Bill Text: FL H0873 | 2011 | Regular Session | Comm Sub

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

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Bill Title: Corporate Tax Credits and Refunds

Spectrum: Bipartisan Bill

Status: (Failed) 2011-05-07 - Died in Conference Committee, companion bill(s) passed, see CS/HB 143 (Ch. [H0873 Detail]

Download: Florida-2011-H0873-Comm_Sub.html

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CS/CS/HB 873

1	A bill to be entitled
2	An act relating to corporate tax credits and refunds;
3	amending s. 14.2015, F.S.; authorizing the Office of
4	Tourism, Trade, and Economic Development to administer
5	corporate income tax credits for spaceflight projects;
6	amending s. 213.053, F.S.; authorizing the Department of
7	Revenue to share information relating to corporate income
8	tax credits for spaceflight projects with the Office of
9	Tourism, Trade, and Economic Development; amending s.
10	220.02, F.S.; revising the order in which credits against
11	the corporate income tax or franchise tax may be taken to
12	include credits for spaceflight projects; amending s.
13	220.13, F.S.; requiring that the amount taken as a credit
14	for a spaceflight project be added to taxable income;
15	prohibiting a deduction from taxable income for any net
16	operating loss taken as a credit against corporate income
17	taxes or transferred; amending s. 220.16, F.S.; requiring
18	that the amount of payments received in exchange for
19	transferring a net operating loss for spaceflight projects
20	be allocated to the state; creating s. 220.194, F.S.;
21	providing a short title; providing legislative purpose;
22	defining terms; authorizing a certified spaceflight
23	business to take or transfer corporate income tax credits
24	related to spaceflight projects carried out in this state;
25	specifying tax credit amounts and business eligibility
26	criteria; providing limitations; requiring a business to
27	demonstrate to the satisfaction of the office and the
28	department its eligibility to claim a tax credit;
29	requiring a business to submit an application to the
30	office for approval to earn credits; specifying the
31	required contents of the application; requiring the office
32	to approve or deny an application within 60 days after
33	receipt; specifying the approval process; requiring a
34	spaceflight business to submit an application for
35	certification to the office; specifying the required
36	contents of an application for certification; specifying
37	the approval process; requiring the office to submit a
38	copy of an approved certification to the department;
39	providing procedures for transferring a tax credit to a
40	taxpayer; authorizing the department to perform audits and
41	investigations necessary to verify the accuracy of returns
42	relating to the tax credit; specifying circumstances under
43	which the office may revoke or modify a certification that
44	grants eligibility for tax credits; requiring a certified
45	spaceflight business to file an amended return and pay any
46	required tax within 60 days after receiving notice that
47	previously approved tax credits have been revoked or
48	modified; authorizing the department to assess additional
49	taxes, interest, or penalties; authorizing the office and
50	the department to adopt rules; requiring the office to
51	submit an annual report to the Governor and Legislature
52	regarding the Florida Space Business Incentives Act;
53	amending s. 288.1045, F.S.; increasing the maximum amount
54	of tax refund a defense or space flight contractor may
55	receive; amending s. 288.106, F.S.; increasing the maximum
56	amount of tax refund a qualified target industry business
57	may receive; providing for application; providing an
58	effective date.
59
60	Be It Enacted by the Legislature of the State of Florida:
61
62	Section 1.  Paragraph (f) of subsection (2) of section
63	14.2015, Florida Statutes, is amended to read:
64	14.2015  Office of Tourism, Trade, and Economic
65	Development; creation; powers and duties.-
66	(2)  The purpose of the Office of Tourism, Trade, and
67	Economic Development is to assist the Governor in working with
68	the Legislature, state agencies, business leaders, and economic
69	development professionals to formulate and implement coherent
70	and consistent policies and strategies designed to provide
71	economic opportunities for all Floridians. To accomplish such
72	purposes, the Office of Tourism, Trade, and Economic Development
73	shall:
74	(f)1.  Administer the Florida Enterprise Zone Act under ss.
75	290.001-290.016, the community contribution tax credit program
76	under ss. 220.183 and 624.5105, the tax refund program for
77	qualified target industry businesses under s. 288.106, the tax-
78	refund program for qualified defense contractors and space
79	flight business contractors under s. 288.1045, contracts for
80	transportation projects under s. 288.063, the sports franchise
81	facility programs under ss. 288.1162 and 288.11621, the
82	professional golf hall of fame facility program under s.
83	288.1168, the expedited permitting process under s. 403.973, the
84	Rural Community Development Revolving Loan Fund under s.
85	288.065, the Regional Rural Development Grants Program under s.
86	288.018, the Certified Capital Company Act under s. 288.99, the
87	Florida State Rural Development Council, the Rural Economic
88	Development Initiative, the corporate income tax credits for
89	spaceflight projects under s. 220.194, and other programs that
90	are specifically assigned to the office by law, by the
91	appropriations process, or by the Governor.
92	1.  Notwithstanding any other provisions of law, the office
93	may expend interest earned from the investment of program funds
94	deposited in the Grants and Donations Trust Fund to contract for
95	the administration of the programs, or portions of the programs,
96	enumerated in this paragraph or assigned to the office by law,
97	by the appropriations process, or by the Governor. Such
98	expenditures are shall be subject to review under chapter 216.
99	2.  The office may enter into contracts in connection with
100	the fulfillment of its duties concerning the Florida First
101	Business Bond Pool under chapter 159, tax incentives under
102	chapters 212 and 220, tax incentives under the Certified Capital
103	Company Act in chapter 288, foreign offices under chapter 288,
104	the Enterprise Zone program under chapter 290, the Seaport
105	Employment Training program under chapter 311, the Florida
106	Professional Sports Team License Plates under chapter 320,
107	Spaceport Florida under chapter 331, Expedited Permitting under
108	chapter 403, and in carrying out other functions that are
109	specifically assigned to the office by law, by the
110	appropriations process, or by the Governor.
111	Section 2.  Paragraph (cc) is added to subsection (8) of
112	section 213.053, Florida Statutes, to read:
113	213.053  Confidentiality and information sharing.-
114	(8)  Notwithstanding any other provision of this section,
115	the department may provide:
116	(cc)  Information relating to tax credits taken under s.
117	220.194 to the Office of Tourism, Trade, and Economic
118	Development or to Space Florida.
119
120	Disclosure of information under this subsection shall be
121	pursuant to a written agreement between the executive director
122	and the agency. Such agencies, governmental or nongovernmental,
123	shall be bound by the same requirements of confidentiality as
124	the Department of Revenue. Breach of confidentiality is a
125	misdemeanor of the first degree, punishable as provided by s.
126	775.082 or s. 775.083.
127	Section 3.  Subsection (8) of section 220.02, Florida
128	Statutes, is amended to read:
129	220.02  Legislative intent.-
130	(8)  It is the intent of the Legislature that credits
131	against either the corporate income tax or the franchise tax be
132	applied in the following order: those enumerated in s. 631.828,
133	those enumerated in s. 220.191, those enumerated in s. 220.181,
134	those enumerated in s. 220.183, those enumerated in s. 220.182,
135	those enumerated in s. 220.1895, those enumerated in s. 221.02,
136	those enumerated in s. 220.184, those enumerated in s. 220.186,
137	those enumerated in s. 220.1845, those enumerated in s. 220.19,
138	those enumerated in s. 220.185, those enumerated in s. 220.1875,
139	those enumerated in s. 220.192, those enumerated in s. 220.193,
140	those enumerated in s. 288.9916, those enumerated in s.
141	220.1899, and those enumerated in s. 220.1896, and those
142	enumerated in s. 220.194.
143	Section 4.  Paragraphs (a) and (b) of subsection (1) of
144	section 220.13, Florida Statutes, are amended to read:
145	220.13  "Adjusted federal income" defined.-
146	(1)  The term "adjusted federal income" means an amount
147	equal to the taxpayer's taxable income as defined in subsection
148	(2), or such taxable income of more than one taxpayer as
149	provided in s. 220.131, for the taxable year, adjusted as
150	follows:
151	(a)  Additions.-The following There shall be added to such
152	taxable income:
153	1.  The amount of any tax upon or measured by income,
154	excluding taxes based on gross receipts or revenues, paid or
155	accrued as a liability to the District of Columbia or any state
156	of the United States which is deductible from gross income in
157	the computation of taxable income for the taxable year.
158	2.  The amount of interest which is excluded from taxable
159	income under s. 103(a) of the Internal Revenue Code or any other
160	federal law, less the associated expenses disallowed in the
161	computation of taxable income under s. 265 of the Internal
162	Revenue Code or any other law, excluding 60 percent of any
163	amounts included in alternative minimum taxable income, as
164	defined in s. 55(b)(2) of the Internal Revenue Code, if the
165	taxpayer pays tax under s. 220.11(3).
166	3.  In the case of a regulated investment company or real
167	estate investment trust, an amount equal to the excess of the
168	net long-term capital gain for the taxable year over the amount
169	of the capital gain dividends attributable to the taxable year.
170	4.  That portion of the wages or salaries paid or incurred
171	for the taxable year which is equal to the amount of the credit
172	allowable for the taxable year under s. 220.181. This
173	subparagraph expires shall expire on the date specified in s.
174	290.016 for the expiration of the Florida Enterprise Zone Act.
175	5.  That portion of the ad valorem school taxes paid or
176	incurred for the taxable year which is equal to the amount of
177	the credit allowable for the taxable year under s. 220.182. This
178	subparagraph expires shall expire on the date specified in s.
179	290.016 for the expiration of the Florida Enterprise Zone Act.
180	6.  The amount of emergency excise tax paid or accrued as a
181	liability to this state under chapter 221 which tax is
182	deductible from gross income in the computation of taxable
183	income for the taxable year.
184	7.  That portion of assessments to fund a guaranty
185	association incurred for the taxable year which is equal to the
186	amount of the credit allowable for the taxable year.
187	8.  In the case of a nonprofit corporation that which holds
188	a pari-mutuel permit and which is exempt from federal income tax
189	as a farmers' cooperative, an amount equal to the excess of the
190	gross income attributable to the pari-mutuel operations over the
191	attributable expenses for the taxable year.
192	9.  The amount taken as a credit for the taxable year under
193	s. 220.1895.
194	10.  Up to nine percent of the eligible basis of any
195	designated project which is equal to the credit allowable for
196	the taxable year under s. 220.185.
197	11.  The amount taken as a credit for the taxable year
198	under s. 220.1875. The addition in this subparagraph is intended
199	to ensure that the same amount is not allowed for the tax
200	purposes of this state as both a deduction from income and a
201	credit against the tax. This addition is not intended to result
202	in adding the same expense back to income more than once.
203	12.  The amount taken as a credit for the taxable year
204	under s. 220.192.
205	13.  The amount taken as a credit for the taxable year
206	under s. 220.193.
207	14.  Any portion of a qualified investment, as defined in
208	s. 288.9913, which is claimed as a deduction by the taxpayer and
209	taken as a credit against income tax pursuant to s. 288.9916.
210	15.  The costs to acquire a tax credit pursuant to s.
211	288.1254(5) which that are deducted from or otherwise reduce
212	federal taxable income for the taxable year.
213	16.  The amount taken as a credit for the taxable year
214	pursuant to s. 220.194.
215	(b)  Subtractions.-
216	1.  The following There shall be subtracted from such
217	taxable income:
218	a.  The net operating loss deduction allowable for federal
219	income tax purposes under s. 172 of the Internal Revenue Code
220	for the taxable year, except that any net operating loss that is
221	taken as a credit to corporate income taxes owed or that is
222	transferred pursuant to s. 220.194(6) may not be deducted by the
223	seller;
224	b.  The net capital loss allowable for federal income tax
225	purposes under s. 1212 of the Internal Revenue Code for the
226	taxable year;,
227	c.  The excess charitable contribution deduction allowable
228	for federal income tax purposes under s. 170(d)(2) of the
229	Internal Revenue Code for the taxable year;, and
230	d.  The excess contributions deductions allowable for
231	federal income tax purposes under s. 404 of the Internal Revenue
232	Code for the taxable year.
233
234	However, a net operating loss and a capital loss may not shall
235	never be carried back as a deduction to a prior taxable year,
236	but all deductions attributable to such losses shall be deemed
237	net operating loss carryovers and capital loss carryovers,
238	respectively, and treated in the same manner, to the same
239	extent, and for the same time periods as are prescribed for such
240	carryovers in ss. 172 and 1212, respectively, of the Internal
241	Revenue Code.
242	2.  The following There shall be subtracted from such
243	taxable income any amount to the extent included therein the
244	following:
245	a.  Dividends treated as received from sources without the
246	United States, as determined under s. 862 of the Internal
247	Revenue Code.
248	b.  All amounts included in taxable income under s. 78 or
249	s. 951 of the Internal Revenue Code.
250
251	However, as to any amount subtracted under this subparagraph,
252	there shall be added to such taxable income all expenses
253	deducted on the taxpayer's return for the taxable year which are
254	attributable, directly or indirectly, to such subtracted amount.
255	Further, no amount may shall be subtracted with respect to
256	dividends paid or deemed paid by a Domestic International Sales
257	Corporation.
258	3.  In computing "adjusted federal income" for taxable
259	years beginning after December 31, 1976, there shall be allowed
260	as a deduction the amount of wages and salaries paid or incurred
261	within this state for the taxable year for which no deduction is
262	allowed pursuant to s. 280C(a) of the Internal Revenue Code,
263	(relating to credit for employment of certain new employees,
264	shall be allowed as a deduction).
265	4.  There shall be subtracted from such taxable income Any
266	amount of nonbusiness income included therein shall be
267	subtracted from such taxable income.
268	5.  There shall be subtracted Any amount of taxes of
269	foreign countries allowable as credits for taxable years
270	beginning on or after September 1, 1985, under s. 901 of the
271	Internal Revenue Code to any corporation that which derived less
272	than 20 percent of its gross income or loss for its taxable year
273	ended in 1984 shall be subtracted from sources within the United
274	States, as described in s. 861(a)(2)(A) of the Internal Revenue
275	Code, not including credits allowed under ss. 902 and 960 of the
276	Internal Revenue Code, withholding taxes on dividends within the
277	meaning of sub-subparagraph 2.a., and withholding taxes on
278	royalties, interest, technical service fees, and capital gains.
279	6.  Notwithstanding any other provision of this code,
280	except with respect to amounts subtracted pursuant to
281	subparagraphs 1. and 3., any increment of any apportionment
282	factor which is directly related to an increment of gross
283	receipts or income which is deducted, subtracted, or otherwise
284	excluded in determining adjusted federal income shall be
285	excluded from both the numerator and denominator of such
286	apportionment factor. Further, all valuations made for
287	apportionment factor purposes shall be made on a basis
288	consistent with the taxpayer's method of accounting for federal
289	income tax purposes.
290	Section 5.  Subsection (5) is added to section 220.16,
291	Florida Statutes, to read:
292	220.16  Allocation of nonbusiness income.-Nonbusiness
293	income shall be allocated as follows:
294	(5)  The amount of payments received in exchange for
295	transferring a net operating loss authorized by s. 220.194 is
296	allocable to the state.
297	Section 6.  Section 220.194, Florida Statutes, is created
298	to read:
299	220.194  Corporate income tax credits for spaceflight
300	projects.-
301	(1)  SHORT TITLE.-This section may be cited as the "Florida
302	Space Business Incentives Act."
303	(2)  PURPOSE.-The purpose of this section is to create
304	incentives to attract launch, payload, research and development,
305	and other space business to this state.
306	(3)  DEFINITIONS.-As used in this section, the term:
307	(a)  "Administrative support" means that 51 percent or more
308	of an activity supports a certified spaceflight business.
309	(b)  "Certified" means that a spaceflight business has been
310	certified by the office as meeting all of the requirements
311	necessary to obtain at least one of the approved tax credits
312	available under this section, including approval to transfer a
313	credit.
314	(c)  "Department" means the Department of Revenue.
315	(d)  "New employee" means a state resident who begins or
316	maintains full-time employment in this state with a spaceflight
317	business on or after October 1, 2011. The term does not include
318	a person who is a partner, majority stockholder, or owner of the
319	business or a person who is employed in a temporary construction
320	job or primarily involved with the construction of real
321	property.
322	(e)  "New job" means the full-time employment of an
323	employee in a manner that is consistent with terms used by the
324	Agency for Workforce Innovation and the United States Department
325	of Labor for purposes of unemployment compensation tax
326	administration and employment estimation. In order to meet the
327	requirement for certification specified in paragraph (5)(b), a
328	new job must:
329	1.  Pay new employees at least 115 percent of the statewide
330	or countywide average annual private-sector wage for the 3
331	taxable years immediately preceding filing an application for
332	certification;
333	2.  Require a new employee to perform duties on a regular
334	full-time basis in this state for an average of at least 36
335	hours per week each month for the 3 taxable years immediately
336	preceding filing an application for certification; and
337	3.  Not be held by a person who has previously been
338	included as a new employee on an application for any credit
339	authorized under this section.
340	(f)  "Office" means the Office of Tourism, Trade, and
341	Economic Development.
342	(g)  "Payload" means an object built or assembled in this
343	state to be placed into earth's upper atmospheres or space.
344	(h)  "Reentry" means to return or attempt to return an
345	object from earth's upper atmospheres or space.
346	(i)  "Reentry service" means an activity conducted in this
347	state related to preparing a reentry vehicle and any payload for
348	reentry and the reentry.
349	(j)  "Space vehicle" means any spacecraft, satellite, space
350	station, upper-stage, launch vehicle, reentry vehicle, and
351	related ground-support systems and equipment.
352	(k)  "Spaceflight business" means a business that:
353	1.  Is registered with the Secretary of State to do
354	business in this state; and
355	2.  Is currently engaged in a spaceflight project. A
356	spaceflight business may participate in more than one
357	spaceflight project at a time and may conduct work on a
358	commercial, governmental, or United States defense-related
359	spaceflight project.
360	(l)  "Spaceflight project" means any of the following
361	activities performed in this state:
362	1.  Designing, manufacturing, testing, or assembling a
363	space vehicle or components thereof;
364	2.  Providing a launch service, payload processing service,
365	or reentry service; or
366	3.  Providing the payload for a launch vehicle or reentry
367	space vehicle, administrative support, and tourism activities
368	related to these activities.
369	(m)  "Taxpayer" has the same meaning as provided in s.
370	220.03.
371	(n)  "Total tax credits" means, for any state fiscal year,
372	the sum of the tax credits approved for taxpayers whose taxable
373	year begins on or after January 1 of the calendar year preceding
374	the start of the applicable state fiscal year.
375	(4)  TAX CREDITS.-
376	(a)  If approved and certified pursuant to subsection (5),
377	the following tax credits may be taken on a final return for a
378	taxable year beginning on or after October 1, 2015:
379	1.  A certified spaceflight business may take a
380	nontransferable corporate income tax credit for up to 50 percent
381	of the business's tax liability under this chapter for the
382	taxable year in which the credit is taken. The maximum
383	nontransferable tax credit amount that may be approved per
384	taxpayer for a taxable year is $1 million, and the total tax
385	credits that may be approved pursuant to this subparagraph may
386	not exceed $5 million. No credit may be approved after October
387	1, 2017.
388	2.  A certified spaceflight business may transfer, in whole
389	or in part, its Florida net operating loss that would otherwise
390	be available to be taken on a return filed under this chapter.
391	The maximum transferable tax credit amount that may be approved
392	per taxpayer for a taxable year is $2.5 million; the total tax
393	credits that may be approved pursuant to this subparagraph may
394	not exceed $15 million. However, any outstanding credit that is
395	carried forward by a transferee may not be used to calculate the
396	annual limit. No credit may be approved after October 1, 2017.
397	a.  In order to transfer the credit, the business must:
398	(I)  Have been approved to transfer the tax credit for the
399	taxable year in which it is transferred;
400	(II)  Have incurred a qualifying net operating loss on
401	activity in this state directly associated with one or more
402	space flight projects in any of its 3 previous taxable years;
403	(III)  Not be 50 percent or more owned or controlled,
404	directly or indirectly, by another corporation that has
405	demonstrated positive net income in any of the 3 previous
406	taxable years of ongoing operations; and
407	(IV)  Not be part of a consolidated group of affiliated
408	corporations, as filed for federal income tax purposes, which in
409	the aggregate demonstrated positive net income in any of the 3
410	previous taxable years.
411	b.  The amount that may be claimed and transferred by a
412	business is equal to:
413	(I)  One hundred percent of the net operating loss that
414	could otherwise be claimed on a return filed under this chapter
415	during its first full year of operations in this state.
416	(II)  One hundred percent of the net operating loss that
417	could otherwise be claimed on a return filed under this chapter
418	during its second full year of operations in this state.
419	(III)  One hundred percent of the net operating loss that
420	could otherwise be claimed on a return filed under this chapter
421	during its third full year of operations in this state.
422	(b)  Each business may be approved for only one credit per
423	state fiscal year and may not claim any credit more than once.
424	(c)  Unless transferred pursuant to this section, credits
425	may be granted only against the corporate income tax liability
426	generated by or arising out of a spaceflight project in this
427	state, as documented in the certified spaceflight business's
428	annual audit prepared by a certified public accountant licensed
429	to do business in this state and as verified by the office.
430	(d)  A certified spaceflight business may not file a
431	consolidated return in order to claim the tax incentives
432	described in this subsection.
433	(e)  The certified spaceflight business or transferee must
434	demonstrate to the satisfaction of the office and the department
435	that it is eligible to take the credits approved under this
436	section.
437	(5)  APPLICATION AND CERTIFICATION.-
438	(a)  In order to claim a tax credit under this section, a
439	spaceflight business must first submit an application to the
440	office for approval to earn credits. The application must be
441	filed by the date established by the office. In addition to any
442	information that the office may require, the applicant must
443	provide a complete description of the activity in this state
444	which demonstrates to the office the applicant's likelihood to
445	be certified to take or transfer a credit. The applicant must
446	also provide a description of the total amount and type of
447	credits for which approval is sought. The office may consult
448	with Space Florida regarding the qualifications of an applicant.
449	The applicant shall provide an affidavit certifying that all
450	information contained in the application is true and correct.
451	1.  Approval of the credits shall be provided on a first-
452	come, first-served basis, based on the date the completed
453	applications are received by the office. A taxpayer may not
454	submit more than one completed application per state fiscal
455	year. The office may not accept an incomplete placeholder
456	application, and the submission of such an application will not
457	secure a place in the first-come, first-served application line.
458	2.  The office has 60 days after the receipt of a completed
459	application within which to issue a notice of intent to deny or
460	approve an application for credits. If a business does not
461	receive approval for a tax credit due to the exhaustion of the
462	annual total tax credit authorizations, the business may reapply
463	the following year and shall have priority over other applicants
464	notwithstanding the first-come, first-served policy. The office
465	shall determine the eligibility of an applicant and approve the
466	credits that the applicant may later be certified to take. The
467	office must ensure that the corporate income tax credits
468	approved for all applicants does not exceed the limits provided
469	in this section.
470	(b)  In order to take, and thereafter, if applicable, to
471	transfer an approved credit, a spaceflight business must submit
472	an application for certification to the office along with a
473	nonrefundable $250 fee.
474	1.  The application must include:
475	a.  The name and physical in-state address of the taxpayer.
476	b.  Documentation demonstrating to the satisfaction of the
477	office that:
478	(I)  The taxpayer is a spaceflight business.
479	(II)  The business has engaged in a qualifying spaceflight
480	project before taking a credit under this section.
481	c.  In addition to any requirement specific to a credit,
482	documentation that the business has:
483	(I)  Created 35 new jobs in this state directly associated
484	with spaceflight projects during its immediately preceding 3
485	taxable years. The business shall be deemed to have created new
486	jobs if the number of jobs on the application for certification
487	is greater than the total number of full-time jobs located in
488	this state as stated on an application for approval to earn
489	credits;
490	(II)  Invested a total of at least $15 million in this
491	state on a spaceflight project during its immediately preceding
492	3 taxable years; and
493	d.  The total amount and types of credits sought.
494	e.  An acknowledgment that a transfer of a tax credit is to
495	be accomplished pursuant to subsection (5).
496	f.  A copy of an audit or audits of the preceding 3 taxable
497	years, prepared by a certified public accountant licensed to
498	practice in this state, which identifies that portion of the
499	business's activities in this state related to spaceflight
500	projects in this state.
501	g.  An acknowledgement that the business must file an
502	annual report on the spaceflight project's progress with the
503	office.
504	h.  Any other information necessary to demonstrate that the
505	applicant meets the job creation, investment, and other
506	requirements of this section.
507	2.  Within 60 days after receipt of the application for
508	certification, the office shall evaluate the application and
509	recommend the business for certification or denial. The
510	executive director of the office must approve or deny the
511	application within 30 days after receiving the recommendation.
512	If approved, the office must provide a letter of certification
513	to the applicant consistent with any restrictions imposed. If
514	the office denies any part of the requested credit, the office
515	must inform the applicant of the grounds for the denial. A copy
516	of the certification shall be submitted to the department within
517	10 days after the executive director's approval.
518	(6)  TRANSFERABILITY OF CREDIT.-
519	(a)  A certified spaceflight business allowed to transfer
520	an approved credit, in whole or in part, to a taxpayer by
521	written agreement may do so without transferring any ownership
522	interest in the property generating the credit or any interest
523	in the entity owning such property. The transferee may apply the
524	credits against the tax with the same effect as if the
525	transferee had incurred the eligible costs.
526	(b)  In order to perfect the transfer, the transferor shall
527	provide the department with a written transfer statement that
528	has been approved by the office notifying the department of the
529	transferor's intent to transfer the tax credits to the
530	transferee; the date that the transfer is effective; the
531	transferee's name, address, and federal taxpayer identification
532	number; the tax period; and the amount of tax credits to be
533	transferred. Upon receipt of the approved transfer statement,
534	the department shall provide the transferee and the office with
535	a certificate reflecting the tax credit amounts transferred. A
536	copy of the certificate must be attached to each tax return for
537	which the transferee seeks to apply the credits.
538	(7)  AUDIT AUTHORITY; RECAPTURE OF CREDITS.-
539	(a)  In addition to its existing audit and investigative
540	authority, the department may perform any additional financial
541	and technical audits and investigations, including examining the
542	accounts, books, and financial records of the tax credit
543	applicant, which are necessary for verifying the accuracy of the
544	return and to ensure compliance with this section. If requested
545	by the department, the office and Space Florida must provide
546	technical assistance for any technical audits or examinations
547	performed under this subsection.
548	(b)  Grounds for forfeiture of previously claimed tax
549	credits approved under this section exist if the department
550	determines, as a result of an audit or examination, or from
551	information received from the office, that a certified
552	spaceflight business, or in the case of transferred tax credits,
553	a taxpayer received tax credits for which the certified
554	spaceflight business or taxpayer was not entitled. The
555	spaceflight business or transferee must file an amended return
556	reflecting the disallowed credits and paying any tax due as a
557	result of the amendment.
558	(c)  If an amendment to, recomputation of, or
559	redetermination of a certified spaceflight business's Florida
560	corporate income tax return changes an item entered into the
561	computation of a claimed credit, the taxpayer must notify the
562	department by filing an amended return. The amount of any credit
563	award not supported by the amended return shall be deemed a
564	deficiency that must be remitted with the amended return and is
565	subject to s. 220.23. The spaceflight business is also liable
566	for a penalty equal to the credit claimed or transferred,
567	reduced in proportion to the amount of the net operating loss
568	certified for transfer which is disallowed over the amount of
569	the net operating loss certified for the credit. The certified
570	business and its successors must maintain all records necessary
571	to support the reported net operating loss.
572	(d)  The office may revoke or modify a certification
573	granting eligibility for tax credits if it finds that the
574	certified spaceflight business made a false statement or
575	representation in any application, record, report, plan, or
576	other document filed in an attempt to receive tax credits under
577	this section. The office shall immediately notify the department
578	of any revoked or modified orders affecting previously granted
579	tax credits. The certified spaceflight business must also notify
580	the department of any change in its claimed tax credit.
581	(e)  The certified spaceflight business must file with the
582	department an amended return or other report required by the
583	department by rule and pay any required tax and interest within
584	60 days after the certified business receives notification from
585	the office that previously approved tax credits have been
586	revoked or modified. If the revocation or modification order is
587	contested, the spaceflight business must file the amended return
588	or other report within 60 days after a final order is issued.
589	(f)  The department may assess an additional tax, penalty,
590	or interest pursuant to s. 95.091.
591	(8)  RULES.-
592	(a)  The office, in consultation with Space Florida, shall
593	adopt rules to administer this section, including rules relating
594	to application forms for credit approval and certification, and
595	the application and certification procedures, guidelines, and
596	requirements necessary to administer this section.
597	(b)  The department may adopt rules to administer this
598	section, including rules relating to:
599	1.  The forms required to claim a tax credit under this
600	section, the requirements and basis for establishing an
601	entitlement to a credit, and the examination and audit
602	procedures required to administer this section.
603	2.  The implementation and administration of provisions
604	allowing the transfer of a net operating loss as a tax credit,
605	including rules that prescribe forms, reporting requirements,
606	and specific procedures, guidelines, and requirements necessary
607	to perform the transfer.
608	3.  The minimum portion of the credit which is available
609	for transfer.
610	(9)  ANNUAL REPORT.-Beginning in 2014, the office, in
611	cooperation with Space Florida and the department, shall submit
612	an annual report summarizing activities relating to the Florida
613	Space Business Incentives Act established under this section to
614	the Governor, the President of the Senate, and the Speaker of
615	the House of Representatives by each November 30.
616	Section 7.  Paragraph (c) of subsection (2) of section
617	288.1045, Florida Statutes, is amended to read:
618	288.1045  Qualified defense contractor and space flight
619	business tax refund program.-
620	(2)  GRANTING OF A TAX REFUND; ELIGIBLE AMOUNTS.-
621	(c)  A qualified applicant may not receive more than $7 $5
622	million in tax refunds pursuant to this section in all fiscal
623	years.
624	Section 8.  Paragraph (c) of subsection (3) of section
625	288.106, Florida Statutes, is amended to read:
626	288.106  Tax refund program for qualified target industry
627	businesses.-
628	(3)  TAX REFUND; ELIGIBLE AMOUNTS.-
629	(c)  A qualified target industry business may not receive
630	refund payments of more than 25 percent of the total tax refunds
631	specified in the tax refund agreement under subparagraph
632	(5)(a)1. in any fiscal year. Further, a qualified target
633	industry business may not receive more than $1.5 million in
634	refunds under this section in any single fiscal year, or more
635	than $2.5 million in any single fiscal year if the project is
636	located in an enterprise zone. A qualified target industry
637	business may not receive more than $7 $5 million in refund
638	payments under this section in all fiscal years, or more than
639	$7.5 million if the project is located in an enterprise zone.
640	Section 9.  This act shall take effect upon becoming a law,
641	except that the tax credits authorized by this act may not be
642	applied to returns filed for any tax period before October 1,
643	2015.

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