Bill Text: FL S0302 | 2015 | Regular Session | Introduced
Bill Title: Community Contribution Tax Credit Program
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2015-05-01 - Died in Appropriations [S0302 Detail]
Download: Florida-2015-S0302-Introduced.html
Florida Senate - 2015 SB 302
By Senator Simpson
18-00339A-15 2015302__
1 A bill to be entitled
2 An act relating to the community contribution tax
3 credit program; amending ss. 212.08, 220.183, and
4 624.5105, F.S.; extending the expiration date
5 applicable to the granting of the community
6 contribution tax credit against the sales and use tax,
7 corporate income tax, and insurance premium tax for
8 contributions and donations to eligible sponsors of
9 revitalization and housing projects approved by the
10 Department of Economic Opportunity; reenacting s.
11 220.02(8), F.S., relating to legislative intent for
12 the income tax code, to incorporate the amendment made
13 to s. 220.183, F.S., in a reference thereto;
14 reenacting s. 220.183(1)(c) and (g), F.S., relating to
15 the community contribution tax credit, to incorporate
16 the amendments made to ss. 212.08 and 624.5105, F.S.,
17 in references thereto; reenacting s. 624.5105(1)(c),
18 F.S., relating to the community contribution tax
19 credit, to incorporate the amendments made to ss.
20 212.08 and 220.183, F.S., in references thereto;
21 reenacting s. 377.809(4)(a), F.S., relating to the
22 Energy Economic Zone Pilot Program, to incorporate the
23 amendments made to ss. 212.08, 220.183, and 624.5105,
24 F.S., in references thereto; providing an effective
25 date.
26
27 Be It Enacted by the Legislature of the State of Florida:
28
29 Section 1. Paragraph (p) of subsection (5) of section
30 212.08, Florida Statutes, is amended to read:
31 212.08 Sales, rental, use, consumption, distribution, and
32 storage tax; specified exemptions.—The sale at retail, the
33 rental, the use, the consumption, the distribution, and the
34 storage to be used or consumed in this state of the following
35 are hereby specifically exempt from the tax imposed by this
36 chapter.
37 (5) EXEMPTIONS; ACCOUNT OF USE.—
38 (p) Community contribution tax credit for donations.—
39 1. Authorization.—Persons who are registered with the
40 department under s. 212.18 to collect or remit sales or use tax
41 and who make donations to eligible sponsors are eligible for tax
42 credits against their state sales and use tax liabilities as
43 provided in this paragraph:
44 a. The credit shall be computed as 50 percent of the
45 person’s approved annual community contribution.
46 b. The credit shall be granted as a refund against state
47 sales and use taxes reported on returns and remitted in the 12
48 months preceding the date of application to the department for
49 the credit as required in sub-subparagraph 3.c. If the annual
50 credit is not fully used through such refund because of
51 insufficient tax payments during the applicable 12-month period,
52 the unused amount may be included in an application for a refund
53 made pursuant to sub-subparagraph 3.c. in subsequent years
54 against the total tax payments made for such year. Carryover
55 credits may be applied for a 3-year period without regard to any
56 time limitation that would otherwise apply under s. 215.26.
57 c. A person may not receive more than $200,000 in annual
58 tax credits for all approved community contributions made in any
59 one year.
60 d. All proposals for the granting of the tax credit require
61 the prior approval of the Department of Economic Opportunity.
62 e. The total amount of tax credits which may be granted for
63 all programs approved under this paragraph, s. 220.183, and s.
64 624.5105 is $18.4 million annually for projects that provide
65 homeownership opportunities for low-income households or very
66 low-income households as those terms are defined in s. 420.9071
67 and $3.5 million annually for all other projects.
68 f. A person who is eligible to receive the credit provided
69 in this paragraph, s. 220.183, or s. 624.5105 may receive the
70 credit only under one section of the person’s choice.
71 2. Eligibility requirements.—
72 a. A community contribution by a person must be in the
73 following form:
74 (I) Cash or other liquid assets;
75 (II) Real property;
76 (III) Goods or inventory; or
77 (IV) Other physical resources identified by the Department
78 of Economic Opportunity.
79 b. All community contributions must be reserved exclusively
80 for use in a project. As used in this sub-subparagraph, the term
81 “project” means activity undertaken by an eligible sponsor which
82 is designed to construct, improve, or substantially rehabilitate
83 housing that is affordable to low-income households or very-low
84 income households as those terms are defined in s. 420.9071;
85 designed to provide commercial, industrial, or public resources
86 and facilities; or designed to improve entrepreneurial and job
87 development opportunities for low-income persons. A project may
88 be the investment necessary to increase access to high-speed
89 broadband capability in rural communities with enterprise zones,
90 including projects that result in improvements to communications
91 assets that are owned by a business. A project may include the
92 provision of museum educational programs and materials that are
93 directly related to a project approved between January 1, 1996,
94 and December 31, 1999, and located in an enterprise zone
95 designated pursuant to s. 290.0065. This paragraph does not
96 preclude projects that propose to construct or rehabilitate
97 housing for low-income households or very-low-income households
98 on scattered sites. With respect to housing, contributions may
99 be used to pay the following eligible low-income and very-low
100 income housing-related activities:
101 (I) Project development impact and management fees for low
102 income or very-low-income housing projects;
103 (II) Down payment and closing costs for low-income persons
104 and very-low-income persons, as those terms are defined in s.
105 420.9071;
106 (III) Administrative costs, including housing counseling
107 and marketing fees, not to exceed 10 percent of the community
108 contribution, directly related to low-income or very-low-income
109 projects; and
110 (IV) Removal of liens recorded against residential property
111 by municipal, county, or special district local governments if
112 satisfaction of the lien is a necessary precedent to the
113 transfer of the property to a low-income person or very-low
114 income person, as those terms are defined in s. 420.9071, for
115 the purpose of promoting home ownership. Contributions for lien
116 removal must be received from a nonrelated third party.
117 c. The project must be undertaken by an “eligible sponsor,”
118 which includes:
119 (I) A community action program;
120 (II) A nonprofit community-based development organization
121 whose mission is the provision of housing for low-income
122 households or very-low-income households or increasing
123 entrepreneurial and job-development opportunities for low-income
124 persons;
125 (III) A neighborhood housing services corporation;
126 (IV) A local housing authority created under chapter 421;
127 (V) A community redevelopment agency created under s.
128 163.356;
129 (VI) A historic preservation district agency or
130 organization;
131 (VII) A regional workforce board;
132 (VIII) A direct-support organization as provided in s.
133 1009.983;
134 (IX) An enterprise zone development agency created under s.
135 290.0056;
136 (X) A community-based organization incorporated under
137 chapter 617 which is recognized as educational, charitable, or
138 scientific pursuant to s. 501(c)(3) of the Internal Revenue Code
139 and whose bylaws and articles of incorporation include
140 affordable housing, economic development, or community
141 development as the primary mission of the corporation;
142 (XI) Units of local government;
143 (XII) Units of state government; or
144 (XIII) Any other agency that the Department of Economic
145 Opportunity designates by rule.
146
147 A contributing person may not have a financial interest in the
148 eligible sponsor.
149 d. The project must be located in an area designated an
150 enterprise zone or a Front Porch Florida Community, unless the
151 project increases access to high-speed broadband capability for
152 rural communities that have enterprise zones but is physically
153 located outside the designated rural zone boundaries. Any
154 project designed to construct or rehabilitate housing for low
155 income households or very-low-income households as those terms
156 are defined in s. 420.9071 is exempt from the area requirement
157 of this sub-subparagraph.
158 e.(I) If, during the first 10 business days of the state
159 fiscal year, eligible tax credit applications for projects that
160 provide homeownership opportunities for low-income households or
161 very-low-income households as those terms are defined in s.
162 420.9071 are received for less than the annual tax credits
163 available for those projects, the Department of Economic
164 Opportunity shall grant tax credits for those applications and
165 grant remaining tax credits on a first-come, first-served basis
166 for subsequent eligible applications received before the end of
167 the state fiscal year. If, during the first 10 business days of
168 the state fiscal year, eligible tax credit applications for
169 projects that provide homeownership opportunities for low-income
170 households or very-low-income households as those terms are
171 defined in s. 420.9071 are received for more than the annual tax
172 credits available for those projects, the Department of Economic
173 Opportunity shall grant the tax credits for those applications
174 as follows:
175 (A) If tax credit applications submitted for approved
176 projects of an eligible sponsor do not exceed $200,000 in total,
177 the credits shall be granted in full if the tax credit
178 applications are approved.
179 (B) If tax credit applications submitted for approved
180 projects of an eligible sponsor exceed $200,000 in total, the
181 amount of tax credits granted pursuant to sub-sub-sub
182 subparagraph (A) shall be subtracted from the amount of
183 available tax credits, and the remaining credits shall be
184 granted to each approved tax credit application on a pro rata
185 basis.
186 (II) If, during the first 10 business days of the state
187 fiscal year, eligible tax credit applications for projects other
188 than those that provide homeownership opportunities for low
189 income households or very-low-income households as those terms
190 are defined in s. 420.9071 are received for less than the annual
191 tax credits available for those projects, the Department of
192 Economic Opportunity shall grant tax credits for those
193 applications and shall grant remaining tax credits on a first
194 come, first-served basis for subsequent eligible applications
195 received before the end of the state fiscal year. If, during the
196 first 10 business days of the state fiscal year, eligible tax
197 credit applications for projects other than those that provide
198 homeownership opportunities for low-income households or very
199 low-income households as those terms are defined in s. 420.9071
200 are received for more than the annual tax credits available for
201 those projects, the Department of Economic Opportunity shall
202 grant the tax credits for those applications on a pro rata
203 basis.
204 3. Application requirements.—
205 a. An Any eligible sponsor seeking to participate in this
206 program must submit a proposal to the Department of Economic
207 Opportunity which sets forth the name of the sponsor, a
208 description of the project, and the area in which the project is
209 located, together with such supporting information as is
210 prescribed by rule. The proposal must also contain a resolution
211 from the local governmental unit in which the project is located
212 certifying that the project is consistent with local plans and
213 regulations.
214 b. A Any person seeking to participate in this program must
215 submit an application for tax credit to the Department of
216 Economic Opportunity which sets forth the name of the sponsor, a
217 description of the project, and the type, value, and purpose of
218 the contribution. The sponsor shall verify, in writing, the
219 terms of the application and indicate its receipt of the
220 contribution, and such verification must accompany the
221 application for tax credit. The person must submit a separate
222 tax credit application to the Department of Economic Opportunity
223 for each individual contribution that it makes to each
224 individual project.
225 c. A Any person who has received notification from the
226 Department of Economic Opportunity that a tax credit has been
227 approved must apply to the department to receive the refund.
228 Application must be made on the form prescribed for claiming
229 refunds of sales and use taxes and be accompanied by a copy of
230 the notification. A person may submit only one application for
231 refund to the department within a 12-month period.
232 4. Administration.—
233 a. The Department of Economic Opportunity may adopt rules
234 necessary to administer this paragraph, including rules for the
235 approval or disapproval of proposals by a person.
236 b. The decision of the Department of Economic Opportunity
237 must be in writing, and, if approved, the notification shall
238 state the maximum credit allowable to the person. Upon approval,
239 the Department of Economic Opportunity shall transmit a copy of
240 the decision to the department.
241 c. The Department of Economic Opportunity shall
242 periodically monitor all projects in a manner consistent with
243 available resources to ensure that resources are used in
244 accordance with this paragraph; however, each project must be
245 reviewed at least once every 2 years.
246 d. The Department of Economic Opportunity shall, in
247 consultation with the statewide and regional housing and
248 financial intermediaries, market the availability of the
249 community contribution tax credit program to community-based
250 organizations.
251 5. Expiration.—This paragraph expires June 30, 2025 2016;
252 however, any accrued credit carryover that is unused on that
253 date may be used until the expiration of the 3-year carryover
254 period for such credit.
255 Section 2. Subsection (5) of section 220.183, Florida
256 Statutes, is amended to read:
257 220.183 Community contribution tax credit.—
258 (5) EXPIRATION.—The provisions of this section, except
259 paragraph (1)(e), expire and are void on June 30, 2025 2016.
260 Section 3. Subsection (6) of section 624.5105, Florida
261 Statutes, is amended to read:
262 624.5105 Community contribution tax credit; authorization;
263 limitations; eligibility and application requirements;
264 administration; definitions; expiration.—
265 (6) EXPIRATION.—The provisions of this section, except
266 paragraph (1)(e), expire and are void on June 30, 2025 2016.
267 Section 4. For the purpose of incorporating the amendment
268 made by this act to section 220.183, Florida Statutes, in a
269 reference thereto, subsection (8) of section 220.02, Florida
270 Statutes, is reenacted to read:
271 220.02 Legislative intent.—
272 (8) It is the intent of the Legislature that credits
273 against either the corporate income tax or the franchise tax be
274 applied in the following order: those enumerated in s. 631.828,
275 those enumerated in s. 220.191, those enumerated in s. 220.181,
276 those enumerated in s. 220.183, those enumerated in s. 220.182,
277 those enumerated in s. 220.1895, those enumerated in s. 220.195,
278 those enumerated in s. 220.184, those enumerated in s. 220.186,
279 those enumerated in s. 220.1845, those enumerated in s. 220.19,
280 those enumerated in s. 220.185, those enumerated in s. 220.1875,
281 those enumerated in s. 220.192, those enumerated in s. 220.193,
282 those enumerated in s. 288.9916, those enumerated in s.
283 220.1899, those enumerated in s. 220.194, and those enumerated
284 in s. 220.196.
285 Section 5. For the purpose of incorporating the amendments
286 made by this act to sections 212.08 and 624.5105, Florida
287 Statutes, in references thereto, paragraphs (c) and (g) of
288 subsection (1) of section 220.183, Florida Statutes, are
289 reenacted to read:
290 220.183 Community contribution tax credit.—
291 (1) AUTHORIZATION TO GRANT COMMUNITY CONTRIBUTION TAX
292 CREDITS; LIMITATIONS ON INDIVIDUAL CREDITS AND PROGRAM
293 SPENDING.—
294 (c) The total amount of tax credit which may be granted for
295 all programs approved under this section, s. 212.08(5)(p), and
296 s. 624.5105 is $18.4 million annually for projects that provide
297 homeownership opportunities for low-income or very-low-income
298 households as defined in s. 420.9071 and $3.5 million annually
299 for all other projects.
300 (g) A taxpayer who is eligible to receive the credit
301 provided for in s. 624.5105 is not eligible to receive the
302 credit provided by this section.
303 Section 6. For the purpose of incorporating the amendments
304 made by this act to sections 212.08 and 220.183, Florida
305 Statutes, in references thereto, paragraph (c) of subsection (1)
306 of section 624.5105, Florida Statutes, is reenacted to read:
307 624.5105 Community contribution tax credit; authorization;
308 limitations; eligibility and application requirements;
309 administration; definitions; expiration.—
310 (1) AUTHORIZATION TO GRANT TAX CREDITS; LIMITATIONS.—
311 (c) The total amount of tax credit which may be granted for
312 all programs approved under this section and ss. 212.08(5)(p)
313 and 220.183 is $18.4 million annually for projects that provide
314 homeownership opportunities for low-income or very-low-income
315 households as defined in s. 420.9071 and $3.5 million annually
316 for all other projects.
317 Section 7. For the purpose of incorporating the amendments
318 made by this act to sections 212.08, 220.183, and 624.5105,
319 Florida Statutes, in references thereto, paragraph (a) of
320 subsection (4) of section 377.809, Florida Statutes, is
321 reenacted to read:
322 377.809 Energy Economic Zone Pilot Program.—
323 (4)(a) Beginning July 1, 2012, all the incentives and
324 benefits provided for enterprise zones pursuant to state law
325 shall be available to the energy economic zones designated
326 pursuant to this section on or before July 1, 2010. In order to
327 provide incentives, by March 1, 2012, each local governing body
328 that has jurisdiction over an energy economic zone must, by
329 local ordinance, establish the boundary of the energy economic
330 zone, specify applicable energy-efficiency standards, and
331 determine eligibility criteria for the application of state and
332 local incentives and benefits in the energy economic zone.
333 However, in order to receive benefits provided under s. 288.106,
334 a business must be a qualified target industry business under s.
335 288.106 for state purposes. An energy economic zone’s boundary
336 may be revised by local ordinance. Such incentives and benefits
337 include those in ss. 212.08, 212.096, 220.181, 220.182, 220.183,
338 288.106, and 624.5105 and the public utility discounts provided
339 in s. 290.007(8). The exemption provided in s. 212.08(5)(c)
340 shall be for renewable energy as defined in s. 377.803. For
341 purposes of this section, any applicable requirements for
342 employee residency for higher refund or credit thresholds must
343 be based on employee residency in the energy economic zone or an
344 enterprise zone. A business in an energy economic zone may also
345 be eligible for funding under ss. 288.047 and 445.003, and a
346 transportation project in an energy economic zone shall be
347 provided priority in funding under s. 339.2821. Other projects
348 shall be given priority ranking to the extent practicable for
349 grants administered under state energy programs.
350 Section 8. This act shall take effect upon becoming a law.
