Bill Text: FL S1188 | 2010 | Regular Session | Comm Sub
Bill Title: Spaceflight [WPSC]
Spectrum: Partisan Bill (Republican 2-0)
Status: (Failed) 2010-04-30 - Died in Committee on Transportation and Economic Development Appropriations [S1188 Detail]
Download: Florida-2010-S1188-Comm_Sub.html
Florida Senate - 2010 CS for CS for SB 1188 By the Committees on Finance and Tax; and Commerce; and Senators Altman and Crist 593-04308-10 20101188c2 1 A bill to be entitled 2 An act relating to spaceflight; amending s. 14.2015, 3 F.S.; providing for the Office of Tourism, Trade, and 4 Economic Development to administer corporate income 5 tax credits for commercial spaceflight projects; 6 amending s. 213.053, F.S.; authorizing the Department 7 of Revenue to share information relating to corporate 8 income tax credits for commercial spaceflight projects 9 with the Office of Tourism, Trade, and Economic 10 Development; amending s. 220.02, F.S.; revising the 11 order in which credits against the corporate income 12 tax or franchise tax may be taken; amending s. 220.13, 13 F.S.; providing that the amount taken as a credit for 14 a commercial spaceflight project must be added to 15 taxable income; prohibiting a deduction from taxable 16 income for any net operating loss taken as a credit 17 against corporate income taxes or transferred; 18 amending s. 220.16, F.S.; authorizing the amount of 19 payments received in exchange for transferring a 20 certain net operating loss to be allocated to this 21 state; creating s. 220.194, F.S.; providing 22 legislative intent; defining terms; authorizing 23 nontransferable corporate income tax credits, 24 transferable net operating loss tax credits, and 25 machinery and equipment tax credits for certified 26 commercial spaceflight businesses engaged in 27 commercial spaceflight projects; specifying tax credit 28 amounts and eligibility criteria; requiring that a 29 business demonstrate eligibility to claim a tax credit 30 to the satisfaction of the Office of Tourism, Trade, 31 and Economic Development and the Department of 32 Revenue; requiring a business to submit an application 33 to the Office of Tourism, Trade, and Economic 34 Development for approval to earn credits; specifying 35 the required contents of an application; requiring the 36 Office of Tourism, Trade, and Economic Development to 37 approve or deny an application within 60 days after 38 receipt; requiring that a business apply to be 39 certified by the Office of Tourism, Trade, and 40 Economic Development in order to take or transfer a 41 credit; requiring the Office of Tourism, Trade, and 42 Economic Development to recommend approval or denial 43 of an application for certification within 60 days 44 after receipt; specifying the required contents of an 45 application for certification; requiring the executive 46 director of the Office of Tourism, Trade, and Economic 47 Development to approve or deny the application for 48 certification within 30 days after receiving the 49 recommendation for approval or denial; requiring that 50 the Office of Tourism, Trade, and Economic Development 51 submit a copy of a certification for tax credits to 52 the Department of Revenue; providing procedures to 53 transfer a tax credit; authorizing the Department of 54 Revenue to perform audits and investigations necessary 55 to verify the accuracy of returns; authorizing the 56 Office of Tourism, Trade, and Economic Development to 57 revoke or modify a certification granting eligibility 58 for tax credits under certain circumstances; requiring 59 a certified commercial spaceflight business to pay any 60 required tax within 60 days after receiving notice 61 that previously approved tax credits have been revoked 62 or modified; authorizing the Department of Revenue to 63 assess additional taxes, interest, or penalties; 64 authorizing the Office of Tourism, Trade, and Economic 65 Development to adopt rules; requiring the Office of 66 Tourism, Trade, and Economic Development to submit an 67 annual report to the Governor, the President of the 68 Senate, and the Speaker of the House of 69 Representatives on the activities of the commercial 70 launch zone incentive program; providing for 71 application; providing an effective date. 72 73 Be It Enacted by the Legislature of the State of Florida: 74 75 Section 1. Paragraph (f) of subsection (2) of section 76 14.2015, Florida Statutes, is amended to read: 77 14.2015 Office of Tourism, Trade, and Economic Development; 78 creation; powers and duties.— 79 (2) The purpose of the Office of Tourism, Trade, and 80 Economic Development is to assist the Governor in working with 81 the Legislature, state agencies, business leaders, and economic 82 development professionals to formulate and implement coherent 83 and consistent policies and strategies designed to provide 84 economic opportunities for all Floridians. To accomplish such 85 purposes, the Office of Tourism, Trade, and Economic Development 86 shall: 87 (f)1. Administer the Florida Enterprise Zone Act under ss. 88 290.001-290.016, the community contribution tax credit program 89 under ss. 220.183 and 624.5105, the tax refund program for 90 qualified target industry businesses under s. 288.106, the tax 91 refund program for qualified defense contractors and space 92 flight business contractors under s. 288.1045, contracts for 93 transportation projects under s. 288.063, the sports franchise 94 facility program under s. 288.1162, the professional golf hall 95 of fame facility program under s. 288.1168, the expedited 96 permitting process under s. 403.973, the Rural Community 97 Development Revolving Loan Fund under s. 288.065, the Regional 98 Rural Development Grants Program under s. 288.018, the Certified 99 Capital Company Act under s. 288.99, the Florida State Rural 100 Development Council, the Rural Economic Development Initiative, 101 the corporate income tax credits for commercial spaceflight 102 projects under s. 220.194, and other programs that are 103 specifically assigned to the office by law, by the 104 appropriations process, or by the Governor. Notwithstanding any 105 other provisions of law, the office may expend interest earned 106 from the investment of program funds deposited in the Grants and 107 Donations Trust Fund to contract for the administration of the 108 programs, or portions of the programs, enumerated in this 109 paragraph or assigned to the office by law, by the 110 appropriations process, or by the Governor. Such expenditures 111 shall be subject to review under chapter 216. 112 2. The office may enter into contracts in connection with 113 the fulfillment of its duties concerning the Florida First 114 Business Bond Pool under chapter 159, tax incentives under 115 chapters 212 and 220, tax incentives under the Certified Capital 116 Company Act in chapter 288, foreign offices under chapter 288, 117 the Enterprise Zone program under chapter 290, the Seaport 118 Employment Training program under chapter 311, the Florida 119 Professional Sports Team License Plates under chapter 320, 120 Spaceport Florida under chapter 331, Expedited Permitting under 121 chapter 403, and in carrying out other functions that are 122 specifically assigned to the office by law, by the 123 appropriations process, or by the Governor. 124 Section 2. Paragraph (z) is added to subsection (8) of 125 section 213.053, Florida Statutes, to read: 126 213.053 Confidentiality and information sharing.— 127 (8) Notwithstanding any other provision of this section, 128 the department may provide: 129 (z) Information relative to tax credits taken under s. 130 220.194 to the Office of Tourism, Trade, and Economic 131 Development or to Space Florida. 132 133 Disclosure of information under this subsection shall be 134 pursuant to a written agreement between the executive director 135 and the agency. Such agencies, governmental or nongovernmental, 136 shall be bound by the same requirements of confidentiality as 137 the Department of Revenue. Breach of confidentiality is a 138 misdemeanor of the first degree, punishable as provided by s. 139 775.082 or s. 775.083. 140 Section 3. Subsection (8) of section 220.02, Florida 141 Statutes, is amended to read: 142 220.02 Legislative intent.— 143 (8) It is the intent of the Legislature that credits 144 against either the corporate income tax or the franchise tax be 145 applied in the following order: those enumerated in s. 631.828, 146 those enumerated in s. 220.191, those enumerated in s. 220.181, 147 those enumerated in s. 220.183, those enumerated in s. 220.182, 148 those enumerated in s. 220.1895, those enumerated in s. 221.02, 149 those enumerated in s. 220.184, those enumerated in s. 220.186, 150 those enumerated in s. 220.1845, those enumerated in s. 220.19, 151 those enumerated in s. 220.185, those enumerated in s. 220.187, 152 those enumerated in s. 220.192, those enumerated in s. 220.193, 153andthose enumerated in s. 288.9916, and those enumerated in s. 154 220.194. 155 Section 4. Paragraphs (a) and (b) of subsection (1) of 156 section 220.13, Florida Statutes, are amended to read: 157 220.13 “Adjusted federal income” defined.— 158 (1) The term “adjusted federal income” means an amount 159 equal to the taxpayer’s taxable income as defined in subsection 160 (2), or such taxable income of more than one taxpayer as 161 provided in s. 220.131, for the taxable year, adjusted as 162 follows: 163 (a) Additions.—There shall be added to such taxable income: 164 1. The amount of any tax upon or measured by income, 165 excluding taxes based on gross receipts or revenues, paid or 166 accrued as a liability to the District of Columbia or any state 167 of the United States which is deductible from gross income in 168 the computation of taxable income for the taxable year. 169 2. The amount of interest which is excluded from taxable 170 income under s. 103(a) of the Internal Revenue Code or any other 171 federal law, less the associated expenses disallowed in the 172 computation of taxable income under s. 265 of the Internal 173 Revenue Code or any other law, excluding 60 percent of any 174 amounts included in alternative minimum taxable income, as 175 defined in s. 55(b)(2) of the Internal Revenue Code, if the 176 taxpayer pays tax under s. 220.11(3). 177 3. In the case of a regulated investment company or real 178 estate investment trust, an amount equal to the excess of the 179 net long-term capital gain for the taxable year over the amount 180 of the capital gain dividends attributable to the taxable year. 181 4. That portion of the wages or salaries paid or incurred 182 for the taxable year which is equal to the amount of the credit 183 allowable for the taxable year under s. 220.181. This 184 subparagraph shall expire on the date specified in s. 290.016 185 for the expiration of the Florida Enterprise Zone Act. 186 5. That portion of the ad valorem school taxes paid or 187 incurred for the taxable year which is equal to the amount of 188 the credit allowable for the taxable year under s. 220.182. This 189 subparagraph shall expire on the date specified in s. 290.016 190 for the expiration of the Florida Enterprise Zone Act. 191 6. The amount of emergency excise tax paid or accrued as a 192 liability to this state under chapter 221 which tax is 193 deductible from gross income in the computation of taxable 194 income for the taxable year. 195 7. That portion of assessments to fund a guaranty 196 association incurred for the taxable year which is equal to the 197 amount of the credit allowable for the taxable year. 198 8. In the case of a nonprofit corporation which holds a 199 pari-mutuel permit and which is exempt from federal income tax 200 as a farmers’ cooperative, an amount equal to the excess of the 201 gross income attributable to the pari-mutuel operations over the 202 attributable expenses for the taxable year. 203 9. The amount taken as a credit for the taxable year under 204 s. 220.1895. 205 10. Up to nine percent of the eligible basis of any 206 designated project which is equal to the credit allowable for 207 the taxable year under s. 220.185. 208 11. The amount taken as a credit for the taxable year under 209 s. 220.187. 210 12. The amount taken as a credit for the taxable year under 211 s. 220.192. 212 13. The amount taken as a credit for the taxable year under 213 s. 220.193. 214 14. Any portion of a qualified investment, as defined in s. 215 288.9913, which is claimed as a deduction by the taxpayer and 216 taken as a credit against income tax pursuant to s. 288.9916. 217 15. The amount taken as a credit for the taxable year under 218 s. 220.194. 219 (b) Subtractions.— 220 1. There shall be subtracted from such taxable income: 221 a. The net operating loss deduction allowable for federal 222 income tax purposes under s. 172 of the Internal Revenue Code 223 for the taxable year, except that any net operating loss taken 224 as a credit to corporate income taxes owed or that is 225 transferred, pursuant to s. 220.194(3)(b), may not be deducted 226 by the seller, 227 b. The net capital loss allowable for federal income tax 228 purposes under s. 1212 of the Internal Revenue Code for the 229 taxable year, 230 c. The excess charitable contribution deduction allowable 231 for federal income tax purposes under s. 170(d)(2) of the 232 Internal Revenue Code for the taxable year, and 233 d. The excess contributions deductions allowable for 234 federal income tax purposes under s. 404 of the Internal Revenue 235 Code for the taxable year. 236 237 However, a net operating loss and a capital loss shall never be 238 carried back as a deduction to a prior taxable year, but all 239 deductions attributable to such losses shall be deemed net 240 operating loss carryovers and capital loss carryovers, 241 respectively, and treated in the same manner, to the same 242 extent, and for the same time periods as are prescribed for such 243 carryovers in ss. 172 and 1212, respectively, of the Internal 244 Revenue Code. 245 2. There shall be subtracted from such taxable income any 246 amount to the extent included therein the following: 247 a. Dividends treated as received from sources without the 248 United States, as determined under s. 862 of the Internal 249 Revenue Code. 250 b. All amounts included in taxable income under s. 78 or s. 251 951 of the Internal Revenue Code. 252 253 However, as to any amount subtracted under this subparagraph, 254 there shall be added to such taxable income all expenses 255 deducted on the taxpayer’s return for the taxable year which are 256 attributable, directly or indirectly, to such subtracted amount. 257 Further, no amount shall be subtracted with respect to dividends 258 paid or deemed paid by a Domestic International Sales 259 Corporation. 260 3. In computing “adjusted federal income” for taxable years 261 beginning after December 31, 1976, there shall be allowed as a 262 deduction the amount of wages and salaries paid or incurred 263 within this state for the taxable year for which no deduction is 264 allowed pursuant to s. 280C(a) of the Internal Revenue Code 265 (relating to credit for employment of certain new employees). 266 4. There shall be subtracted from such taxable income any 267 amount of nonbusiness income included therein. 268 5. There shall be subtracted any amount of taxes of foreign 269 countries allowable as credits for taxable years beginning on or 270 after September 1, 1985, under s. 901 of the Internal Revenue 271 Code to any corporation which derived less than 20 percent of 272 its gross income or loss for its taxable year ended in 1984 from 273 sources within the United States, as described in s. 274 861(a)(2)(A) of the Internal Revenue Code, not including credits 275 allowed under ss. 902 and 960 of the Internal Revenue Code, 276 withholding taxes on dividends within the meaning of sub 277 subparagraph 2.a., and withholding taxes on royalties, interest, 278 technical service fees, and capital gains. 279 6. Notwithstanding any other provision of this code, except 280 with respect to amounts subtracted pursuant to subparagraphs 1. 281 and 3., any increment of any apportionment factor which is 282 directly related to an increment of gross receipts or income 283 which is deducted, subtracted, or otherwise excluded in 284 determining adjusted federal income shall be excluded from both 285 the numerator and denominator of such apportionment factor. 286 Further, all valuations made for apportionment factor purposes 287 shall be made on a basis consistent with the taxpayer’s method 288 of accounting for federal income tax purposes. 289 Section 5. Subsection (5) is added to section 220.16, 290 Florida Statutes, to read: 291 220.16 Allocation of nonbusiness income.—Nonbusiness income 292 shall be allocated as follows: 293 (5) The amount of payments received in exchange for 294 transferring a net operating loss as authorized by s. 220.194 is 295 allocable to this state. 296 Section 6. Section 220.194, Florida Statutes, is created to 297 read: 298 220.194 Corporate income tax credits for commercial 299 spaceflight projects in Florida’s commercial launch zone.— 300 (1) INTENT.—The intent of this section is to create 301 incentives to attract commercial launch, payload, research and 302 development, and other commercial space business to this state. 303 (2) DEFINITIONS.—As used in this section, the term: 304 (a) “Certified commercial spaceflight business” means a 305 commercial spaceflight business that has been certified by the 306 office as meeting all of the requirements to obtain at least one 307 of the approved tax credits available under this section, 308 including any approval to transfer a credit. 309 (b) “Commercial launch zone” means an area within spaceport 310 territory in this state. 311 (c) “Commercial spaceflight business” means a business 312 that: 313 1. Is registered with the Secretary of State to do business 314 in this state; and 315 2. Is currently undertaking one or more of the following 316 activities in this state which are intended to result in a 317 launch from a commercial launch zone: designing, manufacturing, 318 testing, or assembling a launch vehicle, reentry vehicle, 319 satellite, station, or components thereof; providing a launch 320 service or reentry service; or providing the payload for a 321 launch vehicle or reentry vehicle. 322 323 A commercial spaceflight business may participate in more than 324 one spaceflight project at a time and may conduct work on a 325 commercial, governmental, or United States defense-related 326 project and remain certified or qualified for certification. 327 (d) “Commercial spaceflight project” means activities 328 performed in this state by a commercial spaceflight business 329 which qualify it to be certified, including activity related to 330 the launch of a launch vehicle, reentry vehicle, satellite, or 331 space station from a commercial launch zone in this state, or 332 its return to a spaceport commercial launch zone in this state. 333 The term includes a launch service, reentry service, or any 334 process that validates hardware or components to meet design and 335 workmanship criteria for space launch or reentry vehicles per 336 United States Department of Defense and National Aeronautics and 337 Space Administration guidelines. 338 (e) “Launch” means to place or attempt to place a launch 339 vehicle and any payload from a commercial launch zone in this 340 state into a suborbital trajectory, into Earth orbit in outer 341 space, or otherwise into outer space. 342 (f) “Launch service” means an activity in this state 343 related to the preparation of a launch vehicle and any payload 344 for launch and the conduct of a launch. 345 (g) “New employee” means a Florida resident who begins 346 full-time employment in Florida with a commercial space flight 347 business after January 1, 2011, and who has not been previously 348 employed on a full-time basis in this state within the preceding 349 12 months on a commercial space flight project, by a commercial 350 space flight business seeking certification, or a successor 351 business or affiliate. The term does not include a person who is 352 a partner, majority stockholder, or owner of the business or a 353 person who is employed in a temporary construction job or 354 principally involved with the construction of real property. 355 (h) “New job” means the full-time employment of a new 356 employee, as defined in paragraph (g), by a commercial space 357 flight business in activities occurring in this state directly 358 associated with a commercial space flight project. The term 359 shall be defined in a manner that is consistent with terms used 360 by the Agency for Workforce Innovation and the United States 361 Department of Labor for purposes of unemployment compensation 362 tax administration and employment estimation. To meet the 363 requirement for certification specified in subsection (5), a new 364 job must: 365 1. Have paid new employees at least 115 percent of the 366 statewide or countywide average annual private-sector wage for 367 the 3 taxable years immediately preceding filing an application 368 to be certified to take a credit under this section. 369 2. Have required that the new employee perform duties on a 370 regular full-time basis in this state for an average of at least 371 36 hours per week each month for the 3 taxable years immediately 372 preceding filing an application to be certified to take a credit 373 under this section. 374 3. Not be held by a person who has previously been included 375 as a new employee on any application for any credit authorized 376 by this section. 377 (i) “Created new jobs” means the number by which new jobs, 378 as defined in paragraph (h), on the application for 379 certification is greater than the total number of full-time jobs 380 located in this state as stated on an application for approval 381 to earn credits. 382 (j) “Office” means the Office of Tourism, Trade, and 383 Economic Development within the Executive Office of the 384 Governor. 385 (k) “Outer space” means an altitude of at least 50 miles 386 above the Earth’s surface. 387 (l) “Payload” means an object built or assembled in this 388 state which a commercial spaceflight business has prepared to 389 place in outer space by means of a launch vehicle or reentry 390 vehicle, including components, built or assembled in this state, 391 of the vehicle specifically designed or adapted for the object 392 and built or assembled in this state. 393 (m) “Reentry” means to return or attempt to return a 394 reentry vehicle and any payload from Earth orbit, or from outer 395 space, to a commercial launch zone in this state. 396 (n) “Reentry service” means an activity conducted in this 397 state related to the preparation of a reentry vehicle and any 398 payload for reentry and conduct of the reentry. 399 (o) “Spaceport territory” has the same meaning as provided 400 in s. 331.303. 401 (p) “Space vehicle” means any spacecraft, satellite, upper 402 stage, or launch vehicle system. 403 (q) “Successful launch” means a launch from a commercial 404 launch zone in this state which successfully places a launch 405 vehicle or reentry vehicle and payload from Earth into a 406 suborbital trajectory, into Earth orbit in outer space, or 407 otherwise into outer space. 408 (r) “Taxpayer” has the same meaning as defined in s. 409 220.03. 410 (s) “Total tax credits that may be approved for any state 411 fiscal year” means, for any state fiscal year, the sum of the 412 tax credits approved for taxpayers whose taxable year begins on 413 or after January 1 of the calendar year preceding the start of 414 the applicable state fiscal. 415 (3) TAX CREDITS.—The following credits, having been 416 approved and certified pursuant to subsection (5), may be taken 417 on a final return for a taxable year beginning on or after 418 January 1, 2014: 419 (a) Nontransferable corporate income tax credit.—A 420 certified commercial spaceflight business may take an approved 421 tax credit not to exceed 50 percent of the business’s tax 422 liability under this chapter for the taxable year in which the 423 credit is taken. The maximum tax credit amount that may be 424 approved for a business for a taxable year is $1 million. The 425 total nontransferable tax credits that may be approved for any 426 state fiscal year pursuant to this paragraph year may not exceed 427 $10 million. 428 (b) Transferable net operating loss tax credit.— 429 1. A certified commercial spaceflight business may be 430 approved to transfer, in whole or in part, its Florida net 431 operating loss that would otherwise be available to be taken on 432 a return filed pursuant to this chapter. The maximum tax credit 433 amount that may be approved for transfer by a business for a 434 taxable year is $2.5 million. The total transferable tax credits 435 that may be approved for any state fiscal year pursuant to this 436 paragraph may not exceed $25 million. However, any outstanding 437 credit that is carried forward by a transferee may not be 438 considered in calculating this annual limit. To transfer the 439 transferable credit, the business must: 440 a. Have been approved to transfer a transferrable tax 441 credit for the taxable year in which it is transferred; 442 b. Have incurred a qualifying net operating loss on 443 activity in this state directly associated with one or more 444 commercial space flight projects in any of its 3 previous 445 taxable years; 446 c. Not be 50 percent or more owned or controlled, directly 447 or indirectly, by another corporation that has demonstrated 448 positive net income in any of the 3 previous taxable years of 449 ongoing operations; and 450 d. Not be part of a consolidated group of affiliated 451 corporations, as filed for federal income tax purposes, which in 452 the aggregate in any of the 3 previous taxable years 453 demonstrated positive net income. 454 2. The amount that may be claimed and transferred by a 455 business is equal to: 456 a. One hundred percent of the net operating loss that would 457 otherwise be available to be claimed on a return filed pursuant 458 to this chapter during its first full year of operations in this 459 state. 460 b. One hundred percent of the net operating loss that would 461 otherwise be available to be claimed on a return filed pursuant 462 to this chapter during its second full year of operations in 463 this state. 464 c. One hundred percent of the net operating loss that would 465 otherwise be available to be claimed on a return filed pursuant 466 to this chapter during its third full year of operations in this 467 state. 468 (c) Machinery and equipment credit.—A certified commercial 469 spaceflight business may take an approved tax credit if it 470 invests at least $500,000 in machinery and equipment over a 471 period not to exceed 3 taxable years if such machinery has been 472 purchased in this state and exclusively used in this state for 473 one or more commercial spaceflight projects in this state. 474 1. An investment in machinery and equipment may be claimed 475 only one time by a commercial spaceflight business for the 476 corporate income tax credit authorized by this paragraph. 477 However, the purchase of the machinery and equipment may also be 478 exempt from the sales and use tax under the exemption in s. 479 212.08(5)(b). 480 2. The amount of the credit is equal to 7.5 percent of the 481 sales price of the machinery and equipment. 482 3. The business may take a credit for no more than 50 483 percent of its corporate income tax liability in the taxable 484 year in which the credit is taken, up to a maximum of $5 485 million. If credit granted under this paragraph is not fully 486 used in any one taxable year because of insufficient tax 487 liability, the unused amount may be carried forward for up to 5 488 taxable years. 489 4. The total credits that may be approved for any state 490 fiscal year pursuant to this paragraph may not exceed $20 491 million. 492 (4) ADMINISTRATION.— 493 (a) Unless transferred pursuant to this section, credits 494 awarded under this section may be granted only against the 495 corporate income tax liability generated by or arising out of a 496 commercial spaceflight project in this state, as documented in 497 the certified commercial spaceflight business’s annual audit 498 prepared by a certified public accountant licensed to do 499 business in this state and as verified by the office. 500 (b) A certified spaceflight business may not file a 501 consolidated return for the purposes of claiming the tax 502 incentives described in paragraphs (3)(a) and (c). 503 (c) It is the responsibility of the certified commercial 504 spaceflight business or transferee to demonstrate to the 505 satisfaction of the office and the department that it is 506 eligible to take the credits approved under this section. 507 (5) APPLICATION AND CERTIFICATION.— 508 (a) To claim a tax credit pursuant to this section, a 509 commercial spaceflight business must first submit an application 510 to the office for approval to earn credits. The application must 511 be filed by the date established by the office. The application 512 must include such information as is required by the office. In 513 addition to any other information that the office may require, 514 any corporation wishing to be approved for a tax credit 515 available under this section must provide a complete description 516 of the activity in this state that demonstrates to the office 517 the applicant’s likelihood to be certified to take or transfer a 518 credit. The applicant must also provide a description of the 519 total amount and type of credits for which approval is sought. 520 The office is authorized to consult with Space Florida regarding 521 the qualifications of any applicant. The applicant shall provide 522 an affidavit certifying that all information contained in the 523 application is true and correct. Approval of the credits under 524 this section shall otherwise be accomplished on a first-come, 525 first-served basis, based upon the date complete applications 526 are received by the office. A taxpayer may not submit more than 527 one complete application during a particular state fiscal year. 528 The office may not accept an incomplete placeholder application, 529 and such an application will not secure a place in the first 530 come, first-served application line. The office has 60 days 531 after the receipt of an application within which to issue a 532 notice of intent to deny or approve an application for credits. 533 If a business does not receive approval for a tax credit due to 534 the exhaustion of the annual tax credit authorizations, the 535 business may reapply in the following year for those credits 536 that then may be available to the business and the business 537 shall have priority over other applicants for an approved 538 credit. The office shall make a determination on the eligibility 539 of an applicant for the credits sought and shall approve the 540 credits that the applicant may later be certified to take. The 541 office is responsible for ensuring that the corporate income tax 542 credits approved in each fiscal year to all applicants do not 543 exceed the limits provided for in this section. The office is 544 authorized to adopt the guidelines, application materials, and 545 rules necessary to administer this section. 546 (b) At the time a business seeks to be certified to take, 547 and thereafter to transfer, if authorized, an approved credit, 548 it must submit an application to the office in order to be 549 certified to take such credit along with a $250 nonrefundable 550 fee. The application must include: 551 1. The name and physical Florida address of the taxpayer. 552 2. Documentation demonstrating to the satisfaction of the 553 office that: 554 a. The taxpayer is a commercial spaceflight business. 555 b. The business has engaged in a qualifying commercial 556 spaceflight project or projects before taking a credit under 557 this section. 558 3. In addition to any requirement specific to a credit, 559 documentation that the business has complied with all of the 560 following: 561 a. Created 35 new jobs, as defined in this section, located 562 in this state and directly associated with an individual 563 commercial spaceflight project, or projects during its 564 immediately preceding 3 taxable years; 565 b. Invested a total of at least $15 million in this state 566 on a commercial spaceflight project or projects during its 567 immediately preceding 3 taxable years; and 568 c. Participated in a commercial spaceflight project that 569 resulted in a successful launch from a commercial launch zone in 570 this state during its immediately preceding 3 taxable years. 571 4. The total amount and types of credits sought. 572 5. An acknowledgment that a transfer of a tax credit shall 573 be accomplished pursuant to subsection (6). 574 6. A copy of an audit or audits of the preceding 3 taxable 575 years, prepared by a certified public accountant licensed to 576 practice in this state, which identifies that portion of the 577 business’s activities in this state related to commercial 578 spaceflight projects in this state. 579 7. An acknowledgement that the business must file an annual 580 report on the project’s progress with the office. 581 8. Any other information necessary to demonstrate that the 582 applicant meets the job creation, investment, and other 583 requirements of this section. 584 (c) Within 60 days after receipt of the application, the 585 office shall evaluate the application for certification and 586 recommend the business for certification or denial. The 587 executive director of the office must approve or deny the 588 application within 30 days after receiving the recommendation 589 from the office. The office must provide a letter of 590 certification to the applicant, if approved, consistent with any 591 restrictions on the credit being certified. If the office denies 592 any part of the requested credit, the office must inform the 593 applicant of the grounds for the denial. A copy of the 594 certification shall be submitted to the department within 10 595 days after the executive director’s decision. 596 (d) Each business may be approved for only one credit for 597 any state fiscal year and may not claim any credit more than one 598 time. 599 (6) TRANSFERABILITY OF CREDIT.— 600 (a) For certified credits transferrable pursuant to this 601 section, any corporation allowed to transfer a credit, in whole 602 or in part, to any taxpayer by written agreement may do so 603 without transferring any ownership interest in the property 604 generating the credit or any interest in the entity owning such 605 property. The transferee is entitled to apply the credits 606 against the tax with the same effect as if the transferee had 607 incurred the eligible costs. 608 (b) To perfect the transfer, the transferor shall provide 609 the department with a written transfer statement that has been 610 approved by the office notifying the department of the 611 transferor’s intent to transfer the tax credits to the 612 transferee; the date that the transfer is effective; the 613 transferee’s name, address, and federal taxpayer identification 614 number; the tax period; and the amount of tax credits to be 615 transferred. The department shall, upon receipt of a transfer 616 statement conforming to the requirements of this section, 617 provide the transferee and the office with a certificate 618 reflecting the tax credit amounts transferred. A copy of the 619 certificate must be attached to each tax return for which the 620 transferee seeks to apply such tax credits. 621 (7) ADMINISTRATION; AUDIT AUTHORITY; RECAPTURE OF CREDITS.— 622 (a) In addition to its existing audit and investigative 623 authority, the department may perform any additional financial 624 and technical audits and investigations, including examining the 625 accounts, books, and financial records of the tax credit 626 applicant, which are necessary to verify the accuracy of the 627 return and to ensure compliance with this section. The office 628 and Space Florida shall provide technical assistance when 629 requested by the department on any technical audits or 630 examinations performed under this subsection. 631 (b) It is grounds for forfeiture of previously claimed tax 632 credits if the department determines, as a result of an audit or 633 examination, or from information received from the office, that 634 a certified commercial spaceflight business, or in the case of 635 transferred tax credits, a taxpayer received tax credits under 636 this section to which the certified commercial spaceflight 637 business or taxpayer was not entitled. The certified commercial 638 spaceflight business or transferee is responsible for filing an 639 amended return reflecting the disallowed credits and paying any 640 tax due as a result of the amendment. 641 (c) If the certified commercial spaceflight business’s 642 Florida corporate income tax return is adjusted by amendment, 643 recomputation, or redetermination such that any item entering 644 into the computation of a claimed credit has been changed, the 645 taxpayer must notify the department by filing an amended return. 646 The amount of any credit award not supported by the amended 647 return shall be deemed a deficiency to be remitted with the 648 amended return and is otherwise subject to s. 220.23. The 649 certified commercial spaceflight business is also liable for a 650 penalty equal to the amount of the credit claimed or 651 transferred, reduced in proportion to the amount of the net 652 operating loss certified for transfer over the amount of the 653 certified net operating loss disallowed. The applicant and its 654 successors shall maintain all records necessary to support the 655 reported net operating loss. 656 (d) The office may revoke or modify any certification 657 granting eligibility for tax credits under this section if it is 658 discovered that the certified commercial spaceflight business 659 made a false statement, or representation, in any application, 660 record, report, plan, or other document filed in an attempt to 661 receive tax credits under this section. The office shall 662 immediately notify the department of any revoked or modified 663 orders affecting previously granted tax credits. Additionally, 664 the certified commercial spaceflight business must notify the 665 department of any change in its tax credit claimed. 666 (e) The certified commercial spaceflight business must file 667 with the department an amended return or other report required 668 by the department by rule and must pay any required tax and 669 interest within 60 days after the certified commercial 670 spaceflight business receives notification from the office that 671 previously approved tax credits have been revoked or modified. 672 If the revocation or modification order is contested, the 673 certified commercial spaceflight business must file an amended 674 return or other report as provided in this paragraph within 60 675 days after a final order is issued following proceedings. 676 (f) The department may assess an additional tax, penalty, 677 or interest pursuant to s. 95.091. 678 (8) RULES.— 679 (a) The office, in consultation with Space Florida, shall 680 adopt rules to administer this section, including rules relating 681 to the certification forms for commercial spaceflight businesses 682 to complete, and the application and certification procedures, 683 guidelines, and requirements necessary to administer this 684 section. 685 (b) The department may adopt rules to administer this 686 section, including rules relating to: 687 1. The forms required to claim a tax credit under this 688 section, the requirements and basis for establishing an 689 entitlement to a credit, and the examination and audit 690 procedures required to administer this section. 691 2. The implementation and administration of the provisions 692 allowing a transfer of a net operating loss as a tax credit, 693 including rules prescribing forms, reporting requirements, and 694 specific procedures, guidelines, and requirements necessary to 695 perform the transfer. 696 3. The minimum portion of the credit that is available for 697 transfer. 698 (9) ANNUAL REPORT.—The office, in cooperation with Space 699 Florida and the department, shall submit an annual report of the 700 commercial launch zone incentive program’s activities to the 701 Governor, the President of the Senate, and the Speaker of the 702 House of Representatives by November 30 of each year, beginning 703 in 2014. 704 Section 7. This act shall take effect upon becoming a law, 705 except that the tax credits authorized by this act may not be 706 applied to returns filed for any tax period before January 1, 707 2014.
