Florida Senate - 2025                        COMMITTEE AMENDMENT
       Bill No. SB 1264
       
       
       
       
       
       
                                Ì744484@Î744484                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                   Comm: WD            .                                
                  03/31/2025           .                                
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       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