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2005 Florida Statutes
Community contribution tax credit; authorization; limitations; eligibility and application requirements; administration; definitions; expiration.
1624.5105 Community contribution tax credit; authorization; limitations; eligibility and application requirements; administration; definitions; expiration.--
(1) AUTHORIZATION TO GRANT TAX CREDITS; LIMITATIONS.--
(a) There shall be allowed a credit of 50 percent of a community contribution against any tax due for a calendar year under s. 624.509 or s. 624.510
(b) No insurer shall receive more than $200,000 in annual tax credits for all approved community contributions made in any one year.
(c) The total amount of tax credit which may be granted for all programs approved under this section and ss. 212.08(5)(q) and 220.183 is $12 million annually.
(d) Each proposal for the granting of such tax credit requires the prior approval of the director.
(e) If the credit granted pursuant to this section is not fully used in any one year because of insufficient tax liability on the part of the insurer, the unused amount may be carried forward for a period not to exceed 5 years. The carryover credit may be used in a subsequent year when the tax imposed by s. 624.509 or s. 624.510 for such year exceeds the credit under this section for such year.
(f) An insurer that claims a credit against premium-tax liability earned by making a community contribution under this section need not pay any additional retaliatory tax levied under s. 624.5091 as a result of claiming such a credit. Section 624.5091 does not limit such a credit in any manner.
(2) ELIGIBILITY REQUIREMENTS.--
(a) Each community contribution by an insurer must be in a form specified in subsection (5).
(b) Each community contribution must be reserved exclusively for use in a project as defined in s. 220.03(1)(t).
(c) The project must be undertaken by an "eligible sponsor," as defined in s. 220.183(2)(c). In no event shall a contributing insurer have a financial interest in the eligible sponsor.
(d) The project shall be located in an area designated as an enterprise zone or a Front Porch Community pursuant to s. 20.18(6). Any project designed to construct or rehabilitate housing for low-income or very-low-income households as defined in s. 420.9071(19) and (28) is exempt from the area requirement of this paragraph.
(e)1. For the first 6 months of the fiscal year, the Office of Tourism, Trade, and Economic Development shall reserve 80 percent of the first $10 million in available annual tax credits, and 70 percent of any available annual tax credits in excess of $10 million, for donations made to eligible sponsors for projects that provide homeownership opportunities for low-income or very-low-income households as defined in s. 420.9071(19) and (28). If any such reserved annual tax credits remain after the first 6 months of the fiscal year, the office may approve the balance of these available credits for donations made to eligible sponsors for projects other than those that provide homeownership opportunities for low-income or very-low-income households.
2. For the first 6 months of the fiscal year, the office shall reserve 20 percent of the first $10 million in available annual tax credits, and 30 percent of any available annual tax credits in excess of $10 million, for donations made to eligible sponsors for projects other than those that provide homeownership opportunities for low-income or very-low-income households as defined in s. 420.9071(19) and (28). If any reserved annual tax credits remain after the first 6 months of the fiscal year, the office may approve the balance of these available credits for donations made to eligible sponsors for projects that provide homeownership opportunities for low-income or very-low-income households.
3. If, during the first 10 business days of the state fiscal year, eligible tax credit applications are received for less than the available annual tax credits reserved under subparagraph 1., the office shall grant tax credits for those applications and shall grant remaining tax credits on a first-come, first-served basis for any subsequent eligible applications received before the end of the first 6 months of the state fiscal year. If, during the first 10 business days of the state fiscal year, eligible tax credit applications are received for more than the available annual tax credits reserved under subparagraph 1., the office shall grant the tax credits for the applications as follows:
a. If tax credit applications submitted for approved projects of an eligible sponsor do not exceed $200,000 in total, the credits shall be granted in full if the tax credit applications are approved, subject to subparagraph 1.
b. If tax credit applications submitted for approved projects of an eligible sponsor exceed $200,000 in total, the amount of tax credits granted under sub-subparagraph a. shall be subtracted from the amount of available tax credits under subparagraph 1., and the remaining credits shall be granted to each approved tax credit application on a pro rata basis.
c. If, after the first 6 months of the fiscal year, additional credits become available under subparagraph 2., the office shall grant the tax credits by first granting to those who received a pro rata reduction up to the full amount of their request and, if there are remaining credits, granting credits to those who applied on or after the 11th business day of the state fiscal year on a first-come, first-served basis.
4. If, during the first 10 business days of the state fiscal year, eligible tax credit applications are received for less than the available annual tax credits reserved under subparagraph 2., the office shall grant tax credits for those applications and shall grant remaining tax credits on a first-come, first-served basis for any subsequent eligible applications received before the end of the first 6 months of the state fiscal year. If, during the first 10 business days of the state fiscal year, eligible tax credit applications are received for more than the available annual tax credits reserved under subparagraph 2., the office shall grant the tax credits for the applications on a pro rata basis. If, after the first 6 months of the fiscal year, additional credits become available under subparagraph 1., the office shall grant the tax credits by first granting to those who received a pro rata reduction up to the full amount of their request and, if there are remaining credits, granting credits to those who applied on or after the 11th business day of the state fiscal year on a first-come, first-served basis.
(3) APPLICATION REQUIREMENTS.--
(a) Any eligible sponsor wishing to participate in this program must submit a proposal to the Office of Tourism, Trade, and Economic Development which sets forth the sponsor, the project, the area in which the project is located, and such supporting information as may be prescribed by rule. The proposal shall also contain a resolution from the local governmental unit in which the proposed project is located certifying that the project is consistent with local plans and regulations.
(b)1. Any insurer wishing to participate in this program must submit an application for tax credit to the office which sets forth the sponsor; the project; and the type, value, and purpose of the contribution. The sponsor must verify, in writing, the terms of the application and indicate its willingness to receive the contribution, which verification must accompany the application for tax credit.
2. The insurer must submit a separate application for tax credit for each individual contribution which it proposes to contribute to each individual project.
(4) ADMINISTRATION.--
(a)1. The Office of Tourism, Trade, and Economic Development is authorized to adopt all rules necessary to administer this section, including rules for the approval or disapproval of proposals by insurers.
2. The decision of the director shall be in writing, and, if approved, the proposal shall state the maximum credit allowable to the insurer. A copy of the decision shall be transmitted to the executive director of the Department of Revenue, who shall apply such credit to the tax liability of the insurer.
3. The office shall monitor all projects periodically, in a manner consistent with available resources to ensure that resources are utilized in accordance with this section; however, each project shall be reviewed no less frequently than once every 2 years.
4. The Office of Tourism, Trade, and Economic Development shall, in consultation with the Department of Community Affairs, the Florida Housing Finance Corporation, and the statewide and regional housing and financial intermediaries, market the availability of the community contribution tax credit program to community-based organizations.
(b) The Department of Revenue shall adopt any rules necessary to ensure the orderly implementation and administration of this section.
(5) DEFINITIONS.--For the purpose of this section:
(a) "Community contribution" means the grant by an insurer of any of the following items:
1. Cash or other liquid assets.
2. Real property.
3. Goods or inventory.
4. Other physical resources which are identified by the department.
(b) "Director" means the director of the Office of Tourism, Trade, and Economic Development.
(c) "Local government" means any county or incorporated municipality in the state.
(d) "Office" means the Office of Tourism, Trade, and Economic Development.
(e) "Project" means an activity as defined in s. 220.03(1)(t).
(6) EXPIRATION.--The provisions of this section, except paragraph (1)(e), shall expire and be void on June 30, 2015.
History.--s. 56, ch. 84-356; s. 124, ch. 91-112; s. 54, ch. 94-136; s. 149, ch. 96-320; s. 2, ch. 98-219; s. 2, ch. 99-265; s. 41, ch. 2000-210; s. 32, ch. 2001-201; s. 25, ch. 2004-243; s. 4, ch. 2005-282.
1Note.--Section 30, ch. 2005-287, provides that "[n]otwithstanding any other provision of law, for any business that has made a community contribution, as defined by s. 624.5105(5)(a), Florida Statutes, on or before December 31, 2005, and has received an approval letter from the Office of Tourism, Trade, and Economic Development, the credit carryover provisions of s. 624.5105(1)(e), Florida Statutes, remain in effect, unaffected by other sections of this act, until such time as the business has received the maximum credit allowed pursuant to s. 624.5105, Florida Statutes, as it existed on December 31, 2005."