Bill Text: FL S1470 | 2011 | Regular Session | Introduced

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

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Bill Title: Capital Investment Tax Credit

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2011-05-07 - Indefinitely postponed and withdrawn from consideration [S1470 Detail]

Download: Florida-2011-S1470-Introduced.html

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       Florida Senate - 2011                                    SB 1470
       
       
       
       By Senator Altman
       
       
       
       
       24-00563C-11                                          20111470__
    1                        A bill to be entitled                      
    2         An act relating to the capital investment tax credit;
    3         amending s. 220.191, F.S.; authorizing a qualifying
    4         business that has insufficient corporate income tax
    5         liability to fully claim a capital investment tax
    6         credit to apply the credit against its liability for
    7         sales and use taxes to be collected, reported, and
    8         remitted to the Department of Revenue; requiring a
    9         qualifying business that receives a credit against its
   10         sales and use tax liability to make additional capital
   11         investments; requiring a qualifying business to
   12         annually report its capital investments to the Office
   13         of Tourism, Trade, and Economic Development, the
   14         President of the Senate, and the Speaker of the House
   15         of Representatives; requiring a qualifying business
   16         that fails to make the required capital investments to
   17         repay the amount of the sales and use tax credit
   18         claimed with interest; limiting the availability of
   19         the sales tax credit to certain businesses that have
   20         their headquarters in this state, that qualify for the
   21         capital investment tax credit under certain
   22         circumstances, and that were approved to participate
   23         in the capital investment tax credit program during a
   24         certain period; limiting the annual amount of tax
   25         credits that may be approved; authorizing the Office
   26         of Tourism, Trade, and Economic Development and the
   27         Department of Revenue to adopt rules; providing an
   28         effective date.
   29  
   30  Be It Enacted by the Legislature of the State of Florida:
   31  
   32         Section 1. Section 220.191, Florida Statutes, is amended to
   33  read:
   34         220.191 Capital investment tax credit.—
   35         (1) DEFINITIONS.—As used in For purposes of this section,
   36  the term:
   37         (a) “Commencement of operations” means the beginning of
   38  active operations by a qualifying business of the principal
   39  function for which a qualifying project was constructed.
   40         (b) “Cumulative capital investment” means the total capital
   41  investment in land, buildings, and equipment made in connection
   42  with a qualifying project during the period from the beginning
   43  of construction of the project to the commencement of
   44  operations.
   45         (c) “Eligible capital costs” means all expenses incurred by
   46  a qualifying business in connection with the acquisition,
   47  construction, installation, and equipping of a qualifying
   48  project during the period from the beginning of construction of
   49  the project to the commencement of operations, including, but
   50  not limited to:
   51         1. The costs of acquiring, constructing, installing,
   52  equipping, and financing a qualifying project, including all
   53  obligations incurred for labor and obligations to contractors,
   54  subcontractors, builders, and materialmen.
   55         2. The costs of acquiring land or rights to land and any
   56  cost incidental thereto, including recording fees.
   57         3. The costs of architectural and engineering services,
   58  including test borings, surveys, estimates, plans and
   59  specifications, preliminary investigations, environmental
   60  mitigation, and supervision of construction, as well as the
   61  performance of all duties required by or consequent to the
   62  acquisition, construction, installation, and equipping of a
   63  qualifying project.
   64         4. The costs associated with the installation of fixtures
   65  and equipment; surveys, including archaeological and
   66  environmental surveys; site tests and inspections; subsurface
   67  site work and excavation; removal of structures, roadways, and
   68  other surface obstructions; filling, grading, paving, and
   69  provisions for drainage, storm water retention, and installation
   70  of utilities, including water, sewer, sewage treatment, gas,
   71  electricity, communications, and similar facilities; and offsite
   72  construction of utility extensions to the boundaries of the
   73  property.
   74  
   75  The term does eligible capital costs shall not include the cost
   76  of any property previously owned or leased by the qualifying
   77  business.
   78         (d) “Income generated by or arising out of the qualifying
   79  project” means the qualifying project’s annual taxable income as
   80  determined by generally accepted accounting principles and under
   81  s. 220.13.
   82         (e) “Jobs” means full-time equivalent positions, as that
   83  term is consistent with terms used by the Agency for Workforce
   84  Innovation and the United States Department of Labor for
   85  purposes of unemployment tax administration and employment
   86  estimation, resulting directly from a project in this state. The
   87  term does not include temporary construction jobs involved in
   88  the construction of the project facility.
   89         (f) “Office” means the Office of Tourism, Trade, and
   90  Economic Development.
   91         (g) “Qualifying business” means a business which
   92  establishes a qualifying project in this state and which is
   93  certified by the office to receive tax credits pursuant to this
   94  section.
   95         (h) “Qualifying project” means:
   96         1. A new or expanding facility in this state which creates
   97  at least 100 new jobs in this state and is in one of the high
   98  impact sectors identified by Enterprise Florida, Inc., and
   99  certified by the office pursuant to s. 288.108(6), including,
  100  but not limited to, aviation, aerospace, automotive, and silicon
  101  technology industries;
  102         2. A new or expanded facility in this state which is
  103  engaged in a target industry designated pursuant to the
  104  procedure specified in s. 288.106(2)(t) and which is induced by
  105  this credit to create or retain at least 1,000 jobs in this
  106  state, provided that at least 100 of those jobs are new, pay an
  107  annual average wage of at least 130 percent of the average
  108  private sector wage in the area as defined in s. 288.106(2), and
  109  make a cumulative capital investment of at least $100 million
  110  after July 1, 2005. Jobs may be considered retained only if
  111  there is significant evidence that the loss of jobs is imminent.
  112  Notwithstanding subsection (2), annual credits against the tax
  113  imposed by this chapter may shall not exceed 50 percent of the
  114  increased annual corporate income tax liability or the premium
  115  tax liability generated by or arising out of a project
  116  qualifying under this subparagraph. A facility that qualifies
  117  under this subparagraph for an annual credit against the tax
  118  imposed by this chapter may take the tax credit for a period not
  119  to exceed 5 years; or
  120         3. A new or expanded headquarters facility in this state
  121  which locates in an enterprise zone and brownfield area and is
  122  induced by this credit to create at least 1,500 jobs which on
  123  average pay at least 200 percent of the statewide average annual
  124  private sector wage, as published by the Agency for Workforce
  125  Innovation or its successor, and which new or expanded
  126  headquarters facility makes a cumulative capital investment in
  127  this state of at least $250 million.
  128         (2)(a) An annual credit against the tax imposed by this
  129  chapter shall be granted to any qualifying business in an amount
  130  equal to 5 percent of the eligible capital costs generated by a
  131  qualifying project, for a period not to exceed 20 years
  132  beginning with the commencement of operations of the project.
  133  Unless assigned as described in this subsection, the tax credit
  134  shall be granted against only the corporate income tax liability
  135  or the premium tax liability generated by or arising out of the
  136  qualifying project, and the sum of all tax credits provided
  137  pursuant to this section may shall not exceed 100 percent of the
  138  eligible capital costs of the project. Except as provided in
  139  paragraph (d), a In no event may any credit granted under this
  140  section may not be carried forward or backward by any qualifying
  141  business with respect to a subsequent or prior year. The annual
  142  tax credit granted under this section may shall not exceed the
  143  following percentages of the annual corporate income tax
  144  liability or the premium tax liability generated by or arising
  145  out of a qualifying project:
  146         1. One hundred percent for a qualifying project which
  147  results in a cumulative capital investment of at least $100
  148  million.
  149         2. Seventy-five percent for a qualifying project which
  150  results in a cumulative capital investment of at least $50
  151  million but less than $100 million.
  152         3. Fifty percent for a qualifying project which results in
  153  a cumulative capital investment of at least $25 million but less
  154  than $50 million.
  155         (b) A qualifying project that which results in a cumulative
  156  capital investment of less than $25 million is not eligible for
  157  the capital investment tax credit. An insurance company claiming
  158  a credit against premium tax liability under this program is
  159  shall not be required to pay any additional retaliatory tax
  160  levied pursuant to s. 624.5091 as a result of claiming such
  161  credit. Because credits under this section are available to an
  162  insurance company, s. 624.5091 does not limit such credit in any
  163  manner.
  164         (c) A qualifying business that establishes a qualifying
  165  project that includes locating a new solar panel manufacturing
  166  facility in this state that generates a minimum of 400 jobs
  167  within 6 months after commencement of operations with an average
  168  salary of at least $50,000 may assign or transfer the annual
  169  credit, or any portion thereof, granted under this section to
  170  any other business. However, the amount of the tax credit that
  171  may be transferred in any year is shall be the lesser of the
  172  qualifying business’s state corporate income tax liability for
  173  that year, as limited by the percentages applicable under
  174  paragraph (a) and as calculated before prior to taking any
  175  credit pursuant to this section, or the credit amount granted
  176  for that year. A business receiving the transferred or assigned
  177  credits may use the credits only in the year received, and the
  178  credits may not be carried forward or backward. To perfect the
  179  transfer, the transferor must shall provide the department with
  180  a written transfer statement notifying the department of the
  181  transferor’s intent to transfer the tax credits to the
  182  transferee; the date the transfer is effective; the transferee’s
  183  name, address, and federal taxpayer identification number; the
  184  tax period; and the amount of tax credits to be transferred. The
  185  department shall, upon receipt of a transfer statement
  186  conforming to the requirements of this paragraph, provide the
  187  transferee with a certificate reflecting the tax credit amounts
  188  transferred. A copy of the certificate must be attached to each
  189  tax return for which the transferee seeks to apply such tax
  190  credits.
  191         (d) Beginning in the 2011-2012 state fiscal year, if a
  192  credit granted under this subsection is not fully used in any
  193  one year because of insufficient tax liability on the part of
  194  the qualifying business, the qualifying business is entitled to
  195  a sales tax credit against its sales tax liability in an amount
  196  equal to the difference between the annual tax credit granted
  197  under this subsection, as computed pursuant to paragraph (a),
  198  and the amount of the credit foregone by the qualifying business
  199  because of insufficient tax liability. The sales tax credit
  200  shall be granted against state sales and use taxes collected,
  201  reported, and remitted pursuant to chapter 212 during the 12
  202  month period beginning on the date that the qualifying business
  203  files its corporate income tax return for the year in which the
  204  credit granted under this subsection is not fully used.
  205         1. The sales tax credit granted under this paragraph is
  206  subject to the following:
  207         a. A qualifying business that applies its sales tax credit
  208  against its sales and use tax liability must make capital
  209  investments in Florida, in addition to its cumulative capital
  210  investment, in an amount equal to or greater than the applied
  211  credit within 5 years after the date that the qualifying
  212  business first applied the sales tax credit to its sales and use
  213  tax return.
  214         b. A qualifying business must annually provide to the
  215  office, the President of the Senate, and the Speaker of the
  216  House of Representatives a report listing the capital
  217  investments made in each tax year of the business in which the
  218  business claims a sales and use tax credit pursuant to this
  219  paragraph and must provide a final summary report of all capital
  220  investments made pursuant to requirements of this paragraph.
  221         c. If the qualifying business fails to make the capital
  222  investments pursuant to subparagraph (a)1. or if the business
  223  fails to report its capital investments pursuant to subparagraph
  224  (a)2., the qualifying business shall repay to the Department of
  225  Revenue the difference between the sales tax credits received
  226  and the amount of capital investments accounted for plus
  227  interest as provided for delinquent taxes under chapter 212.
  228         d. A qualifying business must have its headquarters in this
  229  state, qualify for the capital investment tax credit pursuant to
  230  subparagraph (a)1., and have received a signed letter of
  231  approval to participate in the Capital Investment Tax Credit
  232  Program between 2006 and 2008.
  233         2. The maximum amount of tax credits that the Department of
  234  Revenue may approve to any one qualifying business under this
  235  paragraph during any one state fiscal year is $5 million.
  236  Applications shall be processed in the order that completed
  237  applications are received.
  238         3. The office and the Department of Revenue may adopt rules
  239  to administer this paragraph.
  240         (3)(a) Notwithstanding subsection (2), an annual credit
  241  against the tax imposed by this chapter shall be granted to a
  242  qualifying business which establishes a qualifying project
  243  pursuant to subparagraph (1)(h)3., in an amount equal to the
  244  lesser of $15 million or 5 percent of the eligible capital costs
  245  made in connection with a qualifying project, for a period not
  246  to exceed 20 years beginning with the commencement of operations
  247  of the project. The tax credit shall be granted against the
  248  corporate income tax liability of the qualifying business and as
  249  further provided in paragraph (c). The total tax credit provided
  250  pursuant to this subsection shall be equal to no more than 100
  251  percent of the eligible capital costs of the qualifying project.
  252         (b) If the credit granted under this subsection is not
  253  fully used in any one year because of insufficient tax liability
  254  on the part of the qualifying business, the unused amount may be
  255  carried forward for a period not to exceed 20 years after the
  256  commencement of operations of the project. The carryover credit
  257  may be used in a subsequent year when the tax imposed by this
  258  chapter for that year exceeds the credit for which the
  259  qualifying business is eligible in that year under this
  260  subsection after applying the other credits and unused
  261  carryovers in the order provided by s. 220.02(8).
  262         (c) The credit granted under this subsection may be used in
  263  whole or in part by the qualifying business or any corporation
  264  that is either a member of that qualifying business’s affiliated
  265  group of corporations, is a related entity taxable as a
  266  cooperative under subchapter T of the Internal Revenue Code, or,
  267  if the qualifying business is an entity taxable as a cooperative
  268  under subchapter T of the Internal Revenue Code, is related to
  269  the qualifying business. Any entity related to the qualifying
  270  business may continue to file as a member of a Florida-nexus
  271  consolidated group pursuant to a prior election made under s.
  272  220.131(1), Florida Statutes (1985), even if the parent of the
  273  group changes due to a direct or indirect acquisition of the
  274  former common parent of the group. Any credit can be used by any
  275  of the affiliated companies or related entities referenced in
  276  this paragraph to the same extent as it could have been used by
  277  the qualifying business. However, any such use shall not operate
  278  to increase the amount of the credit or extend the period within
  279  which the credit must be used.
  280         (4) Before Prior to receiving tax credits pursuant to this
  281  section, a qualifying business must achieve and maintain the
  282  minimum employment goals beginning with the commencement of
  283  operations at a qualifying project and continuing each year
  284  thereafter during which tax credits are available pursuant to
  285  this section.
  286         (5) Applications shall be reviewed and certified pursuant
  287  to s. 288.061. The office, upon a recommendation by Enterprise
  288  Florida, Inc., shall first certify a business as eligible to
  289  receive tax credits pursuant to this section prior to the
  290  commencement of operations of a qualifying project, and such
  291  certification shall be transmitted to the Department of Revenue.
  292  Upon receipt of the certification, the Department of Revenue
  293  shall enter into a written agreement with the qualifying
  294  business specifying, at a minimum, the method by which income
  295  generated by or arising out of the qualifying project will be
  296  determined.
  297         (6) The office, in consultation with Enterprise Florida,
  298  Inc., is authorized to develop the necessary guidelines and
  299  application materials for the certification process described in
  300  subsection (5).
  301         (7) It shall be the responsibility of The qualifying
  302  business has the responsibility to affirmatively demonstrate to
  303  the satisfaction of the Department of Revenue that such business
  304  meets the job creation and capital investment requirements of
  305  this section.
  306         (8) The Department of Revenue may specify by rule the
  307  methods by which a project’s pro forma annual taxable income is
  308  determined.
  309         Section 2. This act shall take effect July 1, 2011.