Florida Senate - 2014                        COMMITTEE AMENDMENT
       Bill No. SPB 7056
       
       
       
       
       
       
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                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: FAV            .                                
                  03/03/2014           .                                
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       following:
       
    1         Senate Substitute for Amendment (912158) 
    2  
    3         Delete lines 873 - 1075
    4  and insert:
    5  The election is binding upon any distributee, successor,
    6  transferee, or purchaser. The department shall notify the
    7  Department of Revenue of any election made pursuant to this
    8  paragraph.
    9         2. A qualified production company is eligible for tax
   10  credits against its sales and use tax liabilities and corporate
   11  income tax liabilities as provided in this section. However, tax
   12  credits awarded under this section may not be claimed against
   13  sales and use tax liabilities or corporate income tax
   14  liabilities for any tax period beginning before July 1, 2011,
   15  regardless of when the credits are applied for or awarded.
   16         (d)(e)Tax credit carryforward.—If the certified production
   17  company cannot use the entire tax credit in the taxable year or
   18  reporting period in which the credit is awarded, any excess
   19  amount may be carried forward to a succeeding taxable year or
   20  reporting period. A tax credit applied against taxes imposed
   21  under chapter 212 or may be carried forward for a maximum of 5
   22  years after the date the credit is awarded. A tax credit applied
   23  against taxes imposed under chapter 220 may be carried forward
   24  for a maximum of 5 years after the date the credit is awarded,
   25  after which the credit expires and may not be used.
   26         (e)(f)Consolidated returns.—A certified production company
   27  that files a Florida consolidated return as a member of an
   28  affiliated group under s. 220.131(1) may be allowed the credit
   29  on a consolidated return basis up to the amount of the tax
   30  imposed upon the consolidated group under chapter 220.
   31         (f)(g)Partnership and noncorporate distributions.—A
   32  qualified production company that is not a corporation as
   33  defined in s. 220.03 may elect to distribute tax credits awarded
   34  under this section to its partners or members in proportion to
   35  their respective distributive income or loss in the taxable year
   36  in which the tax credits were awarded.
   37         (g)(h)Mergers or acquisitions.—Tax credits available under
   38  this section to a certified production company may succeed to a
   39  surviving or acquiring entity subject to the same conditions and
   40  limitations as described in this section; however, they may not
   41  be transferred again by the surviving or acquiring entity.
   42         (5) TRANSFER OF TAX CREDITS.—
   43         (a) Authorization.—Upon application to the Office of Film
   44  and Entertainment and approval by the department, a certified
   45  production company, or a partner or member that has received a
   46  distribution under paragraph (4)(f) (4)(g), may elect to
   47  transfer, in whole or in part, any unused credit amount granted
   48  under this section. An election to transfer any unused tax
   49  credit amount under chapter 212 or chapter 220 must be made no
   50  later than 5 years after the date the credit is awarded, after
   51  which period the credit expires and may not be used. The
   52  department shall notify the Department of Revenue of the
   53  election and transfer.
   54         (b) Number of transfers permitted.—A certified production
   55  company that elects to apply a credit amount against taxes
   56  remitted under chapter 212 is permitted a one-time transfer of
   57  unused credits to one transferee. A certified production company
   58  that elects to apply a credit amount against taxes due under
   59  chapter 220 is permitted a one-time transfer of unused credits
   60  to no more than four transferees, and such transfers must occur
   61  in the same taxable year.
   62         (c) Transferee rights and limitations.—The transferee is
   63  subject to the same rights and limitations as the certified
   64  production company awarded the tax credit, except that the
   65  initial transferee shall be permitted a one-time transfer of
   66  unused credits to no more than two subsequent transferees, and
   67  such transfers must occur in the same taxable year as the
   68  credits were received by the initial transferee, after which the
   69  subsequent transferees may not sell or otherwise transfer the
   70  tax credit.
   71         (6) RELINQUISHMENT OF TAX CREDITS.—
   72         (a) Beginning July 1, 2011, a certified production company,
   73  or any person who has acquired a tax credit from a certified
   74  production company pursuant to subsections (4) and (5), may
   75  elect to relinquish the tax credit to the Department of Revenue
   76  in exchange for 90 percent of the amount of the relinquished tax
   77  credit.
   78         (b) The Department of Revenue may approve payments to
   79  persons relinquishing tax credits pursuant to this subsection.
   80         (c) Subject to legislative appropriation, the Department of
   81  Revenue shall request the Chief Financial Officer to issue
   82  warrants to persons relinquishing tax credits. Payments under
   83  this subsection shall be made from the funds from which the
   84  proceeds from the taxes against which the tax credits could have
   85  been applied pursuant to the irrevocable election made by the
   86  certified production company under subsection (4) are deposited.
   87         (7) ANNUAL ALLOCATION OF TAX CREDITS.—
   88         (a) The aggregate amount of the tax credits that may be
   89  certified pursuant to paragraph (3)(d) may not exceed:
   90         1. For fiscal year 2010-2011, $53.5 million.
   91         2. For fiscal year 2011-2012, $74.5 million.
   92         3. For fiscal years 2012-2013, 2013-2014, 2014-2015, and
   93  2015-2016, $42 million per fiscal year.
   94         4. Beginning July 1, 2014, for fiscal years 2014-2015 and
   95  2015-2016, an additional $50 million per fiscal year.
   96         5. Beginning July 1, 2016, for fiscal years 2016-2017,
   97  2017-2018, 2018-2019, and 2019-2020, $50 million per fiscal
   98  year.
   99         (b) Any portion of the maximum amount of tax credits
  100  established per fiscal year in paragraph (a) that is not
  101  certified as of the end of a fiscal year shall be carried
  102  forward and made available for certification during the
  103  following 2 fiscal years in addition to the amounts available
  104  for certification under paragraph (a) for those fiscal years.
  105         (c) Upon approval of the final tax credit award amount
  106  pursuant to subparagraph (3)(g)2. (3)(f)2., an amount equal to
  107  the difference between the maximum tax credit award amount
  108  previously certified under paragraph (3)(d) and the approved
  109  final tax credit award amount shall immediately be available for
  110  recertification during the current and following fiscal years in
  111  addition to the amounts available for certification under
  112  paragraph (a) for those fiscal years.
  113         (d) Amounts available on and after July 1, 2014, for
  114  certification may not be certified before the fiscal year in
  115  which the amounts are listed in paragraph (a), except as
  116  provided in subparagraph (3)(d)2. If, during a fiscal year, the
  117  total amount of credits applied for, pursuant to paragraph
  118  (3)(a), exceeds the amount of credits available for
  119  certification in that fiscal year, such excess shall be treated
  120  as having been applied for on the first day of the next fiscal
  121  year in which credits remain available for certification.
  122         (8) RULES, POLICIES, AND PROCEDURES.—
  123         (a) The department may adopt rules pursuant to ss.
  124  120.536(1) and 120.54 and develop policies and procedures to
  125  implement and administer this section, including, but not
  126  limited to, rules specifying requirements for the application
  127  and approval process, records required for substantiation for
  128  tax credits, procedures for making the election in paragraph
  129  (4)(c) (4)(d), the manner and form of documentation required to
  130  claim tax credits awarded or transferred under this section, and
  131  marketing requirements for tax credit recipients.
  132         (b) The Department of Revenue may adopt rules pursuant to
  133  ss. 120.536(1) and 120.54 to administer this section, including
  134  rules governing the examination and audit procedures required to
  135  administer this section and the manner and form of documentation
  136  required to claim tax credits awarded, transferred, or
  137  relinquished under this section.
  138         (9) AUDIT AUTHORITY; REVOCATION AND FORFEITURE OF TAX
  139  CREDITS; FRAUDULENT CLAIMS.—
  140         (a) Audit authority.—The Department of Revenue may conduct
  141  examinations and audits as provided in s. 213.34 to verify that
  142  tax credits under this section are received, transferred, and
  143  applied according to the requirements of this section. If the
  144  Department of Revenue determines that tax credits are not
  145  received, transferred, or applied as required by this section,
  146  it may, in addition to the remedies provided in this subsection,
  147  pursue recovery of such funds pursuant to the laws and rules
  148  governing the assessment of taxes.
  149         (b) Revocation of tax credits.—The department may revoke or
  150  modify any written decision qualifying, certifying, or otherwise
  151  granting eligibility for tax credits under this section if it is
  152  discovered that the tax credit applicant submitted any false
  153  statement, representation, or certification in any application,
  154  record, report, plan, or other document filed in an attempt to
  155  receive tax credits under this section. The department shall
  156  immediately notify the Department of Revenue of any revoked or
  157  modified orders affecting previously granted tax credits.
  158  Additionally, the applicant must notify the Department of
  159  Revenue of any change in its tax credit claimed.
  160         (c) Forfeiture of tax credits.—A determination by the
  161  Department of Revenue, as a result of an audit pursuant to
  162  paragraph (a) or from information received from the department
  163  or the Division Office of Film and Entertainment of Enterprise
  164  Florida, Inc., that an applicant received tax credits pursuant
  165  to this section to which the applicant was not entitled is
  166  grounds for forfeiture of previously claimed and received tax
  167  credits. The applicant is responsible for returning forfeited
  168  tax credits to the Department of Revenue, and such funds shall
  169  be paid into the General Revenue Fund of the state. Tax credits
  170  purchased in good faith are not subject to forfeiture unless the
  171  transferee submitted fraudulent information in the purchase or
  172  failed to meet the requirements in subsection (5).
  173         (d) Fraudulent claims.—Any applicant that submits
  174  fraudulent information under this section is liable for
  175  reimbursement of the reasonable costs and fees associated with
  176  the review, processing, investigation, and prosecution of the
  177  fraudulent claim. An applicant that obtains a credit payment
  178  under this section through a claim that is fraudulent is liable
  179  for reimbursement of the credit amount plus a penalty in an
  180  amount double the credit amount. The penalty is in addition to
  181  any criminal penalty to which the applicant is liable for the
  182  same acts. The applicant is also liable for costs and fees
  183  incurred by the state in investigating and prosecuting the
  184  fraudulent claim.
  185         (10) ANNUAL REPORT.—Each November 1, the department Office
  186  of Film and Entertainment shall submit an annual report for the
  187  previous fiscal year to the Governor, the President of the
  188  Senate, and the Speaker of the House of Representatives which
  189  outlines the incentive program’s return on investment and
  190  economic benefits to the state. The report must also include an
  191  estimate of the full-time equivalent positions created by each
  192  production that received tax credits under this section and
  193  information relating to the distribution of productions
  194  receiving credits by geographic region and type of production.
  195  The report must also include the expenditures report required
  196  under s. 288.9241 s. 288.1253(3) and the information describing
  197  the relationship between tax exemptions and incentives to
  198  industry growth required under s. 288.1258(5). The department
  199  may work with the Division of Film and Entertainment of
  200  Enterprise Florida, Inc., to develop the annual report.
  201         (11) REPEAL.—This section is repealed July 1, 2020 July 1,
  202  2016, except that:
  203         (a) Tax credits certified under paragraph (3)(d) before
  204  July 1, 2020 July 1, 2016, may be awarded under paragraph (3)(g)
  205  (3)(f) on or after July 1, 2020 July 1, 2016, if the other
  206  requirements of this section are met.
  207         (b) Tax credits carried forward under paragraph (4)(d)
  208  (4)(e) remain valid for the period specified.
  209         (c) Subsections (5), (8), and (9) shall remain