1 | A bill to be entitled |
2 | An act relating to enterprise zones; creating s. |
3 | 290.201, F.S.; providing a short title; creating s. |
4 | 290.203, F.S.; providing definitions for the Urban Job |
5 | Creation Investment Act; creating s. 290.205, F.S.; |
6 | creating the Florida Urban Investment Job Creation |
7 | Authority; providing for the authority's membership |
8 | and duties; requiring the authority to submit annual |
9 | reports and a fiscal impact study of each enterprise |
10 | program zone to specified officers and agencies; |
11 | creating s. 290.207, F.S.; creating a zone development |
12 | corporation for each enterprise program zone; |
13 | providing for the corporations' membership, officers, |
14 | and duties; requiring that certificates of appointment |
15 | be filed with the respective county or municipal |
16 | clerk; authorizing reimbursement of travel expenses |
17 | for board members; providing for employees and legal |
18 | services of zone development corporations; requiring |
19 | zone development corporations to submit annual reports |
20 | to specified officers and agencies; creating s. |
21 | 290.209, F.S.; providing for the designation of |
22 | enterprise program zones; authorizing the authority to |
23 | periodically amend the boundary of an enterprise |
24 | program zone; requiring the authority to consider |
25 | certain factors when designating or amending zone |
26 | boundaries; creating s. 290.211, F.S.; specifying the |
27 | qualifications for businesses to receive state |
28 | enterprise program zone incentives; creating s. |
29 | 290.213, F.S.; establishing enterprise program zone |
30 | assistance funds; authorizing certain state incentives |
31 | for the projects of qualified businesses; providing |
32 | for project applications and the approval of projects; |
33 | authorizing zone development corporations to use loan |
34 | repayments and collected interest for specified |
35 | purposes; providing that unexpended appropriations are |
36 | to be retained in the Economic Development Trust Fund |
37 | at the end of the fiscal year; authorizing |
38 | administrative fees for zone development corporations; |
39 | creating s. 290.215, F.S.; authorizing certain tax |
40 | credits, exemptions from unemployment contributions, |
41 | and other state incentives for qualified businesses; |
42 | limiting the amount of available incentives in any |
43 | fiscal year; providing for the carryforward of unused |
44 | incentives; providing for the allocation of certain |
45 | appropriations among zone development corporations; |
46 | creating s. 290.217, F.S.; requiring the Office of |
47 | Program Policy Analysis and Government Accountability |
48 | to submit a report evaluating the Urban Job Creation |
49 | and Investment Act to the Governor and Legislature; |
50 | creating s. 290.219, F.S.; providing for expiration of |
51 | the Urban Job Creation Investment Act; abolishing |
52 | designated enterprise program zones; creating ss. |
53 | 212.0965 and 220.1815, F.S.; authorizing certain tax |
54 | credits against the sales tax and corporate income tax |
55 | for qualified businesses located in enterprise program |
56 | zones; providing for application and certification of |
57 | tax credits; providing for carryforward of unused |
58 | corporate income tax credits; providing for expiration |
59 | of tax credits; amending s. 220.02, F.S.; revising |
60 | legislative intent for the order of applying corporate |
61 | income tax credits; amending s. 443.1217, F.S.; |
62 | exempting wages paid by qualified businesses to |
63 | certain employees from unemployment contributions; |
64 | amending s. 290.016, F.S.; revising the effective date |
65 | of the repeal of the Florida Enterprise Zone Act; |
66 | reenacting ss. 166.231(8)(c), 193.077(4), |
67 | 193.085(5)(b), 195.073(4)(b), 195.099(1)(b), |
68 | 196.012(19), 205.022(4), 205.054(6), 212.02(6), |
69 | 212.08(5)(g), 212.096(12), 220.02(6)(c) and (7)(c), |
70 | 220.03(1), 220.13(1)(a), 220.181(9), and 220.182(14), |
71 | F.S., relating to an exemption from the public service |
72 | tax, certain duties of property appraisers and the |
73 | Department of Revenue with respect to property |
74 | acquired for a new business or a business expansion or |
75 | restoration, definition of the term "enterprise zone" |
76 | for purposes of property tax exemptions for |
77 | homesteads, local business taxes, and the sales and |
78 | use tax, exemptions from local business taxes and the |
79 | sales and use tax, and legislative intent, |
80 | definitions, and tax credits for the corporate income |
81 | tax, to incorporate the amendment to s. 290.016, F.S., |
82 | in references thereto; providing an effective date. |
83 |
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84 | Be It Enacted by the Legislature of the State of Florida: |
85 |
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86 | Section 1. Section 290.201, Florida Statutes, is created |
87 | to read: |
88 | 290.201 Short title.-Sections 290.201-290.219 may be cited |
89 | as the "Urban Job Creation Investment Act." |
90 | Section 2. Section 290.203, Florida Statutes, is created |
91 | to read: |
92 | 290.203 Definitions.-As used in ss. 290.201-290.219, the |
93 | term: |
94 | (1) "Authority" means the Florida Urban Investment Job |
95 | Creation Authority created under s. 290.205. |
96 | (2) "Authorized local economic development agency" means a |
97 | public or private entity, including an economic development |
98 | agency as defined in s. 288.075, authorized by a county or |
99 | municipality to promote the general business or industrial |
100 | interests of the county or municipality. |
101 | (3) "Business" has the same meaning as provided in s. |
102 | 212.02. |
103 | (4) "Emergency" means occurrence of widespread or severe |
104 | damage, injury, or loss of life or property proclaimed under s. |
105 | 14.022 or declared under s. 252.36. |
106 | (5) "Enterprise program zone" means an urban |
107 | revitalization zone designated under s. 290.209 which is located |
108 | in a legacy enterprise zone or federally designated empowerment |
109 | zone. |
110 | (6) "Enterprise program zone assistance fund" means a |
111 | program that provides loans, loan guarantees, loan-loss |
112 | reserves, or investments for projects of qualified businesses as |
113 | provided in s. 290.213. |
114 | (7) "Expansion of an existing business" means the |
115 | expansion of an existing business located in an enterprise |
116 | program zone by or through additions to real and personal |
117 | property, resulting in a net increase in employment of at least |
118 | 10 percent at such business. |
119 | (8) "Federally designated empowerment zone" means a |
120 | geographic area of the state designated by the Federal |
121 | Government as an empowerment zone under the Federal Empowerment |
122 | Zone Program as defined in s. 290.0491. |
123 | (9) "Florida Enterprise Zone Act" has the same meaning as |
124 | provided in s. 290.001. |
125 | (10) "Legacy enterprise zone" means an enterprise zone |
126 | designated under the Florida Enterprise Zone Act. |
127 | (11) "New business" means a business that applies for |
128 | state incentives under ss. 290.201-290.219 before beginning |
129 | operations in an enterprise program zone and that is a legal |
130 | entity separate from any other commercial or industrial |
131 | operations owned by the same business. |
132 | (12) "Project" means the creation of a new business, or |
133 | the expansion or rebuilding of an existing business, located in |
134 | an enterprise program zone. |
135 | (13) "Qualified business" means a business that meets the |
136 | qualifications under s. 290.211 to receive state incentives |
137 | under ss. 290.213 and 290.215. |
138 | (14) "Rebuilding of an existing business" means |
139 | replacement or restoration of real or tangible property |
140 | destroyed or damaged during an emergency in an enterprise |
141 | program zone by a business located in the zone. |
142 | (15) "Zone development corporation" means a corporation |
143 | not for profit created under s. 290.207 to administer an |
144 | enterprise program zone. |
145 | Section 3. Section 290.205, Florida Statutes, is created |
146 | to read: |
147 | 290.205 Florida Urban Investment Job Creation Authority; |
148 | creation; membership and duties.- |
149 | (1) There is created within the Department of Economic |
150 | Opportunity the Florida Urban Investment Job Creation Authority. |
151 | The authority shall be composed of the following 11 members: |
152 | (a) Five public-sector members, who shall be appointed by |
153 | the Governor, at least three of whom must be employed or reside |
154 | in an enterprise program zone or, for initial members, in a |
155 | legacy enterprise zone or federally designated empowerment zone. |
156 | The Governor may not appoint more than three public-sector |
157 | members of the same political party affiliation. Public-sector |
158 | members shall be appointed to terms of 4 years, except that the |
159 | Governor, to establish staggered terms, may appoint members to |
160 | initial terms of less than 4 years. The Governor shall fill the |
161 | vacancy of a public-sector member for the unexpired portion of |
162 | the member's term in the same manner as the original |
163 | appointment. |
164 | (b) One business owner, who shall be appointed by the |
165 | Governor, whose principal place of business is located in an |
166 | enterprise program zone or, for the initial member, in a legacy |
167 | enterprise zone or federally designated empowerment zone. |
168 | (c) The Chief Financial Officer of the state or his or her |
169 | designee. |
170 | (d) The executive director of the department or his or her |
171 | designee. |
172 | (e) The president of Enterprise Florida, Inc., or his or |
173 | her designee. |
174 | (f) One member appointed by the President of the Senate |
175 | and one member appointed by the Speaker of the House of |
176 | Representatives, both of whom must have training and experience |
177 | in local government, finance, economic development, or |
178 | redevelopment or participate in volunteer, civic, or community |
179 | organizations. |
180 | (2) Each member shall hold office until his or her |
181 | successor is appointed and qualified, unless the member ceases |
182 | to be qualified or is removed from office. |
183 | (3) The department shall provide administrative and staff |
184 | support services for the authority. |
185 | (4) The authority shall: |
186 | (a) Designate enterprise program zones pursuant to s. |
187 | 290.209. |
188 | (b) Approve or deny applications, based upon the |
189 | recommendations of the zone development corporations, for the |
190 | qualification of businesses to receive state incentives under |
191 | ss. 290.213 and 290.215. |
192 | (c) Certify annually to the Chief Financial Officer the |
193 | amounts to be paid from the enterprise program zone assistance |
194 | funds to support proposed projects under s. 290.213. |
195 | (d) By February 15 of each year, submit an annual report |
196 | to the Governor, the President of the Senate, the Speaker of the |
197 | House of Representatives, and the department on the authority's |
198 | activities for the previous fiscal year. The report must include |
199 | a complete financial statement setting forth the authority's |
200 | assets, liabilities, income, and operating expenses as of the |
201 | end of the fiscal year. |
202 | (5) One year after the designation of the enterprise |
203 | program zones under s. 290.209, the authority shall prepare a |
204 | fiscal impact study of each enterprise program zone. The report |
205 | must include, but need not be limited to, an analysis of the |
206 | effects of each enterprise program zone on the economy of the |
207 | county or municipality in which the enterprise program zone is |
208 | located and any recommendations for legislation to improve the |
209 | effectiveness of the enterprise program zones. By July 1, 2015, |
210 | the authority shall submit a copy of the report to the Governor, |
211 | the President of the Senate, the Speaker of the House of |
212 | Representatives, and the Chief Financial Officer. After |
213 | submitting the initial fiscal impact study, the authority shall |
214 | prepare such report annually. The authority may use a portion of |
215 | any funds provided for projects of qualified businesses by the |
216 | enterprise program zone assistance funds to pay the costs of |
217 | each study. |
218 | Section 4. Section 290.207, Florida Statutes, is created |
219 | to read: |
220 | 290.207 Zone development corporations; creation; board of |
221 | directors; membership.- |
222 | (1) A zone development corporation shall be created within |
223 | each legacy enterprise zone and federally designated empowerment |
224 | zone in the state. Each zone development corporation shall be |
225 | organized as a corporation not for profit. |
226 | (2) The board of directors of each zone development |
227 | corporation shall be composed of the following members: |
228 | (a) One business owner, who shall be appointed by the |
229 | Governor, whose principal place of business is located in the |
230 | enterprise program zone or, for the initial member, in the |
231 | legacy enterprise zone or federally designated empowerment zone. |
232 | (b) Two business or community leaders who reside in, or |
233 | whose principal place of business is located in, the enterprise |
234 | program zone or, for initial members, in the legacy enterprise |
235 | zone or federally designated empowerment zone, one of whom shall |
236 | be appointed by the President of the Senate and one of whom |
237 | shall be appointed by the Speaker of the House of |
238 | Representatives. |
239 | (c) For each county all or part of whose territory lies |
240 | within the enterprise program zone or, for initial members, |
241 | within the legacy enterprise zone or federally designated |
242 | empowerment zone, one member appointed by the board of county |
243 | commissioners of the county. |
244 | (d) For each municipality all or part of whose territory |
245 | lies within the enterprise program zone or, for initial members, |
246 | within the legacy enterprise zone or federally designated |
247 | empowerment zone, one member appointed by the governing board of |
248 | the municipality. |
249 | (3)(a) Board members shall be appointed to terms of 4 |
250 | years, except that members appointed by the President of the |
251 | Senate and the Speaker of the House of Representatives shall be |
252 | appointed to terms of 2 years. A vacancy of the unexpired |
253 | portion of a member's term shall be filled in the same manner as |
254 | the original appointment. Each board member shall hold office |
255 | until his or her successor is appointed and qualified, unless |
256 | the member ceases to be qualified or is removed from office. |
257 | (b) Upon the appointment or reappointment of a board |
258 | member, the corporation must file a certificate of appointment |
259 | or reappointment with the clerk of the respective county or |
260 | municipality. |
261 | (c) Board members shall serve without compensation but are |
262 | entitled to reimbursement for per diem and travel expenses as |
263 | provided in s. 112.061. |
264 | (4)(a) Each zone development corporation shall select a |
265 | chair and vice chair from among its members. |
266 | (b) Subject to funding provided by a county, municipality, |
267 | or authorized local economic development agency, a zone |
268 | development corporation may employ or designate an executive |
269 | director, technical experts, and other agents and employees, |
270 | permanent and temporary, and determine their qualifications, |
271 | duties, and compensation. For legal services, a zone development |
272 | corporation may employ private counsel or use attorneys of the |
273 | county, municipality, or authorized local economic development |
274 | agency at the discretion of the county, municipality, or |
275 | authorized local economic development agency. |
276 | (5) Each zone development corporation shall: |
277 | (a) Adopt and administer a zone development plan that sets |
278 | forth the boundary of the enterprise program zone designated |
279 | under s. 290.209, the development goals of the enterprise |
280 | program zone, and direction for qualified businesses located in |
281 | the enterprise program zone. |
282 | (b) Conduct meetings of the board of directors at least |
283 | quarterly to evaluate applications for qualified businesses to |
284 | receive tax credits and other state incentives under s. 290.215. |
285 | (c) Administer an enterprise program zone assistance fund |
286 | to provide loans, loan guarantees, loan-loss reserves, and |
287 | investments for projects of qualified businesses located in the |
288 | enterprise program zone pursuant to s. 290.213. |
289 | (d) Conduct an open public forum at least quarterly during |
290 | which urban development projects and the use of enterprise |
291 | program zone assistance funds may be proposed and discussed. |
292 | (6)(a) By March 1 of each year, each zone development |
293 | corporation shall submit to the county or municipal clerk a |
294 | report of its activities for the previous fiscal year. The |
295 | report must include a complete financial statement setting forth |
296 | the corporation's assets, liabilities, income, and operating |
297 | expenses as of the end of the fiscal year. When filing the |
298 | report, each zone development corporation shall publish a notice |
299 | in a newspaper of general circulation in the enterprise program |
300 | zone that such report was filed with the respective county or |
301 | municipal clerk and is available for inspection during business |
302 | hours at the offices of the zone development corporation. |
303 | (b) By February 15 of each year, each zone development |
304 | corporation shall submit a report of its activities to the |
305 | Governor, the President of the Senate, the Speaker of the House |
306 | of Representatives, and the authority. |
307 | (c) Each zone development corporation shall annually |
308 | submit a report to the authority accounting for the expenditure |
309 | of enterprise program zone assistance funds. |
310 | Section 5. Section 290.209, Florida Statutes, is created |
311 | to read: |
312 | 290.209 Designation of enterprise program zones.- |
313 | (1) The authority shall, in each legacy enterprise zone |
314 | and federally designated empowerment zone in the state, |
315 | establish an enterprise program zone and designate the |
316 | geographic boundary of the zone. |
317 | (2) By October 1, 2012, each zone development corporation |
318 | shall submit to the authority the following: |
319 | (a) An economic report prepared by the corporation for the |
320 | respective enterprise program zone. The report must include |
321 | current census data and other economic indicators that identify |
322 | the most economically distressed areas in the legacy enterprise |
323 | zone or federally designated empowerment zone. |
324 | (b) The corporation's written recommendations for the |
325 | initial boundary of the enterprise program zone based upon |
326 | findings of the economic report. |
327 | (3) Before establishing the initial boundary of an |
328 | enterprise program zone, the authority must consider: |
329 | (a) The zone development corporation's economic report and |
330 | recommendations for the initial boundary. |
331 | (b) The historical boundary of the legacy enterprise zone |
332 | or federally designated empowerment zone. |
333 | (4) A zone development corporation may periodically apply |
334 | to the authority for amendment of the enterprise program zone's |
335 | boundary. The application must be based on a revised economic |
336 | report and recommendations submitted to the authority in the |
337 | same manner as provided under paragraphs (2)(a) and (b) for the |
338 | initial boundary. Before amending the boundary, the authority |
339 | must consider the factors described in paragraphs (3)(a) and (b) |
340 | and the historical boundary of the enterprise program zone. |
341 | (5) The total area of an enterprise program zone may not |
342 | exceed 25 percent of the total area of the legacy enterprise |
343 | zone or federally designated empowerment zone. |
344 | Section 6. Section 290.211, Florida Statutes, is created |
345 | to read: |
346 | 290.211 Qualified businesses.- |
347 | (1) Effective July 1, 2013, a business is qualified to |
348 | receive the state incentives provided under s. 290.215 if: |
349 | (a) The business is authorized to transact business in the |
350 | state. |
351 | (b) The business is actively engaged in the conduct of a |
352 | trade or business located in an enterprise program zone |
353 | designated under s. 290.209. |
354 | (c) The business is not an adult entertainment |
355 | establishment as defined in s. 847.001. |
356 | (d) At least 25 percent of the business's full-time |
357 | employees: |
358 | 1. Reside in the enterprise program zone; |
359 | 2. Reside in the state and were totally unemployed as |
360 | defined in s. 443.036(44)(a) for at least 6 months before |
361 | employment by the business; |
362 | 3. Were recipients of temporary cash assistance under s. |
363 | 414.045 for at least 6 months before employment by the business; |
364 | or |
365 | 4. Are low-income individuals as defined in the federal |
366 | Workforce Investment Act, 29 U.S.C. s. 2801. |
367 | (2) A qualified business must maintain its qualifications |
368 | under subsection (1) to continue to receive the state incentives |
369 | provided under s. 290.215. Upon ceasing to meet the |
370 | qualifications, a business may not receive additional |
371 | incentives. |
372 | Section 7. Section 290.213, Florida Statutes, is created |
373 | to read: |
374 | 290.213 Enterprise program zone assistance funds.- |
375 | (1)(a) Effective July 1, 2013, and subject to legislative |
376 | appropriations, each zone development corporation shall |
377 | administer a separate assistance fund to provide loans, loan |
378 | guarantees, loan-loss reserves, and investments for projects of |
379 | qualified businesses located in the corporation's enterprise |
380 | program zone. |
381 | (b) Each zone development corporation shall develop |
382 | criteria for the approval of projects in its enterprise program |
383 | zone relating to comprehensive urban planning, neighborhood |
384 | aesthetics and compatibility, and the maximization of economic |
385 | development and job creation opportunities. |
386 | (2)(a) To receive assistance for a project under this |
387 | section, a qualified business must apply to the zone development |
388 | corporation. The application shall be developed by the authority |
389 | in consultation with the department. The application must |
390 | demonstrate whether the business is a new business or an |
391 | expansion or rebuilding of an existing business located in the |
392 | enterprise program zone. |
393 | (b) The zone development corporation shall review and, |
394 | based upon the corporation's criteria, evaluate each submitted |
395 | application and recommend approval or disapproval to the |
396 | authority. |
397 | (c) Upon receipt of an application and recommendation from |
398 | the zone development corporation, the authority shall review, |
399 | evaluate, and determine whether to approve or deny the |
400 | application. The authority shall notify the applicant, the zone |
401 | development corporation, and the department of each approved |
402 | application. |
403 | (d) If the authority denies an application, it shall |
404 | notify the applicant and the zone development corporation and |
405 | describe the reasons for denial. The authority has final |
406 | approval authority for projects under this section. |
407 | (3) A zone development corporation shall use any loan |
408 | repayments and collected interest to provide additional |
409 | assistance to qualified businesses for projects under this |
410 | section. |
411 | (4) Unexpended balances of an appropriation provided for |
412 | assistance to qualified businesses under this section do not |
413 | revert to the fund from which the appropriation was made at the |
414 | end of the fiscal year, but shall be retained in the Economic |
415 | Development Trust Fund and be carried forward to provide |
416 | additional assistance to qualified businesses under this section |
417 | during the following fiscal year. |
418 | (5) A zone development corporation may collect an |
419 | administrative fee not exceed 10 percent of the assistance |
420 | provided to qualified businesses under this section. |
421 | Section 8. Section 290.215, Florida Statutes, is created |
422 | to read: |
423 | 290.215 State incentives available for enterprise program |
424 | zones; tax increment financing.- |
425 | (1) Effective July 1, 2013, the following state incentives |
426 | are available for qualified businesses located in an enterprise |
427 | program zone: |
428 | (a) The enterprise program zone sales and use tax credits |
429 | provided under s. 212.0965. |
430 | (b) The enterprise program zone corporate income tax |
431 | credits provided under s. 220.183. |
432 | (c) Loans, loan guarantees, loan-loss reserves, and |
433 | investments provided for projects by enterprise program zone |
434 | assistance funds under s. 290.213. |
435 | (d) A credit against unemployment contributions provided |
436 | under s. 443.1217(2)(h). |
437 | (2) By June 1, 2013, the authority, in consultation with |
438 | the department and the Department of Revenue, shall determine |
439 | the tax floor for each enterprise program zone designated under |
440 | s. 290.209. As used in this section, the term "tax floor" means |
441 | the aggregate amount of sales and use tax collections from all |
442 | businesses in an enterprise program zone for the 2011-2012 |
443 | fiscal year. |
444 | (3)(a) By June 1 of each year, the authority, in |
445 | consultation with the department and the Department of Revenue, |
446 | shall calculate the maximum aggregate amount of state incentives |
447 | described in paragraphs (1)(a)-(c) which are available for each |
448 | enterprise program zone for the following fiscal year. Such |
449 | maximum amount may not exceed the aggregate amount of the sales |
450 | and use tax collections from all businesses in the enterprise |
451 | program zone during the previous fiscal year which exceed the |
452 | tax floor established for the enterprise program zone pursuant |
453 | to subsection (2). |
454 | (b) Any portion of the maximum amount of state incentives |
455 | established per fiscal year which is not used by the end of a |
456 | fiscal year shall be carried forward and made available for use |
457 | during the following 2 fiscal years in addition to the amounts |
458 | available for use under paragraph (a) for those fiscal years. |
459 | (4)(a) The authority shall annually allocate legislative |
460 | appropriations among the zone development corporations for the |
461 | enterprise program zone assistance funds provided to projects of |
462 | qualified businesses under s. 290.213. The authority shall |
463 | certify annually to the State Treasurer amounts to be paid from |
464 | the Economic Development Trust Fund to support the approved |
465 | projects. |
466 | (b) The amount available for state incentives in the |
467 | enterprise program zone, including tax credits, loans, loan |
468 | guarantees, loan-loss reserves, and investments authorized in |
469 | paragraphs (1)(a)-(c), may not exceed the maximum aggregate |
470 | amount calculated for these incentives under paragraph (3)(a). |
471 | Section 9. Section 290.217, Florida Statutes, is created |
472 | to read: |
473 | 290.217 Review of enterprise program zones.- |
474 | (1) By January 15, 2022, the Office of Program Policy |
475 | Analysis and Government Accountability shall submit a report to |
476 | the Governor, the President of the Senate, and the Speaker of |
477 | the House of Representatives of its findings and recommendations |
478 | on the Urban Job Creation Investment Act. The report shall |
479 | review and evaluate the effectiveness of each enterprise program |
480 | zone using the annual fiscal reports prepared by the authority |
481 | under s. 290.205(5). The report shall also evaluate whether the |
482 | state incentives provided to businesses in each enterprise |
483 | program zone caused or contributed to: |
484 | (a) New investment and development in the enterprise |
485 | program zone; |
486 | (b) An increase in the number of jobs created or retained |
487 | in the enterprise program zone; |
488 | (c) The renovation, rehabilitation, restoration, |
489 | improvement, or new construction of businesses or housing in the |
490 | enterprise program zone; or |
491 | (d) The economic viability and profitability of businesses |
492 | and commerce in the enterprise program zone. |
493 | (2) Before the 2022 Regular Session of the Legislature, |
494 | the appropriate committees of the Senate and House of |
495 | Representatives shall consider legislation to implement the |
496 | report's recommendations. |
497 | Section 10. Section 290.219, Florida Statutes, is created |
498 | to read: |
499 | 290.219 Expiration.- |
500 | (1) Sections 290.201-290.219 expire June 30, 2022. |
501 | (2) Effective June 30, 2022, each enterprise program zone |
502 | designated under s. 290.209 is abolished, and a qualified |
503 | business may not claim or receive a state incentive provided |
504 | under s. 290.213 or s. 290.215 after that date. |
505 | Section 11. Section 212.0965, Florida Statutes, is created |
506 | to read: |
507 | 212.0965 Sales, rental, storage, use tax; enterprise |
508 | program zone credit against sales tax.- |
509 | (1) Effective July 1, 2013, there shall be allowed the |
510 | following credits against the tax imposed by this chapter for |
511 | any qualified business as defined in s. 290.203 located in an |
512 | enterprise program zone: |
513 | (a) A credit equal to 50 percent of the business's sales |
514 | and use tax liability imposed under this chapter, except for tax |
515 | liability resulting from the purchase of a new or used motor |
516 | vehicle or mobile home or the sale of obscene material as |
517 | defined in s. 847.0133. |
518 | (b) A credit equal to 50 percent of the business's sales |
519 | and use tax liability from the purchase of tangible personal |
520 | property that has a depreciable life of 3 years or more. |
521 | (2)(a) To be eligible to receive a tax credit provided |
522 | under paragraph (1)(a) or paragraph (1)(b), a qualified business |
523 | must initially apply to the zone development corporation created |
524 | under s. 290.207. |
525 | (b) An original certification is valid for 2 years. In |
526 | lieu of submitting a new application, the original certification |
527 | may be renewed biennially by submitting to the Florida Urban |
528 | Investment Job Creation Authority a statement, certified under |
529 | oath, that there has been no material change in the conditions |
530 | or circumstances entitling the qualified business to the |
531 | original certification. The initial application and the |
532 | certification renewal statement shall be developed by the |
533 | Florida Urban Investment Job Creation Authority in consultation |
534 | with the department. |
535 | (c) The zone development corporation shall review each |
536 | submitted initial application and determine whether the |
537 | application is complete. Once complete, the zone development |
538 | corporation shall evaluate the application and recommend |
539 | approval or disapproval to the Florida Urban Investment Job |
540 | Creation Authority. |
541 | (d) Upon receipt of an initial application and |
542 | recommendation from the zone development corporation, or upon |
543 | receipt of a certification renewal statement, the Florida Urban |
544 | Investment Job Creation Authority shall certify qualified |
545 | businesses that meet the requirements of s. 290.211 and notify |
546 | the applicant, the zone development corporation, and the |
547 | department of the original certification or certification |
548 | renewal. |
549 | (e) If the Florida Urban Investment Job Creation Authority |
550 | finds that the applicant does not meet the requirements of s. |
551 | 290.211, it shall notify the applicant and the zone development |
552 | corporation that the application for certification is denied and |
553 | the reasons for denial. The Florida Urban Investment Job |
554 | Creation Authority has final approval authority for |
555 | certification under this section. |
556 | (3) This section expires on the date specified in s. |
557 | 290.219 for the expiration of the Urban Job Creation Investment |
558 | Act. |
559 | Section 12. Section 220.1815, Florida Statutes, is created |
560 | to read: |
561 | 220.1815 Enterprise program zone tax credits.- |
562 | (1) Effective July 1, 2013, there shall be allowed the |
563 | following credits against the tax imposed by this chapter for |
564 | any qualified business as defined in s. 290.203 located in an |
565 | enterprise program zone: |
566 | (a) A credit equal to 8 percent of the business's |
567 | corporate income tax liability imposed under this chapter. |
568 | (b) A credit equal to $1,500 of the business's corporate |
569 | income tax liability for hiring a new full-time employee who |
570 | resides in the enterprise program zone, if such employee |
571 | received temporary cash assistance under s. 414.045, or was |
572 | totally unemployed as defined in s. 443.036(44)(a), for at least |
573 | 90 days before such employment. The tax credit provided under |
574 | this paragraph may be claimed only once per new full-time |
575 | employee for the taxable year during which the business |
576 | initially hires such employee. |
577 | (2)(a) To be eligible to receive a tax credit provided |
578 | under paragraph (1)(a) or paragraph (1)(b), a qualified business |
579 | must initially apply to the zone development corporation created |
580 | under s. 290.207. The application shall be developed by the |
581 | Florida Urban Investment Job Creation Authority in consultation |
582 | with the department. |
583 | (b) When claiming a tax credit under paragraph (1)(b), the |
584 | application must include a statement, filed under oath with the |
585 | zone development corporation, which includes for each new |
586 | employee for whom the credit is claimed, the employee's name and |
587 | residential address during the taxable year and, if applicable, |
588 | documentation that the employee received temporary cash |
589 | assistance or was totally unemployed for at least 90 days before |
590 | employment by the qualified business. |
591 | (c) The zone development corporation shall review each |
592 | submitted application and determine whether the application is |
593 | complete. Once complete, the zone development corporation shall |
594 | evaluate the application and recommend approval or disapproval |
595 | to the Florida Urban Investment Job Creation Authority. |
596 | (d) Upon receipt of an application and recommendation from |
597 | the zone development corporation, the Florida Urban Investment |
598 | Job Creation Authority shall certify qualified businesses that |
599 | meet the requirements of s. 290.211 and this section and notify |
600 | the applicant, the zone development corporation, and the |
601 | department of the certification. |
602 | (e) If the Florida Urban Investment Job Creation Authority |
603 | finds that the applicant does not meet the requirements of s. |
604 | 290.211 or this section, the authority must notify the applicant |
605 | and the zone development corporation that the application for |
606 | certification is denied and the reasons for denial. The Florida |
607 | Urban Investment Job Creation Authority has final approval |
608 | authority for certification under this section. |
609 | (3) If a tax credit certified under this section is not |
610 | fully used in any one year, the unused amount may be carried |
611 | forward for a period not to exceed 5 years. The carryover credit |
612 | may be used in a subsequent year when the tax imposed by this |
613 | chapter for such year exceeds the credit for such year after |
614 | applying the other credits and unused credit carryovers in the |
615 | order provided in s. 220.02(8). |
616 | (4) This section expires on the date specified in s. |
617 | 290.219 for the expiration of the Urban Job Creation Investment |
618 | Act. |
619 | Section 13. Subsection (8) of section 220.02, Florida |
620 | Statutes, is amended to read: |
621 | 220.02 Legislative intent.- |
622 | (8) It is the intent of the Legislature that credits |
623 | against either the corporate income tax or the franchise tax be |
624 | applied in the following order: those enumerated in s. 631.828, |
625 | those enumerated in s. 220.191, those enumerated in s. 220.181, |
626 | those enumerated in s. 220.183, those enumerated in s. 220.182, |
627 | those enumerated in s. 220.1895, those enumerated in s. 220.195, |
628 | those enumerated in s. 220.184, those enumerated in s. 220.186, |
629 | those enumerated in s. 220.1845, those enumerated in s. 220.19, |
630 | those enumerated in s. 220.185, those enumerated in s. 220.1875, |
631 | those enumerated in s. 220.192, those enumerated in s. 220.193, |
632 | those enumerated in s. 288.9916, those enumerated in s. |
633 | 220.1899, those enumerated in s. 220.1896, those enumerated in |
634 | s. 220.194, and those enumerated in s. 220.196, and those |
635 | enumerated in s. 220.1815. |
636 | Section 14. Paragraph (h) is added to subsection (2) of |
637 | section 443.1217, Florida Statutes, to read: |
638 | 443.1217 Wages.- |
639 | (2) For the purpose of determining an employer's |
640 | contributions, the following wages are exempt from this chapter: |
641 | (h) Beginning July 1, 2013, remuneration paid by a |
642 | qualified business as defined in s. 290.203 to an individual who |
643 | earns less than $4,500 during the calendar quarter. |
644 | Section 15. Section 290.016, Florida Statutes, is amended |
645 | to read: |
646 | 290.016 Repeal.-Sections 290.001-290.014 are repealed June |
647 | 30, 2013 December 31, 2015. |
648 | Section 16. For the purpose of incorporating the amendment |
649 | made by this act to section 290.016, Florida Statutes, in a |
650 | reference thereto, paragraph (c) of subsection (8) of section |
651 | 166.231, Florida Statutes, is reenacted to read: |
652 | 166.231 Municipalities; public service tax.- |
653 | (8) |
654 | (c) This subsection expires on the date specified in s. |
655 | 290.016 for the expiration of the Florida Enterprise Zone Act, |
656 | except that any qualified business that has satisfied the |
657 | requirements of this subsection before that date shall be |
658 | allowed the full benefit of the exemption allowed under this |
659 | subsection as if this subsection had not expired on that date. |
660 | Section 17. For the purpose of incorporating the amendment |
661 | made by this act to section 290.016, Florida Statutes, in a |
662 | reference thereto, subsection (4) of section 193.077, Florida |
663 | Statutes, is reenacted to read: |
664 | 193.077 Notice of new, rebuilt, or expanded property.- |
665 | (4) This section expires on the date specified in s. |
666 | 290.016 for the expiration of the Florida Enterprise Zone Act. |
667 | Section 18. For the purpose of incorporating the amendment |
668 | made by this act to section 290.016, Florida Statutes, in a |
669 | reference thereto, paragraph (b) of subsection (5) of section |
670 | 193.085, Florida Statutes, is reenacted to read: |
671 | 193.085 Listing all property.- |
672 | (5) |
673 | (b) This subsection expires on the date specified in s. |
674 | 290.016 for the expiration of the Florida Enterprise Zone Act. |
675 | Section 19. For the purpose of incorporating the amendment |
676 | made by this act to section 290.016, Florida Statutes, in a |
677 | reference thereto, paragraph (b) of subsection (4) of section |
678 | 195.073, Florida Statutes, is reenacted to read: |
679 | 195.073 Classification of property.-All items required by |
680 | law to be on the assessment rolls must receive a classification |
681 | based upon the use of the property. The department shall |
682 | promulgate uniform definitions for all classifications. The |
683 | department may designate other subclassifications of property. |
684 | No assessment roll may be approved by the department which does |
685 | not show proper classifications. |
686 | (4) |
687 | (b) This subsection expires on the date specified in s. |
688 | 290.016 for the expiration of the Florida Enterprise Zone Act. |
689 | Section 20. For the purpose of incorporating the amendment |
690 | made by this act to section 290.016, Florida Statutes, in a |
691 | reference thereto, paragraph (b) of subsection (1) of section |
692 | 195.099, Florida Statutes, is reenacted to read: |
693 | 195.099 Periodic review.- |
694 | (1) |
695 | (b) This subsection shall expire on the date specified in |
696 | s. 290.016 for the expiration of the Florida Enterprise Zone |
697 | Act. |
698 | Section 21. For the purpose of incorporating the amendment |
699 | made by this act to section 290.016, Florida Statutes, in a |
700 | reference thereto, subsection (19) of section 196.012, Florida |
701 | Statutes, is reenacted to read: |
702 | 196.012 Definitions.-For the purpose of this chapter, the |
703 | following terms are defined as follows, except where the context |
704 | clearly indicates otherwise: |
705 | (19) "Enterprise zone" means an area designated as an |
706 | enterprise zone pursuant to s. 290.0065. This subsection expires |
707 | on the date specified in s. 290.016 for the expiration of the |
708 | Florida Enterprise Zone Act. |
709 | Section 22. For the purpose of incorporating the amendment |
710 | made by this act to section 290.016, Florida Statutes, in a |
711 | reference thereto, subsection (4) of section 205.022, Florida |
712 | Statutes, is reenacted to read: |
713 | 205.022 Definitions.-When used in this chapter, the |
714 | following terms and phrases shall have the meanings ascribed to |
715 | them in this section, except when the context clearly indicates |
716 | a different meaning: |
717 | (4) "Enterprise zone" means an area designated as an |
718 | enterprise zone pursuant to s. 290.0065. This subsection expires |
719 | on the date specified in s. 290.016 for the expiration of the |
720 | Florida Enterprise Zone Act. |
721 | Section 23. For the purpose of incorporating the amendment |
722 | made by this act to section 290.016, Florida Statutes, in a |
723 | reference thereto, subsection (6) of section 205.054, Florida |
724 | Statutes, is reenacted to read: |
725 | 205.054 Business tax; partial exemption for engaging in |
726 | business or occupation in enterprise zone.- |
727 | (6) This section expires on the date specified in s. |
728 | 290.016 for the expiration of the Florida Enterprise Zone Act; |
729 | and a receipt may not be issued with the exemption authorized in |
730 | this section for any period beginning on or after that date. |
731 | Section 24. For the purpose of incorporating the amendment |
732 | made by this act to section 290.016, Florida Statutes, in a |
733 | reference thereto, subsection (6) of section 212.02, Florida |
734 | Statutes, is reenacted to read: |
735 | 212.02 Definitions.-The following terms and phrases when |
736 | used in this chapter have the meanings ascribed to them in this |
737 | section, except where the context clearly indicates a different |
738 | meaning: |
739 | (6) "Enterprise zone" means an area of the state |
740 | designated pursuant to s. 290.0065. This subsection expires on |
741 | the date specified in s. 290.016 for the expiration of the |
742 | Florida Enterprise Zone Act. |
743 | Section 25. For the purpose of incorporating the amendment |
744 | made by this act to section 290.016, Florida Statutes, in a |
745 | reference thereto, paragraph (g) of subsection (5) of section |
746 | 212.08, Florida Statutes, is reenacted to read: |
747 | 212.08 Sales, rental, use, consumption, distribution, and |
748 | storage tax; specified exemptions.-The sale at retail, the |
749 | rental, the use, the consumption, the distribution, and the |
750 | storage to be used or consumed in this state of the following |
751 | are hereby specifically exempt from the tax imposed by this |
752 | chapter. |
753 | (5) EXEMPTIONS; ACCOUNT OF USE.- |
754 | (g) Building materials used in the rehabilitation of real |
755 | property located in an enterprise zone.- |
756 | 1. Building materials used in the rehabilitation of real |
757 | property located in an enterprise zone are exempt from the tax |
758 | imposed by this chapter upon an affirmative showing to the |
759 | satisfaction of the department that the items have been used for |
760 | the rehabilitation of real property located in an enterprise |
761 | zone. Except as provided in subparagraph 2., this exemption |
762 | inures to the owner, lessee, or lessor at the time the real |
763 | property is rehabilitated, but only through a refund of |
764 | previously paid taxes. To receive a refund pursuant to this |
765 | paragraph, the owner, lessee, or lessor of the rehabilitated |
766 | real property must file an application under oath with the |
767 | governing body or enterprise zone development agency having |
768 | jurisdiction over the enterprise zone where the business is |
769 | located, as applicable. A single application for a refund may be |
770 | submitted for multiple, contiguous parcels that were part of a |
771 | single parcel that was divided as part of the rehabilitation of |
772 | the property. All other requirements of this paragraph apply to |
773 | each parcel on an individual basis. The application must |
774 | include: |
775 | a. The name and address of the person claiming the refund. |
776 | b. An address and assessment roll parcel number of the |
777 | rehabilitated real property for which a refund of previously |
778 | paid taxes is being sought. |
779 | c. A description of the improvements made to accomplish |
780 | the rehabilitation of the real property. |
781 | d. A copy of a valid building permit issued by the county |
782 | or municipal building department for the rehabilitation of the |
783 | real property. |
784 | e. A sworn statement, under penalty of perjury, from the |
785 | general contractor licensed in this state with whom the |
786 | applicant contracted to make the improvements necessary to |
787 | rehabilitate the real property, which lists the building |
788 | materials used to rehabilitate the real property, the actual |
789 | cost of the building materials, and the amount of sales tax paid |
790 | in this state on the building materials. If a general contractor |
791 | was not used, the applicant, not a general contractor, shall |
792 | make the sworn statement required by this sub-subparagraph. |
793 | Copies of the invoices that evidence the purchase of the |
794 | building materials used in the rehabilitation and the payment of |
795 | sales tax on the building materials must be attached to the |
796 | sworn statement provided by the general contractor or by the |
797 | applicant. Unless the actual cost of building materials used in |
798 | the rehabilitation of real property and the payment of sales |
799 | taxes is documented by a general contractor or by the applicant |
800 | in this manner, the cost of the building materials is deemed to |
801 | be an amount equal to 40 percent of the increase in assessed |
802 | value for ad valorem tax purposes. |
803 | f. The identifying number assigned pursuant to s. 290.0065 |
804 | to the enterprise zone in which the rehabilitated real property |
805 | is located. |
806 | g. A certification by the local building code inspector |
807 | that the improvements necessary to rehabilitate the real |
808 | property are substantially completed. |
809 | h. A statement of whether the business is a small business |
810 | as defined by s. 288.703. |
811 | i. If applicable, the name and address of each permanent |
812 | employee of the business, including, for each employee who is a |
813 | resident of an enterprise zone, the identifying number assigned |
814 | pursuant to s. 290.0065 to the enterprise zone in which the |
815 | employee resides. |
816 | 2. This exemption inures to a municipality, county, other |
817 | governmental unit or agency, or nonprofit community-based |
818 | organization through a refund of previously paid taxes if the |
819 | building materials used in the rehabilitation are paid for from |
820 | the funds of a community development block grant, State Housing |
821 | Initiatives Partnership Program, or similar grant or loan |
822 | program. To receive a refund, a municipality, county, other |
823 | governmental unit or agency, or nonprofit community-based |
824 | organization must file an application that includes the same |
825 | information required in subparagraph 1. In addition, the |
826 | application must include a sworn statement signed by the chief |
827 | executive officer of the municipality, county, other |
828 | governmental unit or agency, or nonprofit community-based |
829 | organization seeking a refund which states that the building |
830 | materials for which a refund is sought were funded by a |
831 | community development block grant, State Housing Initiatives |
832 | Partnership Program, or similar grant or loan program. |
833 | 3. Within 10 working days after receipt of an application, |
834 | the governing body or enterprise zone development agency shall |
835 | review the application to determine if it contains all the |
836 | information required by subparagraph 1. or subparagraph 2. and |
837 | meets the criteria set out in this paragraph. The governing body |
838 | or agency shall certify all applications that contain the |
839 | required information and are eligible to receive a refund. If |
840 | applicable, the governing body or agency shall also certify if |
841 | 20 percent of the employees of the business are residents of an |
842 | enterprise zone, excluding temporary and part-time employees. |
843 | The certification must be in writing, and a copy of the |
844 | certification shall be transmitted to the executive director of |
845 | the department. The applicant is responsible for forwarding a |
846 | certified application to the department within the time |
847 | specified in subparagraph 4. |
848 | 4. An application for a refund must be submitted to the |
849 | department within 6 months after the rehabilitation of the |
850 | property is deemed to be substantially completed by the local |
851 | building code inspector or by November 1 after the rehabilitated |
852 | property is first subject to assessment. |
853 | 5. Only one exemption through a refund of previously paid |
854 | taxes for the rehabilitation of real property is permitted for |
855 | any single parcel of property unless there is a change in |
856 | ownership, a new lessor, or a new lessee of the real property. A |
857 | refund may not be granted unless the amount to be refunded |
858 | exceeds $500. A refund may not exceed the lesser of 97 percent |
859 | of the Florida sales or use tax paid on the cost of the building |
860 | materials used in the rehabilitation of the real property as |
861 | determined pursuant to sub-subparagraph 1.e. or $5,000, or, if |
862 | at least 20 percent of the employees of the business are |
863 | residents of an enterprise zone, excluding temporary and part- |
864 | time employees, the amount of refund may not exceed the lesser |
865 | of 97 percent of the sales tax paid on the cost of the building |
866 | materials or $10,000. A refund shall be made within 30 days |
867 | after formal approval by the department of the application for |
868 | the refund. |
869 | 6. The department shall adopt rules governing the manner |
870 | and form of refund applications and may establish guidelines as |
871 | to the requisites for an affirmative showing of qualification |
872 | for exemption under this paragraph. |
873 | 7. The department shall deduct an amount equal to 10 |
874 | percent of each refund granted under this paragraph from the |
875 | amount transferred into the Local Government Half-cent Sales Tax |
876 | Clearing Trust Fund pursuant to s. 212.20 for the county area in |
877 | which the rehabilitated real property is located and shall |
878 | transfer that amount to the General Revenue Fund. |
879 | 8. For the purposes of the exemption provided in this |
880 | paragraph, the term: |
881 | a. "Building materials" means tangible personal property |
882 | that becomes a component part of improvements to real property. |
883 | b. "Real property" has the same meaning as provided in s. |
884 | 192.001(12), except that the term does not include a condominium |
885 | parcel or condominium property as defined in s. 718.103. |
886 | c. "Rehabilitation of real property" means the |
887 | reconstruction, renovation, restoration, rehabilitation, |
888 | construction, or expansion of improvements to real property. |
889 | d. "Substantially completed" has the same meaning as |
890 | provided in s. 192.042(1). |
891 | 9. This paragraph expires on the date specified in s. |
892 | 290.016 for the expiration of the Florida Enterprise Zone Act. |
893 | Section 26. For the purpose of incorporating the amendment |
894 | made by this act to section 290.016, Florida Statutes, in a |
895 | reference thereto, subsection (12) of section 212.096, Florida |
896 | Statutes, is reenacted to read: |
897 | 212.096 Sales, rental, storage, use tax; enterprise zone |
898 | jobs credit against sales tax.- |
899 | (12) This section, except for subsection (11), expires on |
900 | the date specified in s. 290.016 for the expiration of the |
901 | Florida Enterprise Zone Act. |
902 | Section 27. For the purpose of incorporating the amendment |
903 | made by this act to section 290.016, Florida Statutes, in |
904 | references thereto, paragraph (c) of subsection (6) and |
905 | paragraph (c) of subsection (7) of section 220.02, Florida |
906 | Statutes, are reenacted to read: |
907 | 220.02 Legislative intent.- |
908 | (6) |
909 | (c) This subsection expires on the date specified in s. |
910 | 290.016 for the expiration of the Florida Enterprise Zone Act. |
911 | (7) |
912 | (c) This subsection expires on the date specified in s. |
913 | 290.016 for the expiration of the Florida Enterprise Zone Act. |
914 | Section 28. For the purpose of incorporating the amendment |
915 | made by this act to section 290.016, Florida Statutes, in |
916 | references thereto, subsection (1) of section 220.03, Florida |
917 | Statutes, is reenacted to read: |
918 | 220.03 Definitions.- |
919 | (1) SPECIFIC TERMS.-When used in this code, and when not |
920 | otherwise distinctly expressed or manifestly incompatible with |
921 | the intent thereof, the following terms shall have the following |
922 | meanings: |
923 | (a) "Ad valorem taxes paid" means 96 percent of property |
924 | taxes levied for operating purposes and does not include |
925 | interest, penalties, or discounts foregone. In addition, the |
926 | term "ad valorem taxes paid," for purposes of the credit in s. |
927 | 220.182, means the ad valorem tax paid on new or additional real |
928 | or personal property acquired to establish a new business or |
929 | facilitate a business expansion, including pollution and waste |
930 | control facilities, or any part thereof, and including one or |
931 | more buildings or other structures, machinery, fixtures, and |
932 | equipment. This paragraph expires on the date specified in s. |
933 | 290.016 for the expiration of the Florida Enterprise Zone Act. |
934 | (b) "Affiliated group of corporations" means two or more |
935 | corporations which constitute an affiliated group of |
936 | corporations as defined in s. 1504(a) of the Internal Revenue |
937 | Code. |
938 | (c) "Business" or "business firm" means any business |
939 | entity authorized to do business in this state as defined in |
940 | paragraph (e), and any bank or savings and loan association as |
941 | defined in s. 220.62, subject to the tax imposed by the |
942 | provisions of this chapter. This paragraph expires on the date |
943 | specified in s. 290.016 for the expiration of the Florida |
944 | Enterprise Zone Act. |
945 | (d) "Community contribution" means the grant by a business |
946 | firm of any of the following items: |
947 | 1. Cash or other liquid assets. |
948 | 2. Real property. |
949 | 3. Goods or inventory. |
950 | 4. Other physical resources as identified by the |
951 | department. |
952 |
|
953 | This paragraph expires on the date specified in s. 290.016 for |
954 | the expiration of the Florida Enterprise Zone Act. |
955 | (e) "Corporation" includes all domestic corporations; |
956 | foreign corporations qualified to do business in this state or |
957 | actually doing business in this state; joint-stock companies; |
958 | limited liability companies, under chapter 608; common-law |
959 | declarations of trust, under chapter 609; corporations not for |
960 | profit, under chapter 617; agricultural cooperative marketing |
961 | associations, under chapter 618; professional service |
962 | corporations, under chapter 621; foreign unincorporated |
963 | associations, under chapter 622; private school corporations, |
964 | under chapter 623; foreign corporations not for profit which are |
965 | carrying on their activities in this state; and all other |
966 | organizations, associations, legal entities, and artificial |
967 | persons which are created by or pursuant to the statutes of this |
968 | state, the United States, or any other state, territory, |
969 | possession, or jurisdiction. The term "corporation" does not |
970 | include proprietorships, even if using a fictitious name; |
971 | partnerships of any type, as such; limited liability companies |
972 | that are taxable as partnerships for federal income tax |
973 | purposes; state or public fairs or expositions, under chapter |
974 | 616; estates of decedents or incompetents; testamentary trusts; |
975 | or private trusts. |
976 | (f) "Department" means the Department of Revenue of this |
977 | state. |
978 | (g) "Director" means the executive director of the |
979 | Department of Revenue and, when there has been an appropriate |
980 | delegation of authority, the executive director's delegate. |
981 | (h) "Earned," "accrued," "paid," or "incurred" shall be |
982 | construed according to the method of accounting upon the basis |
983 | of which a taxpayer's income is computed under this code. |
984 | (i) "Emergency," as used in s. 220.02 and in paragraph (u) |
985 | of this subsection, means occurrence of widespread or severe |
986 | damage, injury, or loss of life or property proclaimed pursuant |
987 | to s. 14.022 or declared pursuant to s. 252.36. This paragraph |
988 | expires on the date specified in s. 290.016 for the expiration |
989 | of the Florida Enterprise Zone Act. |
990 | (j) "Enterprise zone" means an area in the state |
991 | designated pursuant to s. 290.0065. This paragraph expires on |
992 | the date specified in s. 290.016 for the expiration of the |
993 | Florida Enterprise Zone Act. |
994 | (k) "Expansion of an existing business," for the purposes |
995 | of the enterprise zone property tax credit, means any business |
996 | entity authorized to do business in this state as defined in |
997 | paragraph (e), and any bank or savings and loan association as |
998 | defined in s. 220.62, subject to the tax imposed by the |
999 | provisions of this chapter, located in an enterprise zone, which |
1000 | expands by or through additions to real and personal property |
1001 | and which establishes five or more new jobs to employ five or |
1002 | more additional full-time employees at such location. This |
1003 | paragraph expires on the date specified in s. 290.016 for the |
1004 | expiration of the Florida Enterprise Zone Act. |
1005 | (l) "Fiscal year" means an accounting period of 12 months |
1006 | or less ending on the last day of any month other than December |
1007 | or, in the case of a taxpayer with an annual accounting period |
1008 | of 52-53 weeks under s. 441(f) of the Internal Revenue Code, the |
1009 | period determined under that subsection. |
1010 | (m) "Includes" or "including," when used in a definition |
1011 | contained in this code, shall not be deemed to exclude other |
1012 | things otherwise within the meaning of the term defined. |
1013 | (n) "Internal Revenue Code" means the United States |
1014 | Internal Revenue Code of 1986, as amended and in effect on |
1015 | January 1, 2011, except as provided in subsection (3). |
1016 | (o) "Local government" means any county or incorporated |
1017 | municipality in the state. This paragraph expires on the date |
1018 | specified in s. 290.016 for the expiration of the Florida |
1019 | Enterprise Zone Act. |
1020 | (p) "New business," for the purposes of the enterprise |
1021 | zone property tax credit, means any business entity authorized |
1022 | to do business in this state as defined in paragraph (e), or any |
1023 | bank or savings and loan association as defined in s. 220.62, |
1024 | subject to the tax imposed by the provisions of this chapter, |
1025 | first beginning operations on a site located in an enterprise |
1026 | zone and clearly separate from any other commercial or |
1027 | industrial operations owned by the same entity, bank, or savings |
1028 | and loan association and which establishes five or more new jobs |
1029 | to employ five or more additional full-time employees at such |
1030 | location. This paragraph expires on the date specified in s. |
1031 | 290.016 for the expiration of the Florida Enterprise Zone Act. |
1032 | (q) "New employee," for the purposes of the enterprise |
1033 | zone jobs credit, means a person residing in an enterprise zone |
1034 | or a participant in the welfare transition program who is |
1035 | employed at a business located in an enterprise zone who begins |
1036 | employment in the operations of the business after July 1, 1995, |
1037 | and who has not been previously employed full time within the |
1038 | preceding 12 months by the business or a successor business |
1039 | claiming the credit pursuant to s. 220.181. A person shall be |
1040 | deemed to be employed by such a business if the person performs |
1041 | duties in connection with the operations of the business on a |
1042 | full-time basis, provided she or he is performing such duties |
1043 | for an average of at least 36 hours per week each month. The |
1044 | person must be performing such duties at a business site located |
1045 | in an enterprise zone. This paragraph expires on the date |
1046 | specified in s. 290.016 for the expiration of the Florida |
1047 | Enterprise Zone Act. |
1048 | (r) "Nonbusiness income" means rents and royalties from |
1049 | real or tangible personal property, capital gains, interest, |
1050 | dividends, and patent and copyright royalties, to the extent |
1051 | that they do not arise from transactions and activities in the |
1052 | regular course of the taxpayer's trade or business. The term |
1053 | "nonbusiness income" does not include income from tangible and |
1054 | intangible property if the acquisition, management, and |
1055 | disposition of the property constitute integral parts of the |
1056 | taxpayer's regular trade or business operations, or any amounts |
1057 | which could be included in apportionable income without |
1058 | violating the due process clause of the United States |
1059 | Constitution. For purposes of this definition, "income" means |
1060 | gross receipts less all expenses directly or indirectly |
1061 | attributable thereto. Functionally related dividends are |
1062 | presumed to be business income. |
1063 | (s) "Partnership" includes a syndicate, group, pool, joint |
1064 | venture, or other unincorporated organization through or by |
1065 | means of which any business, financial operation, or venture is |
1066 | carried on, including a limited partnership; and the term |
1067 | "partner" includes a member having a capital or a profits |
1068 | interest in a partnership. |
1069 | (t) "Project" means any activity undertaken by an eligible |
1070 | sponsor, as defined in s. 220.183(2)(c), which is designed to |
1071 | construct, improve, or substantially rehabilitate housing that |
1072 | is affordable to low-income or very-low-income households as |
1073 | defined in s. 420.9071(19) and (28); designed to provide |
1074 | commercial, industrial, or public resources and facilities; or |
1075 | designed to improve entrepreneurial and job-development |
1076 | opportunities for low-income persons. A project may be the |
1077 | investment necessary to increase access to high-speed broadband |
1078 | capability in rural communities with enterprise zones, including |
1079 | projects that result in improvements to communications assets |
1080 | that are owned by a business. A project may include the |
1081 | provision of museum educational programs and materials that are |
1082 | directly related to any project approved between January 1, |
1083 | 1996, and December 31, 1999, and located in an enterprise zone |
1084 | designated pursuant to s. 290.0065. This paragraph does not |
1085 | preclude projects that propose to construct or rehabilitate low- |
1086 | income or very-low-income housing on scattered sites. With |
1087 | respect to housing, contributions may be used to pay the |
1088 | following eligible project-related activities: |
1089 | 1. Project development, impact, and management fees for |
1090 | low-income or very-low-income housing projects; |
1091 | 2. Down payment and closing costs for eligible persons, as |
1092 | defined in s. 420.9071(19) and (28); |
1093 | 3. Administrative costs, including housing counseling and |
1094 | marketing fees, not to exceed 10 percent of the community |
1095 | contribution, directly related to low-income or very-low-income |
1096 | projects; and |
1097 | 4. Removal of liens recorded against residential property |
1098 | by municipal, county, or special-district local governments when |
1099 | satisfaction of the lien is a necessary precedent to the |
1100 | transfer of the property to an eligible person, as defined in s. |
1101 | 420.9071(19) and (28), for the purpose of promoting home |
1102 | ownership. Contributions for lien removal must be received from |
1103 | a nonrelated third party. |
1104 |
|
1105 | The provisions of this paragraph shall expire and be void on |
1106 | June 30, 2015. |
1107 | (u) "Rebuilding of an existing business" means replacement |
1108 | or restoration of real or tangible property destroyed or damaged |
1109 | in an emergency, as defined in paragraph (i), after July 1, |
1110 | 1995, in an enterprise zone, by a business entity authorized to |
1111 | do business in this state as defined in paragraph (e), or a bank |
1112 | or savings and loan association as defined in s. 220.62, subject |
1113 | to the tax imposed by the provisions of this chapter, located in |
1114 | the enterprise zone. This paragraph expires on the date |
1115 | specified in s. 290.016 for the expiration of the Florida |
1116 | Enterprise Zone Act. |
1117 | (v) "Regulations" includes rules promulgated, and forms |
1118 | prescribed, by the department. |
1119 | (w) "Returns" includes declarations of estimated tax |
1120 | required under this code. |
1121 | (x) "State," when applied to a jurisdiction other than |
1122 | Florida, means any state of the United States, the District of |
1123 | Columbia, the Commonwealth of Puerto Rico, any territory or |
1124 | possession of the United States, and any foreign country, or any |
1125 | political subdivision of any of the foregoing. |
1126 | (y) "Taxable year" means the calendar or fiscal year upon |
1127 | the basis of which net income is computed under this code, |
1128 | including, in the case of a return made for a fractional part of |
1129 | a year, the period for which such return is made. |
1130 | (z) "Taxpayer" means any corporation subject to the tax |
1131 | imposed by this code, and includes all corporations for which a |
1132 | consolidated return is filed under s. 220.131. However, |
1133 | "taxpayer" does not include a corporation having no individuals |
1134 | (including individuals employed by an affiliate) receiving |
1135 | compensation in this state as defined in s. 220.15 when the only |
1136 | property owned or leased by said corporation (including an |
1137 | affiliate) in this state is located at the premises of a printer |
1138 | with which it has contracted for printing, if such property |
1139 | consists of the final printed product, property which becomes a |
1140 | part of the final printed product, or property from which the |
1141 | printed product is produced. |
1142 | (aa) "Functionally related dividends" include the |
1143 | following types of dividends: |
1144 | 1. Those received from a subsidiary of which the voting |
1145 | stock is more than 50 percent owned or controlled by the |
1146 | taxpayer or members of its affiliated group and which is engaged |
1147 | in the same general line of business. |
1148 | 2. Those received from any corporation which is either a |
1149 | significant source of supply for the taxpayer or its affiliated |
1150 | group or a significant purchaser of the output of the taxpayer |
1151 | or its affiliated group, or which sells a significant part of |
1152 | its output or obtains a significant part of its raw materials or |
1153 | input from the taxpayer or its affiliated group. "Significant" |
1154 | means an amount of 15 percent or more. |
1155 | 3. Those resulting from the investment of working capital |
1156 | or some other purpose in furtherance of the taxpayer or its |
1157 | affiliated group. |
1158 |
|
1159 | However, dividends not otherwise subject to tax under this |
1160 | chapter are excluded. |
1161 | (bb) "Child care facility startup costs" means |
1162 | expenditures for substantial renovation, equipment, including |
1163 | playground equipment and kitchen appliances and cooking |
1164 | equipment, real property, including land and improvements, and |
1165 | for reduction of debt, made in connection with a child care |
1166 | facility as defined by s. 402.302, or any facility providing |
1167 | daily care to children who are mildly ill, which is located in |
1168 | this state on the taxpayer's premises and used by the employees |
1169 | of the taxpayer. |
1170 | (cc) "Operation of a child care facility" means operation |
1171 | of a child care facility as defined by s. 402.302, or any |
1172 | facility providing daily care to children who are mildly ill, |
1173 | which is located in this state within 5 miles of at least one |
1174 | place of business of the taxpayer and which is used by the |
1175 | employees of the taxpayer. |
1176 | (dd) "Citrus processing company" means a corporation |
1177 | which, during the 60-month period ending on December 31, 1997, |
1178 | had derived more than 50 percent of its total gross receipts |
1179 | from the processing of citrus products and the manufacture of |
1180 | juices. |
1181 | (ee) "New job has been created" means that, on the date of |
1182 | application, the total number of full-time jobs is greater than |
1183 | the total was 12 months prior to that date, as demonstrated to |
1184 | the department by a business located in the enterprise zone. |
1185 | (ff) "Job" means a full-time position, as consistent with |
1186 | terms used by the Department of Economic Opportunity and the |
1187 | United States Department of Labor for purposes of unemployment |
1188 | compensation tax administration and employment estimation |
1189 | resulting directly from business operations in this state. The |
1190 | term may not include a temporary construction job involved with |
1191 | the construction of facilities or any job that has previously |
1192 | been included in any application for tax credits under s. |
1193 | 212.096. The term also includes employment of an employee leased |
1194 | from an employee leasing company licensed under chapter 468 if |
1195 | the employee has been continuously leased to the employer for an |
1196 | average of at least 36 hours per week for more than 6 months. |
1197 | Section 29. For the purpose of incorporating the amendment |
1198 | made by this act to section 290.016, Florida Statutes, in |
1199 | references thereto, paragraph (a) of subsection (1) of section |
1200 | 220.13, Florida Statutes, is reenacted to read: |
1201 | 220.13 "Adjusted federal income" defined.- |
1202 | (1) The term "adjusted federal income" means an amount |
1203 | equal to the taxpayer's taxable income as defined in subsection |
1204 | (2), or such taxable income of more than one taxpayer as |
1205 | provided in s. 220.131, for the taxable year, adjusted as |
1206 | follows: |
1207 | (a) Additions.-There shall be added to such taxable |
1208 | income: |
1209 | 1. The amount of any tax upon or measured by income, |
1210 | excluding taxes based on gross receipts or revenues, paid or |
1211 | accrued as a liability to the District of Columbia or any state |
1212 | of the United States which is deductible from gross income in |
1213 | the computation of taxable income for the taxable year. |
1214 | 2. The amount of interest which is excluded from taxable |
1215 | income under s. 103(a) of the Internal Revenue Code or any other |
1216 | federal law, less the associated expenses disallowed in the |
1217 | computation of taxable income under s. 265 of the Internal |
1218 | Revenue Code or any other law, excluding 60 percent of any |
1219 | amounts included in alternative minimum taxable income, as |
1220 | defined in s. 55(b)(2) of the Internal Revenue Code, if the |
1221 | taxpayer pays tax under s. 220.11(3). |
1222 | 3. In the case of a regulated investment company or real |
1223 | estate investment trust, an amount equal to the excess of the |
1224 | net long-term capital gain for the taxable year over the amount |
1225 | of the capital gain dividends attributable to the taxable year. |
1226 | 4. That portion of the wages or salaries paid or incurred |
1227 | for the taxable year which is equal to the amount of the credit |
1228 | allowable for the taxable year under s. 220.181. This |
1229 | subparagraph shall expire on the date specified in s. 290.016 |
1230 | for the expiration of the Florida Enterprise Zone Act. |
1231 | 5. That portion of the ad valorem school taxes paid or |
1232 | incurred for the taxable year which is equal to the amount of |
1233 | the credit allowable for the taxable year under s. 220.182. This |
1234 | subparagraph shall expire on the date specified in s. 290.016 |
1235 | for the expiration of the Florida Enterprise Zone Act. |
1236 | 6. The amount taken as a credit under s. 220.195 which is |
1237 | deductible from gross income in the computation of taxable |
1238 | income for the taxable year. |
1239 | 7. That portion of assessments to fund a guaranty |
1240 | association incurred for the taxable year which is equal to the |
1241 | amount of the credit allowable for the taxable year. |
1242 | 8. In the case of a nonprofit corporation which holds a |
1243 | pari-mutuel permit and which is exempt from federal income tax |
1244 | as a farmers' cooperative, an amount equal to the excess of the |
1245 | gross income attributable to the pari-mutuel operations over the |
1246 | attributable expenses for the taxable year. |
1247 | 9. The amount taken as a credit for the taxable year under |
1248 | s. 220.1895. |
1249 | 10. Up to nine percent of the eligible basis of any |
1250 | designated project which is equal to the credit allowable for |
1251 | the taxable year under s. 220.185. |
1252 | 11. The amount taken as a credit for the taxable year |
1253 | under s. 220.1875. The addition in this subparagraph is intended |
1254 | to ensure that the same amount is not allowed for the tax |
1255 | purposes of this state as both a deduction from income and a |
1256 | credit against the tax. This addition is not intended to result |
1257 | in adding the same expense back to income more than once. |
1258 | 12. The amount taken as a credit for the taxable year |
1259 | under s. 220.192. |
1260 | 13. The amount taken as a credit for the taxable year |
1261 | under s. 220.193. |
1262 | 14. Any portion of a qualified investment, as defined in |
1263 | s. 288.9913, which is claimed as a deduction by the taxpayer and |
1264 | taken as a credit against income tax pursuant to s. 288.9916. |
1265 | 15. The costs to acquire a tax credit pursuant to s. |
1266 | 288.1254(5) that are deducted from or otherwise reduce federal |
1267 | taxable income for the taxable year. |
1268 | 16. The amount taken as a credit for the taxable year |
1269 | pursuant to s. 220.194. |
1270 | 17. The amount taken as a credit for the taxable year |
1271 | under s. 220.196. The addition in this subparagraph is intended |
1272 | to ensure that the same amount is not allowed for the tax |
1273 | purposes of this state as both a deduction from income and a |
1274 | credit against the tax. The addition is not intended to result |
1275 | in adding the same expense back to income more than once. |
1276 | Section 30. For the purpose of incorporating the amendment |
1277 | made by this act to section 290.016, Florida Statutes, in a |
1278 | reference thereto, subsection (9) of section 220.181, Florida |
1279 | Statutes, is reenacted to read: |
1280 | 220.181 Enterprise zone jobs credit.- |
1281 | (9) This section, except paragraph (1)(c) and subsection |
1282 | (8), expires on the date specified in s. 290.016 for the |
1283 | expiration of the Florida Enterprise Zone Act, and a business |
1284 | may not begin claiming the enterprise zone jobs credit after |
1285 | that date; however, the expiration of this section does not |
1286 | affect the operation of any credit for which a business has |
1287 | qualified under this section before that date, or any |
1288 | carryforward of unused credit amounts as provided in paragraph |
1289 | (1)(c). |
1290 | Section 31. For the purpose of incorporating the amendment |
1291 | made by this act to section 290.016, Florida Statutes, in a |
1292 | reference thereto, subsection (14) of section 220.182, Florida |
1293 | Statutes, is reenacted to read: |
1294 | 220.182 Enterprise zone property tax credit.- |
1295 | (14) This section expires on the date specified in s. |
1296 | 290.016 for the expiration of the Florida Enterprise Zone Act, |
1297 | and a business may not begin claiming the enterprise zone |
1298 | property tax credit after that date; however, the expiration of |
1299 | this section does not affect the operation of any credit for |
1300 | which a business has qualified under this section before that |
1301 | date, or any carryforward of unused credit amounts as provided |
1302 | in paragraph (1)(b). |
1303 | Section 32. This act shall take effect July 1, 2012. |