Florida Senate - 2025 COMMITTEE AMENDMENT Bill No. SB 1264 Ì744484@Î744484 LEGISLATIVE ACTION Senate . House Comm: WD . 03/31/2025 . . . . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— The Committee on Commerce and Tourism (Collins) recommended the following: 1 Senate Amendment (with title amendment) 2 3 Delete lines 1617 - 1790 4 and insert: 5 (2) RISE PROGRAM CREATED.—There is established within the 6 department the Research, Innovation, Science, and Engineering 7 (RISE) Investment Tax Credit Program. The purpose of the program 8 is to increase venture capital investment in this state. The 9 department shall coordinate with the Florida Opportunity Fund 10 and the State Board of Administration in reviewing and approving 11 applications for tax credits under this section. 12 (3) DEFINITIONS.—As used in this section, the term: 13 (a) “Accredited investor” has the same meaning as in s. 14 517.021. 15 (b) “Advisory affiliate” has the same meaning as in s. 16 517.12(22). 17 (c) “Affiliate” has the same meaning as in s. 517.021. 18 (d) “Applicant” means an advisory affiliate, exempt 19 reporting adviser, or investment adviser who submits or updates 20 an application on behalf of a qualifying private fund. 21 (e) “Associated person” has the same meaning as in s. 22 517.021. 23 (f) “Company” means any business in this state, or a 24 business with more than 50 percent of its workforce in this 25 state, with 500 or fewer employees, and which is engaged in a 26 project. 27 (g) “Department” means the Department of Commerce. 28 (h) “Exempt reporting adviser” has the same meaning as in 29 s. 517.12(22). 30 (i) “Investment adviser” has the same meaning as in s. 31 517.021. 32 (j) “Investor” means any person or entity that has made a 33 capital contribution to a qualifying private fund. 34 (k) “Private fund adviser” has the same meaning as in s. 35 517.12(22). 36 (l) “Project” means research and development that leads to 37 or is anticipated to lead to the creation of new or useful 38 improvement of technologies, agricultural technologies, devices, 39 processes, machines, manufacturing, or composition of matter. A 40 project may result from the innovative activities of a company 41 or research at a university or college in this state. 42 (m) “Qualifying investment” has the same meaning as in 17 43 C.F.R. s. 275.203(l)-1(c)(3) and, for purposes of this section, 44 includes investment in one or more companies or projects. 45 (n) “Qualifying portfolio company” has the same meaning as 46 in 17 C.F.R. s. 275.203(l)-1(c)(4) and, for purposes of this 47 section, includes a company that meets the definition of 48 “company” in paragraph (f). 49 (o) “Qualifying private fund” has the same meaning as in s. 50 517.12(22) and includes the definition of “angel investor group” 51 as defined in s. 517.021. 52 (p) “Total capital commitment” means the total amount of 53 cash funding the qualifying private fund intends to raise to 54 make one or more qualifying investments in one or more 55 qualifying portfolio companies. 56 (4) APPLICATION.— 57 (a) An applicant must apply to the department for 58 authorization to claim RISE tax credits under this section. The 59 department must review and approve or deny a complete 60 application within 60 calendar days after the complete 61 application has been submitted. 62 (b) An applicant must demonstrate to the department’s 63 satisfaction within 12 months after the complete application has 64 been submitted that the qualifying private fund has received at 65 least the total capital commitment contained in its application. 66 (c) The application must include, at a minimum: 67 1. The names of any accredited investors, advisory 68 affiliates, affiliates, associated persons, exempt reporting 69 advisers, investment advisers, or private fund advisers 70 associated with the qualifying private fund, if there are any at 71 the time of application. 72 2. The names of any investors in the qualifying private 73 fund, if there are any at the time of application. 74 3. The estimated total number of qualifying investments in 75 qualifying portfolio companies. 76 4. The total capital commitment of the qualifying private 77 fund. 78 (d) If, at any time after an applicant has submitted a 79 complete application, there has been a material change that 80 affects the accuracy or completeness of the information 81 contained in the application, the applicant must update its 82 application. 83 (5) TAX CREDITS; GENERALLY.— 84 (a) The amount of tax credits available pursuant to this 85 section in a fiscal year may not exceed $100 million. 86 (b) The department may not issue a tax credit to a 87 qualifying private fund until the qualifying private fund 88 demonstrates that it has received its total capital commitment. 89 (c) The department may not authorize more than $10 million 90 in tax credits to a qualifying private fund in a fiscal year. 91 (6) TAX CREDITS; SUBMISSION AND AUTHORIZATION.— 92 (a) To receive tax credits, a qualifying private fund must 93 provide documentation that demonstrates to the department’s 94 reasonable satisfaction that the qualifying investment meets the 95 requirements of this section. For purposes of this section, 96 follow-on or add-on commitments may only be considered by the 97 department after the follow-on or add-on investment has been 98 deployed. 99 (b) A qualifying private fund must make at least one 100 qualified investment in at least one qualifying portfolio 101 project to be eligible to receive tax credits under this 102 section. 103 (c) Each submission by a qualifying private fund to receive 104 tax credits for a qualifying investment in a qualifying 105 portfolio company must include, at a minimum: 106 1. The amount of cash deployed by the qualifying private 107 fund to a qualifying investment in a qualifying portfolio 108 company. 109 2. The total number of employees employed by the qualifying 110 portfolio company. 111 3. The total number of Florida-based, full-time equivalent 112 employees employed by the qualifying portfolio company. 113 (7) TAX CREDITS; RECEIPT; REVOCATION.— 114 (a) A qualifying private fund may receive tax credits 115 equivalent to 25 percent of a qualifying investment in a 116 qualifying portfolio company. 117 (b) Upon a determination by the department that the 118 qualifying investment meets the requirements of this section, 119 the department shall authorize the Department of Revenue to 120 issue tax credits to the qualifying private fund. 121 (c) The Department of Revenue may not issue more than one 122 fifth of the tax credits authorized for a qualifying investment 123 in a qualifying portfolio company in a fiscal year. 124 (d) Credits received pursuant to this section may be 125 applied against the qualifying private fund’s corporate income 126 tax liability. A qualifying private fund may elect to sell or 127 transfer, in whole or in part, any tax credit issued under this 128 section. An election to sell or transfer any tax credit received 129 pursuant to this section must be made no later than 5 years 130 after the date the credit is received by the qualifying private 131 fund, after which the credit expires and may not be used. A 132 qualifying private fund may not sell or transfer credits that 133 have been authorized by the department but not yet issued by the 134 Department of Revenue. 135 (e) The department may revoke or modify any written 136 decision qualifying, certifying, or otherwise granting 137 eligibility for tax credits under this section if it is 138 discovered that the qualifying private fund submitted any false 139 statement, representation, or certification in any application 140 filed in an attempt to receive tax credits under this section, 141 or if the information in a previously completed application 142 materially changes. The department must immediately notify the 143 Department of Revenue of any revoked or modified orders 144 affecting previously granted tax credits. Additionally, the 145 qualifying private fund must notify the Department of Revenue of 146 any change in its tax credit claimed. 147 (8) COMPLIANCE.— 148 (a) A qualifying private fund must annually report to the 149 department for each qualifying investment for 5 years after 150 authorization to receive credits. Failure to do so will result 151 in the qualifying private fund’s tax credit being revoked. 152 (b) In order to receive a tax credit, a qualifying fund 153 must submit to the department the following: 154 1. A certification that there have been no material changes 155 to the information contained in the application or, if material 156 changes have occurred since the submission of the application, a 157 disclosure containing all material changes. 158 2. Documentation supporting the total number of full-time 159 equivalent employees employed by the qualifying portfolio 160 company. 161 3. Documentation supporting the total number of full-time 162 equivalent employees employed in this state by the qualifying 163 portfolio company. 164 4. Documentation supporting that the qualifying private 165 fund has not exited its position from the qualifying portfolio 166 company through acquisition by a company not based in this 167 state. 168 (9) SANCTIONS.— 169 (a) If a qualifying investment fails to meet the 170 requirements of paragraph (8)(a) or paragraph (8)(b), the 171 department must revoke its approval of tax credits for the 172 qualifying investment. The department shall issue a notice of 173 revocation and recapture to the qualifying private fund and the 174 Department of Revenue. The qualifying private fund must repay to 175 the department an amount equal to 50 percent of the tax credits 176 authorized by the department and claimed by a qualifying 177 portfolio company for the qualifying investment. Recaptured 178 funds must be deposited into the General Revenue Fund. 179 (b) If the department determines that the qualifying 180 private fund submitted any false statement, representation, or 181 certification in any application as provided in paragraph 182 (7)(e), the department must revoke its approval of tax credits 183 for the qualifying investment. The department shall issue a 184 notice of revocation and recapture to the qualifying private 185 fund and the Department of Revenue. The qualifying private fund 186 must repay to the department an amount equal to 100 percent of 187 the tax credits authorized by the department and claimed by a 188 qualifying portfolio company for the qualifying investment. 189 Recaptured funds must be deposited into the General Revenue 190 Fund. 191 (10) CONSTRUCTION.—For purposes of this section and part 192 III of chapter 692, committed capital invested in a qualifying 193 portfolio company by a venture capital fund may not be construed 194 as having ownership of the qualifying portfolio company. 195 (11) REPORTING.—Beginning December 30, 2026, the department 196 shall include the amounts of tax credits authorized and 197 received, the total number of jobs created, and the total number 198 of jobs created in this state in its annual incentives report 199 required under s. 288.0065. 200 (12) PRIORITY OF TAX CREDITS.—Fifty percent of the tax 201 credits provided in this section must be made available from 202 July 1 to December 31 of each year to provide tax credits for 203 qualifying investments in qualifying portfolio companies located 204 in rural communities as defined in s. 288.0656(2). All remaining 205 tax credits must be made available from January 1 to June 30 of 206 each year on a first-come, first-served basis, subject to the 207 eligibility of the qualifying investment. 208 (13) RULEMAKING.—The department is authorized to adopt 209 rules to implement this section. 210 211 ================= T I T L E A M E N D M E N T ================ 212 And the title is amended as follows: 213 Delete lines 179 - 192 214 and insert: 215 previously granted tax credits; requiring the 216 qualifying private fund to notify the Department of 217 Revenue of any change in its tax credit claimed; 218 requiring that a qualifying private fund annually 219 report to the department for each investment within a 220 specified timeframe in order to remain eligible to 221 receive tax credits; providing that failure to do so 222 will result in the qualifying private fund’s tax 223 credit being revoked; requiring a qualifying private 224 fund to submit specified information to the department 225 in order to receive a tax credit; requiring the 226 department to revoke its approval of tax credits for 227 the qualifying investment if it fails to meet certain 228 requirements; requiring the department to issue a 229 notice of revocation and recapture to the qualifying 230 private fund and the Department of Revenue; requiring 231 such qualifying private fund to repay to the 232 department an amount equal to a certain percent of the 233 tax credits authorized by the department and claimed 234 by a qualifying portfolio company for the qualifying 235 investment; requiring that such funds be deposited 236 into the General Revenue Fund; providing construction; 237 requiring the department to include specified 238 information in its annual incentives report beginning 239 on a specified date and annually thereafter; requiring 240 that a certain percentage of tax credits be made 241 available during a specified period of time for a 242 specified purpose; requiring that all remaining tax 243 credits be made available during a specified period of 244 time on a first-come, first-served basis, subject to 245 eligibility of the qualifying investment; authorizing 246 the department to