Florida Senate - 2022 SENATOR AMENDMENT
Bill No. CS for CS for SB 1382
Ì281632ÈÎ281632
LEGISLATIVE ACTION
Senate . House
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Floor: WD .
03/03/2022 08:58 AM .
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Senator Gruters moved the following:
1 Senate Amendment (with title amendment)
2
3 Between lines 1476 and 1477
4 insert:
5 Section 22. Targeted High Wage Production Program.—
6 (1) CREATION AND PURPOSE OF PROGRAM.—The Targeted High Wage
7 Production Program is created within the Department of Economic
8 Opportunity under the supervision of the Commissioner of Film
9 and Entertainment.
10 (a) The purpose of the performance-based program is to
11 boost this state’s economic prosperity by:
12 1. Creating high-paying jobs in an industry with an average
13 salary 60 percent higher than the state average;
14 2. Enhancing tourism by choosing projects that encourage
15 tourists to visit this state;
16 3. Broadening the film, television, and digital media
17 industry’s impact on this state by offering a modest bonus for
18 projects that take place in underutilized areas; and
19 4. Encouraging more family-friendly productions to be
20 produced in this state.
21 (b) This purpose shall be accomplished by providing a
22 limited tax credit award to projects that provide the highest
23 return on investment and economic benefit to the state which is
24 not awardable until after a project has made its expenditures in
25 this state and the expenditures have been verified by the
26 department.
27 (2) DEFINITIONS.—As used in this act, unless the context
28 otherwise requires, the term:
29 (a) “Certified project” means a qualified project that has
30 been scored by the council, has been determined by the
31 commissioner to meet or exceed the desired economic impact and
32 other criteria of the program, and has tax credits allocated to
33 it based on the project’s estimated qualified expenditures. The
34 term does not include a project that may be considered obscene
35 as defined in s. 847.001, Florida Statutes.
36 (b) “Commissioner” means the Commissioner of Film and
37 Entertainment as described in s. 288.1251(1)(b), Florida
38 Statutes.
39 (c) “Council” means the Florida Film and Entertainment
40 Advisory Council.
41 (d) “Department” means the Department of Economic
42 Opportunity.
43 (e) “Digital media project” means a commercial video game,
44 including an educational video game, which includes at least 30
45 minutes of gameplay time.
46 (f) “Family friendly” means having cross-generational
47 appeal; being appropriate in theme, content, and language for a
48 broad family audience; embodying a responsible resolution of
49 issues; not containing any act of drunkenness, illicit drug use,
50 sex, nudity, gratuitous violence, or vulgar or profane language;
51 and not portraying smoking any substance in a positive manner.
52 (g) “Film project” means a theatrical, direct-to-video,
53 television, cable, Internet, streaming service, or animated
54 narrative motion picture at least 75 minutes in length. The term
55 does not include a project deemed by the office to have content
56 that is obscene as defined in s. 847.001, Florida Statutes.
57 (h) “Florida resident” means a person who has a valid
58 Florida driver license or Florida identification card issued
59 under s. 322.051, Florida Statutes, and has signed an affidavit
60 confirming residency.
61 (i) “Office” means the Office of Film and Entertainment
62 within the department.
63 (j) “Principal photography” means, for a film project or
64 television project, the filming of major or significant
65 components of the project which involve lead actors, or, for a
66 digital media project, the period of time during which the work
67 of the majority of the crew is dedicated solely to the project.
68 (k) “Production start date” means:
69 1. For film and television projects, the start date of
70 principal photography, as listed in the project’s application.
71 2. For digital media projects, the start date of final
72 storyboards or a later date as specified in the project’s
73 application.
74 (l) “Qualified expenditures” means:
75 1. Expenditures made in this state and paid to residents of
76 this state or to businesses registered in this state and made
77 solely for preproduction, production, or postproduction of the
78 qualified project, including the following:
79 a. Rented or leased goods or services provided by a vendor
80 or supplier in this state which is registered with the
81 Department of State or the Department of Revenue; which has a
82 physical address in this state other than a post office box; and
83 which employs one or more Florida residents on a full-time
84 basis. The term does not include rebilled goods or services
85 provided by an in-state company from out-of-state vendors or
86 suppliers. When services provided by the vendor or supplier
87 include personal services or labor, only personal services or
88 labor provided by Florida residents qualify.
89 b. Payments to Florida residents in the form of salary or
90 wages up to a maximum of $200,000 per resident, including
91 amounts paid per diem to a worker who is a Florida resident and
92 amounts paid through payroll service companies, and benefits
93 such as pension, health, and welfare payments for technical and
94 production crews, directors, producers, and performers. For
95 purposes of this sub-subparagraph, payments do not include wages
96 for executives, legal staff, or other corporate staff who are
97 not employed to work solely on the project.
98 c. Rented or leased cars, trucks, and trailers, if the
99 vehicles or trailers are registered with the Florida Department
100 of Highway Safety and Motor Vehicles.
101 d. Purchases of catered meals and on-set craft service
102 supplies.
103 e. Rented hotel rooms or other accommodations for cast or
104 crew.
105 2. The term does not include expenditures not expressly
106 identified in subparagraph 1., expenditures made before
107 qualification for the program, expenditures made via Internet
108 transactions, expenditures for airfare, or any costs associated
109 with development, marketing, or distribution.
110 3. For the purposes of a digital media project, the term
111 includes only those qualified expenditures made within 9 months
112 after the project’s first qualified expenditure.
113 (m) “Qualified project” means a film project, television
114 project, or digital media project that meets the application
115 requirements and for which a complete application for the
116 program has been submitted to the commissioner and accepted for
117 consideration by the office. The term does not apply to any
118 company doing subsidiary work on a certified production,
119 including, but not limited to, postproduction, visual effects,
120 and music. The term does not include a weather or market
121 program; a sporting event or a sporting event broadcast; a gala;
122 an awards show; a production that solicits funds; a home
123 shopping program; a political program; a gambling-related
124 project or production; a concert production; a news or current
125 events show; a sports or sports recap show; a pornographic
126 production; or any production deemed obscene under chapter 847,
127 Florida Statutes.
128 (n) “Television project” means a television pilot program
129 or a television series that:
130 1. Is a scripted drama, comedy, animation, or reality show;
131 2. Has a runtime to fit, at a minimum, a 30-minute program
132 slot, but no longer than required to fit a 60-minute program
133 slot; and
134 3. If the television project is a television series, has a
135 minimum of 7 episodes, or, if the television project is a
136 reality program or series, has at least 10 episodes.
137 4. Does not include content that is deemed by the office to
138 be obscene as defined in s. 847.001, Florida Statutes.
139 (o) “Underutilized area” means any county in this state
140 other than Broward County, Hillsborough County, Miami-Dade
141 County, Orange County, Pinellas County, or Seminole County.
142 (3) TAX CREDIT AWARD ELIGIBILITY.—
143 (a) To be eligible for a tax credit award, an applicant
144 must be registered to do business in this state and must be
145 producing a project that:
146 1. Has projected qualified expenditures of:
147 a. For a film project, at least $1.5 million;
148 b. For a television project, at least $500,000 per episode;
149 or
150 c. For a digital media project, at least $1.5 million;
151 2. Is projected to employ a crew, including cast and stand
152 ins, but not including extras, also known as background
153 performers, of which at least 60 percent will be residents of
154 this state and at least one member will be a military veteran;
155 3. Is projected to spend at least 70 percent of its total
156 production days in this state; and
157 4. Will not receive a sales tax certificate of exemption
158 pursuant to s. 288.1258, Florida Statutes, for the project.
159 (b) A certified project may receive a tax credit award in
160 the amount of up to 20 percent of its verified qualified
161 expenditures. A bonus may be earned in the amount of an
162 additional 3 percentage points if 60 percent of the project’s
163 production in this state will take place in an underutilized
164 area or if its content is deemed family friendly. A certified
165 project may not receive more than one bonus, and the total that
166 may be awarded under any tax credit award may not exceed 23
167 percent of its verified qualified expenditures or $2 million,
168 whichever is less.
169 (c) A certified project must make a good faith effort to
170 use existing providers of infrastructure or equipment in this
171 state, when available, including providers of camera gear, grip
172 and lighting equipment, vehicles, and postproduction services,
173 and to employ residents of this state as cast and crew.
174 (4) APPLICATION WINDOWS.—Applications must be accepted for
175 the program during two application windows each fiscal year. The
176 commissioner shall set a start date for both application
177 windows. However, the first application window may begin before
178 the start of the fiscal year and must end no later than 5
179 business days after July 1, and the second application window
180 must end no later than 5 business days after December 1.
181 (a) The department may not earmark or set aside more than
182 60 percent of any tax credit awards available for any given
183 fiscal year for applications submitted during each fiscal year’s
184 first application window. Tax credit award funds not earmarked
185 or set aside for applicants applying during one application
186 window roll over for use in the next application window.
187 (b) If all tax credit awards are earmarked and set aside
188 for certified projects, additional applications may not be
189 accepted until more funds become available for the program.
190 (c) If during any application period only a partial amount
191 of tax credit awards are available to certify to a project
192 compared to the full amount for which it would be eligible, the
193 applicant must elect to either accept the partial tax credit
194 award as the maximum certified tax credit award it would be
195 eligible for or reject it and drop out of the program. The
196 applicant must notify the commissioner in writing of its
197 decision before the application period ends. If additional tax
198 credit awards become available after the application period, the
199 project of an applicant that accepted a partial tax credit award
200 is not eligible for any such awards.
201 (5) APPLICATION PROCESS.—
202 (a) A company that plans to produce a film, television, or
203 digital project in this state may submit an application to the
204 commissioner during one of the two application windows. Each
205 fiscal year, a project must have a production start date that is
206 within 6 months after July 1 if applying in the first window or
207 within 6 months after January 1 if applying in the second
208 window.
209 (b) An applicant or its parent company may submit an
210 application for no more than five projects in any single fiscal
211 year. However, except in the case of a television pilot and the
212 television series the pilot is based on being certified within
213 the same fiscal year, only one project per applicant may be
214 certified within a fiscal year.
215 (c) The application must include:
216 1. Proof of funding;
217 2. Project-related employment information, including
218 employment numbers for residents of this state;
219 3. A full line-item budget and a detailed qualified
220 expenditures budget;
221 4. A detailed distribution plan to assist with determining
222 the potential economic impact of the project in this state;
223 5. The applicant’s expected total qualified expenditures
224 for wages paid to residents of this state;
225 6. The applicant’s expected total qualified expenditures
226 and nonqualified expenditures in this state;
227 7. For a film project, the latest script, a production
228 schedule, a Day Out of Days report, and a list of the expected
229 shooting locations;
230 8. For a digital media project, a detailed game design
231 document, including a production schedule;
232 9. For a television project that is a pilot, a final
233 script, a production schedule, a Day Out of Days report, and a
234 list of the expected shooting locations;
235 10. For a television project that is a series, the latest
236 scripts for at least two episodes and a production schedule, a
237 Day Out of Days report, and a list of the expected shooting
238 locations for the first episode;
239 11. An affirmation signed by the applicant that the
240 information on the application is correct; and
241 12. The applicant’s Florida tax identification number.
242 (d) Within a reasonable period of time after the last
243 business day of each application window, the commissioner shall:
244 1. Review all applications submitted during the application
245 window and determine the eligibility of each applicant;
246 2. Determine each applicant’s expected qualified
247 expenditures;
248 3. Determine the maximum tax credit each qualified
249 applicant may be awarded;
250 4. Determine whether a qualified applicant’s project is
251 deemed family friendly;
252 5. Determine the percentage of the applicant’s production,
253 if any, which is proposed to occur in an underutilized area;
254 6. Determine whether each qualified applicant is a
255 corporation registered in this state;
256 7. Contact each applicant with any questions, as necessary;
257 8. Gather any additional information needed to address the
258 criteria specified under subsection (6);
259 9. Assemble a package containing the details of each
260 qualified applicant’s project and deliver it to each council
261 member; and
262 10. Give notice to the council of the date and time when
263 the council must convene to assess each qualified project. The
264 council may meet in person or by conference call.
265 (e) The council shall determine a score for each qualified
266 project using the criteria specified under subsection (6), with
267 the highest scores going to projects determined to provide the
268 best economic impact and return on investment to this state.
269 (6) CRITERIA FOR DETERMINING PROJECT SCORES.—
270 (a) The priority order and scoring system of the criteria
271 specified in paragraph (b) must be determined by the
272 commissioner, with assistance from the council and other
273 persons, as determined by the commissioner, before the first
274 application window.
275 (b) The council shall use, at a minimum, the following
276 criteria in determining a qualified project’s score:
277 1. The amount of the project’s overall qualified
278 expenditures.
279 2. The amount of the project’s Florida-resident wages.
280 3. The number of full-time equivalent jobs created by the
281 project.
282 4. Whether the project provides pension, health, and
283 welfare benefits to its workforce in this state.
284 5. The estimated direct and indirect tourism benefit of the
285 project, based on the submitted distribution plan.
286 6. The duration of Florida-resident employment for the
287 project.
288 7. What percentage of the project, if any, is being made in
289 an underutilized area.
290 8. Whether the project is family friendly.
291 9. Whether the project has a Florida-resident writer,
292 producer, director, or star.
293 10. Whether a Florida film, television, or digital media
294 school will assist with the production of the project.
295 11. Whether the project leadership team has a successful
296 track record.
297 12. The number of Florida-resident veterans the project
298 will hire.
299 13. The number of Florida film school graduates the project
300 will hire as cast or crew.
301 (7) NOTIFICATION OF DECISION.—
302 (a) After the council determines a project’s score, the
303 commissioner shall, in a timely manner:
304 1. Make a final determination on certifying or rejecting
305 each qualified project, giving consideration to the council’s
306 scoring.
307 2. Provide a list of certified projects to the department
308 which includes the associated maximum tax credit that each
309 respective applicant may be awarded.
310 3. Notify each certified project of the specified
311 percentage of qualified expenditures for which it is eligible
312 and the maximum tax credit it may be awarded.
313 4. Provide a notice of rejection to each rejected
314 applicant; however, the failure to notify an applicant of its
315 rejection does not deem the applicant’s project a certified
316 project.
317 (b) Based on the final determination of the commissioner,
318 the department shall certify the project and its maximum tax
319 credit award, if any, to the applicant and to the executive
320 director of the Department of Revenue.
321 (8) VERIFICATION PROCESS.—
322 (a) The commissioner shall develop a process to verify the
323 actual qualified expenditures and bonus eligibility of a
324 certified project after the project’s work in this state is
325 complete. The process must require all of the following:
326 1. Submission to the commissioner of at least all of the
327 following information, electronically or in hard copy, or both,
328 by each certified project:
329 a. Data substantiating each qualified expenditure which has
330 been audited by an independent certified public accountant
331 licensed in this state, as required under subparagraph 4.;
332 b. Copies of documents verifying residency of persons
333 represented as being residents of this state, including an
334 affidavit signed by each resident;
335 c. The final script;
336 d. The most recent production board and shooting schedule;
337 e. The most recent credit list showing where the credits
338 required under subsection (9) will appear;
339 f. A cast list and a final crew list with contact
340 information;
341 g. For any veterans employed by the project, a copy of at
342 least one DD Form 214, as issued by the United States Department
343 of Defense, or another acceptable form of identification as
344 specified by the Department of Veterans’ Affairs; and
345 h. Any other information determined necessary by the
346 commissioner.
347 2. Signing, and submission to the commissioner, by the lead
348 producer or studio executive in charge of the certified project,
349 of an affidavit or a written declaration signed under the
350 penalty of perjury as specified in s. 92.525, Florida Statutes,
351 stating that all salaries, wages, and other compensation
352 submitted as qualified expenditures are in compliance with this
353 section.
354 3. The information and affidavit required by subparagraphs
355 1. and 2. must be received by the commissioner within 120 days
356 after the certified project has made its last qualified
357 expenditure but no later than 1 year after its production start
358 date. Pursuant to the rules adopted by the department, the
359 commissioner may, upon a showing of good cause, grant a one-time
360 extension of this deadline.
361 4. A compliance audit conducted at the certified project’s
362 expense by an independent certified public accountant who is a
363 resident of this state to substantiate the qualified
364 expenditures, and submission of a report of the audit findings,
365 including substantiating data, to the commissioner within a
366 reasonable period of time after the initial receipt of records
367 from the certified project.
368 (b) The commissioner shall review the report and data
369 required under paragraph (a) within a reasonable period of time
370 after receipt of the report and data and shall report to the
371 department the final verified amount of actual qualified
372 expenditures the certified project made and the amount of the
373 total tax credit award due the project.
374 (c) The department shall determine and approve the final
375 tax credit award amount to each certified applicant based on the
376 final verified amount of actual qualified expenditures and shall
377 notify the executive director of the Department of Revenue in
378 writing that the certified production has met the requirements
379 of the incentive program and of the final amount of the tax
380 credit award. The final tax credit award amount may not exceed
381 the maximum tax credit award amount certified under paragraph
382 (7)(b). The tax credit must be issued within a reasonable period
383 of time.
384 (9) MARKETING AND TOURISM REQUIREMENT.—
385 (a) The commissioner shall ensure, as a condition of
386 receiving a tax credit under this section, that a certified
387 project includes marketing promoting this state as a tourist
388 destination or film and entertainment production destination. At
389 a minimum, the marketing must include placement in the end
390 credits of a “Filmed in Florida” or “Produced in Florida” logo,
391 with size and placement commensurate to other logos included in
392 the end credits, or, if no logos are used, the statement “Filmed
393 in Florida” or “Produced in Florida” or a similar statement
394 approved by the commissioner and the logo of the local film
395 office, if applicable. A digital media project must also supply
396 a 5-second or longer animated logo with “Produced in Florida” or
397 other text, including the logo of the local digital media
398 office, if applicable, as preapproved by the commissioner, in a
399 manner easily seen by a consumer of the digital media project.
400 The commissioner shall provide the logos for the purposes
401 specified in this paragraph, not including the logo for a local
402 office, which must be provided by the applicable office.
403 (b) A certified project must allow the commissioner, or an
404 affiliate, and a minimum of two guests to visit the production
405 site upon the request of the commissioner. Upon such request,
406 the certified project must give the commissioner reasonable
407 notice of a visit date and time that is acceptable to the
408 production. The commissioner or an affiliate is not required to
409 make a visit to the set.
410 (c) A certified project must provide at least five
411 preapproved photos of the production to the commissioner and
412 grant the commissioner free use of the photos in promoting this
413 state as a film, television, or digital media production
414 location or tourist destination.
415 (10) DISQUALIFICATION.—The department shall disqualify a
416 certified project and may not issue a tax credit award to the
417 project if the project:
418 (a) Does not begin principal photography in this state
419 within the period beginning 30 days before and ending 90 days
420 after the project’s listed production start date. Pursuant to
421 department rule, the commissioner may, upon a showing of good
422 cause, grant a one-time extension of this deadline;
423 (b) Does not abide by the policies, procedures, deadlines,
424 or requirements of the application verification process;
425 (c) Does not notify the commissioner of any change in the
426 production start date before commencing production;
427 (d) Submits fraudulent information; or
428 (e) Uses the state sales tax exemption established under s.
429 288.1258, Florida Statutes.
430 (11) FRAUD.—An applicant that submits fraudulent
431 information under this section is liable for reimbursement of
432 the reasonable costs and fees associated with the review,
433 processing, investigation, and prosecution of the fraudulent
434 submission. An applicant that obtains a tax credit award under
435 this section through a claim that is fraudulent shall reimburse
436 the program for the tax credit awarded and reasonable costs and
437 fees associated with the review, processing, investigation, and
438 prosecution of the fraudulent claim and shall pay a civil
439 penalty in an amount equal to double the tax credit amount and
440 any criminal penalty assessed against the applicant.
441 (12) ELECTION AND DISTRIBUTION OF TAX CREDITS.—
442 (a) A certified production company receiving a tax credit
443 award under this section shall, at the time the credit is
444 awarded by the department after production is completed and all
445 requirements to receive a credit award have been met, make an
446 irrevocable election to apply the credit against taxes due under
447 chapter 220, Florida Statutes; against state taxes collected or
448 accrued under chapter 212, Florida Statutes; or against a stated
449 combination of the two taxes. The election is binding upon any
450 distributee, successor, transferee, or purchaser. The department
451 shall notify the Department of Revenue of any election made
452 pursuant to this paragraph.
453 (b) A qualified production company is eligible for tax
454 credits against its sales and use tax liabilities and corporate
455 income tax liabilities as provided in this section. However, tax
456 credits awarded under this section may not be claimed against
457 sales and use tax liabilities or corporate income tax
458 liabilities for any tax period beginning before July 1, 2022,
459 regardless of when the credits are applied for or awarded.
460 (c) If the certified production company cannot use the
461 entire tax credit in the taxable year or reporting period in
462 which the credit is awarded, any excess amount may be carried
463 forward to a succeeding taxable year or reporting period. A tax
464 credit applied against taxes imposed under chapter 212, Florida
465 Statutes, or chapter 220, Florida Statutes, may be carried
466 forward for a maximum of 5 years after the date the credit is
467 awarded, after which the credit expires and may not be used.
468 (d) A certified production company that files a
469 consolidated return as a member of an affiliated group under s.
470 220.131(1), Florida Statutes, may use the credit on a
471 consolidated return basis up to the amount of the tax imposed
472 upon the consolidated group under chapter 220, Florida Statutes.
473 (e) A certified production company that is not a
474 corporation as defined in s. 220.03(1)(e), Florida Statutes, may
475 elect to distribute tax credits awarded under this section to
476 its partners or members in proportion to their respective
477 distributive income or loss in the taxable year in which the tax
478 credits were awarded.
479 (f) Tax credits available under this section to a certified
480 production company may succeed to a surviving or acquiring
481 entity subject to the same conditions and limitations as
482 described in this section; however, the credits may not be
483 transferred by the surviving or acquiring entity.
484 (13) TRANSFER OF TAX CREDITS.—
485 (a) Upon application to the Office of Film and
486 Entertainment and approval by the department, a certified
487 production company, or a partner or member of a certified
488 production company, that has received a distribution under
489 paragraph (4)(g) may elect to transfer, in whole or in part, any
490 unused credit amount granted under this section. An election to
491 transfer any unused tax credit amount under chapter 212, Florida
492 Statutes, or chapter 220, Florida Statutes, must be made no
493 later than 5 years after the date the credit is awarded, after
494 which period the credit expires and may not be used. The
495 department shall notify the Department of Revenue of the
496 election and transfer. The original transferee and any
497 subsequent transferees must be either the certified company’s
498 parent company or a subsidiary company or a business with NAICS
499 code 512110, 512120, 512191, 512199, 512240, 512250, 512290,
500 515120, 515210, 517410, 541922, 711130, 711410, or 711510.
501 (b) A certified production company that elects to apply a
502 credit amount against taxes remitted under chapter 212, Florida
503 Statutes, is allowed a one-time transfer of unused credits to
504 one transferee. A certified production company that elects to
505 apply a credit amount against taxes due under chapter 220,
506 Florida Statutes, is allowed a one-time transfer of unused
507 credits to no more than four transferees, and such transfers
508 must occur in the same taxable year.
509 (c) A transferee receiving a tax credit has the same rights
510 and is subject to the same limitations as the certified
511 production company awarded the tax credit except that a
512 transferee receiving a tax credit may not subsequently transfer
513 the tax credit.
514 (14) RELINQUISHMENT OF TAX CREDITS.—
515 (a) Beginning July 1, 2022, a certified production company,
516 or any person who has acquired a tax credit from a certified
517 production company, may elect to relinquish the tax credit to
518 the Department of Revenue in exchange for payment of 85 percent
519 of the amount of the relinquished tax credit.
520 (b) The Department of Revenue may approve payments to
521 entities relinquishing tax credits pursuant to this subsection.
522 (c) Subject to legislative appropriation, the Department of
523 Revenue shall request the Chief Financial Officer to issue
524 warrants to entities relinquishing tax credits. Payments under
525 this subsection shall be made from the funds from which the
526 proceeds from the taxes against which the tax credits could have
527 been applied pursuant to the irrevocable election made by the
528 certified production company under subsection (4) are deposited.
529 (15) ANNUAL ALLOCATION OF TAX CREDITS.—
530 (a) The aggregate amount of tax credits allocated to the
531 program shall equal, but not exceed:
532 1. For fiscal year 2022-2023, $20 million.
533 2. For fiscal year 2023-2024, $20 million.
534 3. For fiscal year 2024-2025, $20 million.
535 4. For fiscal year 2025-2026, $20 million.
536 (b) Any portion of the maximum amount of tax credits
537 established per fiscal year in paragraph (a) which is not
538 certified by the end of that fiscal year shall be carried
539 forward and made available for certification during the
540 following 2 fiscal years in addition to the amounts available
541 under paragraph (a) for those fiscal years.
542 (c) Upon approval of the final tax credit award amount
543 pursuant to paragraph (8)(c), an amount equal to the difference
544 between the maximum tax credit award amount previously certified
545 under subsection (7) and the approved final tax credit award
546 amount shall immediately be available for recertification during
547 the current and following fiscal years in addition to the
548 amounts available under paragraph (a) for those fiscal years.
549 (d) If the total amount of credits applied for during a
550 fiscal year pursuant to subsection (5) exceeds the amount of
551 credits available for certification in that fiscal year, such
552 excess shall be treated as having been applied for on the first
553 day of the next fiscal year in which credits remain available
554 for certification.
555 (16) RULES, POLICIES, AND PROCEDURES.—The department may
556 adopt rules and develop policies and procedures to implement and
557 administer this section, including, but not limited to, rules
558 specifying requirements for the application and approval
559 process, records required for substantiation for tax credits,
560 the manner and form of documentation required to claim tax
561 credits awarded, transferred, or relinquished under this
562 section, marketing requirements for tax credit recipients, and
563 the examination and audit procedures required to administer this
564 section.
565 (17) AUDIT AUTHORITY; REVOCATION AND FORFEITURE OF TAX
566 CREDITS; FRAUDULENT CLAIMS.—
567 (a) The Department of Revenue may conduct examinations and
568 audits as provided in s. 213.34, Florida Statutes, to verify
569 that tax credits under this section are received, transferred,
570 and applied according to the requirements of this section. If
571 the Department of Revenue determines that tax credits are not
572 received, transferred, or applied as required by this section,
573 it may, in addition to the remedies provided in this subsection,
574 pursue recovery of such funds pursuant to the laws and rules
575 governing the assessment of taxes. The Department of Revenue may
576 adopt rules to administer this paragraph.
577 (b) The department may revoke or modify any written
578 decision qualifying, certifying, or otherwise granting
579 eligibility for tax credits under this section if it is
580 discovered that the tax credit applicant submitted any false
581 statement, representation, or certification in any application,
582 record, report, plan, or other document filed in an attempt to
583 receive tax credits under this section. The department shall
584 immediately notify the Department of Revenue of any revoked or
585 modified orders affecting previously granted tax credits.
586 Additionally, the applicant must notify the Department of
587 Revenue of any change in its tax credit claimed.
588 (c) A determination by the Department of Revenue, as a
589 result of an audit pursuant to paragraph (a) or from information
590 received from the Office of Film and Entertainment, that an
591 applicant received tax credits pursuant to this section to which
592 the applicant was not entitled is grounds for forfeiture of
593 previously claimed and received tax credits. The applicant is
594 responsible for returning forfeited tax credits to the
595 Department of Revenue, and such funds shall be paid into the
596 General Revenue Fund of the state. Tax credits purchased in good
597 faith are not subject to forfeiture unless the transferee
598 submitted fraudulent information in the purchase or failed to
599 meet the requirements in subsection (13).
600 (18) ANNUAL REPORT.—Each November 1, the commissioner shall
601 provide an annual report on the program for the previous fiscal
602 year to the Governor, the President of the Senate, and the
603 Speaker of the House of Representatives. The report must
604 identify the return on investment associated with, and economic
605 benefits to this state attributable to, the program.
606 (19) FUNDS NOT SUBJECT TO REVERSION.—Notwithstanding s.
607 216.301, Florida Statutes, funds appropriated for this purpose
608 are not subject to reversion.
609 (20) EXPIRATION.—The Targeted High Wage Production Program
610 expires June 30, 2026, at which point all remaining appropriated
611 funds not earmarked and set aside for certified projects must
612 revert to the General Revenue Fund. All remaining appropriated
613 funds must revert to the General Revenue Fund no later than
614 October 31, 2027.
615
616 ================= T I T L E A M E N D M E N T ================
617 And the title is amended as follows:
618 Delete line 101
619 and insert:
620 service provider to adopt rules; creating the Targeted
621 High Wage Production Program within the Department of
622 Economic Opportunity under the supervision of the
623 Commissioner of Film and Entertainment; providing a
624 purpose for the program; defining terms; requiring
625 that film, television, and digital media projects
626 being produced in this state meet specified criteria
627 to be eligible for tax credit awards; authorizing
628 applicants to receive awards up to a specified amount,
629 including bonuses; requiring a certified project to
630 make a good faith effort to use existing providers of
631 infrastructure or equipment in this state and to
632 employ residents of this state; requiring the
633 commissioner to set application windows; providing
634 requirements for the department relating to earmarking
635 and setting aside tax credit awards; requiring
636 applicants to either accept a partial tax credit award
637 or reject the partial award and drop out of the
638 program under certain circumstances; providing
639 procedures and requirements for applicants; requiring
640 the commissioner to take specified actions within a
641 reasonable period of time; requiring the Florida Film
642 and Entertainment Advisory Council to determine a
643 score for each qualified project using specified
644 criteria; requiring the commissioner to determine the
645 priority order and scoring system of the specified
646 criteria with assistance from the council and certain
647 other persons; requiring the council to use specified
648 criteria; requiring the commissioner to take specified
649 actions in a timely manner relating to the
650 certification or rejection of qualified projects;
651 requiring the department to certify projects and
652 maximum tax credit awards to qualified applicants and
653 the executive director of the Department of Revenue;
654 requiring the commissioner to develop a process to
655 verify the actual qualified expenditures and bonus
656 eligibility of a certified project after the project’s
657 work in this state is complete; providing requirements
658 for the verification process; requiring that the award
659 be issued within a reasonable period of time upon
660 approval of the final award amount; requiring that
661 certain marketing be included with a project;
662 requiring certified projects to allow certain persons
663 to visit the production site upon request of the
664 commissioner and after providing the commissioner with
665 reasonable notice; specifying that the commissioner or
666 his or her affiliate is not required to visit the
667 production site; requiring the department to
668 disqualify a project under certain circumstances;
669 providing for liability and imposing civil and
670 criminal penalties for an applicant that submits
671 fraudulent information; requiring certified production
672 companies to make elections relating to tax credit
673 awards; providing requirements and prohibitions
674 relating to tax credits; authorizing certain entities
675 to transfer tax credits under certain circumstances;
676 providing requirements and prohibitions relating to
677 transferring tax credits; authorizing certain entities
678 to relinquish tax credits for payments; providing
679 requirements and prohibitions relating to
680 relinquishing tax credits; providing for the annual
681 allocation of tax credits for the program; authorizing
682 the department to adopt rules; authorizing the
683 Department of Revenue to conduct certain examinations
684 and audits and pursue recovery of tax credits;
685 authorizing the Department of Revenue to adopt rules;
686 authorizing the Department of Economic Opportunity to
687 revoke or modify certain decisions relating to tax
688 credit eligibility under certain circumstances;
689 requiring the department to notify the Department of
690 Revenue of any such revocation or modification;
691 requiring applicants to notify the Department of
692 Revenue of any change in tax credit claimed; providing
693 for forfeiture of tax credits; requiring the
694 commissioner to provide an annual report to the
695 Governor and the Legislature on a specified date;
696 providing that certain appropriated funds are not
697 subject to reversion; providing for the expiration of
698 the program; providing an