this section exist if the department
544	determines, as a result of an audit or examination, or from
545	information received from the office, that a certified
546	spaceflight business, or in the case of transferred tax credits,
547	a taxpayer received tax credits for which the certified
548	spaceflight business or taxpayer was not entitled. The
549	spaceflight business or transferee must file an amended return
550	reflecting the disallowed credits and paying any tax due as a
551	result of the amendment.
552	(c)  If an amendment to, recomputation of, or
553	redetermination of a certified spaceflight business's Florida
554	corporate income tax return changes an item entered into the
555	computation of a claimed credit, the taxpayer must notify the
556	department by filing an amended return. The amount of any credit
557	award not supported by the amended return shall be deemed a
558	deficiency that must be remitted with the amended return and is
559	subject to s. 220.23. The spaceflight business is also liable
560	for a penalty equal to the credit claimed or transferred,
561	reduced in proportion to the amount of the net operating loss
562	certified for transfer over the amount of the disallowed
563	certified net operating loss. The certified business and its
564	successors must maintain all records necessary to support the
565	reported net operating loss.
566	(d)  The office may revoke or modify a certification
567	granting eligibility for tax credits if it finds that the
568	certified spaceflight business made a false statement or
569	representation in any application, record, report, plan, or
570	other document filed in an attempt to receive tax credits under
571	this section. The office shall immediately notify the department
572	of any revoked or modified orders affecting previously granted
573	tax credits. The certified spaceflight business must also notify
574	the department of any change in its claimed tax credit.
575	(e)  The certified spaceflight business must file with the
576	department an amended return or other report required by the
577	department by rule and pay any required tax and interest within
578	60 days after the certified business receives notification from
579	the office that previously approved tax credits have been
580	revoked or modified. If the revocation or modification order is
581	contested, the spaceflight business must file the amended return
582	or other report within 60 days after a final order is issued.
583	(f)  The department may assess an additional tax, penalty,
584	or interest pursuant to s. 95.091.
585	(8)  RULES.-
586	(a)  The office, in consultation with Space Florida, shall
587	adopt rules to administer this section, including rules relating
588	to application forms for credit approval and certification, and
589	the application and certification procedures, guidelines, and
590	requirements necessary to administer this section.
591	(b)  The department may adopt rules to administer this
592	section, including rules relating to:
593	1.  The forms required to claim a tax credit under this
594	section, the requirements and basis for establishing an
595	entitlement to a credit, and the examination and audit
596	procedures required to administer this section.
597	2.  The implementation and administration of provisions
598	allowing the transfer of a net operating loss as a tax credit,
599	including rules that prescribe forms, reporting requirements,
600	and specific procedures, guidelines, and requirements necessary
601	to perform the transfer.
602	3.  The minimum portion of the credit which is available
603	for transfer.
604	(9)  ANNUAL REPORT.-Beginning in 2014, the office, in
605	cooperation with Space Florida and the department, shall submit
606	an annual report summarizing activities relating to the Florida
607	Space Business Incentives Act established under this section to
608	the Governor, the President of the Senate, and the Speaker of
609	the House of Representatives by each November 30.
610	Section 7.  This act shall take effect upon becoming a law,
611	except that the tax credits authorized by this act may not be
612	applied to returns filed for any tax period before October 1,
613	2015.

CODING: Words stricken are deletions; words underlined are additions.