Florida Senate - 2022                          SENATOR AMENDMENT
       Bill No. CS for CS for SB 1382
                              LEGISLATIVE ACTION                        
                    Senate             .             House              

       Senator Gruters moved the following:
    1         Senate Amendment (with title amendment)
    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.
  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.
  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.
  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.
  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.
  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.
  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.
  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.
  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