Florida Senate - 2014 (PROPOSED COMMITTEE BILL) SPB 7128
FOR CONSIDERATION By the Committee on Commerce and Tourism
1 A bill to be entitled
2 An act relating to the entertainment industry;
3 amending s. 288.125, F.S.; specifying the application
4 of the term “entertainment industry”; transferring,
5 renumbering, and amending s. 288.1251, F.S.; renaming
6 the Office of Film and Entertainment within the
7 Department of Economic Opportunity as the Division of
8 Film and Entertainment and housing the division within
9 Enterprise Florida, Inc.; requiring Enterprise
10 Florida, Inc., to conduct a national search for a film
11 commissioner; requiring the president of Enterprise
12 Florida, Inc., to hire the film commissioner; revising
13 the requirements of the division’s 5-year plan;
14 transferring, renumbering, and amending s. 288.1252,
15 F.S.; revising the powers and duties of the Florida
16 Film and Entertainment Advisory Council; conforming
17 provisions to changes made by the act; transferring,
18 renumbering, and amending s. 288.1253, F.S.;
19 conforming provisions to changes made by the act;
20 amending s. 288.1254, F.S.; redefining and deleting
21 terms; requiring the department, rather than the
22 Office of Film and Entertainment, to be responsible
23 for applications for the entertainment industry
24 financial incentive program; revising provisions
25 relating to the application process, tax credit
26 eligibility, election and distribution of tax credits,
27 annual allocation of tax credits, forfeiture of tax
28 credits, and annual report; extending the repeal date;
29 conforming provisions to changes made by the act;
30 specifying a date on which the applications on file
31 with the department and not yet certified are deemed
32 denied; amending s. 288.1258, F.S.; conforming
33 provisions to changes made by the act; requiring the
34 department to develop a standardized application form
35 in cooperation with the division and other agencies;
36 amending s. 288.92, F.S.; requiring Enterprise
37 Florida, Inc., to have a division relating to film and
38 entertainment; amending ss. 212.08, 220.1899, and
39 477.0135, F.S.; conforming cross-references and
40 provisions to changes made by the act; providing an
41 effective date.
43 Be It Enacted by the Legislature of the State of Florida:
45 Section 1. Section 288.125, Florida Statutes, is amended to
47 288.125 Definition of “entertainment industry”.—For the
48 purposes of ss. 288.1254, 288.1258, 288.924, and 288.9241
49 288.1251-288.1258, the term “entertainment industry” means those
50 persons or entities engaged in the operation of motion picture
51 or television studios or recording studios; those persons or
52 entities engaged in the preproduction, production, or
53 postproduction of motion pictures, made-for-television movies,
54 television programming, digital media projects, commercial
55 advertising, music videos, or sound recordings; and those
56 persons or entities providing products or services directly
57 related to the preproduction, production, or postproduction of
58 motion pictures, made-for-television movies, television
59 programming, digital media projects, commercial advertising,
60 music videos, or sound recordings, including, but not limited
61 to, the broadcast industry.
62 Section 2. Section 288.1251, Florida Statutes, is
63 transferred, renumbered as section 288.924, Florida Statutes,
64 and amended to read:
65 288.924 288.1251 Promotion and development of entertainment
66 industry; Division Office of Film and Entertainment; creation;
67 purpose; powers and duties.—
68 (1) CREATION.—
69 (a) The Division of Film and Entertainment is There is
70 hereby created within Enterprise Florida, Inc., the department
71 the Office of Film and Entertainment for the purpose of
72 developing, marketing, promoting, and providing services to the
73 state’s entertainment industry. The division shall serve as a
74 liaison between the entertainment industry and other state and
75 local governmental agencies, local film commissions, and labor
77 (2) (b) COMMISSIONER.—Enterprise Florida, Inc., The
78 department shall conduct a national search for a qualified
79 person to fill the position of Commissioner of Film and
80 Entertainment when the position is vacant. The president of
81 Enterprise Florida, Inc., executive director of the department
82 has the responsibility to hire the film commissioner.
83 Qualifications for the film commissioner include, but are not
84 limited to, the following:
85 (a) 1. A working knowledge of the equipment, personnel,
86 financial, and day-to-day production operations of the
87 industries to be served by the division Office of Film and
89 (b) 2. Marketing and promotion experience related to the
90 film and entertainment industries to be served;
91 (c) 3. Experience working with a variety of individuals
92 representing large and small entertainment-related businesses,
93 industry associations, local community entertainment industry
94 liaisons, and labor organizations; and
95 (d) 4. Experience working with a variety of state and local
96 governmental agencies.
97 (3) (2) POWERS AND DUTIES.—
98 (a) The Division Office of Film and Entertainment, in
99 performance of its duties, shall develop and :
100 1. In consultation with the Florida Film and Entertainment
101 Advisory Council, update a 5-year the strategic plan every 5
102 years to guide the activities of the division Office of Film and
103 Entertainment in the areas of entertainment industry
104 development, marketing, promotion, liaison services, field
105 office administration, and information. The plan shall :
106 a. be annual in construction and ongoing in nature.
107 1. At a minimum, the plan must discuss the following:
108 a. b. Include recommendations relating to The organizational
109 structure of the division, including any field offices outside
110 the state.
111 b. The coordination of the division with local or regional
112 offices maintained by counties and regions of the state, local
113 film commissions, and labor organizations, and the coordination
114 of such entities with each other to facilitate a working
115 relationship office.
116 c. Strategies to identify, solicit, and recruit
117 entertainment production opportunities for the state, including
118 implementation of programs for rural and urban areas designed to
119 develop and promote the state’s entertainment industry.
120 d. c. Include An annual budget projection for the division
121 office for each year of the plan.
122 d. Include an operational model for the office to use in
123 implementing programs for rural and urban areas designed to:
124 (I) develop and promote the state’s entertainment industry.
125 (II) Have the office serve as a liaison between the
126 entertainment industry and other state and local governmental
127 agencies, local film commissions, and labor organizations.
128 (III) Gather statistical information related to the state’s
129 entertainment industry.
130 e. (IV) Provision of Provide information and service to
131 businesses, communities, organizations, and individuals engaged
132 in entertainment industry activities.
133 (V) Administer field offices outside the state and
134 coordinate with regional offices maintained by counties and
135 regions of the state, as described in sub-sub-subparagraph (II),
136 as necessary.
137 f. e. Include Performance standards and measurable outcomes
138 for the programs to be implemented by the division office.
139 2. The plan shall be annually reviewed and approved by the
140 board of directors of Enterprise Florida, Inc.
141 f. Include an assessment of, and make recommendations on,
142 the feasibility of creating an alternative public-private
143 partnership for the purpose of contracting with such a
144 partnership for the administration of the state’s entertainment
145 industry promotion, development, marketing, and service
147 2. Develop, market, and facilitate a working relationship
148 between state agencies and local governments in cooperation with
149 local film commission offices for out-of-state and indigenous
150 entertainment industry production entities.
151 3. Implement a structured methodology prescribed for
152 coordinating activities of local offices with each other and the
153 commissioner’s office.
154 (b) The division shall also:
155 1. 4. Represent the state’s indigenous entertainment
156 industry to key decisionmakers within the national and
157 international entertainment industry, and to state and local
159 2. 5. Prepare an inventory and analysis of the state’s
160 entertainment industry, including, but not limited to,
161 information on crew, related businesses, support services, job
162 creation, talent, and economic impact and coordinate with local
163 offices to develop an information tool for common use.
164 6. Identify, solicit, and recruit entertainment production
165 opportunities for the state.
166 3. 7. Assist rural communities and other small communities
167 in the state in developing the expertise and capacity necessary
168 for such communities to develop, market, promote, and provide
169 services to the state’s entertainment industry.
170 (c) (b) The division O ffice of Film and Entertainment, in
171 the performance of its duties, may:
172 1. Conduct or contract for specific promotion and marketing
173 functions, including, but not limited to, production of a
174 statewide directory, production and maintenance of an Internet
175 website, establishment and maintenance of a toll-free telephone
176 number, organization of trade show participation, and
177 appropriate cooperative marketing opportunities.
178 2. Conduct its affairs, carry on its operations, establish
179 offices, and exercise the powers granted by this act in any
180 state, territory, district, or possession of the United States.
181 3. Carry out any program of information, special events, or
182 publicity designed to attract entertainment industry to Florida.
183 4. Develop relationships and leverage resources with other
184 public and private organizations or groups in their efforts to
185 publicize to the entertainment industry in this state, other
186 states, and other countries the depth of Florida’s entertainment
187 industry talent, crew, production companies, production
188 equipment resources, related businesses, and support services,
189 including the establishment of and expenditure for a program of
190 cooperative advertising with these public and private
191 organizations and groups in accordance with the provisions of
192 chapter 120.
193 5. Provide and arrange for reasonable and necessary
194 promotional items and services for such persons as the division
195 office deems proper in connection with the performance of the
196 promotional and other duties of the division office.
197 6. Prepare an annual economic impact analysis on
198 entertainment industry-related activities in the state.
199 7. Request or accept any grant, payment, or gift of funds
200 or property made by this state, the United States, or any
201 department or agency thereof, or by any individual, firm,
202 corporation, municipality, county, or organization, for any or
203 all of the purposes of the Office of Film and Entertainment’s 5
204 year strategic plan or those permitted activities enumerated in
205 this paragraph. Such funds shall be deposited in the Grants and
206 Donations Trust Fund of the Executive Office of the Governor for
207 use by the Office of Film and Entertainment in carrying out its
208 responsibilities and duties as delineated in law. The division
209 office may expend such funds in accordance with the terms and
210 conditions of any such grant, payment, or gift in the pursuit of
211 its administration or in support of fulfilling its duties and
212 responsibilities. The division office shall separately account
213 for the public funds and the private funds deposited into the
214 trust fund.
215 Section 3. Section 288.1252, Florida Statutes, is
216 transferred, renumbered as section 288.9242, Florida Statutes,
217 and amended to read:
218 288.9242 288.1252 Florida Film and Entertainment Advisory
219 Council; creation; purpose; membership; powers and duties.—
220 (1) CREATION.—There is created within the department, for
221 administrative purposes only, the Florida Film and Entertainment
222 Advisory Council.
223 (1) (2) PURPOSE.—The purpose of the Florida Film and
224 Entertainment Advisory Council is to serve as an advisory body
225 to the Division of Film and Entertainment department and to the
226 Office of Film and Entertainment to provide these offices with
227 industry insight and expertise related to developing, marketing,
228 and promoting , and providing service to the state’s
229 entertainment industry.
230 (2) (3) MEMBERSHIP.—
231 (a) The council shall consist of 17 members, 7 to be
232 appointed by the Governor, 5 to be appointed by the President of
233 the Senate, and 5 to be appointed by the Speaker of the House of
235 (b) When making appointments to the council, the Governor,
236 the President of the Senate, and the Speaker of the House of
237 Representatives shall appoint persons who are residents of the
238 state and who are highly knowledgeable of, active in, and
239 recognized leaders in Florida’s motion picture, television,
240 video, sound recording, or other entertainment industries. These
241 persons shall include, but not be limited to, representatives of
242 local film commissions, representatives of entertainment
243 associations, a representative of the broadcast industry,
244 representatives of labor organizations in the entertainment
245 industry, and board chairs, presidents, chief executive
246 officers, chief operating officers, or persons of comparable
247 executive position or stature of leading or otherwise important
248 entertainment industry businesses and offices. Council members
249 shall be appointed in such a manner as to equitably represent
250 the broadest spectrum of the entertainment industry and
251 geographic areas of the state.
252 (c) Council members shall serve for 4-year terms.
253 (d) Subsequent appointments shall be made by the official
254 who appointed the council member whose expired term is to be
256 (e) A representative of Enterprise Florida, Inc., A
257 representative of Workforce Florida, Inc., and a representative
258 of VISIT Florida shall serve as ex officio, nonvoting members of
259 the council, and shall be in addition to the 17 appointed
260 members of the council.
261 (f) Absence from three consecutive meetings shall result in
262 automatic removal from the council.
263 (g) A vacancy on the council shall be filled for the
264 remainder of the unexpired term by the official who appointed
265 the vacating member.
266 (h) No more than one member of the council may be an
267 employee of any one company, organization, or association.
268 (i) Any member shall be eligible for reappointment but may
269 not serve more than two consecutive terms.
270 (3) (4) MEETINGS; ORGANIZATION.—
271 (a) The council shall meet no less frequently than once
272 each quarter of the calendar year, but may meet more often as
273 set by the council.
274 (b) The council shall annually elect from its appointed
275 membership one member to serve as chair of the council and one
276 member to serve as vice chair. The Division of Film and
277 Entertainment Office of Film and Entertainment shall provide
278 staff assistance to the council, which shall include, but not be
279 limited to, keeping records of the proceedings of the council,
280 and serving as custodian of all books, documents, and papers
281 filed with the council.
282 (c) A majority of the members of the council shall
283 constitute a quorum.
284 (d) Members of the council shall serve without
285 compensation, but shall be entitled to reimbursement for per
286 diem and travel expenses in accordance with s. 112.061 while in
287 performance of their duties.
288 (4) (5) POWERS AND DUTIES.—The Florida Film and
289 Entertainment Advisory Council shall have all the powers
290 necessary or convenient to carry out and effectuate the purposes
291 and provisions of this act, including, but not limited to, the
292 power to:
293 (a) Adopt bylaws for the governance of its affairs and the
294 conduct of its business.
295 (b) Advise the Division of Film and Entertainment and
296 consult with the Office of Film and Entertainment on the
297 content, development, and implementation of the 5-year strategic
298 plan to guide the activities of the office.
299 (c) Review the Commissioner of Film and Entertainment’s
300 administration of the programs related to the strategic plan,
301 and Advise the Division of Film and Entertainment commissioner
302 on its the programs and any changes that might be made to better
303 meet the strategic plan.
304 (d) Consider and study the needs of the entertainment
305 industry for the purpose of advising the Division of Film and
306 Entertainment film commissioner and the department.
307 (e) Identify and make recommendations on state agency and
308 local government actions that may have an impact on the
309 entertainment industry or that may appear to industry
310 representatives as an official state or local action affecting
311 production in the state, and advise the Division of Film and
312 Entertainment of such actions.
313 (f) Consider all matters submitted to it by the Division of
314 Film and Entertainment film commissioner and the department.
315 (g) Advise and consult with the film commissioner and the
316 department, at their request or upon its own initiative,
317 regarding the promulgation, administration, and enforcement of
318 all laws and rules relating to the entertainment industry.
319 (g) (h) Suggest policies and practices for the conduct of
320 business by the Office of Film and Entertainment or by the
321 department that will improve interaction with internal
322 operations affecting the entertainment industry and will enhance
323 the economic development in initiatives of the state for the
325 (i) Appear on its own behalf before boards, commissions,
326 departments, or other agencies of municipal, county, or state
327 government, or the Federal Government.
328 Section 4. Section 288.1253, Florida Statutes, is
329 transferred, renumbered as section 288.9241, Florida Statutes,
330 and amended to read:
331 288.9241 288.1253 Travel and entertainment expenses.—
332 (1) As used in this section, the term “travel expenses”
333 means the actual, necessary, and reasonable costs of
334 transportation, meals, lodging, and incidental expenses normally
335 incurred by an employee of the Division Office of Film and
336 Entertainment, which costs are defined and prescribed by rules
337 adopted by the department, subject to approval by the Chief
338 Financial Officer.
339 (2) Notwithstanding the provisions of s. 112.061, the
340 department shall adopt rules by which the Division of Film and
341 Entertainment it may make expenditures by reimbursement to: the
342 Governor, the Lieutenant Governor, security staff of the
343 Governor or Lieutenant Governor, the Commissioner of Film and
344 Entertainment, or staff of the Division Office of Film and
345 Entertainment for travel expenses or entertainment expenses
346 incurred by such individuals solely and exclusively in
347 connection with the performance of the statutory duties of the
348 division Office of Film and Entertainment. The rules are subject
349 to approval by the Chief Financial Officer before adoption. The
350 rules shall require the submission of paid receipts, or other
351 proof of expenditure prescribed by the Chief Financial Officer,
352 with any claim for reimbursement.
353 (3) The Division Office of Film and Entertainment shall
354 include in the annual report for the entertainment industry
355 financial incentive program required under s. 288.1254(10) a
356 report of the division’s office’s expenditures for the previous
357 fiscal year. The report must consist of a summary of all travel,
358 entertainment, and incidental expenses incurred within the
359 United States and all travel, entertainment, and incidental
360 expenses incurred outside the United States, as well as a
361 summary of all successful projects that developed from such
363 (4) The Division Office of Film and Entertainment and its
364 employees and representatives, when authorized, may accept and
365 use complimentary travel, accommodations, meeting space, meals,
366 equipment, transportation, and any other goods or services
367 necessary for or beneficial to the performance of the division’s
368 office’s duties and purposes, so long as such acceptance or use
369 is not in conflict with part III of chapter 112. The department
370 shall, by rule, develop internal controls to ensure that such
371 goods or services accepted or used pursuant to this subsection
372 are limited to those that will assist solely and exclusively in
373 the furtherance of the division’s office’s goals and are in
374 compliance with part III of chapter 112.
375 (5) Any claim submitted under this section is not required
376 to be sworn to before a notary public or other officer
377 authorized to administer oaths, but any claim authorized or
378 required to be made under any provision of this section shall
379 contain a statement that the expenses were actually incurred as
380 necessary travel or entertainment expenses in the performance of
381 official duties of the Division Office of Film and Entertainment
382 and shall be verified by written declaration that it is true and
383 correct as to every material matter. Any person who willfully
384 makes and subscribes to any claim which he or she does not
385 believe to be true and correct as to every material matter or
386 who willfully aids or assists in, procures, or counsels or
387 advises with respect to, the preparation or presentation of a
388 claim pursuant to this section that is fraudulent or false as to
389 any material matter, whether such falsity or fraud is with the
390 knowledge or consent of the person authorized or required to
391 present the claim, commits a misdemeanor of the second degree,
392 punishable as provided in s. 775.082 or s. 775.083. Whoever
393 receives a reimbursement by means of a false claim is civilly
394 liable, in the amount of the overpayment, for the reimbursement
395 of the public fund from which the claim was paid.
396 Section 5. Section 288.1254, Florida Statutes, is amended
397 to read:
398 288.1254 Entertainment industry financial incentive
400 (1) DEFINITIONS.—As used in this section, the term:
401 (a) “Certified production” means a qualified production
402 that has tax credits allocated to it by the department based on
403 the production’s estimated qualified expenditures, up to the
404 production’s maximum certified amount of tax credits, by the
405 department. The term does not include a production if its first
406 day of principal photography or project start date in this state
407 occurs before the production is certified by the department,
408 unless the production spans more than 1 fiscal year, was a
409 certified production on its first day of principal photography
410 or project start date in this state, and submits an application
411 for continuing the same production for the subsequent fiscal
413 (b) “Digital media project” means a production of
414 interactive entertainment that is produced for distribution in
415 commercial or educational markets. The term includes a video
416 game or production intended for Internet or wireless
417 distribution, an interactive website, digital animation, and
418 visual effects, including, but not limited to, three-dimensional
419 movie productions and movie conversions. The term does not
420 include a production that contains content that is obscene as
421 defined in s. 847.001.
422 (c) “High-impact digital media project” means a digital
423 media project that has qualified expenditures greater than $4.5
425 (d) “High-impact television series” means:
426 1. A production created to run multiple production seasons
427 which has and having an estimated order of at least seven
428 episodes per season and qualified expenditures of at least
429 $625,000 per episode; or
430 2. A telenovela that has qualified expenditures of more
431 than $4.5 million; a minimum of 45 principal photography days
432 filmed in this state; a production cast, including background
433 actors, and crew of which at least 90 percent are legal
434 residents of this state; and at least 90 percent of its
435 production occurring in this state.
436 (e) “Off-season certified production” means a feature film,
437 independent film, or television series or pilot that films 75
438 percent or more of its principal photography days from June 1
439 through November 30.
440 (e) (f) “Principal photography” means the filming of major
441 or significant components of the qualified production which
442 involve lead actors.
443 (f) (g) “Production” means a theatrical, or direct-to-video,
444 or direct-to-internet motion picture; a made-for-television
445 motion picture; visual effects or digital animation sequences
446 produced in conjunction with a motion picture; a commercial; a
447 music video; an industrial or educational film; an infomercial;
448 a documentary film; a television pilot program; a presentation
449 for a television pilot program; a television series, including,
450 but not limited to, a drama, a reality show, a comedy, a soap
451 opera, a telenovela, a game show, an awards show, or a
452 miniseries production; a direct-to-internet television series;
453 or a digital media project by the entertainment industry. One
454 season of a television series is considered one production. The
455 term does not include a weather or market program; a sporting
456 event or a sporting event broadcast; a gala; a production that
457 solicits funds; a home shopping program; a political program; a
458 political documentary; political advertising; a gambling-related
459 project or production; a concert production; a local, regional,
460 or Internet-distributed-only news show or current-events show; a
461 sports news or sports recap show; a pornographic production; or
462 any production deemed obscene under chapter 847. A production
463 may be produced on or by film, tape, or otherwise by means of a
464 motion picture camera; electronic camera or device; tape device;
465 computer; any combination of the foregoing; or any other means,
466 method, or device.
467 (g) (h) “Production expenditures” means the costs of
468 tangible and intangible property used for, and services
469 performed primarily and customarily in, production, including
470 preproduction and postproduction, but excluding costs for
471 development, marketing, and distribution. The term includes, but
472 is not limited to:
473 1. Wages, salaries, or other compensation paid to legal
474 residents of this state, including amounts paid through payroll
475 service companies, for technical and production crews,
476 directors, producers, and performers.
477 2. Net expenditures for sound stages, backlots, production
478 editing, digital effects, sound recordings, sets, and set
480 3. Net expenditures for rental equipment, including, but
481 not limited to, cameras and grip or electrical equipment.
482 4. Up to $300,000 of the costs of newly purchased computer
483 software and hardware unique to the project, including servers,
484 data processing, and visualization technologies, which are
485 located in and used exclusively in the state for the production
486 of digital media.
487 5. Expenditures for meals, travel, and accommodations. For
488 purposes of this paragraph, the term “net expenditures” means
489 the actual amount of money a qualified production spent for
490 equipment or other tangible personal property, after subtracting
491 any consideration received for reselling or transferring the
492 item after the qualified production ends, if applicable.
493 (h) (i) “Qualified expenditures” means production
494 expenditures incurred in this state by a qualified production
496 1. Goods purchased or leased from, or services, including,
497 but not limited to, insurance costs and bonding, payroll
498 services, and legal fees, which are provided by, a vendor or
499 supplier in this state that is registered with the Department of
500 State or the Department of Revenue, has a physical location in
501 this state, and employs one or more legal residents of this
502 state. This does not include rebilled goods or services provided
503 by an in-state company from out-of-state vendors or suppliers.
504 When services provided by the vendor or supplier include
505 personal services or labor, only personal services or labor
506 provided by residents of this state, evidenced by the required
507 documentation of residency in this state, qualify.
508 2. Payments to legal residents of this state in the form of
509 salary, wages, or other compensation up to a maximum of $400,000
510 per resident unless otherwise specified in subsection (4). A
511 completed declaration of residency in this state must accompany
512 the documentation submitted to the department office for
515 For a qualified production involving an event, such as an awards
516 show, the term does not include expenditures solely associated
517 with the event itself and not directly required by the
518 production. The term does not include expenditures incurred
519 before certification, with the exception of those incurred for a
520 commercial, a music video, or the pickup of additional episodes
521 of a high-impact television series within a single season. Under
522 no circumstances may the qualified production include in the
523 calculation for qualified expenditures the original purchase
524 price for equipment or other tangible property that is later
525 sold or transferred by the qualified production for
526 consideration. In such cases, the qualified expenditure is the
527 net of the original purchase price minus the consideration
528 received upon sale or transfer.
529 (i) (j) “Qualified production” means a production in this
530 state meeting the requirements of this section. The term does
531 not include a production:
532 1. In which , for the first 2 years of the incentive
533 program, less than 50 percent, and thereafter, less than 70 60
534 percent , of the positions that make up its production cast and
535 below-the-line production crew, or, in the case of digital media
536 projects, less than 80 75 percent of such positions, are filled
537 by legal residents of this state, whose residency is
538 demonstrated by a valid Florida driver driver’s license or other
539 state-issued identification confirming residency, or students
540 enrolled full-time in a film-and-entertainment-related course of
541 study at an institution of higher education in this state; or
542 2. That contains obscene content as defined in s.
544 (j) (k) “Qualified production company” means a corporation,
545 limited liability company, partnership, or other legal entity
546 engaged in one or more productions in this state.
547 (l) “Qualified digital media production facility” means a
548 building or series of buildings and their improvements in which
549 data processing, visualization, and sound synchronization
550 technologies are regularly applied for the production of
551 qualified digital media projects or the digital animation
552 components of qualified productions.
553 (m) “Qualified production facility” means a building or
554 complex of buildings and their improvements and associated
555 backlot facilities in which regular filming activity for film or
556 television has occurred for a period of no less than 1 year and
557 which contain at least one sound stage of at least 7,800 square
559 (n) “Regional population ratio” means the ratio of the
560 population of a region to the population of this state. The
561 regional population ratio applicable to a given fiscal year is
562 the regional population ratio calculated by the Office of Film
563 and Entertainment using the latest official estimates of
564 population certified under s. 186.901, available on the first
565 day of that fiscal year.
566 (o) “Regional tax credit ratio” means a ratio the numerator
567 of which is the sum of tax credits awarded to productions in a
568 region to date plus the tax credits certified, but not yet
569 awarded, to productions currently in that region and the
570 denominator of which is the sum of all tax credits awarded in
571 the state to date plus all tax credits certified, but not yet
572 awarded, to productions currently in the state. The regional tax
573 credit ratio applicable to a given year is the regional tax
574 credit ratio calculated by the Office of Film and Entertainment
575 using credit award and certification information available on
576 the first day of that fiscal year.
577 (p) “Underutilized region” for a given state fiscal year
578 means a region with a regional tax credit ratio applicable to
579 that fiscal year that is lower than its regional population
580 ratio applicable to that fiscal year. The following regions are
581 established for purposes of making this determination:
582 1. North Region, consisting of Alachua, Baker, Bay,
583 Bradford, Calhoun, Clay, Columbia, Dixie, Duval, Escambia,
584 Franklin, Gadsden, Gilchrist, Gulf, Hamilton, Holmes, Jackson,
585 Jefferson, Lafayette, Leon, Levy, Liberty, Madison, Nassau,
586 Okaloosa, Putnam, Santa Rosa, St. Johns, Suwannee, Taylor,
587 Union, Wakulla, Walton, and Washington Counties.
588 2. Central East Region, consisting of Brevard, Flagler,
589 Indian River, Lake, Okeechobee, Orange, Osceola, Seminole, St.
590 Lucie, and Volusia Counties.
591 3. Central West Region, consisting of Citrus, Hernando,
592 Hillsborough, Manatee, Marion, Polk, Pasco, Pinellas, Sarasota,
593 and Sumter Counties.
594 4. Southwest Region, consisting of Charlotte, Collier,
595 DeSoto, Glades, Hardee, Hendry, Highlands, and Lee Counties.
596 5. Southeast Region, consisting of Broward, Martin, Miami
597 Dade, Monroe, and Palm Beach Counties.
598 (k) (q) “Interactive website” means a website or group of
599 websites that includes interactive and downloadable content, and
600 creates 25 new Florida full-time equivalent positions operating
601 from a principal place of business located within Florida. An
602 interactive website or group of websites must provide
603 documentation that those jobs were created to the department
604 before Office of Film and Entertainment prior to the award of
605 tax credits. Each subsequent program application must provide
606 proof that 25 Florida full-time equivalent positions are
608 (2) CREATION AND PURPOSE OF PROGRAM.—The entertainment
609 industry financial incentive program is created within the
610 Office of Film and Entertainment. The purpose of this program is
611 to encourage the use of this state as a site for entertainment
612 production, for filming, and for the digital production of
613 entertainment films, and to develop and sustain the workforce
614 and infrastructure for film, digital media, and entertainment
616 (3) APPLICATION PROCEDURE; APPROVAL PROCESS.—
617 (a) Program application.—A qualified production company
618 producing a qualified production in this state may submit a
619 program application to the department Office of Film and
620 Entertainment for the purpose of determining qualification for
621 an award of tax credits authorized by this section no earlier
622 than 150 180 days before the first day of principal photography
623 or project start date in this state. The applicant shall provide
624 the department Office of Film and Entertainment with information
625 required to determine whether the production is a qualified
626 production and to determine the qualified expenditures and other
627 information necessary for the department office to determine
628 eligibility for the tax credit.
629 (b) Required documentation.—The department Office of Film
630 and Entertainment shall develop an application form for
631 qualifying an applicant as a qualified production. The form must
632 include, but need not be limited to, production-related
633 information concerning employment of residents in this state, a
634 detailed budget of planned qualified expenditures and aggregate
635 nonqualified expenditures in this state, proof of financing for
636 the production, proof of local financial commitment, and the
637 applicant’s signed affirmation that the information on the form
638 has been verified and is correct. The Division Office of Film
639 and Entertainment of Enterprise Florida, Inc., and local film
640 commissions shall distribute the form.
641 (c) Application process.—The department Office of Film and
642 Entertainment shall establish a process by which an application
643 is accepted and reviewed and by which tax credit eligibility and
644 award amount are determined. The department may consult with the
645 Division Office of Film and Entertainment of Enterprise Florida,
646 Inc., or may request assistance from a duly appointed local film
647 commission in determining compliance with this section.
648 1. Applications may be accepted until, and shall include,
649 the application that causes the amount of tax credit eligibility
650 requested to exceed 125 percent of tax credits allocated for the
651 fiscal year under paragraph (7)(a). Applications received after
652 all tax credits allocated for the fiscal year have been
653 certified shall be assigned a queue number that is determined by
654 the date and time the application was received by the
655 department. Applications in the queue are deemed denied on June
656 30 of each year.
657 2. A certified high-impact television series may submit an
658 initial application for no more than two successive seasons,
659 notwithstanding the fact that the second season has successive
660 seasons have not been ordered. The successive season’s qualified
661 expenditure amounts for the second season shall be based on the
662 current season’s estimated qualified expenditures. Upon the
663 completion of production of each season, a high-impact
664 television series may submit an application for no more than one
665 additional season. To be certified for credits, the applicant
666 must provide proof that the additional season has been ordered
667 as part of the application for the additional season.
668 3. An applicant must submit proof of financial commitment
669 by each county in which the applicant will engage in principal
670 photography or project production. The financial commitment must
671 be a cash match equal to 10 percent of the total amount of
672 credit applied for by the applicant. If at least 70 percent of
673 the production occurs within a county designated as an
674 underutilized county at the time that the production is
675 certified, the cash match must equal 5 percent of the total
676 amount of credit applied for by the applicant. The term
677 “underutilized county” means a county in which less than
678 $500,000 in qualified expenditures were made in the last 2
679 fiscal years.
680 (d) Certification.—
681 1. The department Office of Film and Entertainment shall
682 review the application within 15 business days after receipt.
683 Upon the department’s its determination, in consultation with
684 the Division of Film and Entertainment of Enterprise Florida,
685 Inc., that the application contains all the information required
686 by this subsection and meets the criteria set out in this
687 section, the department Office of Film and Entertainment shall
688 deny qualify the applicant and recommend to the department that
689 the applicant be certified for the maximum tax credit award
690 amount. Within 5 business days after receipt of the
691 recommendation, the department shall r eject the application
692 recommendation or certify the maximum recommended tax credit
693 award in an amount reduced by 5 percent or 10 percent, as
694 required in subparagraph (c)3., if any funds are available, to
695 the applicant and to the executive director of the Department of
697 2. In a fiscal year, the department may certify only the
698 amount of tax credits allocated for that fiscal year, as
699 provided under subsection (7). However, the department may
700 certify a high-impact television series for additional tax
701 credits allocated in a future fiscal year if the high-impact
702 television series has an executed contract or order for season
703 renewal effective for the future fiscal year from which tax
704 credits would be allocated. The department may certify one
705 additional ordered season per future fiscal year in which the
706 qualified production would occur.
707 (e) Employment.—Upon certification by the department, the
708 production must provide the department and the Division of Film
709 and Entertainment of Enterprise Florida, Inc., with a single
710 point of contact and information related to the production’s
711 needs for cast, crew, contractors, and vendors. The division
712 shall publish this information online, including the type of
713 production, the projected start date of the production, the
714 locations in this state for such production, and the e-mail or
715 other contact information for the production’s point of contact.
716 The department, in consultation with the division, may adopt
717 procedures for a production to post such information itself
718 within 7 days after certification.
719 (f) (e) Grounds for denial.—
720 1. The department Office of Film and Entertainment shall
721 deny an application if it determines that the application is not
722 complete, or the production or application does not meet the
723 requirements of this section, or there are no additional credits
724 for certification as provided under paragraph (c). Within 90
725 days after submitting a program application, except with respect
726 to applications in the independent and emerging media queue, a
727 production must provide proof of project financing to the Office
728 of Film and Entertainment, otherwise the project is deemed
729 denied and withdrawn. A project that has been denied withdrawn
730 may submit a new application upon providing the Office of Film
731 and Entertainment proof of financing.
732 2. The department shall deny a certified production upon
733 any circumstance affecting the reasonable schedule or timely
734 completion of the certified production, including a break in
735 production, change in the production schedule, or loss of
736 financing for the production. A certified production must notify
737 the department within 5 days after any circumstance affecting
738 its timely completion. A certified production may not be denied
739 if it provides the department with proof of replacement
740 financing within 10 days after the loss of financing for the
741 production. To keep a reasonable schedule, the certified
742 production must begin principal photography or the production
743 project in this state no more than 45 calendar days before or
744 after the principal photography or project start date provided
745 in the production’s program application.
746 (g) (f) Verification of actual qualified expenditures.—
747 1. The department, in consultation with the Division of
748 Film and Entertainment, Office of Film and Entertainment shall
749 develop a process to verify the actual qualified expenditures of
750 a certified production. The process must require:
751 a. A certified production to submit, within 180 days in a
752 timely manner after production ends in this state and after
753 making all of its qualified expenditures in this state, data
754 substantiating each qualified expenditure, including
755 documentation on the net expenditure on equipment and other
756 tangible personal property by the qualified production, to an
757 independent certified public accountant licensed in this state;
758 b. Such accountant to conduct a compliance audit, at the
759 certified production’s expense, to substantiate each qualified
760 expenditure and submit the results as a report, along with the
761 required substantiating data, to the department Office of Film
762 and Entertainment; and
763 c. The department Office of Film and Entertainment to
764 review the accountant’s submittal and verify report to the
765 department the final verified amount of actual qualified
766 expenditures made by the certified production.
767 2. The department shall verify that the qualified
768 production received the local financial commitment required
769 under paragraph (c). If the qualified production did not meet
770 this requirement, the department shall deny the total tax credit
771 award amount.
772 3. 2. The department shall determine and approve the final
773 tax credit award amount to each certified applicant based on the
774 final verified amount of actual qualified expenditures and
775 evidence that the qualified production met the requirements of
776 this section. The department shall notify the executive director
777 of the Department of Revenue in writing that the certified
778 production has met the requirements of the incentive program and
779 of the final amount of the tax credit award. The final tax
780 credit award amount may not exceed the maximum tax credit award
781 amount certified under paragraph (d).
782 (h) (g) Promoting Florida.—The department Office of Film and
783 Entertainment shall ensure that, as a condition of receiving a
784 tax credit under this section, marketing materials promoting
785 this state as a tourist destination or film and entertainment
786 production destination are included, when appropriate, at no
787 cost to the state, which must, at a minimum, include placement
788 of a “Filmed in Florida” or “Produced in Florida” logo in the
789 opening titles and end credits. The placement of a “Filmed in
790 Florida” or “Produced in Florida” logo on all packaging material
791 and hard media is also required, unless such placement is
792 prohibited by licensing or other contractual obligations. The
793 size and placement of such logo shall be commensurate to other
794 logos used. If no logos are used, the statement “Filmed in
795 Florida using Florida’s Entertainment Industry Financial
796 Incentive,” or a similar statement approved by the Division
797 Office of Film and Entertainment of Enterprise Florida, Inc.,
798 shall be used. The Division Office of Film and Entertainment of
799 Enterprise Florida, Inc., shall provide a logo and supply it for
800 the purposes specified in this paragraph. A 30-second “Visit
801 Florida” promotional video must also be included on all optical
802 disc formats of a film, unless such placement is prohibited by
803 licensing or other contractual obligations. The 30-second
804 promotional video shall be approved and provided by the Florida
805 Tourism Industry Marketing Corporation in consultation with the
806 Division Commissioner of Film and Entertainment of Enterprise
807 Florida, Inc.
808 (4) TAX CREDIT ELIGIBILITY; TAX CREDIT AWARDS; QUEUES;
809 ELECTION AND DISTRIBUTION; CARRYFORWARD; CONSOLIDATED RETURNS;
810 PARTNERSHIP AND NONCORPORATE DISTRIBUTIONS; MERGERS AND
812 (a) Priority for tax credit award.—The priority of a
813 qualified production for tax credit awards must be determined on
814 a first-come, first-served basis within its appropriate queue.
815 Each qualified production must be placed into the appropriate
816 queue and is subject to the requirements of that queue.
817 (b) Tax credit eligibility.—
818 1. General production queue.—Ninety-four percent of tax
819 credits authorized pursuant to subsection (7) (6) in any state
820 fiscal year must be dedicated to the general production queue.
821 The general production queue consists of all qualified
822 productions other than those eligible for the commercial and
823 music video queue or the independent and emerging media
824 production queue. A qualified production that demonstrates a
825 minimum of $625,000 in qualified expenditures is eligible for
826 tax credits equal to 20 percent of its actual qualified
827 expenditures, up to a maximum of $8 million. A qualified
828 production that incurs qualified expenditures during multiple
829 state fiscal years may combine those expenditures to satisfy the
830 $625,000 minimum threshold.
831 a. For the first 10 months of each fiscal year, 20 percent
832 of the credits in the general production queue shall be set
833 aside for qualified productions in underutilized counties. A
834 qualified production eligible for these funds is a production
835 for which at least 70 percent of its principal photography days
836 occur within an underutilized county designated as an
837 underutilized county at the time that the production is
838 certified. The term “underutilized county” means a county in
839 which less than $500,000 in qualified expenditures were made in
840 the last 2 fiscal years. Any funds not yet certified from this
841 set-aside at the end of the 10-month period may be certified to
842 qualified productions pursuant to this section An off-season
843 certified production that is a feature film, independent film,
844 or television series or pilot is eligible for an additional 5
845 percent tax credit on actual qualified expenditures. An off
846 season certified production that does not complete 75 percent of
847 principal photography due to a disruption caused by a hurricane
848 or tropical storm may not be disqualified from eligibility for
849 the additional 5 percent credit as a result of the disruption.
850 b. If more than 45 percent of the sum of total tax credits
851 initially certified and awarded after April 1, 2012, total tax
852 credits initially certified after April 1, 2012, but not yet
853 awarded, and total tax credits available for certification after
854 April 1, 2012, but not yet certified has been awarded for high
855 impact television series, then no high-impact television series
856 is eligible for tax credits under this subparagraph. Tax credits
857 initially certified for a high-impact television series after
858 April 1, 2012, may not be awarded if the award will cause the
859 percentage threshold in this sub-subparagraph to be exceeded.
860 This sub-subparagraph does not prohibit the award of tax credits
861 certified before April 1, 2012, for high-impact television
863 b. c. Subject to sub-subparagraph b., First priority in the
864 queue for tax credit awards not yet certified shall be given to
865 high-impact television series and high-impact digital media
866 projects. For the purposes of determining priority between a
867 high-impact television series and a high-impact digital media
868 project, the first position must go to the first application
869 received. Thereafter, priority shall be determined by
870 alternating between a high-impact television series and a high
871 impact digital media project on a first-come, first-served
872 basis. However, if the Office of Film and Entertainment receives
873 an application for a high-impact television series or high
874 impact digital media project that would be certified but for the
875 alternating priority, the office may certify the project as
876 being in the priority position if an application that would
877 normally be the priority position is not received within 5
878 business days.
879 d. A qualified production for which at least 67 percent of
880 its principal photography days occur within a region designated
881 as an underutilized region at the time that the production is
882 certified is eligible for an additional 5 percent tax credit.
883 c. e. A qualified production is eligible for an additional
884 15 percent tax credit on qualified expenditures that are wages,
885 salaries, or other compensation paid to the following
886 individuals employed by the qualified production: that employs
887 students enrolled full-time in a film and entertainment-related
888 or digital media-related course of study at an institution of
889 higher education in this state, individuals participating in the
890 Road-to-Independence Program under s. 409.1451, individuals with
891 developmental disabilities as defined under s. 393.063 residing
892 in this state, veterans residing in this state, and individuals
893 is eligible for an additional 15 percent tax credit on qualified
894 expenditures that are wages, salaries, or other compensation
895 paid to such students. The additional 15 percent tax credit is
896 also applicable to persons hired within 12 months after
897 graduating from a film and entertainment-related or digital
898 media-related course of study at an institution of higher
899 education in this state. The additional 15 percent tax credit
900 applies to qualified expenditures that are wages, salaries, or
901 other compensation paid to such recent graduates for 1 year
902 after the date of hiring.
903 f. A qualified production for which 50 percent or more of
904 its principal photography occurs at a qualified production
905 facility, or a qualified digital media project or the digital
906 animation component of a qualified production for which 50
907 percent or more of the project’s or component’s qualified
908 expenditures are related to a qualified digital media production
909 facility, is eligible for an additional 5 percent tax credit on
910 actual qualified expenditures for production activity at that
912 d. A qualified production that completes a capital
913 investment of at least $2 million before the completion of the
914 qualified production is eligible for an additional 5 percent tax
915 credit. The capital investment must be permanent and must remain
916 in this state after the production ends in this state.
917 e. g. A qualified production is not eligible for tax credits
918 provided under this paragraph totaling more than 25 percent 30
919 percent of its actual qualified expenses.
920 2. Commercial and music video queue.—Three percent of tax
921 credits authorized pursuant to subsection (7) (6) in any state
922 fiscal year must be dedicated to the commercial and music video
923 queue. A qualified production company that produces national or
924 regional commercials or music videos may be eligible for a tax
925 credit award if it demonstrates a minimum of $100,000 in
926 qualified expenditures per national or regional commercial or
927 music video and exceeds a combined threshold of $500,000 after
928 combining actual qualified expenditures from qualified
929 commercials and music videos during a single state fiscal year.
930 After a qualified production company that produces commercials,
931 music videos, or both reaches the threshold of $500,000, it is
932 eligible to apply for certification for a tax credit award. The
933 maximum credit award shall be equal to 20 percent of its actual
934 qualified expenditures up to a maximum of $500,000. If there is
935 a surplus at the end of a fiscal year after the department
936 Office of Film and Entertainment certifies and determines the
937 tax credits for all qualified commercial and video projects,
938 such surplus tax credits shall be carried forward to the
939 following fiscal year and are available to any eligible
940 qualified productions under the general production queue.
941 3. Independent and emerging media production queue.—Three
942 percent of tax credits authorized pursuant to subsection (7) (6)
943 in any state fiscal year must be dedicated to the independent
944 and emerging media production queue. This queue is intended to
945 encourage independent film and emerging media production in this
946 state. Any qualified production, excluding commercials,
947 infomercials, or music videos, which demonstrates at least
948 $100,000, but not more than $625,000, in total qualified
949 expenditures is eligible for tax credits equal to 20 percent of
950 its actual qualified expenditures. If a surplus exists at the
951 end of a fiscal year after the department Office of Film and
952 Entertainment certifies and determines the tax credits for all
953 qualified independent and emerging media production projects,
954 such surplus tax credits shall be carried forward to the
955 following fiscal year and are available to any eligible
956 qualified productions under the general production queue.
957 4. Family-friendly productions.—A certified theatrical or
958 direct-to-video motion picture production or video game
959 determined by the Commissioner of Film and Entertainment, with
960 the advice of the Florida Film and Entertainment Advisory
961 Council, to be family-friendly, based on review of the script
962 and review of the final release version, is eligible for an
963 additional tax credit equal to 5 percent of its actual qualified
964 expenditures. Family-friendly productions are those that have
965 cross-generational appeal; would be considered suitable for
966 viewing by children age 5 or older; are appropriate in theme,
967 content, and language for a broad family audience; embody a
968 responsible resolution of issues; and do not exhibit or imply
969 any act of smoking, sex, nudity, or vulgar or profane language.
970 (c) Withdrawal of tax credit eligibility. —A qualified or
971 certified production must continue on a reasonable schedule,
972 which includes beginning principal photography or the production
973 project in this state no more than 45 calendar days before or
974 after the principal photography or project start date provided
975 in the production’s program application. The department shall
976 withdraw the eligibility of a qualified or certified production
977 that does not continue on a reasonable schedule.
978 (c) (d) Election and distribution of tax credits.—
979 1. A certified production company receiving a tax credit
980 award under this section shall, at the time the credit is
981 awarded by the department after production is completed and all
982 requirements to receive a credit award have been met, make an
983 irrevocable election to apply the credit against taxes due under
984 chapter 220, against state taxes collected or accrued under
985 chapter 212, or against a stated combination of the two taxes.
986 The election is binding upon any distributee, successor,
987 transferee, or purchaser. The department shall notify the
988 Department of Revenue of any election made pursuant to this
990 2. A qualified production company is eligible for tax
991 credits against its sales and use tax liabilities and corporate
992 income tax liabilities as provided in this section. However, tax
993 credits awarded under this section may not be claimed against
994 sales and use tax liabilities or corporate income tax
995 liabilities for any tax period beginning before July 1, 2011,
996 regardless of when the credits are applied for or awarded.
997 (d) (e) Tax credit carryforward.—If the certified production
998 company cannot use the entire tax credit in the taxable year or
999 reporting period in which the credit is awarded, any excess
1000 amount may be carried forward to a succeeding taxable year or
1001 reporting period. A tax credit applied against taxes imposed
1002 under chapter 212 or may be carried forward for a maximum of 5
1003 years after the date the credit is awarded. A tax credit applied
1004 against taxes imposed under chapter 220 may be carried forward
1005 for a maximum of 5 years after the date the credit is awarded,
1006 after which the credit expires and may not be used.
1007 (e) (f) Consolidated returns.—A certified production company
1008 that files a Florida consolidated return as a member of an
1009 affiliated group under s. 220.131(1) may be allowed the credit
1010 on a consolidated return basis up to the amount of the tax
1011 imposed upon the consolidated group under chapter 220.
1012 (f) (g) Partnership and noncorporate distributions.—A
1013 qualified production company that is not a corporation as
1014 defined in s. 220.03 may elect to distribute tax credits awarded
1015 under this section to its partners or members in proportion to
1016 their respective distributive income or loss in the taxable year
1017 in which the tax credits were awarded.
1018 (g) (h) Mergers or acquisitions.—Tax credits available under
1019 this section to a certified production company may succeed to a
1020 surviving or acquiring entity subject to the same conditions and
1021 limitations as described in this section; however, they may not
1022 be transferred again by the surviving or acquiring entity.
1023 (5) TRANSFER OF TAX CREDITS.—
1024 (a) Authorization.—Upon application to the Office of Film
1025 and Entertainment and approval by the department, a certified
1026 production company, or a partner or member that has received a
1027 distribution under paragraph (4)(f) (4)(g), may elect to
1028 transfer, in whole or in part, any unused credit amount granted
1029 under this section. An election to transfer any unused tax
1030 credit amount under chapter 212 or chapter 220 must be made no
1031 later than 5 years after the date the credit is awarded, after
1032 which period the credit expires and may not be used. The
1033 department shall notify the Department of Revenue of the
1034 election and transfer.
1035 (b) Number of transfers permitted.—A certified production
1036 company that elects to apply a credit amount against taxes
1037 remitted under chapter 212 is permitted a one-time transfer of
1038 unused credits to one transferee. A certified production company
1039 that elects to apply a credit amount against taxes due under
1040 chapter 220 is permitted a one-time transfer of unused credits
1041 to no more than four transferees, and such transfers must occur
1042 in the same taxable year.
1043 (c) Transferee rights and limitations.—The transferee is
1044 subject to the same rights and limitations as the certified
1045 production company awarded the tax credit, except that the
1046 initial transferee shall be permitted a one-time transfer of
1047 unused credits to no more than two subsequent transferees, and
1048 such transfers must occur in the same taxable year as the
1049 credits were received by the initial transferee, after which the
1050 subsequent transferees may not sell or otherwise transfer the
1051 tax credit.
1052 (6) RELINQUISHMENT OF TAX CREDITS.—
1053 (a) Beginning July 1, 2011, a certified production company,
1054 or any person who has acquired a tax credit from a certified
1055 production company pursuant to subsections (4) and (5), may
1056 elect to relinquish the tax credit to the Department of Revenue
1057 in exchange for 90 percent of the amount of the relinquished tax
1059 (b) The Department of Revenue may approve payments to
1060 persons relinquishing tax credits pursuant to this subsection.
1061 (c) Subject to legislative appropriation, the Department of
1062 Revenue shall request the Chief Financial Officer to issue
1063 warrants to persons relinquishing tax credits. Payments under
1064 this subsection shall be made from the funds from which the
1065 proceeds from the taxes against which the tax credits could have
1066 been applied pursuant to the irrevocable election made by the
1067 certified production company under subsection (4) are deposited.
1068 (7) ANNUAL ALLOCATION OF TAX CREDITS.—
1069 (a) The aggregate amount of the tax credits that may be
1070 certified pursuant to paragraph (3)(d) may not exceed:
1071 1. For fiscal year 2010-2011, $53.5 million.
1072 2. For fiscal year 2011-2012, $74.5 million.
1073 3. For fiscal years 2012-2013, 2013-2014, 2014-2015, and
1074 2015-2016, $42 million per fiscal year.
1075 4. Beginning July 1, 2014, for fiscal years 2014-2015 and
1076 2015-2016, an additional $50 million per fiscal year.
1077 5. Beginning July 1, 2016, for fiscal years 2016-2017,
1078 2017-2018, 2018-2019, and 2019-2020, $50 million per fiscal
1080 (b) Any portion of the maximum amount of tax credits
1081 established per fiscal year in paragraph (a) that is not
1082 certified as of the end of a fiscal year shall be carried
1083 forward and made available for certification during the
1084 following 2 fiscal years in addition to the amounts available
1085 for certification under paragraph (a) for those fiscal years.
1086 (c) Upon approval of the final tax credit award amount
1087 pursuant to subparagraph (3)(g)2. (3)(f)2., an amount equal to
1088 the difference between the maximum tax credit award amount
1089 previously certified under paragraph (3)(d) and the approved
1090 final tax credit award amount shall immediately be available for
1091 recertification during the current and following fiscal years in
1092 addition to the amounts available for certification under
1093 paragraph (a) for those fiscal years.
1094 (d) Amounts available on and after July 1, 2014, for
1095 certification may not be certified before the fiscal year in
1096 which the amounts are listed in paragraph (a), except as
1097 provided in subparagraph (3)(d)2. If, during a fiscal year, the
1098 total amount of credits applied for, pursuant to paragraph
1099 (3)(a), exceeds the amount of credits available for
1100 certification in that fiscal year, such excess shall be treated
1101 as having been applied for on the first day of the next fiscal
1102 year in which credits remain available for certification .
1103 (8) RULES, POLICIES, AND PROCEDURES.—
1104 (a) The department may adopt rules pursuant to ss.
1105 120.536(1) and 120.54 and develop policies and procedures to
1106 implement and administer this section, including, but not
1107 limited to, rules specifying requirements for the application
1108 and approval process, records required for substantiation for
1109 tax credits, procedures for making the election in paragraph
1110 (4)(c) (4)(d), the manner and form of documentation required to
1111 claim tax credits awarded or transferred under this section, and
1112 marketing requirements for tax credit recipients.
1113 (b) The Department of Revenue may adopt rules pursuant to
1114 ss. 120.536(1) and 120.54 to administer this section, including
1115 rules governing the examination and audit procedures required to
1116 administer this section and the manner and form of documentation
1117 required to claim tax credits awarded, transferred, or
1118 relinquished under this section.
1119 (9) AUDIT AUTHORITY; REVOCATION AND FORFEITURE OF TAX
1120 CREDITS; FRAUDULENT CLAIMS.—
1121 (a) Audit authority.—The Department of Revenue may conduct
1122 examinations and audits as provided in s. 213.34 to verify that
1123 tax credits under this section are received, transferred, and
1124 applied according to the requirements of this section. If the
1125 Department of Revenue determines that tax credits are not
1126 received, transferred, or applied as required by this section,
1127 it may, in addition to the remedies provided in this subsection,
1128 pursue recovery of such funds pursuant to the laws and rules
1129 governing the assessment of taxes.
1130 (b) Revocation of tax credits.—The department may revoke or
1131 modify any written decision qualifying, certifying, or otherwise
1132 granting eligibility for tax credits under this section if it is
1133 discovered that the tax credit applicant submitted any false
1134 statement, representation, or certification in any application,
1135 record, report, plan, or other document filed in an attempt to
1136 receive tax credits under this section. The department shall
1137 immediately notify the Department of Revenue of any revoked or
1138 modified orders affecting previously granted tax credits.
1139 Additionally, the applicant must notify the Department of
1140 Revenue of any change in its tax credit claimed.
1141 (c) Forfeiture of tax credits.—A determination by the
1142 Department of Revenue, as a result of an audit pursuant to
1143 paragraph (a) or from information received from the department
1144 or the Division Office of Film and Entertainment of Enterprise
1145 Florida, Inc., that an applicant received tax credits pursuant
1146 to this section to which the applicant was not entitled is
1147 grounds for forfeiture of previously claimed and received tax
1148 credits. The applicant is responsible for returning forfeited
1149 tax credits to the Department of Revenue, and such funds shall
1150 be paid into the General Revenue Fund of the state. Tax credits
1151 purchased in good faith are not subject to forfeiture unless the
1152 transferee submitted fraudulent information in the purchase or
1153 failed to meet the requirements in subsection (5).
1154 (d) Fraudulent claims.—Any applicant that submits
1155 fraudulent information under this section is liable for
1156 reimbursement of the reasonable costs and fees associated with
1157 the review, processing, investigation, and prosecution of the
1158 fraudulent claim. An applicant that obtains a credit payment
1159 under this section through a claim that is fraudulent is liable
1160 for reimbursement of the credit amount plus a penalty in an
1161 amount double the credit amount. The penalty is in addition to
1162 any criminal penalty to which the applicant is liable for the
1163 same acts. The applicant is also liable for costs and fees
1164 incurred by the state in investigating and prosecuting the
1165 fraudulent claim.
1166 (10) ANNUAL REPORT.—Each November 1, the department Office
1167 of Film and Entertainment shall submit an annual report for the
1168 previous fiscal year to the Governor, the President of the
1169 Senate, and the Speaker of the House of Representatives which
1170 outlines the incentive program’s return on investment and
1171 economic benefits to the state. The report must also include an
1172 estimate of the full-time equivalent positions created by each
1173 production that received tax credits under this section and
1174 information relating to the distribution of productions
1175 receiving credits by geographic region and type of production.
1176 The report must also include the expenditures report required
1177 under s. 288.9241 s. 288.1253(3) and the information describing
1178 the relationship between tax exemptions and incentives to
1179 industry growth required under s. 288.1258(5). The department
1180 may work with the Division of Film and Entertainment of
1181 Enterprise Florida, Inc., to develop the annual report.
1182 (11) REPEAL.—This section is repealed July 1, 2020 July 1,
1183 2016, except that:
1184 (a) Tax credits certified under paragraph (3)(d) before
1185 July 1, 2020 July 1, 2016, may be awarded under paragraph (3)(g)
1186 (3)(f) on or after July 1, 2020 July 1, 2016, if the other
1187 requirements of this section are met.
1188 (b) Tax credits carried forward under paragraph (4)(d)
1189 (4)(e) remain valid for the period specified.
1190 (c) Subsections (5), (8), and (9) shall remain in effect
1191 until July 1, 2025 July 1, 2021.
1192 Section 6. Beginning July 1, 2014, applications on file
1193 with the Department of Economic Opportunity to receive a tax
1194 credit through the entertainment industry financial incentive
1195 program under s. 288.1254, Florida Statutes, which are not yet
1196 certified are deemed denied.
1197 Section 7. Section 288.1258, Florida Statutes, is amended
1198 to read:
1199 288.1258 Entertainment industry qualified production
1200 companies; application procedure; categories; duties of the
1201 Department of Revenue; records and reports.—
1202 (1) PRODUCTION COMPANIES AUTHORIZED TO APPLY.—
1203 (a) Any production company engaged in this state in the
1204 production of motion pictures, made-for-TV motion pictures,
1205 television series, commercial advertising, music videos, or
1206 sound recordings may submit an application to the Department of
1207 Revenue to be approved by the department Office of Film and
1208 Entertainment as a qualified production company for the purpose
1209 of receiving a sales and use tax certificate of exemption from
1210 the Department of Revenue.
1211 (b) As used in F or the purposes of this section, the term
1212 “qualified production company” means any production company that
1213 has submitted a properly completed application to the Department
1214 of Revenue and that is subsequently qualified by the department
1215 Office of Film and Entertainment.
1216 (2) APPLICATION PROCEDURE.—
1217 (a) The Department of Revenue will review all submitted
1218 applications for the required information. Within 10 working
1219 days after the receipt of a properly completed application, the
1220 Department of Revenue will forward the completed application to
1221 the department Office of Film and Entertainment for approval.
1222 (b)1. The department Office of Film and Entertainment shall
1223 establish a process by which an entertainment industry
1224 production company may be approved by the department office as a
1225 qualified production company and may receive a certificate of
1226 exemption from the Department of Revenue for the sales and use
1227 tax exemptions under ss. 212.031, 212.06, and 212.08.
1228 2. Upon determination by the department Office of Film and
1229 Entertainment that a production company meets the established
1230 approval criteria and qualifies for exemption, the department
1231 Office of Film and Entertainment shall return the approved
1232 application or application renewal or extension to the
1233 Department of Revenue, which shall issue a certificate of
1235 3. The department Office of Film and Entertainment shall
1236 deny an application or application for renewal or extension from
1237 a production company if it determines that the production
1238 company does not meet the established approval criteria.
1239 (c) The department Office of Film and Entertainment shall
1240 develop, with the cooperation of the Department of Revenue, the
1241 Division of Film and Entertainment of Enterprise Florida, Inc.,
1242 and local government entertainment industry promotion agencies,
1243 a standardized application form for use in approving qualified
1244 production companies.
1245 1. The application form shall include, but not be limited
1246 to, production-related information on employment, proposed
1247 budgets, planned purchases of items exempted from sales and use
1248 taxes under ss. 212.031, 212.06, and 212.08, a signed
1249 affirmation from the applicant that any items purchased for
1250 which the applicant is seeking a tax exemption are intended for
1251 use exclusively as an integral part of entertainment industry
1252 preproduction, production, or postproduction activities engaged
1253 in primarily in this state, and a signed affirmation from the
1254 department Office of Film and Entertainment that the information
1255 on the application form has been verified and is correct. In
1256 lieu of information on projected employment, proposed budgets,
1257 or planned purchases of exempted items, a production company
1258 seeking a 1-year certificate of exemption may submit summary
1259 historical data on employment, production budgets, and purchases
1260 of exempted items related to production activities in this
1261 state. Any information gathered from production companies for
1262 the purposes of this section shall be considered confidential
1263 taxpayer information and shall be disclosed only as provided in
1264 s. 213.053.
1265 2. The application form may be distributed to applicants by
1266 the department, the Division Office of Film and Entertainment of
1267 Enterprise Florida, Inc., or local film commissions.
1268 (d) All applications, renewals, and extensions for
1269 designation as a qualified production company shall be processed
1270 by the department Office of Film and Entertainment.
1271 (e) If In the event that the Department of Revenue
1272 determines that a production company no longer qualifies for a
1273 certificate of exemption, or has used a certificate of exemption
1274 for purposes other than those authorized by this section and
1275 chapter 212, the Department of Revenue shall revoke the
1276 certificate of exemption of that production company, and any
1277 sales or use taxes exempted on items purchased or leased by the
1278 production company during the time such company did not qualify
1279 for a certificate of exemption or improperly used a certificate
1280 of exemption shall become immediately due to the Department of
1281 Revenue, along with interest and penalty as provided by s.
1282 212.12. In addition to the other penalties imposed by law, any
1283 person who knowingly and willfully falsifies an application, or
1284 uses a certificate of exemption for purposes other than those
1285 authorized by this section and chapter 212, commits a felony of
1286 the third degree, punishable as provided in ss. 775.082,
1287 775.083, and 775.084.
1288 (3) CATEGORIES.—
1289 (a)1. A production company may be qualified for designation
1290 as a qualified production company for a period of 1 year if the
1291 company has operated a business in Florida at a permanent
1292 address for a period of 12 consecutive months. Such a qualified
1293 production company shall receive a single 1-year certificate of
1294 exemption from the Department of Revenue for the sales and use
1295 tax exemptions under ss. 212.031, 212.06, and 212.08, which
1296 certificate shall expire 1 year after issuance or upon the
1297 cessation of business operations in the state, at which time the
1298 certificate shall be surrendered to the Department of Revenue.
1299 2. The department Office of Film and Entertainment shall
1300 develop a method by which a qualified production company may
1301 annually renew a 1-year certificate of exemption for a period of
1302 up to 5 years without requiring the production company to
1303 resubmit a new application during that 5-year period.
1304 3. Any qualified production company may submit a new
1305 application for a 1-year certificate of exemption upon the
1306 expiration of that company’s certificate of exemption.
1307 (b)1. A production company may be qualified for designation
1308 as a qualified production company for a period of 90 days. Such
1309 production company shall receive a single 90-day certificate of
1310 exemption from the Department of Revenue for the sales and use
1311 tax exemptions under ss. 212.031, 212.06, and 212.08, which
1312 certificate shall expire 90 days after issuance, with extensions
1313 contingent upon approval of the department Office of Film and
1314 Entertainment. The certificate shall be surrendered to the
1315 Department of Revenue upon its expiration.
1316 2. Any production company may submit a new application for
1317 a 90-day certificate of exemption upon the expiration of that
1318 company’s certificate of exemption.
1319 (4) DUTIES OF THE DEPARTMENT OF REVENUE.—
1320 (a) The Department of Revenue shall review the initial
1321 application and notify the applicant of any omissions and
1322 request additional information if needed. An application shall
1323 be complete upon receipt of all requested information. The
1324 Department of Revenue shall forward all complete applications to
1325 the department Office of Film and Entertainment within 10
1326 working days.
1327 (b) The Department of Revenue shall issue a numbered
1328 certificate of exemption to a qualified production company
1329 within 5 working days of the receipt of an approved application,
1330 application renewal, or application extension from the
1331 department Office of Film and Entertainment.
1332 (c) The Department of Revenue may adopt promulgate such
1333 rules and shall prescribe and publish such forms as may be
1334 necessary to effectuate the purposes of this section or any of
1335 the sales tax exemptions which are reasonably related to the
1336 provisions of this section.
1337 (d) The Department of Revenue may is authorized to
1338 establish audit procedures in accordance with the provisions of
1339 ss. 212.12, 212.13, and 213.34 which relate to the sales tax
1340 exemption provisions of this section.
1341 (5) RELATIONSHIP OF TAX EXEMPTIONS AND INCENTIVES TO
1342 INDUSTRY GROWTH; REPORT TO THE LEGISLATURE.—The department
1343 Office of Film and Entertainment shall keep annual records from
1344 the information provided on taxpayer applications for tax
1345 exemption certificates beginning January 1, 2001. These records
1346 also must reflect a ratio of the annual amount of sales and use
1347 tax exemptions under this section, plus the incentives awarded
1348 pursuant to s. 288.1254 to the estimated amount of funds
1349 expended by certified productions. In addition, the department
1350 office shall maintain data showing annual growth in Florida
1351 based entertainment industry companies and entertainment
1352 industry employment and wages. The employment information must
1353 include an estimate of the full-time equivalent positions
1354 created by each production that received tax credits pursuant to
1355 s. 288.1254. The department Office of Film and Entertainment
1356 shall include this information in the annual report for the
1357 entertainment industry financial incentive program required
1358 under s. 288.1254(10).
1359 Section 8. Subsection (1) of section 288.92, Florida
1360 Statutes, is amended to read:
1361 288.92 Divisions of Enterprise Florida, Inc.—
1362 (1) Enterprise Florida, Inc., may create and dissolve
1363 divisions as necessary to carry out its mission. Each division
1364 shall have distinct responsibilities and complementary missions.
1365 At a minimum, Enterprise Florida, Inc., shall have divisions
1366 related to the following areas:
1367 (a) International Trade and Business Development;
1368 (b) Business Retention and Recruitment;
1369 (c) Tourism Marketing;
1370 (d) Minority Business Development; and
1371 (e) Sports Industry Development; and
1372 (f) Film and Entertainment.
1373 Section 9. Paragraph (q) of subsection (5) of section
1374 212.08, Florida Statutes, is amended to read:
1375 212.08 Sales, rental, use, consumption, distribution, and
1376 storage tax; specified exemptions.—The sale at retail, the
1377 rental, the use, the consumption, the distribution, and the
1378 storage to be used or consumed in this state of the following
1379 are hereby specifically exempt from the tax imposed by this
1381 (5) EXEMPTIONS; ACCOUNT OF USE.—
1382 (q) Entertainment industry tax credit; authorization;
1383 eligibility for credits.—The credits against the state sales tax
1384 authorized pursuant to s. 288.1254 shall be deducted from any
1385 sales and use tax remitted by the dealer to the department by
1386 electronic funds transfer and may only be deducted on a sales
1387 and use tax return initiated through electronic data
1388 interchange. The dealer shall separately state the credit on the
1389 electronic return. The net amount of tax due and payable must be
1390 remitted by electronic funds transfer. If the credit for the
1391 qualified expenditures is larger than the amount owed on the
1392 sales and use tax return that is eligible for the credit, the
1393 unused amount of the credit may be carried forward to a
1394 succeeding reporting period as provided in s. 288.1254(4)(d) s.
1395 288.1254(4)(e). A dealer may only obtain a credit using the
1396 method described in this subparagraph. A dealer is not
1397 authorized to obtain a credit by applying for a refund.
1398 Section 10. Subsection (3) of section 220.1899, Florida
1399 Statutes, is amended to read:
1400 220.1899 Entertainment industry tax credit.—
1401 (3) To the extent that the amount of a tax credit exceeds
1402 the amount due on a return, the balance of the credit may be
1403 carried forward to a succeeding taxable year pursuant to s.
1404 288.1254(4)(d) s. 288.1254(4)(e).
1405 Section 11. Subsection (5) of section 477.0135, Florida
1406 Statutes, is amended to read:
1407 477.0135 Exemptions.—
1408 (5) A license is not required of any individual providing
1409 makeup, special effects, or cosmetology services to an actor,
1410 stunt person, musician, extra, or other talent during a
1411 production recognized by the Department of Economic Opportunity
1412 the Office of Film and Entertainment as a qualified production
1413 as defined in s. 288.1254(1). Such services are not required to
1414 be performed in a licensed salon. Individuals exempt under this
1415 subsection may not provide such services to the general public.
1416 Section 12. This act shall take effect July 1, 2014.