HB 905

1
A bill to be entitled
2An act relating to the tax refund program for qualified
3target industry businesses; amending s. 288.106, F.S.;
4defining and revising terms; revising eligibility of
5qualified target industry businesses for tax refunds;
6authorizing tax refunds for certain businesses that make
7capital investments in a project; revising application
8requirements and qualifications for review of applications
9by the Office of Tourism, Trade, and Economic Development;
10reenacting ss. 159.803(11), 212.098(1)(a), and
11220.1896(1)(a), F.S., relating to definitions with respect
12to eligible projects for private activity bonds in the
13Florida First Business allocation pool and eligible
14businesses for the Rural Job Tax Credit Program and Jobs
15for the Unemployed Tax Credit Program, to incorporate
16changes made by the act in references thereto; amending s.
17220.191, F.S.; conforming a cross-reference; reenacting
18ss. 288.107(1)(e) and (h), 288.1089(4)(c), and 380.0657(1)
19and (5), F.S., relating to definitions with respect to
20eligible businesses and projects for brownfield
21redevelopment bonus refunds, qualifications for review of
22applications for the Innovation Incentive Program, and
23economic development projects eligible for an expedited
24permitting process, to incorporate changes made by the act
25in references thereto; providing an effective date.
26
27Be It Enacted by the Legislature of the State of Florida:
28
29     Section 1.  Subsection (2), paragraph (b) of subsection
30(3), and paragraphs (a) and (b) of subsection (4) of section
31288.106, Florida Statutes, are amended to read:
32     288.106  Tax refund program for qualified target industry
33businesses.-
34     (2)  DEFINITIONS.-As used in this section, the term:
35     (a)  "Account" means the Economic Development Incentives
36Account within the Economic Development Trust Fund established
37under s. 288.095.
38     (b)  "Authorized local economic development agency" means a
39public or private entity, including an entity defined in s.
40288.075, authorized by a county or municipality to promote the
41general business or industrial interests of that county or
42municipality.
43     (c)  "Average private sector wage in the area" means the
44statewide private sector average wage or the average of all
45private sector wages and salaries in the county or in the
46standard metropolitan area in which the business is located.
47     (d)  "Business" means an employing unit, as defined in s.
48443.036, that is registered for unemployment compensation
49purposes with the state agency providing unemployment tax
50collection services under contract with the Agency for Workforce
51Innovation through an interagency agreement pursuant to s.
52443.1316, or a subcategory or division of an employing unit that
53is accepted by the state agency providing unemployment tax
54collection services as a reporting unit.
55     (e)  "Capital investment" includes real or personal
56property.
57     (f)(e)  "Corporate headquarters business" means an
58international, national, or regional headquarters office of a
59multinational or multistate business enterprise or national
60trade association, whether separate from or connected with other
61facilities used by such business.
62     (g)(f)  "Director" means the Director of the Office of
63Tourism, Trade, and Economic Development.
64     (h)(g)  "Enterprise zone" means an area designated as an
65enterprise zone pursuant to s. 290.0065.
66     (i)(h)  "Expansion of an existing business" means the
67expansion of an existing Florida business by or through
68additions to real and personal property, resulting in a net
69increase in employment of not less than 10 percent at such
70business or a net increase of capital investment in the business
71of not less than 10 percent.
72     (j)(i)  "Fiscal year" means the fiscal year of the state.
73     (k)(j)  "Jobs" means full-time equivalent positions,
74including, but not limited to, positions obtained from a
75temporary employment agency or employee leasing company or
76through a union agreement or coemployment under a professional
77employer organization agreement, that result directly from a
78project in this state. The term does not include temporary
79construction jobs involved with the construction of facilities
80for the project or any jobs previously included in any
81application for tax refunds under s. 288.1045 or this section.
82     (l)(k)  "Local financial support" means funding from local
83sources, public or private, that is paid to the Economic
84Development Trust Fund and that is equal to 20 percent of the
85annual tax refund for a qualified target industry business. A
86qualified target industry business may not provide, directly or
87indirectly, more than 5 percent of such funding in any fiscal
88year. The sources of such funding may not include, directly or
89indirectly, state funds appropriated from the General Revenue
90Fund or any state trust fund, excluding tax revenues shared with
91local governments pursuant to law.
92     (m)(l)  "Local financial support exemption option" means
93the option to exercise an exemption from the local financial
94support requirement available to any applicant whose project is
95located in a brownfield area, a rural city, or a rural
96community. Any applicant that exercises this option is not
97eligible for more than 80 percent of the total tax refunds
98allowed such applicant under this section.
99     (n)  "NAICS code" means the corresponding industry code of
100the North American Industry Classification System published by
101the United States Office of Management and Budget, Executive
102Office of the President.
103     (o)(m)  "New business" means a business that applies for a
104tax refund under this section before beginning operations in
105this state and that is a legal entity separate from any other
106commercial or industrial operations owned by the same business.
107     (p)(n)  "Office" means the Office of Tourism, Trade, and
108Economic Development.
109     (q)(o)  "Project" means the creation of a new business or
110expansion of an existing business.
111     (r)(p)  "Qualified target industry business" means a target
112industry business approved by the office to be eligible for tax
113refunds under this section.
114     (s)(q)  "Return on investment" means the gain in state
115revenues as a percentage of the state's investment. The state's
116investment includes state grants, tax exemptions, tax refunds,
117tax credits, and other state incentives.
118     (t)(r)  "Rural city" means a city having a population of
11910,000 or fewer, or a city having a population of greater than
12010,000 but fewer than 20,000 that has been determined by the
121office to have economic characteristics such as, but not limited
122to, a significant percentage of residents on public assistance,
123a significant percentage of residents with income below the
124poverty level, or a significant percentage of the city's
125employment base in agriculture-related industries.
126     (u)(s)  "Rural community" means:
127     1.  A county having a population of 75,000 or fewer.
128     2.  A county having a population of 125,000 or fewer that
129is contiguous to a county having a population of 75,000 or
130fewer.
131     3.  A municipality within a county described in
132subparagraph 1. or subparagraph 2.
133
134For purposes of this paragraph, population shall be determined
135in accordance with the most recent official estimate pursuant to
136s. 186.901.
137     (v)(t)  "Target industry business" means a corporate
138headquarters business or any business that is engaged in one of
139the target industries identified pursuant to the following
140criteria developed by the office in consultation with Enterprise
141Florida, Inc.:
142     1.  Future growth.-Industry forecasts should indicate
143strong expectation for future growth in both employment and
144output, according to the most recent available data. Special
145consideration should be given to businesses that export goods
146to, or provide services in, international markets, and
147businesses that replace domestic and international imports of
148goods or services, and businesses within NAICS code 31, 32, or
14933.
150     2.  Stability.-The industry should not be subject to
151periodic layoffs, whether due to seasonality or sensitivity to
152volatile economic variables such as weather. The industry should
153also be relatively resistant to recession, so that the demand
154for products of this industry is not typically subject to
155decline during an economic downturn.
156     3.  High wage.-The industry should pay relatively high
157wages compared to statewide or area averages.
158     4.  Market and resource independent.-The location of
159industry businesses should not be dependent on Florida markets
160or resources as indicated by industry analysis, except for
161businesses in the renewable energy industry.
162     5.  Industrial base diversification and strengthening.-The
163industry should contribute toward expanding or diversifying the
164state's or area's economic base, as indicated by analysis of
165employment and output shares compared to national and regional
166trends. Special consideration should be given to industries that
167strengthen regional economies by adding value to basic products
168or building regional industrial clusters as indicated by
169industry analysis. Special consideration should also be given to
170the development of strong industrial clusters that include
171defense and homeland security businesses.
172     6.  Economic benefits.-The industry is expected to have
173strong positive impacts on or benefits to the state or regional
174economies.
175
176The term does not include any business engaged in retail
177industry activities; any electrical utility company; any
178phosphate or other solid minerals severance, mining, or
179processing operation; any oil or gas exploration or production
180operation; or any business subject to regulation by the Division
181of Hotels and Restaurants of the Department of Business and
182Professional Regulation. Any business within NAICS code 5611 or
1835614, office administrative services and business support
184services, respectively, may be considered a target industry
185business only after the local governing body and Enterprise
186Florida, Inc., make a determination that the community where the
187business may locate has conditions affecting the fiscal and
188economic viability of the local community or area, including but
189not limited to, factors such as low per capita income, high
190unemployment, high underemployment, and a lack of year-round
191stable employment opportunities, and such conditions may be
192improved by the location of such a business to the community. By
193January 1 of every 3rd year, beginning January 1, 2011, the
194office, in consultation with Enterprise Florida, Inc., economic
195development organizations, the State University System, local
196governments, employee and employer organizations, market
197analysts, and economists, shall review and, as appropriate,
198revise the list of such target industries and submit the list to
199the Governor, the President of the Senate, and the Speaker of
200the House of Representatives.
201     (w)(u)  "Taxable year" means taxable year as defined in s.
202220.03(1)(y).
203     (3)  TAX REFUND; ELIGIBLE AMOUNTS.-
204     (b)1.  Upon approval by the office, a qualified target
205industry business shall be allowed tax refund payments equal to
206$3,000 multiplied by the number of jobs specified in the tax
207refund agreement under subparagraph (5)(a)1., or equal to $6,000
208multiplied by the number of jobs if the project is located in a
209rural community or an enterprise zone.
210     2.  A qualified target industry business shall be allowed
211additional tax refund payments equal to $1,000 multiplied by the
212number of jobs specified in the tax refund agreement under
213subparagraph (5)(a)1. if such jobs pay an annual average wage of
214at least 150 percent of the average private sector wage in the
215area, or equal to $2,000 multiplied by the number of jobs if
216such jobs pay an annual average wage of at least 200 percent of
217the average private sector wage in the area.
218     3.  A qualified target industry business shall be allowed
219tax refund payments in addition to the other payments authorized
220in this paragraph equal to $1,000 multiplied by the number of
221jobs specified in the tax refund agreement under subparagraph
222(5)(a)1. if the local financial support is equal to that of the
223state's incentive award under subparagraph 1.
224     4.  A qualified target industry business within NAICS code
22531, 32, or 33 shall be allowed tax refund payments equal to
226$3,000 for every $30,000 of capital investment made in a
227project, not to exceed an aggregate total of $500,000 of such
228payments for the project under this subparagraph.
229     5.4.  In addition to the other tax refund payments
230authorized in this paragraph, a qualified target industry
231business shall be allowed a tax refund payment equal to $2,000
232multiplied by the number of jobs specified in the tax refund
233agreement under subparagraph (5)(a)1. if the business:
234     a.  Falls within one of the high-impact sectors designated
235under s. 288.108; or
236     b.  Increases exports of its goods through a seaport or
237airport in the state by at least 10 percent in value or tonnage
238in each of the years that the business receives a tax refund
239under this section. For purposes of this sub-subparagraph,
240seaports in the state are limited to the ports of Jacksonville,
241Tampa, Port Everglades, Miami, Port Canaveral, Ft. Pierce, Palm
242Beach, Port Manatee, Port St. Joe, Panama City, St. Petersburg,
243Pensacola, Fernandina, and Key West.
244     (4)  APPLICATION AND APPROVAL PROCESS.-
245     (a)  To apply for certification as a qualified target
246industry business under this section, the business must file an
247application with the office before the business decides to
248locate in this state or before the business decides to expand
249its existing operations in this state. The application must
250include, but need not be limited to, the following information:
251     1.  The applicant's federal employer identification number
252and, if applicable, state sales tax registration number.
253     2.  The proposed permanent location of the applicant's
254facility in this state at which the project is to be located.
255     3.  A description of the type of business activity or
256product covered by the project, including a minimum of a five-
257digit NAICS code for all activities included in the project. As
258used in this paragraph, "NAICS" means those classifications
259contained in the North American Industry Classification System,
260as published in 2007 by the Office of Management and Budget,
261Executive Office of the President, and updated periodically.
262     4.  The proposed number of net new full-time equivalent
263Florida jobs at the qualified target industry business as of
264December 31 of each year included in the project and the average
265wage of those jobs. If more than one type of business activity
266or product is included in the project, the number of jobs and
267average wage for those jobs must be separately stated for each
268type of business activity or product.
269     5.  The total number of full-time equivalent employees
270employed by the applicant in this state, if applicable.
271     6.  The proposed amount of capital investment to be made
272each year until the project's completion.
273     7.6.  The anticipated commencement date of the project.
274     8.7.  A brief statement explaining the role that the
275estimated tax refunds to be requested will play in the decision
276of the applicant to locate or expand in this state.
277     9.8.  An estimate of the proportion of the sales resulting
278from the project that will be made outside this state.
279     10.9.  An estimate of the proportion of the cost of the
280machinery and equipment, and any other resources necessary in
281the development of its product or service, to be used by the
282business in its Florida operations which will be purchased
283outside this state.
284     11.10.  A resolution adopted by the governing board of the
285county or municipality in which the project will be located,
286which resolution recommends that the project be approved as a
287qualified target industry business and specifies that the
288commitments of local financial support necessary for the target
289industry business exist. Before the passage of such resolution,
290the office may also accept an official letter from an authorized
291local economic development agency that endorses the proposed
292target industry project and pledges that sources of local
293financial support for such project exist. For the purposes of
294making pledges of local financial support under this
295subparagraph, the authorized local economic development agency
296shall be officially designated by the passage of a one-time
297resolution by the local governing board.
298     12.11.  Any additional information requested by the office.
299     (b)  To qualify for review by the office, the application
300of a target industry business must propose a capital investment
301in the project of at least $500,000 or, at a minimum, establish
302the following to the satisfaction of the office:
303     1.a.  The jobs proposed to be created under the
304application, pursuant to subparagraph (a)4., must pay an
305estimated annual average wage equaling at least 115 percent of
306the average private sector wage in the area where the business
307is to be located or the statewide private sector average wage.
308The governing board of the county where the qualified target
309industry business is to be located shall notify the office and
310Enterprise Florida, Inc., which calculation of the average
311private sector wage in the area must be used as the basis for
312the business's wage commitment. In determining the average
313annual wage, the office shall include only new proposed jobs,
314and wages for existing jobs shall be excluded from this
315calculation.
316     b.  The office may waive the average wage requirement at
317the request of the local governing body recommending the project
318and Enterprise Florida, Inc. The office may waive the wage
319requirement for a project located in a brownfield area
320designated under s. 376.80, in a rural city, in a rural
321community, in an enterprise zone, or for a manufacturing project
322at any location in the state if the jobs proposed to be created
323pay an estimated annual average wage equaling at least 100
324percent of the average private sector wage in the area where the
325business is to be located, only if the merits of the individual
326project or the specific circumstances in the community in
327relationship to the project warrant such action. If the local
328governing body and Enterprise Florida, Inc., make such a
329recommendation, it must be transmitted in writing, and the
330specific justification for the waiver recommendation must be
331explained. If the office elects to waive the wage requirement,
332the waiver must be stated in writing, and the reasons for
333granting the waiver must be explained.
334     2.  The target industry business's project must result in
335the creation of at least 10 jobs at the project and, in the case
336of an expansion of an existing business, must result in a net
337increase in employment of at least 10 percent at the business.
338At the request of the local governing body recommending the
339project and Enterprise Florida, Inc., the office may waive this
340requirement for a business in a rural community or enterprise
341zone if the merits of the individual project or the specific
342circumstances in the community in relationship to the project
343warrant such action. If the local governing body and Enterprise
344Florida, Inc., make such a request, the request must be
345transmitted in writing, and the specific justification for the
346request must be explained. If the office elects to grant the
347request, the grant must be stated in writing, and the reason for
348granting the request must be explained.
349     3.  The business activity or product for the applicant's
350project must be within an industry identified by the office as a
351target industry business that contributes to the economic growth
352of the state and the area in which the business is located, that
353produces a higher standard of living for residents of this state
354in the new global economy, or that can be shown to make an
355equivalent contribution to the area's and state's economic
356progress.
357     Section 2.  For the purpose of incorporating the amendment
358made by this act to section 288.106, Florida Statutes, in a
359reference thereto, subsection (11) of section 159.803, Florida
360Statutes, is reenacted to read:
361     159.803  Definitions.-As used in this part, the term:
362     (11)  "Florida First Business project" means any project
363which is certified by the Office of Tourism, Trade, and Economic
364Development as eligible to receive an allocation from the
365Florida First Business allocation pool established pursuant to
366s. 159.8083. The Office of Tourism, Trade, and Economic
367Development may certify those projects meeting the criteria set
368forth in s. 288.106(4)(b) or any project providing a substantial
369economic benefit to this state.
370     Section 3.  For the purpose of incorporating the amendment
371made by this act to section 288.106, Florida Statutes, in a
372reference thereto, paragraph (a) of subsection (1) of section
373212.098, Florida Statutes, is reenacted to read:
374     212.098  Rural Job Tax Credit Program.-
375     (1)  As used in this section, the term:
376     (a)  "Eligible business" means any sole proprietorship,
377firm, partnership, or corporation that is located in a qualified
378county and is predominantly engaged in, or is headquarters for a
379business predominantly engaged in, activities usually provided
380for consideration by firms classified within the following
381standard industrial classifications: SIC 01-SIC 09 (agriculture,
382forestry, and fishing); SIC 20-SIC 39 (manufacturing); SIC 422
383(public warehousing and storage); SIC 70 (hotels and other
384lodging places); SIC 7391 (research and development); SIC 781
385(motion picture production and allied services); SIC 7992
386(public golf courses); SIC 7996 (amusement parks); and a
387targeted industry eligible for the qualified target industry
388business tax refund under s. 288.106. A call center or similar
389customer service operation that services a multistate market or
390an international market is also an eligible business. In
391addition, the Office of Tourism, Trade, and Economic Development
392may, as part of its final budget request submitted pursuant to
393s. 216.023, recommend additions to or deletions from the list of
394standard industrial classifications used to determine an
395eligible business, and the Legislature may implement such
396recommendations. Excluded from eligible receipts are receipts
397from retail sales, except such receipts for hotels and other
398lodging places classified in SIC 70, public golf courses in SIC
3997992, and amusement parks in SIC 7996. For purposes of this
400paragraph, the term "predominantly" means that more than 50
401percent of the business's gross receipts from all sources is
402generated by those activities usually provided for consideration
403by firms in the specified standard industrial classification.
404The determination of whether the business is located in a
405qualified county and the tier ranking of that county must be
406based on the date of application for the credit under this
407section. Commonly owned and controlled entities are to be
408considered a single business entity.
409     Section 4.  For the purpose of incorporating the amendment
410made by this act to section 288.106, Florida Statutes, in a
411reference thereto, paragraph (a) of subsection (1) of section
412220.1896, Florida Statutes, is reenacted to read:
413     220.1896  Jobs for the Unemployed Tax Credit Program.-
414     (1)  As used in this section, the term:
415     (a)  "Eligible business" means any target industry business
416as defined in s. 288.106(2) which is subject to the tax imposed
417by this chapter. The eligible business does not have to be
418certified to receive the Qualified Target Industry Tax Refund
419Incentive under s. 288.106 in order to receive the tax credit
420available under this section.
421     Section 5.  Paragraph (h) of subsection (1) of section
422220.191, Florida Statutes, is amended to read:
423     220.191  Capital investment tax credit.-
424     (1)  DEFINITIONS.-For purposes of this section:
425     (h)  "Qualifying project" means:
426     1.  A new or expanding facility in this state which creates
427at least 100 new jobs in this state and is in one of the high-
428impact sectors identified by Enterprise Florida, Inc., and
429certified by the office pursuant to s. 288.108(6), including,
430but not limited to, aviation, aerospace, automotive, and silicon
431technology industries;
432     2.  A new or expanded facility in this state which is
433engaged in a target industry designated pursuant to the
434procedure specified in s. 288.106(2)(v)(t) and which is induced
435by this credit to create or retain at least 1,000 jobs in this
436state, provided that at least 100 of those jobs are new, pay an
437annual average wage of at least 130 percent of the average
438private sector wage in the area as defined in s. 288.106(2), and
439make a cumulative capital investment of at least $100 million
440after July 1, 2005. Jobs may be considered retained only if
441there is significant evidence that the loss of jobs is imminent.
442Notwithstanding subsection (2), annual credits against the tax
443imposed by this chapter shall not exceed 50 percent of the
444increased annual corporate income tax liability or the premium
445tax liability generated by or arising out of a project
446qualifying under this subparagraph. A facility that qualifies
447under this subparagraph for an annual credit against the tax
448imposed by this chapter may take the tax credit for a period not
449to exceed 5 years; or
450     3.  A new or expanded headquarters facility in this state
451which locates in an enterprise zone and brownfield area and is
452induced by this credit to create at least 1,500 jobs which on
453average pay at least 200 percent of the statewide average annual
454private sector wage, as published by the Agency for Workforce
455Innovation or its successor, and which new or expanded
456headquarters facility makes a cumulative capital investment in
457this state of at least $250 million.
458     Section 6.  For the purpose of incorporating the amendment
459made by this act to section 288.106, Florida Statutes, in
460references thereto, paragraphs (e) and (h) of subsection (1) of
461section 288.107, Florida Statutes, are reenacted to read:
462     288.107  Brownfield redevelopment bonus refunds.-
463     (1)  DEFINITIONS.-As used in this section:
464     (e)  "Eligible business" means:
465     1.  A qualified target industry business as defined in s.
466288.106(2); or
467     2.  A business that can demonstrate a fixed capital
468investment of at least $2 million in mixed-use business
469activities, including multiunit housing, commercial, retail, and
470industrial in brownfield areas, or at least $500,000 in
471brownfield areas that do not require site cleanup, and that
472provides benefits to its employees.
473     (h)  "Project" means the creation of a new business or the
474expansion of an existing business as defined in s. 288.106.
475     Section 7.  For the purpose of incorporating the amendment
476made by this act to section 288.106, Florida Statutes, in a
477reference thereto, paragraph (c) of subsection (4) of section
478288.1089, Florida Statutes, is reenacted to read:
479     288.1089  Innovation Incentive Program.-
480     (4)  To qualify for review by the office, the applicant
481must, at a minimum, establish the following to the satisfaction
482of Enterprise Florida, Inc., and the office:
483     (c)  An innovation business project in this state, other
484than a research and development project, must:
485     1.a.  Result in the creation of at least 1,000 direct, new
486jobs at the business; or
487     b.  Result in the creation of at least 500 direct, new jobs
488if the project is located in a rural area, a brownfield area, or
489an enterprise zone.
490     2.  Have an activity or product that is within an industry
491that is designated as a target industry business under s.
492288.106 or a designated sector under s. 288.108.
493     3.a.  Have a cumulative investment of at least $500 million
494within a 5-year period; or
495     b.  Have a cumulative investment that exceeds $250 million
496within a 10-year period if the project is located in a rural
497area, brownfield area, or an enterprise zone.
498     4.  Be provided with a one-to-one match from the local
499community. The match requirement may be reduced or waived in
500rural areas of critical economic concern or reduced in rural
501areas, brownfield areas, and enterprise zones.
502     Section 8.  For the purpose of incorporating the amendment
503made by this act to section 288.106, Florida Statutes, in
504references thereto, subsections (1) and (5) of section 380.0657,
505Florida Statutes, are reenacted to read:
506     380.0657  Expedited permitting process for economic
507development projects.-
508     (1)  The Department of Environmental Protection and, as
509appropriate, the water management districts created under
510chapter 373 shall adopt programs to expedite the processing of
511wetland resource and environmental resource permits for economic
512development projects that have been identified by a municipality
513or county as meeting the definition of target industry
514businesses under s. 288.106, with the exception of those
515projects requiring approval by the Board of Trustees of the
516Internal Improvement Trust Fund.
517     (5)  Notwithstanding the provisions of this section, permit
518applications for projects to be located in a charter county that
519has a population of 1.2 million or more and has entered into a
520delegation agreement with the Department of Environmental
521Protection or the applicable water management district to
522process environmental resource permits, wetland resource
523management permits, or surface water management permits pursuant
524to chapter 373 are eligible for expedited permitting under this
525section only upon designation by resolution of the charter
526county's governing board. Before the governing board decides
527that a project is eligible for expedited permitting, it may
528require the county's economic development agency, or such other
529agency that provides advice to the governing board on economic
530matters, to review and recommend whether the project meets the
531definition of a target industry business as defined in s.
532288.106 and to identify the tangible benefits and impacts of the
533project. The governing board's decision shall be made without
534consideration of the project's geographic location within the
535charter county. If the governing board designates the project as
536a target industry business, the permit application for the
537project shall be approved or denied within the timeframe
538provided in subsection (4).
539     Section 9.  This act shall take effect July 1, 2011.


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