Bill Text: FL H0697 | 2010 | Regular Session | Comm Sub

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Entertainment Industry Economic Development

Spectrum: Slight Partisan Bill (Republican 71-42)

Status: (Failed) 2010-04-30 - Died in Messages, companion bill(s) passed, see CS/SB 1752 (Ch. 2010-147) [H0697 Detail]

Download: Florida-2010-H0697-Comm_Sub.html

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CS/HB 697

1	A bill to be entitled
2	An act relating to entertainment industry economic
3	development; amending s. 288.1254, F.S.; revising the
4	entertainment industry financial incentive program to
5	provide corporate income tax and sales and use tax credits
6	to qualified entertainment entities rather than
7	reimbursements from appropriations; revising provisions
8	relating to definitions, creation and scope, application
9	procedures, approval process, eligibility, required
10	documents, qualified and certified productions, and annual
11	reports; providing duties and responsibilities of the
12	Office of Film and Entertainment, the Office of Tourism,
13	Trade, and Economic Development, and the Department of
14	Revenue relating to the tax credits; providing criteria
15	and limitations for awards of tax credits; providing for
16	uses, allocations, election, distributions, and
17	carryforward of the tax credits; providing for withdrawal
18	of tax credit eligibility; providing for use of
19	consolidated returns; providing for partnership and
20	noncorporate distributions of tax credits; providing for
21	succession of tax credits; providing requirements for
22	transfer of tax credits; authorizing the Office of
23	Tourism, Trade, and Economic Development to adopt rules,
24	policies, and procedures; authorizing the Department of
25	Revenue to adopt rules and conduct audits; providing for
26	revocation and forfeiture of tax credits; providing
27	liability for reimbursement of certain costs and fees
28	associated with a fraudulent claim; requiring an annual
29	report to the Governor and the Legislature; providing for
30	future repeal; amending s. 220.02, F.S.; including tax
31	credits enumerated in s. 288.1254, F.S., in the order of
32	application of credits against certain taxes; amending s.
33	213.053, F.S.; authorizing the Department of Revenue to
34	provide tax credit information to the Office of Film and
35	Entertainment and the Office of Tourism, Trade, and
36	Economic Development; amending s. 212.08, F.S.; limiting
37	application of the entertainment industry tax credits;
38	requiring electronic funds transfer for the tax credits;
39	providing procedures; providing severability; providing an
40	effective date.
41
42	Be It Enacted by the Legislature of the State of Florida:
43
44	Section 1. Section 288.1254, Florida Statutes, is amended
45	to read:
46	(Substantial rewording of section. See
47	s. 288.1254, F.S., for present text.)
48	288.1254 Entertainment industry financial incentive
49	program.-
50	(1) DEFINITIONS.-As used in this section, the term:
51	(a) "Certified production" means a qualified production
52	that has tax credits allocated to it by the Office of Tourism,
53	Trade, and Economic Development based on the production's
54	estimated qualified expenditures, up to the production's maximum
55	certified amount of tax credits, by the Office of Tourism,
56	Trade, and Economic Development. The term does not include a
57	production if the first date that it incurs production
58	expenditures in this state occurs before the production is
59	certified by the Office of Tourism, Trade, and Economic
60	Development.
61	(b) "Digital media project" means a production of
62	interactive entertainment that is produced for distribution in
63	commercial or educational markets. The term includes a video
64	game or production intended for Internet or wireless
65	distribution. The term does not include a production deemed by
66	the Office of Film and Entertainment to contain obscene content
67	as defined in s. 847.001(10).
68	(c) "High-impact television series" means a production
69	created to run multiple production seasons and having an
70	estimated order of at least seven episodes per season and
71	qualified expenditures of at least $625,000 per episode.
72	(d) "Off-season certified production" means a production,
73	other than a digital media project or an animated production,
74	commercial, music video, or documentary, which films 75 percent
75	or more of its principal photography days from June 1 through
76	November 30.
77	(e) "Principal photography" means the filming of major or
78	significant components of the qualified production which involve
79	lead actors.
80	(f) "Production" means a theatrical or direct-to-video
81	motion picture; a made-for-television motion picture; visual
82	effects or digital animation sequences produced in conjunction
83	with a motion picture; a commercial; a music video; an
84	industrial or educational film; an infomercial; a documentary
85	film; a television pilot program; a presentation for a
86	television pilot program; a television series, including, but
87	not limited to, a drama, a reality show, a comedy, a soap opera,
88	a telenovela, a game show, or a miniseries production; or a
89	digital media project by the entertainment industry. One season
90	of a television series is considered one production. The term
91	does not include a weather or market program; a sporting event;
92	a sports show; a gala; a production that solicits funds; a home
93	shopping program; a political program; a political documentary;
94	political advertising; a gambling-related project or production;
95	a concert production; or a local, regional, or Internet-
96	distributed-only news show, current-events show, pornographic
97	production, or current-affairs show. A production may be
98	produced on or by film, tape, or otherwise by means of a motion
99	picture camera; electronic camera or device; tape device;
100	computer; any combination of the foregoing; or any other means,
101	method, or device now used or later adopted.
102	(g) "Production expenditures" means the costs of tangible
103	and intangible property used for, and services performed
104	primarily and customarily in, production, including
105	preproduction and postproduction, but excluding costs for
106	development, marketing, and distribution. The term includes, but
107	is not limited to:
108	1. Wages, salaries, or other compensation paid to legal
109	residents of this state, including amounts paid through payroll
110	service companies, for technical and production crews,
111	directors, producers, and performers.
112	2. Expenditures for sound stages, backlots, production
113	editing, digital effects, sound recordings, sets, and set
114	construction.
115	3. Expenditures for rental equipment, including, but not
116	limited to, cameras and grip or electrical equipment.
117	4. Up to $300,000 of the costs of newly purchased computer
118	software and hardware unique to the project, including servers,
119	data processing, and visualization technologies, which are
120	located in and used exclusively in the state for the production
121	of digital media.
122	5. Expenditures for meals, travel, and accommodations.
123	(h) "Qualified expenditures" means production expenditures
124	incurred in this state by a qualified production for:
125	1. Goods purchased or leased from, or services, including,
126	but not limited to, insurance costs and bonding, payroll
127	services, and legal fees, which are provided by, a vendor or
128	supplier in this state that is registered with the Department of
129	State or the Department of Revenue and doing business in the
130	state and whose primary employees that facilitated the
131	transaction are legal residents of and doing business in this
132	state.
133	2. Payments to legal residents of this state in the form
134	of salary, wages, or other compensation up to a maximum of
135	$650,000 per resident unless otherwise specified in subsection
136	(4).
137
138	For a qualified production involving an event, such as an awards
139	show, the term does not include expenditures solely associated
140	with the event itself and not directly required by the
141	production. The term does not include expenditures incurred
142	before certification, with the exception of those incurred for a
143	commercial, a music video, or the pickup of additional episodes
144	of a high-impact television series within a single season.
145	(i) "Qualified production" means a production in this
146	state meeting the requirements of this section. The term does
147	not include a production:
148	1. In which, for the first 2 years of the incentive
149	program, less than 50 percent, and thereafter, less than 60
150	percent, of the positions that make up its production cast and
151	below-the-line production crew, or, in the case of digital media
152	projects, less than 75 percent of such positions, are filled by
153	legal residents of this state, whose residency is demonstrated
154	by a valid Florida driver's license or other state-issued
155	identification confirming residency, or students enrolled full-
156	time in a film-and-entertainment-related course of study at an
157	institution of higher education in this state; or
158	2. That is deemed by the Office of Film and Entertainment
159	to contain obscene content as defined in s. 847.001(10).
160	(j) "Qualified production company" means a corporation,
161	limited liability company, partnership, or other legal entity
162	engaged in one or more productions in this state.
163	(2) CREATION AND PURPOSE OF PROGRAM.-The entertainment
164	industry financial incentive program is created within the
165	Office of Film and Entertainment. The purpose of this program is
166	to encourage the use of this state as a site for filming, for
167	the digital production of films, and to develop and sustain the
168	workforce and infrastructure for film, digital media, and
169	entertainment production.
170	(3) APPLICATION PROCEDURE; APPROVAL PROCESS.-
171	(a) Program application.-A qualified production company
172	producing a qualified production in this state may submit a
173	program application to the Office of Film and Entertainment for
174	the purpose of determining qualification for an award of tax
175	credits authorized by this section no earlier than 6 months
176	before the first date that production expenditures are incurred
177	in this state. The applicant shall provide the Office of Film
178	and Entertainment with information required to determine whether
179	the production is a qualified production and to determine the
180	qualified expenditures and other information necessary for the
181	office to determine eligibility for the tax credit.
182	(b) Required documentation.-The Office of Film and
183	Entertainment shall develop an application form for qualifying
184	an applicant as a qualified production. The form must include,
185	but need not be limited to, production-related information
186	concerning employment of residents in this state, a detailed
187	budget of planned qualified expenditures, and the applicant's
188	signed affirmation that the information on the form has been
189	verified and is correct. The Office of Film and Entertainment
190	and local film commissions shall distribute the form.
191	(c) Application process.-The Office of Film and
192	Entertainment shall establish a process by which an application
193	is accepted and reviewed and by which tax credit eligibility and
194	award amount are determined. The Office of Film and
195	Entertainment may request assistance from a duly appointed local
196	film commission in determining compliance with this section.
197	(d) Certification.-The Office of Film and Entertainment
198	shall review the application within 15 business days after
199	receipt. Upon its determination that the application contains
200	all the information required by this subsection and meets the
201	criteria set out in this section, the Office of Film and
202	Entertainment shall qualify the applicant and recommend to the
203	Office of Tourism, Trade, and Economic Development that the
204	applicant be certified for the maximum tax credit award amount.
205	Within 5 business days after receipt of the recommendation, the
206	Office of Tourism, Trade, and Economic Development shall reject
207	the recommendation or certify the maximum recommended tax credit
208	award, if any, to the applicant and to the executive director of
209	the Department of Revenue.
210	(e) Grounds for denial.-The Office of Film and
211	Entertainment shall deny an application if it determines that
212	the application is not complete or the production or application
213	does not meet the requirements of this section.
214	(f) Verification of actual qualified expenditures.-
215	1. The Office of Film and Entertainment shall develop a
216	process to verify the actual qualified expenditures of a
217	certified production. The process must require:
218	a. A certified production to submit, in a timely manner
219	after principal photography, digital production, or the digital
220	media project ends and after making all of its qualified
221	expenditures, data substantiating each qualified expenditure to
222	an independent certified public accountant licensed in this
223	state;
224	b. Such accountant to conduct a compliance audit, at the
225	certified production's expense, to substantiate each qualified
226	expenditure and submit the results as a report, along with the
227	required substantiating data, to the Office of Film and
228	Entertainment; and
229	c. The Office of Film and Entertainment to review the
230	accountant's submittal and report to the Office of Tourism,
231	Trade, and Economic Development the final verified amount of
232	actual qualified expenditures made by the certified production.
233	2. The Office of Tourism, Trade, and Economic Development
234	shall determine and approve the final tax credit award amount to
235	each certified applicant based on the final verified amount of
236	actual qualified expenditures and shall notify the executive
237	director of the Department of Revenue in writing that the
238	certified production has met the requirements of the incentive
239	program and of the final amount of the tax credit award. The
240	final tax credit award amount may not exceed the maximum tax
241	credit award amount certified under paragraph (d).
242	(g) Promoting Florida.-The Office of Film and
243	Entertainment shall ensure that, as a condition of receiving a
244	tax credit under this section, marketing materials promoting
245	this state as a tourist destination or film and entertainment
246	production destination are included, when appropriate, at no
247	cost to the state, which must, at a minimum, include placement
248	of a "Filmed in Florida" or "Produced in Florida" logo in the
249	opening credits and end credits and on all packaging material
250	and hard media, unless prohibited by licensing or other
251	contractual obligations. The size and placement of such logo
252	shall be commensurate to other logos used. If no logos are used,
253	the statement "Filmed in Florida using Florida's Entertainment
254	Industry Financial Incentive," or a similar statement approved
255	by the Office of Film and Entertainment, shall be used. The
256	Office of Film and Entertainment shall provide a logo and supply
257	it for the purposes specified in this paragraph.
258	(4) TAX CREDIT ELIGIBILITY; TAX CREDIT AWARDS; QUEUES;
259	ELECTION AND DISTRIBUTION; CARRYFORWARD; CONSOLIDATED RETURNS;
260	PARTNERSHIP AND NONCORPORATE DISTRIBUTIONS; MERGERS AND
261	ACQUISITIONS.-
262	(a) Priority for tax credit award.-The priority of a
263	qualified production for tax credit awards must be determined on
264	a first-come, first-served basis within its appropriate queue.
265	Each qualified production must be placed into the appropriate
266	queue and is subject to the requirements of that queue.
267	(b) Tax credit eligibility.-
268	1. General production queue.-Ninety-four percent of tax
269	credits authorized in any state fiscal year must be dedicated to
270	the general production queue. The general production queue
271	consists of all qualified productions other than those eligible
272	for the commercial and music video queue or the independent
273	production queue. A qualified production that demonstrates a
274	minimum of $625,000 in qualified expenditures is eligible for
275	tax credits equal to 20 percent of its actual qualified
276	expenditures, up to a maximum of $12 million. A qualified
277	production that incurs qualified expenditures during multiple
278	state fiscal years may combine those expenditures to satisfy the
279	$625,000 minimum threshold.
280	a. An off-season certified production that is a feature
281	film, independent film, or television series or pilot is
282	eligible for an additional 5-percent tax credit on actual
283	qualified expenditures. An off-season certified production that
284	does not complete 75 percent of principal photography due to a
285	disruption caused by a hurricane or tropical storm may not be
286	disqualified from eligibility for the additional 5-percent
287	credit as a result of the disruption.
288	b. A qualified high-impact television series shall be
289	allowed first position in this queue for tax credit awards not
290	yet certified.
291	2. Commercial and music video queue.-Three percent of tax
292	credits authorized in any state fiscal year must be dedicated to
293	the commercial and music video queue. A qualified production
294	company that produces national or regional commercials or music
295	videos may be eligible for a tax credit award if it demonstrates
296	a minimum of $100,000 in qualified expenditures per national or
297	regional commercial or music video and exceeds a combined
298	threshold of $500,000 after combining actual qualified
299	expenditures from qualified commercials and music videos during
300	a single state fiscal year. After a qualified production company
301	that produces commercials, music videos, or both reaches the
302	threshold of $500,000, it is eligible to apply for certification
303	for a tax credit award. The maximum credit award shall be equal
304	to 20 percent of its actual qualified expenditures up to a
305	maximum of $500,000. If there is a surplus at the end of a
306	fiscal year after the Office of Film and Entertainment certifies
307	and determines the tax credits for all qualified commercial and
308	video projects, such surplus tax credits shall be carried
309	forward to the following fiscal year and be available to any
310	eligible qualified productions under the general production
311	queue.
312	3. Independent production queue.-Three percent of tax
313	credits authorized in any state fiscal year must be dedicated to
314	the independent production queue. An independent Florida film or
315	digital media project that meets the criteria of this
316	subparagraph and demonstrates a minimum of $100,000, but not
317	more than $625,000, in total qualified expenditures is eligible
318	for tax credits equal to 20 percent of its actual qualified
319	expenditures. To qualify for this tax credit, a qualified
320	production must:
321	a. Be planned as a feature film or documentary of at least
322	70 minutes in length or be a digital media project.
323	b. Employ legal residents of this state in at least two of
324	the following key positions: writer, director, producer, star,
325	or composer; or, in the case of a digital media project, employ
326	legal residents of this state in at least two positions
327	functionally equivalent to the positions of writer, director,
328	producer, star, or composer.
329	4. Family-friendly productions.-A certified production
330	determined by the Commissioner of Film and Entertainment, with
331	the advice of the Florida Film and Entertainment Advisory
332	Council, to be family-friendly, based on the review of the
333	script and the review of the final release version, is eligible
334	for an additional tax credit equal to 5 percent of its actual
335	qualified expenditures. Family-friendly productions are those
336	that have cross-generational appeal; would be considered
337	suitable for viewing by children age 5 or older; are appropriate
338	in theme, content, and language for a broad family audience;
339	embody a responsible resolution of issues; and do not exhibit or
340	imply any act of smoking, sex, nudity, nontraditional family
341	values, gratuitous violence, or vulgar or profane language.
342	(c) Withdrawal of tax credit eligibility.-A qualified or
343	certified production must continue on a reasonable schedule,
344	which means beginning principal photography, or, in the case of
345	a digital media project, the start date of the production, in
346	this state no more than 45 calendar days before or after the
347	date provided in the production's program application. The
348	Office of Tourism, Trade, and Economic Development shall
349	withdraw the eligibility of a qualified or certified production
350	that does not continue on a reasonable schedule.
351	(d) Election and distribution of tax credits.-
352	1. A certified production company receiving a tax credit
353	award under this section shall, at the time the credit is
354	awarded by the Office of Tourism, Trade, and Economic
355	Development after production is completed and all requirements
356	to receive a credit award have been met, make an irrevocable
357	election to apply the credit against taxes due under chapter
358	220, against taxes collected or accrued under chapter 212,
359	except that the credit authorized under this section may not be
360	applied against discretionary sales surtaxes authorized under s.
361	212.055, or against a stated combination of the two taxes. The
362	election is binding upon any distributee, successor, transferee,
363	or purchaser. The Office of Tourism, Trade, and Economic
364	Development shall notify the Department of Revenue of any
365	election made pursuant to this paragraph.
366	2. For the fiscal years beginning July 1, 2010, and ending
367	June 30, 2015, a qualified production company is eligible for
368	tax credits against its sales and use tax liabilities and
369	corporate income tax liabilities as provided in this section.
370	However, tax credits awarded under this section may not be
371	claimed against sales and use tax liabilities or corporate
372	income tax liabilities for any tax period beginning before July
373	1, 2011, regardless of when the credits are applied for or
374	awarded.
375	(e) Tax credit carryforward.-If the certified production
376	company cannot use the entire tax credit in the taxable year or
377	reporting period in which the credit is awarded, any excess
378	amount may be carried forward to a succeeding taxable year or
379	reporting period. A tax credit applied against taxes imposed
380	under chapter 212 may be carried forward for a maximum of 5
381	years after the date the credit is awarded. A tax credit applied
382	against taxes imposed under chapter 220 may be carried forward
383	for a maximum of 5 years after the date the credit is awarded,
384	after which the credit expires and may not be used.
385	(f) Consolidated returns.-A certified production company
386	that files a Florida consolidated return as a member of an
387	affiliated group under s. 220.131(1) may be allowed the credit
388	on a consolidated return basis up to the amount of the tax
389	imposed upon the consolidated group under chapter 220.
390	(g) Partnership and noncorporate distributions.-A
391	qualified production company that is not a corporation as
392	defined in s. 220.03 may elect to distribute tax credits awarded
393	under this section to its partners or members in proportion to
394	their respective distributive income or loss in the taxable
395	fiscal year in which the tax credits were awarded.
396	(h) Mergers or acquisitions.-Tax credits available under
397	this section to a certified production company may succeed to a
398	surviving or acquiring entity subject to the same conditions and
399	limitations as described in this section; however, they may not
400	be transferred again by the surviving or acquiring entity.
401	(5) TRANSFER OF TAX CREDITS.-
402	(a) Authorization.-Upon application to the Office of Film
403	and Entertainment and approval by the Office of Tourism, Trade,
404	and Economic Development, a certified production company, or a
405	partner or member that has received a distribution under
406	paragraph (4)(g), may elect to transfer, in whole or in part,
407	any unused credit amount granted under this section. An election
408	to transfer any unused tax credit amount under chapter 212 or
409	chapter 220 must be made no later than 5 years after the date
410	the credit is awarded, after which period the credit expires and
411	may not be used. The Office of Tourism, Trade, and Economic
412	Development shall notify the Department of Revenue of the
413	election and transfer.
414	(b) Number of transfers permitted.-A certified production
415	company that elects to apply a credit amount against taxes
416	remitted under chapter 212 is permitted a one-time transfer of
417	unused credits to one transferee. A certified production company
418	that elects to apply a credit amount against taxes due under
419	chapter 220 is permitted a one-time transfer of unused credits
420	to no more than four transferees, and such transfers must occur
421	in the same taxable year.
422	(c) Transferee rights and limitations.-The transferee is
423	subject to the same rights and limitations as the certified
424	production company awarded the tax credit, except that the
425	transferee may not sell or otherwise transfer the tax credit.
426	(d) Rulemaking.-The Department of Revenue may adopt rules
427	to administer this subsection, as provided in subsection (7).
428	(6) ANNUAL ALLOCATION OF TAX CREDITS.-
429	(a) The aggregate amount of the tax credits that may be
430	certified pursuant to paragraph (3)(d) may not exceed $75
431	million per fiscal year.
432	(b) Any portion of the maximum amount of tax credits
433	established per fiscal year in paragraph (a) that is not
434	certified as of the end of a fiscal year shall be carried
435	forward and made available for certification during the
436	following two fiscal years in addition to the amounts available
437	for certification under paragraph (a) for those fiscal years.
438	(c) Upon approval of the final tax credit award amount
439	pursuant to subparagraph (3)(f)2., an amount equal to the
440	difference between the maximum tax credit award amount
441	previously certified under paragraph (3)(d) and the approved
442	final tax credit award amount shall immediately be available for
443	recertification during the current and following fiscal years in
444	addition to the amounts available for certification under
445	paragraph (a) for those fiscal years. Credit amounts are
446	available for recertification only once under this paragraph.
447	(d) If, during a fiscal year, the total amount of credits
448	applied for, pursuant to paragraph (3)(a), exceeds the amount of
449	credits available for certification in that fiscal year, such
450	excess shall be treated as having been applied for on the first
451	day of the next fiscal year in which credits remain available
452	for certification.
453	(7) RULES, POLICIES, AND PROCEDURES.-
454	(a) The Office of Tourism, Trade, and Economic Development
455	may adopt rules pursuant to ss. 120.536(1) and 120.54 and
456	develop policies and procedures to implement and administer this
457	section, including, but not limited to, rules specifying
458	requirements for the application and approval process, records
459	required for substantiation for tax credits, procedures for
460	making the election in paragraph (4)(d), the manner and form of
461	documentation required to claim tax credits awarded or
462	transferred under this section, and marketing requirements for
463	tax credit recipients.
464	(b) The Department of Revenue may adopt rules pursuant to
465	ss. 120.536(1) and 120.54 to administer this section, including
466	rules governing the examination and audit procedures required to
467	administer this section and the manner and form of documentation
468	required to claim tax credits awarded or transferred under this
469	section.
470	(8) AUDIT AUTHORITY; REVOCATION AND FORFEITURE OF TAX
471	CREDITS; FRAUDULENT CLAIMS.-
472	(a) Audit authority.-The Department of Revenue may conduct
473	examinations and audits as provided in s. 213.34 to verify that
474	tax credits under this section are received, transferred, and
475	applied according to the requirements of this section. If the
476	Department of Revenue determines that tax credits are not
477	received, transferred, or applied as required by this section,
478	it may, in addition to the remedies provided in this subsection,
479	pursue recovery of such funds pursuant to the laws and rules
480	governing the assessment of taxes.
481	(b) Revocation of tax credits.-The Office of Tourism,
482	Trade, and Economic Development may revoke or modify any written
483	decision qualifying, certifying, or otherwise granting
484	eligibility for tax credits under this section if it is
485	discovered that the tax credit applicant submitted any false
486	statement, representation, or certification in any application,
487	record, report, plan, or other document filed in an attempt to
488	receive tax credits under this section. The Office of Tourism,
489	Trade, and Economic Development shall immediately notify the
490	Department of Revenue of any revoked or modified orders
491	affecting previously granted tax credits. Additionally, the
492	applicant must notify the Department of Revenue of any change in
493	its tax credit claimed.
494	(c) Forfeiture of tax credits.-A determination by the
495	Department of Revenue, as a result of an audit or examination by
496	the Department of Revenue or from information received from the
497	Office of Film and Entertainment, that an applicant received tax
498	credits pursuant to this section to which the applicant was not
499	entitled is grounds for forfeiture of previously claimed and
500	received tax credits. The applicant is responsible for returning
501	forfeited tax credits to the Department of Revenue, and such
502	funds shall be paid into the General Revenue Fund of the state.
503	Tax credits purchased in good faith are not subject to
504	forfeiture unless the transferee submitted fraudulent
505	information in the purchase or failed to meet the requirements
506	in subsection (5).
507	(d) Fraudulent claims.-Any applicant that submits
508	fraudulent information under this section is liable for
509	reimbursement of the reasonable costs and fees associated with
510	the review, processing, investigation, and prosecution of the
511	fraudulent claim. An applicant that obtains a credit payment
512	under this section through a claim that is fraudulent is liable
513	for reimbursement of the credit amount plus a penalty in an
514	amount double the credit amount. The penalty is in addition to
515	any criminal penalty to which the applicant is liable for the
516	same acts. The applicant is also liable for costs and fees
517	incurred by the state in investigating and prosecuting the
518	fraudulent claim.
519	(9) ANNUAL REPORT.-Each October 1, the Office of Film and
520	Entertainment shall provide an annual report for the previous
521	fiscal year to the Governor, the President of the Senate, and
522	the Speaker of the House of Representatives which outlines the
523	return on investment and economic benefits to the state.
524	(10) REPEAL.-This section is repealed July 1, 2015, except
525	that the tax credit carryforward provided in this section shall
526	continue to be valid for the period specified.
527	Section 2. Subsection (8) of section 220.02, Florida
528	Statutes, is amended to read:
529	220.02 Legislative intent.-
530	(8) It is the intent of the Legislature that credits
531	against either the corporate income tax or the franchise tax be
532	applied in the following order: those enumerated in s. 631.828,
533	those enumerated in s. 220.191, those enumerated in s. 220.181,
534	those enumerated in s. 220.183, those enumerated in s. 220.182,
535	those enumerated in s. 220.1895, those enumerated in s. 221.02,
536	those enumerated in s. 220.184, those enumerated in s. 220.186,
537	those enumerated in s. 220.1845, those enumerated in s. 220.19,
538	those enumerated in s. 220.185, those enumerated in s. 220.187,
539	those enumerated in s. 220.192, those enumerated in s. 220.193,
540	and those enumerated in s. 288.9916, and those enumerated in s.
541	288.1254.
542	Section 3. Paragraph (z) is added to subsection (8) of
543	section 213.053, Florida Statutes, to read:
544	213.053 Confidentiality and information sharing.-
545	(8) Notwithstanding any other provision of this section,
546	the department may provide:
547	(z) Information relative to tax credits taken under s.
548	288.1254 to the Office of Film and Entertainment and the Office
549	of Tourism, Trade, and Economic Development.
550
551	Disclosure of information under this subsection shall be
552	pursuant to a written agreement between the executive director
553	and the agency. Such agencies, governmental or nongovernmental,
554	shall be bound by the same requirements of confidentiality as
555	the Department of Revenue. Breach of confidentiality is a
556	misdemeanor of the first degree, punishable as provided by s.
557	775.082 or s. 775.083.
558	Section 4. Paragraph (q) is added to subsection (5) of
559	section 212.08, Florida Statutes, to read:
560	212.08 Sales, rental, use, consumption, distribution, and
561	storage tax; specified exemptions.-The sale at retail, the
562	rental, the use, the consumption, the distribution, and the
563	storage to be used or consumed in this state of the following
564	are hereby specifically exempt from the tax imposed by this
565	chapter.
566	(5) EXEMPTIONS; ACCOUNT OF USE.-
567	(q) Entertainment industry tax credit; authorization;
568	eligibility for credits.-The credit shall be deducted from any
569	sales and use tax remitted by the dealer to the department by
570	electronic funds transfer and may only be deducted on a sales
571	and use tax return initiated through electronic data
572	interchange. The dealer shall separately state the credit on the
573	electronic return. The net amount of tax due and payable must be
574	remitted by electronic funds transfer. If the credit for the
575	qualified expenditures is larger than the amount owed on the
576	sales and use tax return that is eligible for the credit, the
577	unused amount of the credit may be carried forward to a
578	succeeding reporting period as provided in s. 288.1254(4)(e). A
579	dealer may only obtain a credit using the method described in
580	this subparagraph. A dealer is not authorized to obtain a credit
581	by applying for a refund.
582	Section 5. If any provision of this act or the application
583	thereof to any person or circumstance is held invalid, the
584	invalidity shall not affect other provisions or applications of
585	the act which can be given effect without the invalid provision
586	or application, and to this end the provisions of this act are
587	declared severable.
588	Section 6. This act shall take effect July 1, 2010.

CODING: Words stricken are deletions; words underlined are additions.