Florida Senate - 2012                        COMMITTEE AMENDMENT
       Bill No. SB 922
                                Barcode 710094                          
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  01/11/2012           .                                

       The Committee on Military Affairs, Space, and Domestic Security
       (Bennett) recommended the following:
    1         Senate Amendment (with title amendment)
    3         Between lines 69 and 70
    4  insert:
    5         Section 1. Section 220.1893, Florida Statutes, is created
    6  to read:
    7         220.1893 National Guard Employment Tax Credit Program.—
    8         (1)As used in this section, the term:
    9         (a) “Department” means the Department of Economic
   10  Opportunity.
   11         (b)“Eligible business” means any business that is
   12  operating and authorized to do business in this state.
   13         (c)“Qualified employee” means a person:
   14         1. Who is a current Florida National Guard member in good
   15  standing, as verified by the Adjutant General of the Florida
   16  National Guard, and has been unemployed for more than 6 months
   17  or is returning from duty abroad;
   18         2. Who was hired by an eligible business on or July 1,
   19  2012, and had not previously been employed by the eligible
   20  business or its parent or an affiliated corporation;
   21         3. Who performed duties connected to the operations of the
   22  eligible business on a regular, full-time basis for an average
   23  of at least 36 hours per week and for at least 3 months before
   24  an eligible business is awarded a tax credit; and
   25         4.Whose employment by the eligible business has not formed
   26  the basis for any other claim to a credit pursuant to this
   27  chapter.
   28         (2)A certified business shall receive a $10,000 tax credit
   29  for each qualified employee, subject to limitation in subsection
   30  (5). The credit may be taken against:
   31         (a) Corporate income taxes under chapter 220.
   32         (b)Insurance premium tax under s. 624.509.
   33         (c) Taxes on sales, use, and other transactions under
   34  chapter 212.
   35         (d) Intangible personal property taxes under chapter 199.
   36         (e) Excise taxes on documents under chapter 201.
   37         (f) Ad valorem taxes paid, as defined in s. 220.03(1).
   38         (g) State communications services taxes administered under
   39  chapter 202. This paragraph does not apply to the gross receipts
   40  tax imposed under chapter 203 and administered under chapter 202
   41  or the local communications services tax authorized under s.
   42  202.19.
   43         (3)(a)To become a certified business, an officer of an
   44  eligible business must file under oath with the Department of
   45  Economic Opportunity an application that includes:
   46         1.The name, address, and NAICS identifying code of the
   47  eligible business. As used in this subsection, “NAICS” means
   48  those classifications contained in the North American Industry
   49  Classification System, as published in 2007 by the Office of
   50  Management and Budget, Executive Office of the President.
   51         2.Relevant employment information.
   52         3. A sworn affidavit, signed by each employee for whom the
   53  eligible business is seeking credits under this section,
   54  attesting to his or her previous unemployment.
   55         4. Verification that the wages paid by the eligible
   56  business to each of its qualified employees exceeds the wage
   57  eligibility levels for Medicaid and other public assistance
   58  programs.
   59         5.Any other information necessary to process the
   60  application.
   61         (b)The Department of Economic Opportunity shall process
   62  applications to certify a business in the order in which the
   63  applications are received, without regard as to whether the
   64  applicant is a new or an existing business. The department shall
   65  review and approve or deny an application within 10 days after
   66  receiving a completed application. The department shall notify
   67  the applicant in writing as to the department’s decision.
   68         (c)1.The department shall submit a copy of the letter of
   69  certification to the Department of Revenue within 10 days after
   70  the department issues the letter of certification to the
   71  applicant.
   72         2.If the application of an eligible business is not
   73  sufficient to certify the applicant business, the department
   74  must deny the application and issue a notice of denial to the
   75  applicant.
   76         3. If the application of an eligible business does not
   77  contain sufficient documentation of the number of qualified
   78  employees, the department shall approve the application with
   79  respect to the employees for who the department determines are
   80  qualified employees. The department must deny the application
   81  with respect to persons for whom the department determines are
   82  not qualified employees or for whom insufficient documentation
   83  has been provided. A business may not submit a revised
   84  application for certification or for the determination of a
   85  person as a qualified employee more than 3 months after the
   86  issuance of a notice of denial with respect to the business or a
   87  particular person as a qualified employee.
   88         (4)The applicant for a tax credit under this section has
   89  the responsibility to affirmatively demonstrate to the
   90  satisfaction of the department and the Department of Revenue
   91  that the applicant and the persons claimed as qualified
   92  employees meet the requirements of this section.
   93         (5)The total amount of tax credits under this section
   94  which may be approved by the department for all applicants is $5
   95  million per fiscal year.
   96         (6)A tax credit amount that is granted under this section
   97  which is not fully used in the first year for which it becomes
   98  available may be carried forward to the subsequent taxable year.
   99  The carryover credit may be used in the subsequent year if the
  100  tax imposed by this chapter for such year exceeds the credit for
  101  such year under this section after applying the other credits
  102  and unused credit carryovers in the order provided in s.
  103  220.02(8).
  104         (7)A person who fraudulently claims a credit under this
  105  section is liable for repayment of the credit plus a mandatory
  106  penalty of 100 percent of the credit. Such person also commits a
  107  misdemeanor of the second degree, punishable as provided in s.
  108  775.082 or s. 775.083.
  109         (8) The department may adopt rules governing the manner and
  110  form of applications for the tax credit. The department may
  111  establish guidelines for making an affirmative showing of
  112  qualification for the tax credit under this section.
  113         (9) The Department of Revenue may adopt rules to administer
  114  this section, including rules relating to the creation of forms
  115  to claim a tax credit and examination and audit procedures
  116  required to administer this section.
  117         (10) This section expires July 1, 2014. However, a taxpayer
  118  that is awarded a tax credit in the second year of the program
  119  may carry forward any unused credit amount to the subsequent tax
  120  reporting period. Rules adopted by the Department of Revenue to
  121  administer this section shall remain valid as long as a taxpayer
  122  may use a credit against its corporate income tax liability.
  124  ================= T I T L E  A M E N D M E N T ================
  125         And the title is amended as follows:
  126         Delete line 3
  127  and insert:
  128         personnel; creating s. 220.1893, F.S.; providing a tax
  129         credit program for eligible business that hire certain
  130         national guard members; providing definitions;
  131         providing credits against specified taxes for
  132         certified businesses; providing guidelines for
  133         becoming a certified business; requiring the
  134         Department of Economic Opportunity to certify
  135         qualified businesses; providing criteria for the
  136         certification; limiting the total amounts of tax
  137         credits; providing for certain tax credits to be
  138         carried forward; providing penalties for fraudulent
  139         claims; authorizing the Department of Economic
  140         Opportunity and the Department of Revenue to adopt
  141         rules; providing for expiration of the tax credits;
  142         amending s. 295.187, F.S.; revising