Bill Text: FL S1642 | 2020 | Regular Session | Comm Sub
Bill Title: Tax Exemptions
Spectrum: Bipartisan Bill
Status: (Failed) 2020-03-14 - Died in Finance and Tax [S1642 Detail]
Download: Florida-2020-S1642-Comm_Sub.html
Florida Senate - 2020 CS for SB 1642 By the Committee on Commerce and Tourism; and Senator Gruters 577-03075-20 20201642c1 1 A bill to be entitled 2 An act relating to tax exemptions; amending s. 3 196.1978, F.S.; revising the affordable housing 4 property exemption to exempt from ad valorem taxation, 5 rather than provide a discount to, certain multifamily 6 projects after a certain timeframe; making clarifying 7 changes; amending s. 212.08, F.S.; providing a sales 8 tax exemption for certain aircraft equipment used as 9 part of certain governmental contracts; providing a 10 use tax exemption for certain aircraft owned by 11 nonresidents and used in service of certain 12 governmental contracts; providing construction; 13 providing a sales tax exemption for parts and 14 accessories necessary for the continued operation of 15 certain industrial machinery or equipment; amending s. 16 220.191, F.S.; redefining terms; defining the term 17 “intellectual property”; providing a credit against 18 the corporate income tax, the sales and use tax, or a 19 stated combination of the two taxes to a qualifying 20 business that establishes a qualifying project for the 21 creation of intellectual property which meets certain 22 capital investment criteria; specifying the 23 calculation of the credit; authorizing the carryover 24 or transfer of credits, subject to certain conditions; 25 conforming provisions to changes made by the act; 26 amending s. 288.1089, F.S.; revising the definition of 27 the term “cumulative investment” to conform to changes 28 made by the act; providing effective dates. 29 30 Be It Enacted by the Legislature of the State of Florida: 31 32 Section 1. Effective January 1, 2021, section 196.1978, 33 Florida Statutes, is amended to read: 34 196.1978 Affordable housing property exemption.— 35 (1) Property used to provide affordable housing to eligible 36 persons as defined by s. 159.603 and natural persons or families 37 meeting the extremely-low-income, very-low-income, low-income, 38 or moderate-income limits specified in s. 420.0004, which is 39 owned entirely by a nonprofit entity that is a corporation not 40 for profit, qualified as charitable under s. 501(c)(3) of the 41 Internal Revenue Code and in compliance with Rev. Proc. 96-32, 42 1996-1 C.B. 717, is considered property owned by an exempt 43 entity and used for a charitable purpose, and those portions of 44 the affordable housing property that provide housing to natural 45 persons or families classified as extremely low income, very low 46 income, low income, or moderate income under s. 420.0004 are 47 exempt from ad valorem taxation to the extent authorized under 48 s. 196.196. All property identified in this subsectionsection49 must comply with the criteria provided under s. 196.195 for 50 determining exempt status and applied by property appraisers on 51 an annual basis. The Legislature intends that any property owned 52 by a limited liability company which is disregarded as an entity 53 for federal income tax purposes pursuant to Treasury Regulation 54 301.7701-3(b)(1)(ii) be treated as owned by its sole member. 55 (2)(a) Notwithstanding ss. 196.195 and 196.196, property in 56 a multifamily project that meets the requirements of this 57 paragraph is considered property used for a charitable purpose 58 and shall receive a 10050percent discount from the amount of 59 ad valorem tax otherwise owed beginning in the 16thwith the60January 1 assessment after the 15th completedyear of the term 61 of the recorded agreement on those portions of the affordable 62 housing property that provide housing to natural persons or 63 families meeting the extremely-low-income, very-low-income, or 64 low-income limits specified in s. 420.0004. The multifamily 65 project must: 66 1. Contain more than 70 units that are used to provide 67 affordable housing to natural persons or families meeting the 68 extremely-low-income, very-low-income, or low-income persons 69 limits specified in s. 420.0004; and 70 2. Be subject to an agreement with the Florida Housing 71 Finance Corporation recorded in the official records of the 72 county in which the property is located to provide affordable 73 housing to natural persons or families meeting the extremely 74 low-income, very-low-income, or low-income limits specified in 75 s. 420.0004. 76 77 This discount terminates if the property no longer serves 78 extremely-low-income, very-low-income, or low-income persons 79 pursuant to the recorded agreement. 80 (b) To receive the discount under paragraph (a), a 81 qualified applicant must submit an application to the county 82 property appraiser by March 1. 83 (c) The property appraiser shall apply the discount by 84 reducing the taxable value on those portions of the affordable 85 housing property that provide housing to natural persons or 86 families meeting the extremely-low-income, very-low-income, or 87 low-income limits specified in s. 420.0004 before certifying the 88 tax roll to the tax collector. 89 1. The property appraiser shall first ascertain all other 90 applicable exemptions, including exemptions provided pursuant to 91 local option, and deduct all other exemptions from the assessed 92 value. 93 2. One hundredFiftypercent of the remaining value shall 94 be subtracted to yield the discounted taxable value. 95 3. The resulting taxable value shall be included in the 96 certification for use by taxing authorities in setting millage. 97 4. The property appraiser shall place the discounted amount 98 on the tax roll when it is extended. 99 Section 2. Effective July 1, 2020, paragraph (fff) of 100 subsection (7) of section 212.08, Florida Statutes, is amended, 101 and paragraph (u) is added to subsection (5) of that section, to 102 read: 103 212.08 Sales, rental, use, consumption, distribution, and 104 storage tax; specified exemptions.—The sale at retail, the 105 rental, the use, the consumption, the distribution, and the 106 storage to be used or consumed in this state of the following 107 are hereby specifically exempt from the tax imposed by this 108 chapter. 109 (5) EXEMPTIONS; ACCOUNT OF USE.— 110 (u) Aircraft equipment used in governmental contracts. 111 Equipment, including electric and hydraulic ground power units, 112 jet starter units, oxygen servicing and test equipment, engine 113 trim boxes, and communications and avionics test sets, which is 114 used to service, test, operate, upgrade, or configure aircraft 115 for advanced training purposes as part of any contract with the 116 United States Department of Defense or with a military branch of 117 a recognized foreign government, is exempt from the tax imposed 118 by this chapter. 119 (7) MISCELLANEOUS EXEMPTIONS.—Exemptions provided to any 120 entity by this chapter do not inure to any transaction that is 121 otherwise taxable under this chapter when payment is made by a 122 representative or employee of the entity by any means, 123 including, but not limited to, cash, check, or credit card, even 124 when that representative or employee is subsequently reimbursed 125 by the entity. In addition, exemptions provided to any entity by 126 this subsection do not inure to any transaction that is 127 otherwise taxable under this chapter unless the entity has 128 obtained a sales tax exemption certificate from the department 129 or the entity obtains or provides other documentation as 130 required by the department. Eligible purchases or leases made 131 with such a certificate must be in strict compliance with this 132 subsection and departmental rules, and any person who makes an 133 exempt purchase with a certificate that is not in strict 134 compliance with this subsection and the rules is liable for and 135 shall pay the tax. The department may adopt rules to administer 136 this subsection. 137 (fff) Aircraft temporarily in the state.— 138 1. An aircraft owned by a nonresident is exempt from the 139 use tax imposed under this chapter if the aircraft enters and 140 remains in this state for less than a total of 21 days during 141 the 6-month period after the date of purchase. The temporary use 142 of the aircraft and subsequent removal from this state may be 143 proven by invoices for fuel, tie-down, or hangar charges issued 144 by out-of-state vendors or suppliers or similar documentation 145 that clearly and specifically identifies the aircraft. The 146 exemption provided in this subparagraph is in addition to the 147 exemptions provided in subparagraphs 2. and 3.subparagraph 2.148 and s. 212.05(1)(a). 149 2. An aircraft owned by a nonresident is exempt from the 150 use tax imposed under this chapter if the aircraft enters or 151 remains in this state exclusively for purposes of flight 152 training, repairs, alterations, refitting, or modification. Such 153 purposes shall be supported by written documentation issued by 154 in-state vendors or suppliers which clearly and specifically 155 identifies the aircraft. The exemption provided in this 156 subparagraph is in addition to the exemptions provided in 157 subparagraph 1. and s. 212.05(1)(a). 158 3. An aircraft owned by a nonresident is exempt from the 159 use tax imposed under this chapter if the aircraft enters or 160 remains in this state exclusively to be used in service of a 161 contract with the United States Department of Defense or with a 162 military branch of a recognized foreign government. The 163 exemption provided in this subparagraph is in addition to the 164 exemptions provided in subparagraph 1. and s. 212.05(1)(a). 165 Section 3. Effective October 1, 2020, paragraph (jjj) of 166 subsection (7) of section 212.08, Florida Statutes, is amended 167 to read: 168 212.08 Sales, rental, use, consumption, distribution, and 169 storage tax; specified exemptions.—The sale at retail, the 170 rental, the use, the consumption, the distribution, and the 171 storage to be used or consumed in this state of the following 172 are hereby specifically exempt from the tax imposed by this 173 chapter. 174 (7) MISCELLANEOUS EXEMPTIONS.—Exemptions provided to any 175 entity by this chapter do not inure to any transaction that is 176 otherwise taxable under this chapter when payment is made by a 177 representative or employee of the entity by any means, 178 including, but not limited to, cash, check, or credit card, even 179 when that representative or employee is subsequently reimbursed 180 by the entity. In addition, exemptions provided to any entity by 181 this subsection do not inure to any transaction that is 182 otherwise taxable under this chapter unless the entity has 183 obtained a sales tax exemption certificate from the department 184 or the entity obtains or provides other documentation as 185 required by the department. Eligible purchases or leases made 186 with such a certificate must be in strict compliance with this 187 subsection and departmental rules, and any person who makes an 188 exempt purchase with a certificate that is not in strict 189 compliance with this subsection and the rules is liable for and 190 shall pay the tax. The department may adopt rules to administer 191 this subsection. 192 (jjj) Certain machinery and equipment.— 193 1. Industrial machinery and equipment purchased by eligible 194 manufacturing businesses which is used at a fixed location in 195 this state for the manufacture, processing, compounding, or 196 production of items of tangible personal property for sale is 197 exempt from the tax imposed by this chapter. If, at the time of 198 purchase, the purchaser furnishes the seller with a signed 199 certificate certifying the purchaser’s entitlement to exemption 200 pursuant to this paragraph, the seller is not required to 201 collect the tax on the sale of such items, and the department 202 shall look solely to the purchaser for recovery of the tax if it 203 determines that the purchaser was not entitled to the exemption. 204 2. For purposes of this paragraph, the term: 205 a. “Eligible manufacturing business” means any business 206 whose primary business activity at the location where the 207 industrial machinery and equipment is located is within the 208 industries classified under NAICS codes 31, 32, 33, 112511, and 209 423930. 210 b. “Eligible postharvest activity business” means a 211 business whose primary business activity, at the location where 212 the postharvest machinery and equipment is located, is within 213 the industries classified under NAICS code 115114. 214 c. “NAICS” means those classifications contained in the 215 North American Industry Classification System, as published in 216 2007 by the Office of Management and Budget, Executive Office of 217 the President. 218 d. “Primary business activity” means an activity 219 representing more than 50 percent of the activities conducted at 220 the location where the industrial machinery and equipment or 221 postharvest machinery and equipment is located. 222 e. “Industrial machinery and equipment” means tangible 223 personal property or other property that has a depreciable life 224 of 3 years or more and that is used as an integral part in the 225 manufacturing, processing, compounding, or production of 226 tangible personal property for sale. The term includes tangible 227 personal property or other property that has a depreciable life 228 of 3 years or more which is used as an integral part in the 229 recycling of metals for sale. A building and its structural 230 components are not industrial machinery and equipment unless the 231 building or structural component is so closely related to the 232 industrial machinery and equipment that it houses or supports 233 that the building or structural component can be expected to be 234 replaced when the machinery and equipment are replaced. Heating 235 and air conditioning systems are not industrial machinery and 236 equipment unless the sole justification for their installation 237 is to meet the requirements of the production process, even 238 though the system may provide incidental comfort to employees or 239 serve, to an insubstantial degree, nonproduction activities. The 240 term includes parts and accessories for industrial machinery and 241 equipment only to the extent that the parts and accessories are 242 necessary for the continued operation of the industrial 243 machinery or equipment or were purchased before the date the 244 machinery and equipment wereareplaced in service. 245 f. “Postharvest activities” means services performed on 246 crops, after their harvest, with the intent of preparing them 247 for market or further processing. Postharvest activities 248 include, but are not limited to, crop cleaning, sun drying, 249 shelling, fumigating, curing, sorting, grading, packing, and 250 cooling. 251 g. “Postharvest machinery and equipment” means tangible 252 personal property or other property with a depreciable life of 3 253 years or more which is used primarily for postharvest 254 activities. A building and its structural components are not 255 postharvest industrial machinery and equipment unless the 256 building or structural component is so closely related to the 257 postharvest machinery and equipment that it houses or supports 258 that the building or structural component can be expected to be 259 replaced when the postharvest machinery and equipment is 260 replaced. Heating and air conditioning systems are not 261 postharvest machinery and equipment unless the sole 262 justification for their installation is to meet the requirements 263 of the postharvest activities process, even though the system 264 may provide incidental comfort to employees or serve, to an 265 insubstantial degree, nonpostharvest activities. 266 3. Postharvest machinery and equipment purchased by an 267 eligible postharvest activity business which is used at a fixed 268 location in this state is exempt from the tax imposed by this 269 chapter. All labor charges for the repair of, and parts and 270 materials used in the repair of and incorporated into, such 271 postharvest machinery and equipment are also exempt. If, at the 272 time of purchase, the purchaser furnishes the seller with a 273 signed certificate certifying the purchaser’s entitlement to 274 exemption pursuant to this subparagraph, the seller is not 275 required to collect the tax on the sale of such items, and the 276 department shall look solely to the purchaser for recovery of 277 the tax if it determines that the purchaser was not entitled to 278 the exemption. 279 Section 4. Section 220.191, Florida Statutes, is amended to 280 read: 281 220.191 Capital investment tax credit.— 282 (1) DEFINITIONS.—As used inFor purposes ofthis section, 283 the term: 284 (a) “Commencement of operations” means the beginning of 285 active operations by a qualifying business of the principal 286 function for which a qualifying project was constructed. 287 (b) “Cumulative capital investment” means the total capital 288 investment in land, buildings,andequipment, and intellectual 289 property made in connection with a qualifying project during the 290 period from the beginning of construction or the start date of 291 the project to the commencement of operations or the completion 292 of the project, as applicable. 293 (c) “Eligible capital costs” means all expenses incurred by 294 a qualifying business in connection with the acquisition, 295 construction, installation,andequipping, and development of a 296 qualifying project during the period from the beginning of 297 construction or the start date of the project to the 298 commencement of operations or the completion of the project, as 299 applicable, including, but not limited to: 300 1. The costs of acquiring, constructing, installing, 301 equipping, and financing a qualifying project, including all 302 obligations incurred for labor and obligations to contractors, 303 subcontractors, builders, and materialmen. 304 2. The costs of acquiring land or rights to land and any 305 cost incidental thereto, including recording fees. 306 3. The costs of architectural and engineering services, 307 including test borings, surveys, estimates, plans and 308 specifications, preliminary investigations, environmental 309 mitigation, and supervision of construction, as well as the 310 performance of all duties required by or consequent to the 311 acquisition, construction, installation, and equipping of a 312 qualifying project. 313 4. The costs associated with the installation of fixtures 314 and equipment; surveys, including archaeological and 315 environmental surveys; site tests and inspections; subsurface 316 site work and excavation; removal of structures, roadways, and 317 other surface obstructions; filling, grading, paving, and 318 provisions for drainage, storm water retention, and installation 319 of utilities, including water, sewer, sewage treatment, gas, 320 electricity, communications, and similar facilities; and offsite 321 construction of utility extensions to the boundaries of the 322 property. 323 5. For the development of intellectual property, the wages, 324 salaries, or other compensation paid to legal residents of this 325 state and the costs of newly purchased computer software and 326 hardware unique to the project, including servers, data 327 processing, and visualization technologies, which are located 328 and used exclusively in this state for the project. 329 330 Eligible capital costs shall not include the cost of any 331 property previously owned or leased by the qualifying business. 332 (d) “Income generated by or arising out of the qualifying 333 project” means the qualifying project’s annual taxable income as 334 determined by generally accepted accounting principles and under 335 s. 220.13. 336 (e) “Intellectual property” means a copyrightable project 337 for which the eligible capital costs are principally paid 338 directly or indirectly for the creation of the project. As used 339 in this paragraph, the term “copyrightable project” includes, 340 but is not limited to, a copyrightable software or multimedia 341 application and its expansion content made available to an end 342 user, internal development platforms that support the production 343 of multiple applications, cloud-based services that support the 344 functionality of multiple applications, and copyrighted projects 345 registered with the United States Copyright Office which include 346 digital visualization and sound synchronization technologies. 347 The project may not be intended for distribution solely inside 348 this state, and at least 75 percent of forecasted revenues for 349 the project must be from outside this state. 350 (f) “Jobs” means full-time equivalent positions, as that 351 term is consistent with terms used by the Department of Economic 352 Opportunity and the United States Department of Labor for 353 purposes of reemployment assistance tax administration and 354 employment estimation, resulting directly from a project in this 355 state. The term does not include temporary construction jobs 356 involved in the construction of the project facility. 357 (g)(f)“Qualifying business” means a business which 358 establishes a qualifying project in this state and which is 359 certified by the Department of Economic Opportunity to receive 360 tax credits pursuant to this section. 361 (h)(g)“Qualifying project” means a facility or project in 362 this state meeting one or more of the following criteria: 363 1. A new or expanding facility in this state which creates 364 at least 100 new jobs in this state and is in one of the high 365 impact sectors identified by Enterprise Florida, Inc., and 366 certified by the Department of Economic Opportunity pursuant to 367 s. 288.108(6), including, but not limited to, aviation, 368 aerospace, automotive, and silicon technology industries. 369 However, between July 1, 2011, and June 30, 2014, the 370 requirement that a facility be in a high-impact sector is waived 371 for any otherwise eligible business from another state which 372 locates all or a portion of its business to a Disproportionally 373 Affected County. For purposes of this section, the term 374 “Disproportionally Affected County” means Bay County, Escambia 375 County, Franklin County, Gulf County, Okaloosa County, Santa 376 Rosa County, Walton County, or Wakulla County. 377 2. A new or expanded facility in this state which is 378 engaged in a target industry designated pursuant to the 379 procedure specified in s. 288.106(2) and which is induced by 380 this credit to create or retain at least 1,000 jobs in this 381 state, provided that at least 100 of those jobs are new, pay an 382 annual average wage of at least 130 percent of the average 383 private sector wage in the area as defined in s. 288.106(2), and 384 make a cumulative capital investment of at least $100 million. 385 Jobs may be considered retained only if there is significant 386 evidence that the loss of jobs is imminent. Notwithstanding 387 subsection (2), annual credits against the tax imposed by this 388 chapter may not exceed 50 percent of the increased annual 389 corporate income tax liability or the premium tax liability 390 generated by or arising out of a project qualifying under this 391 subparagraph. A facility that qualifies under this subparagraph 392 for an annual credit against the tax imposed by this chapter may 393 take the tax credit for a period not to exceed 5 years. 394 3. A new or expanded headquarters facility in this state 395 which locates in an enterprise zone and brownfield area and is 396 induced by this credit to create at least 1,500 jobs which on 397 average pay at least 200 percent of the statewide average annual 398 private sector wage, as published by the Department of Economic 399 Opportunity, and which new or expanded headquarters facility 400 makes a cumulative capital investment in this state of at least 401 $250 million. 402 4. For the creation of intellectual property, a qualifying 403 project may be made up of one or more projects with different 404 start and completion dates. The annual average wage of the 405 project jobs in this state must be at least 150 percent of the 406 average private sector wage in the area as defined in s. 407 288.106(2)(c). 408 (2)(a) An annual credit against the tax imposed by this 409 chapter shall be granted to any qualifying business in an amount 410 equal to 5 percent of the eligible capital costs generated by a 411 qualifying project, for a period not to exceed 20 years 412 beginning with the commencement of operations of the project. 413 Unless assigned as described in this subsection, the tax credit 414 shall be granted against only the corporate income tax liability 415 or the premium tax liability generated by or arising out of the 416 qualifying project, and the sum of all tax credits provided 417 pursuant to this section shall not exceed 100 percent of the 418 eligible capital costs of the project. In no event may any 419 credit granted under this section be carried forward or backward 420 by any qualifying business with respect to a subsequent or prior 421 year. The annual tax credit granted under this section shall not 422 exceed the following percentages of the annual corporate income 423 tax liability or the premium tax liability generated by or 424 arising out of a qualifying project: 425 1. One hundred percent for a qualifying project which 426 results in a cumulative capital investment of at least $100 427 million. 428 2. Seventy-five percent for a qualifying project which 429 results in a cumulative capital investment of at least $50 430 million but less than $100 million. 431 3. Fifty percent for a qualifying project which results in 432 a cumulative capital investment of at least $25 million but less 433 than $50 million. 434 (b) A qualifying project which results in a cumulative 435 capital investment of less than $25 million is not eligible for 436 the capital investment tax credit. An insurance company claiming 437 a credit against premium tax liability under this program shall 438 not be required to pay any additional retaliatory tax levied 439 pursuant to s. 624.5091 as a result of claiming such credit. 440 Because credits under this section are available to an insurance 441 company, s. 624.5091 does not limit such credit in any manner. 442 (c) A qualifying business that establishes a qualifying 443 project that includes locating a new solar panel manufacturing 444 facility in this state that generates a minimum of 400 jobs 445 within 6 months after commencement of operations with an average 446 salary of at least $50,000 may assign or transfer the annual 447 credit, or any portion thereof, granted under this section to 448 any other business. However, the amount of the tax credit that 449 may be transferred in any year shall be the lesser of the 450 qualifying business’s state corporate income tax liability for 451 that year, as limited by the percentages applicable under 452 paragraph (a) and as calculated prior to taking any credit 453 pursuant to this section, or the credit amount granted for that 454 year. A business receiving the transferred or assigned credits 455 may use the credits only in the year received, and the credits 456 may not be carried forward or backward. To perfect the transfer, 457 the transferor shall provide the department with a written 458 transfer statement notifying the department of the transferor’s 459 intent to transfer the tax credits to the transferee; the date 460 the transfer is effective; the transferee’s name, address, and 461 federal taxpayer identification number; the tax period; and the 462 amount of tax credits to be transferred. The department shall, 463 upon receipt of a transfer statement conforming to the 464 requirements of this paragraph, provide the transferee with a 465 certificate reflecting the tax credit amounts transferred. A 466 copy of the certificate must be attached to each tax return for 467 which the transferee seeks to apply such tax credits. 468 (d) If the credit granted under subparagraph (a)1. is not 469 fully used in any one year because of insufficient tax liability 470 on the part of the qualifying business, the unused amounts may 471 be used in any one year or years beginning with the 21st year 472 after the commencement of operations of the project and ending 473 the 30th year after the commencement of operations of the 474 project. 475 (3)(a) Notwithstanding subsection (2), a credit against the 476 tax imposed by this chapter, against state taxes collected or 477 accrued under chapter 212, or against a stated combination of 478 the two taxes shall be granted to a qualifying business that 479 establishes a qualifying project pursuant to subparagraph 480 (1)(h)4. for which the cumulative capital investment of one or 481 more projects is an aggregate of at least $50 million per year 482 for 3 years, and the capital investment of each individual 483 project is at least $3.75 million. The tax credit shall be 484 granted in an amount equal to 20 percent of the eligible capital 485 costs generated by the qualifying project. The tax credit shall 486 be granted against the tax liability of the qualifying business. 487 (b) If the credit granted under this subsection is not 488 fully used in 1 year because of insufficient tax liability on 489 the part of the qualifying business, the unused amounts may be 490 transferred or used in any one year or years beginning with the 491 year of the completion date of the project and ending the 9th 492 year after the completion date of the project. A business 493 receiving the transferred credits may use the credits only in 494 the year received, and the credits may not be carried forward or 495 backward. A transfer must be perfected in accordance with the 496 requirements of paragraph (2)(c). 497 (4)(a) Notwithstanding subsection (2), an annual credit 498 against the tax imposed by this chapter shall be granted to a 499 qualifying business which establishes a qualifying project 500 pursuant to subparagraph (1)(h)3.(1)(g)3., in an amount equal 501 to the lesser of $15 million or 5 percent of the eligible 502 capital costs made in connection with a qualifying project, for 503 a period not to exceed 20 years beginning with the commencement 504 of operations of the project. The tax credit shall be granted 505 against the corporate income tax liability of the qualifying 506 business and as further provided in paragraph (c). The total tax 507 credit provided pursuant to this subsection shall be equal to no 508 more than 100 percent of the eligible capital costs of the 509 qualifying project. 510 (b) If the credit granted under this subsection is not 511 fully used in any one year because of insufficient tax liability 512 on the part of the qualifying business, the unused amount may be 513 carried forward for a period not to exceed 20 years after the 514 commencement of operations of the project. The carryover credit 515 may be used in a subsequent year when the tax imposed by this 516 chapter for that year exceeds the credit for which the 517 qualifying business is eligible in that year under this 518 subsection after applying the other credits and unused 519 carryovers in the order provided by s. 220.02(8). 520 (c) The credit granted under this subsection may be used in 521 whole or in part by the qualifying business or any corporation 522 that is either a member of that qualifying business’s affiliated 523 group of corporations, is a related entity taxable as a 524 cooperative under subchapter T of the Internal Revenue Code, or, 525 if the qualifying business is an entity taxable as a cooperative 526 under subchapter T of the Internal Revenue Code, is related to 527 the qualifying business. Any entity related to the qualifying 528 business may continue to file as a member of a Florida-nexus 529 consolidated group pursuant to a prior election made under s. 530 220.131(1), Florida Statutes (1985), even if the parent of the 531 group changes due to a direct or indirect acquisition of the 532 former common parent of the group. Any credit can be used by any 533 of the affiliated companies or related entities referenced in 534 this paragraph to the same extent as it could have been used by 535 the qualifying business. However, any such use shall not operate 536 to increase the amount of the credit or extend the period within 537 which the credit must be used. 538 (5)(4)Prior to receiving tax credits pursuant to this 539 section, a qualifying business must achieve and maintain the 540 minimum employment goals beginning with the commencement of 541 operations or the completion date ofata qualifying project and 542 continuing each year thereafter during which tax credits are 543 available pursuant to this section. 544 (6)(5)Applications shall be reviewed and certified 545 pursuant to s. 288.061. The Department of Economic Opportunity, 546 upon a recommendation by Enterprise Florida, Inc., shall first 547 certify a business as eligible to receive tax credits pursuant 548 to this section prior to the commencement of operations or the 549 completion date of a qualifying project, and such certification 550 shall be transmitted to the Department of Revenue. Upon receipt 551 of the certification, the Department of Revenue shall enter into 552 a written agreement with the qualifying business specifying, at 553 a minimum, the method by which income generated by or arising 554 out of the qualifying project will be determined. 555 (7)(6)The Department of Economic Opportunity, in 556 consultation with Enterprise Florida, Inc., is authorized to 557 develop the necessary guidelines and application materials for 558 the certification process described in subsection (6)(5). 559 (8)(7)It shall be the responsibility of the qualifying 560 business to affirmatively demonstrate to the satisfaction of the 561 Department of Revenue that such business meets the job creation 562 and capital investment requirements of this section. 563 (9)(8)The Department of Revenue may specify by rule the 564 methods by which a project’s pro forma annual taxable income is 565 determined. 566 Section 5. Paragraph (d) of subsection (2) of section 567 288.1089, Florida Statutes, is amended to read: 568 288.1089 Innovation Incentive Program.— 569 (2) As used in this section, the term: 570 (d) “Cumulative investment” means cumulative capital 571 investment and all eligible capital costs, as defined in former 572 s. 220.191, Florida Statutes 2019. 573 Section 6. Except as otherwise expressly provided in this 574 act, this act shall take effect upon becoming a law.