Bill Text: FL S1820 | 2011 | Regular Session | Introduced
Bill Title: Enterprise Zones
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2011-05-07 - Indefinitely postponed and withdrawn from consideration [S1820 Detail]
Download: Florida-2011-S1820-Introduced.html
Florida Senate - 2011 SB 1820
By Senator Hays
20-01393A-11 20111820__
1 A bill to be entitled
2 An act relating to enterprise zones; amending ss.
3 290.0055, 290.0058, and 290.0065, F.S.; revising
4 criteria for the designation of enterprise zones;
5 deleting pervasive poverty from such criteria;
6 revising the maximum number of enterprise zones
7 authorized; amending s. 290.0057, F.S.; revising
8 requirements for the contents of enterprise zone
9 strategic plans; creating s. 290.0076, F.S.;
10 authorizing Lake County to apply to the Office of
11 Tourism, Trade, and Economic Development for
12 designation of an enterprise zone; providing
13 requirements; requiring the office to establish an
14 effective date for the designated enterprise zone;
15 reenacting s. 290.016, F.S., relating to the scheduled
16 repeal of the Florida Enterprise Zone Act; amending s.
17 163.2514, F.S.; revising definition of the term “urban
18 infill and redevelopment area” for purposes of the
19 Growth Policy Act to conform; amending s. 288.0659,
20 F.S.; revising the evaluation criteria for award of
21 grants under the Local Government Distressed Area
22 Matching Grant Program to conform; amending s. 212.08,
23 F.S.; revising the maximum tax refunds for building
24 materials and business property used in an enterprise
25 zone; deleting provisions for tax refunds based upon a
26 certain percentage of employees residing in an
27 enterprise zone; revising definition of the term
28 “business property” to revise an exemption from the
29 tax refunds for such property used in an enterprise
30 zone; amending ss. 212.096, 220.03, 220.181, and
31 220.182, F.S.; revising and defining terms; revising
32 the enterprise zone jobs credits against the sales and
33 use tax and corporate income tax, and the enterprise
34 zone property tax credit, to include credit for part
35 time employment; deleting provisions for tax credits
36 based upon employment of persons residing in
37 enterprise zones; deleting obsolete provisions and
38 conforming provisions; amending ss. 193.077, 193.085,
39 212.06, 220.02, 220.183, 220.193, 288.1045, 288.106,
40 290.00677, and 624.5105, F.S.; conforming provisions;
41 providing for application; providing an effective
42 date.
43
44 Be It Enacted by the Legislature of the State of Florida:
45
46 Section 1. Paragraph (a) of subsection (1) and paragraph
47 (c) of subsection (4) of section 290.0055, Florida Statutes, are
48 amended to read:
49 290.0055 Local nominating procedure.—
50 (1) If, pursuant to s. 290.0065, an opportunity exists for
51 designation of a new enterprise zone, any county or
52 municipality, or a county and one or more municipalities
53 together, may apply to the office for the designation of an area
54 as an enterprise zone after completion of the following:
55 (a) The adoption by the governing body or bodies of a
56 resolution which:
57 1. Finds that an area exists in such county or
58 municipality, or in both the county and one or more
59 municipalities, which chronically exhibits extreme and
60 unacceptable levels of poverty, unemployment, physical
61 deterioration, and economic disinvestment;
62 2. Determines that the rehabilitation, conservation, or
63 redevelopment, or a combination thereof, of such area is
64 necessary in the interest of the public health, safety, and
65 welfare of the residents of such county or municipality, or such
66 county and one or more municipalities; and
67 3. Determines that the revitalization of such area can
68 occur only if the private sector can be induced to invest its
69 own resources in productive enterprises that build or rebuild
70 the economic viability of the area.
71 (4) An area nominated by a county or municipality, or a
72 county and one or more municipalities together, for designation
73 as an enterprise zone shall be eligible for designation under s.
74 290.0065 only if it meets the following criteria:
75 (c) The selected area suffers from unacceptable levels of
76 pervasive poverty, unemployment, and general distress, as
77 described and measured pursuant to s. 290.0058.
78 Section 2. Paragraph (c) of subsection (1) of section
79 290.0057, Florida Statutes, is amended to read:
80 290.0057 Enterprise zone development plan.—
81 (1) Any application for designation as a new enterprise
82 zone must be accompanied by a strategic plan adopted by the
83 governing body of the municipality or county, or the governing
84 bodies of the county and one or more municipalities together. At
85 a minimum, the plan must:
86 (c) Identify and describe key community goals and the
87 barriers that restrict the community from achieving these goals,
88 including a description of unemployment poverty and general
89 distress, barriers to economic opportunity and development, and
90 barriers to human development.
91 Section 3. Section 290.0058, Florida Statutes, is amended
92 to read:
93 290.0058 Determination of unacceptable levels of pervasive
94 poverty, unemployment, and general distress.—
95 (1) In determining whether an area suffers from
96 unacceptable levels of pervasive poverty, unemployment, and
97 general distress, for purposes of ss. 290.0055 and 290.0065, the
98 governing body and the office shall use data from the most
99 current decennial census, and from information published by the
100 Bureau of the Census and the Bureau of Labor Statistics. The
101 data shall be comparable in point or period of time and
102 methodology employed.
103 (2) Pervasive poverty shall be evidenced by a showing that
104 poverty is widespread throughout the nominated area. The poverty
105 rate of the nominated area shall be established using the
106 following criteria:
107 (a) In each census geographic block group within a
108 nominated area, the poverty rate may not be less than 20
109 percent. However, for an area nominated for designation as a
110 rural enterprise zone which does not have a poverty rate of more
111 than 20 percent in each census geographic block group within the
112 nominated area, the poverty rate for the nominated area may be
113 calculated using the poverty rate for the entire county, which
114 may not be less than 20 percent.
115 (b) In at least 50 percent of the census geographic block
116 groups within the nominated area, the poverty rate may not be
117 less than 30 percent. This requirement does not apply to an area
118 nominated for designation as a rural enterprise zone.
119 (c) Census geographic block groups with no population shall
120 be treated as having a poverty rate which meets the standards of
121 paragraph (a), but shall be treated as having a zero poverty
122 rate for purposes of applying paragraph (b).
123 (d) A nominated area may not contain a noncontiguous parcel
124 unless such parcel separately meets the criteria set forth under
125 paragraphs (a) and (b).
126 (2)(3) Unemployment must shall be evidenced by data
127 indicating that the average rate of unemployment for the county
128 or municipality in which the nominated area is located is not
129 less than the state’s average of unemployment, or by evidence of
130 especially severe economic conditions which have brought about
131 significant job dislocation within the county or municipality in
132 which the nominated area is located.
133 (3)(4) General distress must shall be evidenced by
134 describing adverse conditions within the nominated area other
135 than that those of pervasive poverty and unemployment. A high
136 incidence of crime, abandoned structures, land formerly used for
137 agricultural production that is discontinued due to extreme
138 weather or horticultural diseases, a residential mortgage
139 foreclosure rate that exceeds the statewide average,
140 substantially developed but unused or underutilized
141 infrastructure due to economic distress, and deteriorated
142 infrastructure or substantial population decline are examples of
143 appropriate indicators of general distress.
144 (4)(5) In making the calculations required by this section,
145 the local government and the office shall round all fractional
146 percentages of one-half percent or more up to the next highest
147 whole percentage figure.
148 Section 4. Subsections (1) and (2), paragraph (a) of
149 subsection (4), and paragraph (b) of subsection (6) of section
150 290.0065, Florida Statutes, are amended to read:
151 290.0065 State designation of enterprise zones.—
152 (1) The maximum number of enterprise zones authorized under
153 this section is the number of enterprise zones having an
154 effective date on or before January 1, 2005, subject to any
155 increase due to any new enterprise zones authorized by the
156 Legislature during the 2005 and 2011 Regular Sessions Session of
157 the Legislature.
158 (2) If, pursuant to subsection (4), the office does not
159 redesignate an enterprise zone, a governing body of a county or
160 municipality or the governing bodies of a county and one or more
161 municipalities jointly, pursuant to s. 290.0055, may apply for
162 designation of an enterprise zone to take the place of the
163 enterprise zone not redesignated and request designation of an
164 enterprise zone. The office, in consultation with Enterprise
165 Florida, Inc., shall determine which areas nominated by such
166 governing bodies meet the criteria outlined in s. 290.0055 and
167 are the most appropriate for designation as state enterprise
168 zones. Each application made pursuant to s. 290.0055 shall be
169 ranked competitively based on the pervasive poverty,
170 unemployment, and general distress of the area; the strategic
171 plan, including local fiscal and regulatory incentives, prepared
172 pursuant to s. 290.0057; and the prospects for new investment
173 and economic development in the area. Pervasive poverty,
174 Unemployment, and general distress shall be weighted 35 percent;
175 strategic plan and local fiscal and regulatory incentives shall
176 be weighted 40 percent; and prospects for new investment and
177 economic development in the area shall be weighted 25 percent.
178 (4)(a) Notwithstanding s. 290.0055, the office may
179 redesignate any state enterprise zone having an effective date
180 on or before January 1, 2011 2005, as a state enterprise zone
181 upon completion and submittal to the office by the governing
182 body for an enterprise zone of the following:
183 1. An updated zone profile for the enterprise zone based on
184 the most recent census data that complies with s. 290.0055,
185 except that pervasive poverty criteria may be set aside for
186 rural enterprise zones.
187 2. A resolution passed by the governing body for that
188 enterprise zone requesting redesignation and explaining the
189 reasons the conditions of the zone merit redesignation.
190 3. Measurable goals for the enterprise zone developed by
191 the enterprise zone development agency, which may be the goals
192 established in the enterprise zone’s strategic plan.
193
194 The governing body may also submit a request for a boundary
195 change in an enterprise zone in the same application to the
196 office as long as the new area complies with the requirements of
197 s. 290.0055, except that pervasive poverty criteria may be set
198 aside for rural enterprise zones.
199 (6)
200 (b) Such guidelines shall provide for the measurement of
201 pervasive poverty, unemployment, and general distress using the
202 criteria outlined by s. 290.0058.
203 Section 5. Section 290.0076, Florida Statutes, is created
204 to read:
205 290.0076 Enterprise zone designation for Lake County.—Lake
206 County may apply to the Office of Tourism, Trade, and Economic
207 Development for designation of one enterprise zone encompassing
208 an area not to exceed 10 square miles. The application must be
209 submitted by December 31, 2011. Notwithstanding the provisions
210 of s. 290.0065 limiting the total number of enterprise zones
211 designated and the number of enterprise zones within a
212 population category, the Office of Tourism, Trade, and Economic
213 Development may designate one enterprise zone under this
214 section. The Office of Tourism, Trade, and Economic Development
215 shall establish the initial effective date of the enterprise
216 zone designated pursuant to this section.
217 Section 6. Section 290.016, Florida Statutes, is reenacted
218 to read:
219 290.016 Repeal.—Sections 290.001-290.014 are repealed
220 December 31, 2015.
221 Section 7. Paragraph (b) of subsection (2) of section
222 163.2514, Florida Statutes, is amended to read:
223 163.2514 Growth Policy Act; definitions.—As used in ss.
224 163.2511-163.2523, the term:
225 (2) “Urban infill and redevelopment area” means an area or
226 areas designated by a local government where:
227 (b) The area, or one or more neighborhoods within the area,
228 suffers from unacceptable levels of pervasive poverty,
229 unemployment, and general distress as defined in by s. 290.0058;
230 Section 8. Paragraph (a) of subsection (5) of section
231 288.0659, Florida Statutes, is amended to read:
232 288.0659 Local Government Distressed Area Matching Grant
233 Program.—
234 (5) To qualify for a grant, the business being targeted by
235 a local government must create at least 15 full-time jobs, must
236 be new to this state, must be expanding its operations in this
237 state, or would otherwise leave the state absent state and local
238 assistance, and the local government applying for the grant must
239 expedite its permitting processes for the target business by
240 accelerating the normal review and approval timelines. In
241 addition to these requirements, the office shall review the
242 grant requests using the following evaluation criteria, with
243 priority given in descending order:
244 (a) The presence and degree of pervasive poverty,
245 unemployment, and general distress as determined pursuant to s.
246 290.0058 in the area where the business will locate, with
247 priority given to locations with greater degrees of poverty,
248 unemployment, and general distress.
249 Section 9. Paragraphs (g) and (h) of subsection (5) of
250 section 212.08, Florida Statutes, are amended to read:
251 212.08 Sales, rental, use, consumption, distribution, and
252 storage tax; specified exemptions.—The sale at retail, the
253 rental, the use, the consumption, the distribution, and the
254 storage to be used or consumed in this state of the following
255 are hereby specifically exempt from the tax imposed by this
256 chapter.
257 (5) EXEMPTIONS; ACCOUNT OF USE.—
258 (g) Building materials used in the rehabilitation of real
259 property located in an enterprise zone.—
260 1. Building materials used in the rehabilitation of real
261 property located in an enterprise zone are exempt from the tax
262 imposed by this chapter upon an affirmative showing to the
263 satisfaction of the department that the items have been used for
264 the rehabilitation of real property located in an enterprise
265 zone. Except as provided in subparagraph 2., this exemption
266 inures to the owner, lessee, or lessor at the time the real
267 property is rehabilitated, but only through a refund of
268 previously paid taxes. To receive a refund pursuant to this
269 paragraph, the owner, lessee, or lessor of the rehabilitated
270 real property must file an application under oath with the
271 governing body or enterprise zone development agency having
272 jurisdiction over the enterprise zone where the business is
273 located, as applicable. A single application for a refund may be
274 submitted for multiple, contiguous parcels that were part of a
275 single parcel that was divided as part of the rehabilitation of
276 the property. All other requirements of this paragraph apply to
277 each parcel on an individual basis. The application must
278 include:
279 a. The name and address of the person claiming the refund.
280 b. An address and assessment roll parcel number of the
281 rehabilitated real property for which a refund of previously
282 paid taxes is being sought.
283 c. A description of the improvements made to accomplish the
284 rehabilitation of the real property.
285 d. A copy of a valid building permit issued by the county
286 or municipal building department for the rehabilitation of the
287 real property.
288 e. A sworn statement, under penalty of perjury, from the
289 general contractor licensed in this state with whom the
290 applicant contracted to make the improvements necessary to
291 rehabilitate the real property, which lists the building
292 materials used to rehabilitate the real property, the actual
293 cost of the building materials, and the amount of sales tax paid
294 in this state on the building materials. If a general contractor
295 was not used, the applicant, not a general contractor, shall
296 make the sworn statement required by this sub-subparagraph.
297 Copies of the invoices that evidence the purchase of the
298 building materials used in the rehabilitation and the payment of
299 sales tax on the building materials must be attached to the
300 sworn statement provided by the general contractor or by the
301 applicant. Unless the actual cost of building materials used in
302 the rehabilitation of real property and the payment of sales
303 taxes is documented by a general contractor or by the applicant
304 in this manner, the cost of the building materials is deemed to
305 be an amount equal to 40 percent of the increase in assessed
306 value for ad valorem tax purposes.
307 f. The identifying number assigned pursuant to s. 290.0065
308 to the enterprise zone in which the rehabilitated real property
309 is located.
310 g. A certification by the local building code inspector
311 that the improvements necessary to rehabilitate the real
312 property are substantially completed.
313 h. A statement of whether the business is a small business
314 as defined in by s. 288.703(1).
315 i. If applicable, the name and address of each permanent
316 employee of the business, including, for each employee who is a
317 resident of an enterprise zone, the identifying number assigned
318 pursuant to s. 290.0065 to the enterprise zone in which the
319 employee resides.
320 2. This exemption inures to a municipality, county, other
321 governmental unit or agency, or nonprofit community-based
322 organization through a refund of previously paid taxes if the
323 building materials used in the rehabilitation are paid for from
324 the funds of a community development block grant, State Housing
325 Initiatives Partnership Program, or similar grant or loan
326 program. To receive a refund, a municipality, county, other
327 governmental unit or agency, or nonprofit community-based
328 organization must file an application that includes the same
329 information required in subparagraph 1. In addition, the
330 application must include a sworn statement signed by the chief
331 executive officer of the municipality, county, other
332 governmental unit or agency, or nonprofit community-based
333 organization seeking a refund which states that the building
334 materials for which a refund is sought were funded by a
335 community development block grant, State Housing Initiatives
336 Partnership Program, or similar grant or loan program.
337 3. Within 10 working days after receipt of an application,
338 the governing body or enterprise zone development agency shall
339 review the application to determine if it contains all the
340 information required by subparagraph 1. or subparagraph 2. and
341 meets the criteria set out in this paragraph. The governing body
342 or agency shall certify all applications that contain the
343 required information and are eligible to receive a refund. If
344 applicable, the governing body or agency shall also certify if
345 20 percent of the employees of the business are residents of an
346 enterprise zone, excluding temporary and part-time employees.
347 The certification must be in writing, and a copy of the
348 certification shall be transmitted to the executive director of
349 the department. The applicant is responsible for forwarding a
350 certified application to the department within the time
351 specified in subparagraph 4.
352 4. An application for a refund must be submitted to the
353 department within 6 months after the rehabilitation of the
354 property is deemed to be substantially completed by the local
355 building code inspector or by November 1 after the rehabilitated
356 property is first subject to assessment.
357 5. Only one exemption through a refund of previously paid
358 taxes for the rehabilitation of real property is permitted for
359 any single parcel of property unless there is a change in
360 ownership, a new lessor, or a new lessee of the real property. A
361 refund may not be granted unless the amount to be refunded
362 exceeds $500. A refund may not exceed the lesser of 97 percent
363 of the Florida sales or use tax paid on the cost of the building
364 materials used in the rehabilitation of the real property as
365 determined pursuant to sub-subparagraph 1.e. or $5,000, or, if
366 at least 20 percent of the employees of the business are
367 residents of an enterprise zone, excluding temporary and part
368 time employees, the amount of refund may not exceed the lesser
369 of 97 percent of the sales tax paid on the cost of the building
370 materials or $10,000. A refund shall be made within 30 days
371 after formal approval by the department of the application for
372 the refund.
373 6. The department shall adopt rules governing the manner
374 and form of refund applications and may establish guidelines as
375 to the requisites for an affirmative showing of qualification
376 for exemption under this paragraph.
377 7. The department shall deduct an amount equal to 10
378 percent of each refund granted under this paragraph from the
379 amount transferred into the Local Government Half-cent Sales Tax
380 Clearing Trust Fund pursuant to s. 212.20 for the county area in
381 which the rehabilitated real property is located and shall
382 transfer that amount to the General Revenue Fund.
383 8. For the purposes of the exemption provided in this
384 paragraph, the term:
385 a. “Building materials” means tangible personal property
386 that becomes a component part of improvements to real property.
387 b. “Real property” has the same meaning as provided in s.
388 192.001(12), except that the term does not include a condominium
389 parcel or condominium property as defined in s. 718.103.
390 c. “Rehabilitation of real property” means the
391 reconstruction, renovation, restoration, rehabilitation,
392 construction, or expansion of improvements to real property.
393 d. “Substantially completed” has the same meaning as
394 provided in s. 192.042(1).
395 9. This paragraph expires on the date specified in s.
396 290.016 for the expiration of the Florida Enterprise Zone Act.
397 (h) Business property used in an enterprise zone.—
398 1. Business property purchased for use by businesses
399 located in an enterprise zone which is subsequently used in an
400 enterprise zone shall be exempt from the tax imposed by this
401 chapter. This exemption inures to the business only through a
402 refund of previously paid taxes. A refund shall be authorized
403 upon an affirmative showing by the taxpayer to the satisfaction
404 of the department that the requirements of this paragraph have
405 been met.
406 2. To receive a refund, the business must file under oath
407 with the governing body or enterprise zone development agency
408 having jurisdiction over the enterprise zone where the business
409 is located, as applicable, an application which includes:
410 a. The name and address of the business claiming the
411 refund.
412 b. The identifying number assigned pursuant to s. 290.0065
413 to the enterprise zone in which the business is located.
414 c. A specific description of the property for which a
415 refund is sought, including its serial number or other permanent
416 identification number.
417 d. The location of the property.
418 e. The sales invoice or other proof of purchase of the
419 property, showing the amount of sales tax paid, the date of
420 purchase, and the name and address of the sales tax dealer from
421 whom the property was purchased.
422 f. Whether the business is a small business as defined in
423 by s. 288.703(1).
424 g. If applicable, the name and address of each permanent
425 employee of the business, including, for each employee who is a
426 resident of an enterprise zone, the identifying number assigned
427 pursuant to s. 290.0065 to the enterprise zone in which the
428 employee resides.
429 3. Within 10 working days after receipt of an application,
430 the governing body or enterprise zone development agency shall
431 review the application to determine if it contains all the
432 information required pursuant to subparagraph 2. and meets the
433 criteria set out in this paragraph. The governing body or agency
434 shall certify all applications that contain the information
435 required pursuant to subparagraph 2. and meet the criteria set
436 out in this paragraph as eligible to receive a refund. If
437 applicable, the governing body or agency shall also certify if
438 20 percent of the employees of the business are residents of an
439 enterprise zone, excluding temporary and part-time employees.
440 The certification shall be in writing, and a copy of the
441 certification shall be transmitted to the executive director of
442 the Department of Revenue. The business shall be responsible for
443 forwarding a certified application to the department within the
444 time specified in subparagraph 4.
445 4. An application for a refund pursuant to this paragraph
446 must be submitted to the department within 6 months after the
447 tax is due on the business property that is purchased.
448 5. The amount refunded on purchases of business property
449 under this paragraph shall be the lesser of 97 percent of the
450 sales tax paid on such business property or $5,000, or, if no
451 less than 20 percent of the employees of the business are
452 residents of an enterprise zone, excluding temporary and part
453 time employees, the amount refunded on purchases of business
454 property under this paragraph shall be the lesser of 97 percent
455 of the sales tax paid on such business property or $10,000. A
456 refund approved pursuant to this paragraph shall be made within
457 30 days of formal approval by the department of the application
458 for the refund. A No refund may not shall be granted under this
459 paragraph unless the amount to be refunded exceeds $100 in sales
460 tax paid on purchases made within a 60-day time period.
461 6. The department shall adopt rules governing the manner
462 and form of refund applications and may establish guidelines as
463 to the requisites for an affirmative showing of qualification
464 for exemption under this paragraph.
465 7. If the department determines that the business property
466 is used outside an enterprise zone within 3 years from the date
467 of purchase, the amount of taxes refunded to the business
468 purchasing such business property shall immediately be due and
469 payable to the department by the business, together with the
470 appropriate interest and penalty, computed from the date of
471 purchase, in the manner provided by this chapter.
472 Notwithstanding this subparagraph, business property used
473 exclusively in:
474 a. Licensed commercial fishing vessels,
475 b. Fishing guide boats, or
476 c. Ecotourism guide boats
477
478 that leave and return to a fixed location within an area
479 designated under s. 379.2353 are eligible for the exemption
480 provided under this paragraph if all requirements of this
481 paragraph are met. Such vessels and boats must be owned by a
482 business that is eligible to receive the exemption provided
483 under this paragraph. This exemption does not apply to the
484 purchase of a vessel or boat.
485 8. The department shall deduct an amount equal to 10
486 percent of each refund granted under the provisions of this
487 paragraph from the amount transferred into the Local Government
488 Half-cent Sales Tax Clearing Trust Fund pursuant to s. 212.20
489 for the county area in which the business property is located
490 and shall transfer that amount to the General Revenue Fund.
491 9. For the purposes of this exemption, “business property”
492 means new or used property defined as “recovery property” in s.
493 168(c) of the Internal Revenue Code of 1954, as amended, except:
494 a. Property classified as 3-year property under s.
495 168(c)(2)(A) of the Internal Revenue Code of 1954, as amended;
496 b. Industrial machinery and equipment as defined in sub
497 subparagraph (b)6.a. and eligible for exemption under paragraph
498 (b);
499 c. Building materials as defined in sub-subparagraph
500 (g)8.a.; and
501 d. Business property having a sales price of less than $500
502 under $5,000 per unit.
503 10. This paragraph expires on the date specified in s.
504 290.016 for the expiration of the Florida Enterprise Zone Act.
505 Section 10. Section 212.096, Florida Statutes, is amended
506 to read:
507 212.096 Sales, rental, storage, use tax; enterprise zone
508 jobs credit against sales tax.—
509 (1) As used For the purposes of the credit provided in this
510 section, the term:
511 (a) “Eligible business” means any sole proprietorship,
512 firm, partnership, corporation, bank, savings association,
513 estate, trust, business trust, receiver, syndicate, or other
514 group or combination, or successor business, located in an
515 enterprise zone. The business must demonstrate to the department
516 that, on the date of application, the total number of full-time
517 jobs as defined in under paragraph (c) (d) is greater than the
518 total was 12 months before prior to that date. The term An
519 eligible business does not include any business that which has
520 claimed the credit permitted under s. 220.181 for any new
521 business employee first beginning employment with the business
522 after July 1, 1995.
523 (b) “Full-time position” means employment for at least 40
524 hours per week.
525 (c)(d) “Job” means a full-time or part-time position, as
526 consistent with terms used by the Agency for Workforce
527 Innovation and the United States Department of Labor for
528 purposes of unemployment compensation tax administration and
529 employment estimation resulting directly from a business
530 operation in this state. The This term does may not include a
531 temporary construction job involved with the construction of
532 facilities or any job that has previously been included in any
533 application for tax credits under s. 220.181(1). The term also
534 includes employment of an employee leased from an employee
535 leasing company licensed under chapter 468 if such employee has
536 been continuously leased to the employer for an average of at
537 least 20 36 hours per week for more than 6 months.
538 (d)(b) “Month” means either a calendar month or the time
539 period from any day of any month to the corresponding day of the
540 next succeeding month or, if there is no corresponding day in
541 the next succeeding month, the last day of the succeeding month.
542 (e)(c) “New employee” means a person residing in an
543 enterprise zone or a participant in the welfare transition
544 program who begins employment with an eligible business after
545 July 1, 1995, and who has not been previously employed full time
546 or part time within the preceding 12 months by the eligible
547 business, or a successor eligible business, claiming the credit
548 allowed by this section.
549 (f)(e) “New job has been created” means that, on the date
550 of application, the total number of full-time jobs is greater
551 than the total was 12 months before prior to that date, as
552 demonstrated to the department by a business located in the
553 enterprise zone.
554 (g) “Part-time position” means employment for at least 20,
555 but less than 40, hours per week.
556
557 A person is shall be deemed to be employed if the person
558 performs duties in connection with the operations of the
559 business on a regular, full-time or part-time basis, provided
560 the person is performing such duties for an average of at least
561 20 36 hours per week each month, and. the person is must be
562 performing such duties at a business site located in the
563 enterprise zone.
564 (2)(a) Upon an affirmative showing by an eligible business
565 to the satisfaction of the department that the requirements of
566 this section are have been met, the business shall be allowed a
567 credit against the tax remitted under this chapter.
568 (b) The credit shall be computed as 20 percent of the
569 actual monthly wages paid in this state to each new employee
570 hired when a new job is has been created, unless the business is
571 located within a rural enterprise zone pursuant to s.
572 290.004(6), in which case the credit shall be 30 percent of the
573 actual monthly wages paid. If no less than 20 percent of the
574 employees of the business are residents of an enterprise zone,
575 excluding temporary and part-time employees, the credit shall be
576 computed as 30 percent of the actual monthly wages paid in this
577 state to each new employee hired when a new job has been
578 created, unless the business is located within a rural
579 enterprise zone, in which case the credit shall be 45 percent of
580 the actual monthly wages paid. If the new employee hired when a
581 new job is created is a participant in the welfare transition
582 program, the following credit shall be a percent of the actual
583 monthly wages paid: 40 percent for $4 above the hourly federal
584 minimum wage rate; 41 percent for $5 above the hourly federal
585 minimum wage rate; 42 percent for $6 above the hourly federal
586 minimum wage rate; 43 percent for $7 above the hourly federal
587 minimum wage rate; and 44 percent for $8 above the hourly
588 federal minimum wage rate. For purposes of this paragraph,
589 monthly wages shall be computed as one-twelfth of the expected
590 annual wages paid to such employee. The amount paid as wages to
591 a new employee is the compensation paid to such employee that is
592 subject to unemployment tax. The credit shall be allowed for up
593 to 24 consecutive months, beginning with the first tax return
594 due pursuant to s. 212.11 after approval by the department.
595 (3) In order to claim this credit, an eligible business
596 must file under oath with the governing body or enterprise zone
597 development agency having jurisdiction over the enterprise zone
598 where the business is located, as applicable, a statement which
599 includes:
600 (a) For each new employee for whom this credit is claimed,
601 the employee’s name and address place of residence, including
602 the identifying number assigned pursuant to s. 290.0065 to the
603 enterprise zone in which the employee resides if the new
604 employee is a person residing in an enterprise zone, and, if
605 applicable, documentation that the employee is a welfare
606 transition program participant.
607 (b) If applicable, the name and address of each permanent
608 employee of the business, including, for each employee who is a
609 resident of an enterprise zone, the identifying number assigned
610 pursuant to s. 290.0065 to the enterprise zone in which the
611 employee resides.
612 (b)(c) The name and address of the eligible business.
613 (c)(d) The starting salary or hourly wages paid to the new
614 employee.
615 (d)(e) Demonstration to the department that, on the date of
616 application, the total number of full-time jobs as defined in
617 under paragraph (1)(c)(d) is greater than the total was 12
618 months before prior to that date.
619 (e)(f) The identifying number assigned pursuant to s.
620 290.0065 to the enterprise zone in which the business is
621 located.
622 (f)(g) Whether the business is a small business as defined
623 in by s. 288.703(1).
624 (g)(h) Within 10 working days after receipt of an
625 application, the governing body or enterprise zone development
626 agency shall review the application to determine if it contains
627 all the information required pursuant to this subsection and
628 meets the criteria set out in this section. The governing body
629 or agency shall certify all applications that contain the
630 information required pursuant to this subsection and meet the
631 criteria set out in this section as eligible to receive a
632 credit. If applicable, the governing body or agency shall also
633 certify if 20 percent of the employees of the business are
634 residents of an enterprise zone, excluding temporary and part
635 time employees. The certification shall be in writing, and a
636 copy of the certification shall be transmitted to the executive
637 director of the Department of Revenue. The business is shall be
638 responsible for forwarding a certified application to the
639 department within the time specified in paragraph (i).
640 (h)(i) All applications for a credit pursuant to this
641 section must be submitted to the department within 6 months
642 after the new employee is hired, except applications for credit
643 for leased employees. Applications for credit for leased
644 employees must be submitted to the department within 7 months
645 after the employee is leased.
646 (4) Within 10 working days after receipt of a completed
647 application for a credit authorized in this section, the
648 department shall inform the business that the application is has
649 been approved. The credit may be taken on the first return due
650 after receipt of approval from the department.
651 (5) If In the event the application is incomplete or
652 insufficient to support the credit authorized in this section,
653 the department shall deny the credit and notify the business of
654 that fact. The business may reapply for this credit.
655 (6) The credit provided in this section does not apply:
656 (a) For any new employee who is an owner, partner, or
657 majority stockholder of an eligible business.
658 (b) For any new employee who is employed for any period
659 less than 3 months.
660 (7) The credit provided in this section is shall not be
661 allowed for any month in which the tax due for such period or
662 the tax return required pursuant to s. 212.11 for such period is
663 delinquent.
664 (8) If In the event an eligible business has a credit
665 larger than the amount owed the state on the tax return for the
666 time period in which the credit is claimed, the amount of the
667 credit for that time period shall be the amount owed the state
668 on that tax return.
669 (9) Any business which has claimed this credit is shall not
670 be allowed any credit under the provisions of s. 220.181 for any
671 new employee beginning employment after July 1, 1995.
672 (10) It shall be the responsibility of Each business must
673 to affirmatively demonstrate to the satisfaction of the
674 department that it meets the requirements of this section.
675 (11) Any person who fraudulently claims this credit is
676 liable for repayment of the credit plus a mandatory penalty of
677 100 percent of the credit plus interest at the rate provided in
678 this chapter, and such person commits is guilty of a misdemeanor
679 of the second degree, punishable as provided in s. 775.082 or s.
680 775.083.
681 (12) This section, except for subsection (11), expires on
682 the date specified in s. 290.016 for the expiration of the
683 Florida Enterprise Zone Act.
684 Section 11. Subsection (1) and paragraph (c) of subsection
685 (5) of section 220.03, Florida Statutes, are amended to read:
686 220.03 Definitions.—
687 (1) SPECIFIC TERMS.—When used in this code, and when not
688 otherwise distinctly expressed or manifestly incompatible with
689 the intent thereof, the following terms shall have the following
690 meanings:
691 (a) “Ad valorem taxes paid” means 96 percent of property
692 taxes levied for operating purposes and does not include
693 interest, penalties, or discounts foregone. In addition, the
694 term “ad valorem taxes paid,” for purposes of the credit in s.
695 220.182, means the ad valorem tax paid on new or additional real
696 or personal property acquired to establish a new business or
697 facilitate a business expansion, including pollution and waste
698 control facilities, or any part thereof, and including one or
699 more buildings or other structures, machinery, fixtures, and
700 equipment. This paragraph expires on the date specified in s.
701 290.016 for the expiration of the Florida Enterprise Zone Act.
702 (b) “Affiliated group of corporations” means two or more
703 corporations which constitute an affiliated group of
704 corporations as defined in s. 1504(a) of the Internal Revenue
705 Code.
706 (c) “Business” or “business firm” means any business entity
707 authorized to do business in this state as defined in paragraph
708 (g) (e), and any bank or savings and loan association as defined
709 in s. 220.62, subject to the tax imposed by the provisions of
710 this chapter. This paragraph expires on the date specified in s.
711 290.016 for the expiration of the Florida Enterprise Zone Act.
712 (d)(bb) “Child care facility startup costs” means
713 expenditures for substantial renovation, equipment, including
714 playground equipment and kitchen appliances and cooking
715 equipment, real property, including land and improvements, and
716 for reduction of debt, made in connection with a child care
717 facility as defined in by s. 402.302, or any facility providing
718 daily care to children who are mildly ill, which is located in
719 this state on the taxpayer’s premises and used by the employees
720 of the taxpayer.
721 (e)(dd) “Citrus processing company” means a corporation
722 which, during the 60-month period ending on December 31, 1997,
723 had derived more than 50 percent of its total gross receipts
724 from the processing of citrus products and the manufacture of
725 juices.
726 (f)(d) “Community contribution” means the grant by a
727 business firm of any of the following items:
728 1. Cash or other liquid assets.
729 2. Real property.
730 3. Goods or inventory.
731 4. Other physical resources as identified by the
732 department.
733
734 This paragraph expires on the date specified in s. 290.016 for
735 the expiration of the Florida Enterprise Zone Act.
736 (g)(e) “Corporation” includes all domestic corporations;
737 foreign corporations qualified to do business in this state or
738 actually doing business in this state; joint-stock companies;
739 limited liability companies, under chapter 608; common-law
740 declarations of trust, under chapter 609; corporations not for
741 profit, under chapter 617; agricultural cooperative marketing
742 associations, under chapter 618; professional service
743 corporations, under chapter 621; foreign unincorporated
744 associations, under chapter 622; private school corporations,
745 under chapter 623; foreign corporations not for profit which are
746 carrying on their activities in this state; and all other
747 organizations, associations, legal entities, and artificial
748 persons which are created by or pursuant to the statutes of this
749 state, the United States, or any other state, territory,
750 possession, or jurisdiction. The term “corporation” does not
751 include proprietorships, even if using a fictitious name;
752 partnerships of any type, as such; limited liability companies
753 that are taxable as partnerships for federal income tax
754 purposes; state or public fairs or expositions, under chapter
755 616; estates of decedents or incompetents; testamentary trusts;
756 or private trusts.
757 (h)(f) “Department” means the Department of Revenue of this
758 state.
759 (i)(g) “Director” means the executive director of the
760 Department of Revenue and, when there has been an appropriate
761 delegation of authority, the executive director’s delegate.
762 (j)(h) “Earned,” “accrued,” “paid,” or “incurred” shall be
763 construed according to the method of accounting upon the basis
764 of which a taxpayer’s income is computed under this code.
765 (k)(i) “Emergency,” as used in s. 220.02 and in paragraph
766 (dd) (u) of this subsection, means occurrence of widespread or
767 severe damage, injury, or loss of life or property proclaimed
768 pursuant to s. 14.022 or declared pursuant to s. 252.36. This
769 paragraph expires on the date specified in s. 290.016 for the
770 expiration of the Florida Enterprise Zone Act.
771 (l)(j) “Enterprise zone” means an area in the state
772 designated pursuant to s. 290.0065. This paragraph expires on
773 the date specified in s. 290.016 for the expiration of the
774 Florida Enterprise Zone Act.
775 (m)(k) “Expansion of an existing business,” for the
776 purposes of the enterprise zone property tax credit, means any
777 business entity authorized to do business in this state as
778 defined in paragraph (g) (e), and any bank or savings and loan
779 association as defined in s. 220.62, subject to the tax imposed
780 by the provisions of this chapter, located in an enterprise
781 zone, which expands by or through additions to real and personal
782 property and which establishes five or more new jobs to employ
783 five or more additional full-time or part-time employees at such
784 location. This paragraph expires on the date specified in s.
785 290.016 for the expiration of the Florida Enterprise Zone Act.
786 (n)(l) “Fiscal year” means an accounting period of 12
787 months or less ending on the last day of any month other than
788 December or, in the case of a taxpayer with an annual accounting
789 period of 52-53 weeks under s. 441(f) of the Internal Revenue
790 Code, the period determined under that subsection.
791 (o) “Florida Income Tax Code” or “code” means this chapter.
792 (p) “Full-time position” means employment for at least 40
793 hours per week.
794 (q)(aa) “Functionally related dividends” include the
795 following types of dividends:
796 1. Those received from a subsidiary of which the voting
797 stock is more than 50 percent owned or controlled by the
798 taxpayer or members of its affiliated group and which is engaged
799 in the same general line of business.
800 2. Those received from any corporation which is either a
801 significant source of supply for the taxpayer or its affiliated
802 group or a significant purchaser of the output of the taxpayer
803 or its affiliated group, or which sells a significant part of
804 its output or obtains a significant part of its raw materials or
805 input from the taxpayer or its affiliated group. “Significant”
806 means an amount of 15 percent or more.
807 3. Those resulting from the investment of working capital
808 or some other purpose in furtherance of the taxpayer or its
809 affiliated group.
810
811 However, dividends not otherwise subject to tax under this
812 chapter are excluded.
813 (r)(m) “Includes” or “including,” when used in a definition
814 contained in this code, shall not be deemed to exclude other
815 things otherwise within the meaning of the term defined.
816 (s)(n) “Internal Revenue Code” means the United States
817 Internal Revenue Code of 1986, as amended and in effect on
818 January 1, 2010, except as provided in subsection (3).
819 (t)(ff) “Job” means a full-time or part-time position, as
820 consistent with terms used by the Agency for Workforce
821 Innovation and the United States Department of Labor for
822 purposes of unemployment compensation tax administration and
823 employment estimation resulting directly from business
824 operations in this state. The term may not include a temporary
825 construction job involved with the construction of facilities or
826 any job that has previously been included in any application for
827 tax credits under s. 212.096. The term also includes employment
828 of an employee leased from an employee leasing company licensed
829 under chapter 468 if the employee has been continuously leased
830 to the employer for an average of at least 20 36 hours per week
831 for more than 6 months.
832 (u)(o) “Local government” means any county or incorporated
833 municipality in the state. This paragraph expires on the date
834 specified in s. 290.016 for the expiration of the Florida
835 Enterprise Zone Act.
836 (v)(p) “New business,” for the purposes of the enterprise
837 zone property tax credit, means any business entity authorized
838 to do business in this state as defined in paragraph (g) (e), or
839 any bank or savings and loan association as defined in s.
840 220.62, subject to the tax imposed by the provisions of this
841 chapter, first beginning operations on a site located in an
842 enterprise zone and clearly separate from any other commercial
843 or industrial operations owned by the same entity, bank, or
844 savings and loan association and which establishes five or more
845 new jobs to employ five or more additional full-time or part
846 time employees at such location. This paragraph expires on the
847 date specified in s. 290.016 for the expiration of the Florida
848 Enterprise Zone Act.
849 (w)(q) “New employee,” for the purposes of the enterprise
850 zone jobs credit, means a person residing in an enterprise zone
851 or a participant in the welfare transition program who is
852 employed at a business located in an enterprise zone who begins
853 employment in the operations of the business after July 1, 1995,
854 and who has not been previously employed full time within the
855 preceding 12 months by the business or a successor business
856 claiming the credit under pursuant to s. 220.181. A person is
857 shall be deemed to be employed by such a business if the person
858 performs duties in connection with the operations of the
859 business on a full-time or part-time basis, the person provided
860 she or he is performing such duties for an average of at least
861 20 36 hours per week each month, and. the person is must be
862 performing such duties at a business site located in an
863 enterprise zone. This paragraph expires on the date specified in
864 s. 290.016 for the expiration of the Florida Enterprise Zone
865 Act.
866 (x)(ee) “New job has been created” means that, on the date
867 of application, the total number of full-time and part-time jobs
868 is greater than the total was 12 months before prior to that
869 date, as demonstrated to the department by a business located in
870 the enterprise zone.
871 (y)(r) “Nonbusiness income” means rents and royalties from
872 real or tangible personal property, capital gains, interest,
873 dividends, and patent and copyright royalties, to the extent
874 that they do not arise from transactions and activities in the
875 regular course of the taxpayer’s trade or business. The term
876 “nonbusiness income” does not include income from tangible and
877 intangible property if the acquisition, management, and
878 disposition of the property constitute integral parts of the
879 taxpayer’s regular trade or business operations, or any amounts
880 which could be included in apportionable income without
881 violating the due process clause of the United States
882 Constitution. For purposes of this definition, “income” means
883 gross receipts less all expenses directly or indirectly
884 attributable thereto. Functionally related dividends are
885 presumed to be business income.
886 (z)(cc) “Operation of a child care facility” means
887 operation of a child care facility as defined in by s. 402.302,
888 or any facility providing daily care to children who are mildly
889 ill, which is located in this state within 5 miles of at least
890 one place of business of the taxpayer and which is used by the
891 employees of the taxpayer.
892 (aa)(s) “Partnership” includes a syndicate, group, pool,
893 joint venture, or other unincorporated organization through or
894 by means of which any business, financial operation, or venture
895 is carried on, including a limited partnership; and the term
896 “partner” includes a member having a capital or a profits
897 interest in a partnership.
898 (bb) “Part-time position” means employment for at least 20,
899 but less than 40, hours per week.
900 (cc)(t) “Project” means any activity undertaken by an
901 eligible sponsor, as defined in s. 220.183(2)(c), which is
902 designed to construct, improve, or substantially rehabilitate
903 housing that is affordable to low-income or very-low-income
904 households as defined in s. 420.9071(19) and (28); designed to
905 provide commercial, industrial, or public resources and
906 facilities; or designed to improve entrepreneurial and job
907 development opportunities for low-income persons. A project may
908 be the investment necessary to increase access to high-speed
909 broadband capability in rural communities with enterprise zones,
910 including projects that result in improvements to communications
911 assets that are owned by a business. A project may include the
912 provision of museum educational programs and materials that are
913 directly related to any project approved between January 1,
914 1996, and December 31, 1999, and located in an enterprise zone
915 designated pursuant to s. 290.0065. This paragraph does not
916 preclude projects that propose to construct or rehabilitate low
917 income or very-low-income housing on scattered sites. With
918 respect to housing, contributions may be used to pay the
919 following eligible project-related activities:
920 1. Project development, impact, and management fees for
921 low-income or very-low-income housing projects;
922 2. Down payment and closing costs for eligible persons, as
923 defined in s. 420.9071(19) and (28);
924 3. Administrative costs, including housing counseling and
925 marketing fees, not to exceed 10 percent of the community
926 contribution, directly related to low-income or very-low-income
927 projects; and
928 4. Removal of liens recorded against residential property
929 by municipal, county, or special-district local governments when
930 satisfaction of the lien is a necessary precedent to the
931 transfer of the property to an eligible person, as defined in s.
932 420.9071(19) and (28), for the purpose of promoting home
933 ownership. Contributions for lien removal must be received from
934 a nonrelated third party.
935
936 The provisions of this paragraph shall expire and be void on
937 June 30, 2015.
938 (dd)(u) “Rebuilding of an existing business” means
939 replacement or restoration of real or tangible property
940 destroyed or damaged in an emergency, as defined in paragraph
941 (k) (i), after July 1, 1995, in an enterprise zone, by a
942 business entity authorized to do business in this state as
943 defined in paragraph (g) (e), or a bank or savings and loan
944 association as defined in s. 220.62, subject to the tax imposed
945 by the provisions of this chapter, located in the enterprise
946 zone. This paragraph expires on the date specified in s. 290.016
947 for the expiration of the Florida Enterprise Zone Act.
948 (ee)(v) “Regulations” includes rules promulgated, and forms
949 prescribed, by the department.
950 (ff)(w) “Returns” includes declarations of estimated tax
951 required under this code.
952 (gg)(x) “State,” when applied to a jurisdiction other than
953 Florida, means any state of the United States, the District of
954 Columbia, the Commonwealth of Puerto Rico, any territory or
955 possession of the United States, and any foreign country, or any
956 political subdivision of any of the foregoing.
957 (hh)(y) “Taxable year” means the calendar or fiscal year
958 upon the basis of which net income is computed under this code,
959 including, in the case of a return made for a fractional part of
960 a year, the period for which such return is made.
961 (ii)(z) “Taxpayer” means any corporation subject to the tax
962 imposed by this code, and includes all corporations for which a
963 consolidated return is filed under s. 220.131. However,
964 “taxpayer” does not include a corporation having no individuals
965 (including individuals employed by an affiliate) receiving
966 compensation in this state as defined in s. 220.15 when the only
967 property owned or leased by said corporation (including an
968 affiliate) in this state is located at the premises of a printer
969 with which it has contracted for printing, if such property
970 consists of the final printed product, property which becomes a
971 part of the final printed product, or property from which the
972 printed product is produced.
973 (5)
974 (c) A taxpayer may make an election, in the manner
975 prescribed by the department, by August 26, 1982, or a taxpayer
976 filing an initial return may make an election upon filing the
977 first return for the tax due under this chapter, whichever is
978 later, to report and pay the tax levied by this chapter as if:
979 1. The Internal Revenue Code of 1954, as amended and in
980 effect on January 1, 1980, is in effect indefinitely thereafter;
981 and
982 2. Solely for the purpose of computing depreciation
983 deductions, the provisions of chapter 220, Florida Statutes,
984 1980 Supplement, are in effect indefinitely thereafter.
985
986 For the purposes of taxation of taxpayers who make the election
987 provided for in this paragraph, the Internal Revenue Code of
988 1954, as amended and in effect on January 1, 1980, shall
989 include, for tax years beginning on or after January 1, 1982,
990 the provisions of the Foreign Investment in Real Property Tax
991 Act of 1980, Subtitle C of Title XI of Pub. L. No. 96-499 and
992 the amendments to those provisions codified in the Internal
993 Revenue Code, as defined in paragraph (1)(s)(n). Taxpayers may
994 one time only revoke an election made pursuant to this
995 paragraph, in accordance with rules formulated by the
996 department. Such revocation shall be prospective in nature, and
997 all transactions and events occurring during the period during
998 which the election provided for in this paragraph is in effect
999 and the continuing tax ramifications of such events and
1000 transactions shall be governed by the provisions of this
1001 paragraph.
1002 Section 12. Section 220.181, Florida Statutes, is amended
1003 to read:
1004 220.181 Enterprise zone jobs credit.—
1005 (1)(a) There shall be allowed a credit against the tax
1006 imposed by this chapter to any business located in an enterprise
1007 zone which demonstrates to the department that, on the date of
1008 application, the total number of full-time and part-time jobs is
1009 greater than the total was 12 months before prior to that date.
1010 The credit shall be computed as 20 percent of the actual monthly
1011 wages paid in this state to each new employee hired when a new
1012 job is has been created, as defined under s. 220.03(1)(ee),
1013 unless the business is located in a rural enterprise zone,
1014 pursuant to s. 290.004(6), in which case the credit shall be 30
1015 percent of the actual monthly wages paid. If no less than 20
1016 percent of the employees of the business are residents of an
1017 enterprise zone, excluding temporary and part-time employees,
1018 the credit shall be computed as 30 percent of the actual monthly
1019 wages paid in this state to each new employee hired when a new
1020 job has been created, unless the business is located in a rural
1021 enterprise zone, in which case the credit shall be 45 percent of
1022 the actual monthly wages paid, for a period of up to 24
1023 consecutive months. If the new employee hired when a new job is
1024 created is a participant in the welfare transition program, the
1025 following credit shall be a percent of the actual monthly wages
1026 paid: 40 percent for $4 above the hourly federal minimum wage
1027 rate; 41 percent for $5 above the hourly federal minimum wage
1028 rate; 42 percent for $6 above the hourly federal minimum wage
1029 rate; 43 percent for $7 above the hourly federal minimum wage
1030 rate; and 44 percent for $8 above the hourly federal minimum
1031 wage rate.
1032 (b) This credit applies only with respect to wages subject
1033 to unemployment tax. The credit provided in this section does
1034 not apply:
1035 1. For any employee who is an owner, partner, or majority
1036 stockholder of an eligible business.
1037 2. For any new employee who is employed for any period less
1038 than 3 months.
1039 (c) If this credit is not fully used in any one year, the
1040 unused amount may be carried forward for a period not to exceed
1041 5 years. The carryover credit may be used in a subsequent year
1042 when the tax imposed by this chapter for such year exceeds the
1043 credit for such year after applying the other credits and unused
1044 credit carryovers in the order provided in s. 220.02(8).
1045 (2) When filing for an enterprise zone jobs credit, a
1046 business must file under oath with the governing body or
1047 enterprise zone development agency having jurisdiction over the
1048 enterprise zone where the business is located, as applicable, a
1049 statement which includes:
1050 (a) For each new employee for whom this credit is claimed,
1051 the employee’s name and address place of residence during the
1052 taxable year, including the identifying number assigned pursuant
1053 to s. 290.0065 to the enterprise zone in which the new employee
1054 resides if the new employee is a person residing in an
1055 enterprise zone, and, if applicable, documentation that the
1056 employee is a welfare transition program participant.
1057 (b) If applicable, the name and address of each permanent
1058 employee of the business, including, for each employee who is a
1059 resident of an enterprise zone, the identifying number assigned
1060 pursuant to s. 290.0065 to the enterprise zone in which the
1061 employee resides.
1062 (b)(c) The name and address of the business.
1063 (c)(d) The identifying number assigned pursuant to s.
1064 290.0065 to the enterprise zone in which the eligible business
1065 is located.
1066 (d)(e) The salary or hourly wages paid to each new employee
1067 claimed.
1068 (e)(f) Demonstration to the department that, on the date of
1069 application, the total number of full-time and part-time jobs is
1070 greater than the total was 12 months before prior to that date.
1071 (f)(g) Whether the business is a small business as defined
1072 in by s. 288.703(1).
1073 (3) Within 10 working days after receipt of an application,
1074 the governing body or enterprise zone development agency shall
1075 review the application to determine if it contains all the
1076 information required pursuant to subsection (2) and meets the
1077 criteria set out in this section. The governing body or agency
1078 shall certify all applications that contain the information
1079 required pursuant to subsection (2) and meet the criteria set
1080 out in this section as eligible to receive a credit. If
1081 applicable, the governing body or agency shall also certify if
1082 20 percent of the employees of the business are residents of an
1083 enterprise zone, excluding temporary and part-time employees.
1084 The certification shall be in writing, and a copy of the
1085 certification shall be transmitted to the executive director of
1086 the Department of Revenue. The business is shall be responsible
1087 for forwarding a certified application to the department.
1088 (4) It shall be the responsibility of The taxpayer must to
1089 affirmatively demonstrate to the satisfaction of the department
1090 that it meets the requirements of this section act.
1091 (5) For the purpose of this section, the term “month” means
1092 either a calendar month or the time period from any day of any
1093 month to the corresponding day of the next succeeding month or,
1094 if there is no corresponding day in the next succeeding month,
1095 the last day of the succeeding month.
1096 (6) A No business that which files an amended return for a
1097 taxable year is not shall be allowed any amount of credit or
1098 credit carryforward pursuant to this section in excess of the
1099 amount claimed by such business on its original return for the
1100 taxable year. The provisions of This subsection does do not
1101 apply to increases in the amount of credit claimed under this
1102 section on an amended return due to the use of any credit amount
1103 previously carried forward for the taxable year on the original
1104 return or any eligible prior year under paragraph (1)(c).
1105 (7) Any business which has claimed this credit is shall not
1106 be allowed any credit under the provision of s. 212.096 for any
1107 new employee beginning employment after July 1, 1995. The
1108 provisions of This subsection does shall not apply when a
1109 corporation converts to an S corporation for purposes of
1110 compliance with the Internal Revenue Code of 1986, as amended;
1111 however, a no corporation is not shall be allowed the benefit of
1112 this credit and the credit under s. 212.096 either for the same
1113 new employee or for the same taxable year. In addition, such a
1114 corporation is shall not be allowed any credit under s. 212.096
1115 until it has filed notice of its intent to change its status for
1116 tax purposes and until its final return under this chapter for
1117 the taxable year before prior to such change is has been filed.
1118 (8)(a) Any person who fraudulently claims this credit is
1119 liable for repayment of the credit, plus a mandatory penalty in
1120 the amount of 200 percent of the credit, plus interest at the
1121 rate provided in s. 220.807, and commits a felony of the third
1122 degree, punishable as provided in s. 775.082, s. 775.083, or s.
1123 775.084.
1124 (b) Any person who makes an underpayment of tax as a result
1125 of a grossly overstated claim for this credit commits is guilty
1126 of a felony of the third degree, punishable as provided in s.
1127 775.082, s. 775.083, or s. 775.084. For purposes of this
1128 paragraph, a grossly overstated claim means a claim in an amount
1129 in excess of 100 percent of the amount of credit allowable under
1130 this section.
1131 (9) This section, except paragraph (1)(c) and subsection
1132 (8), expires on the date specified in s. 290.016 for the
1133 expiration of the Florida Enterprise Zone Act, and a business
1134 may not begin claiming the enterprise zone jobs credit after
1135 that date; however, the expiration of this section does not
1136 affect the operation of any credit for which a business has
1137 qualified under this section before that date, or any
1138 carryforward of unused credit amounts as provided in paragraph
1139 (1)(c).
1140 Section 13. Section 220.182, Florida Statutes, is amended
1141 to read:
1142 220.182 Enterprise zone property tax credit.—
1143 (1)(a) Beginning July 1, 1995, There shall be allowed a
1144 credit against the tax imposed by this chapter to any business
1145 which establishes a new business as defined in s.
1146 220.03(1)(v)(p), expands an existing business as defined in s.
1147 220.03(1)(m)(k), or rebuilds an existing business as defined in
1148 s. 220.03(1)(dd)(u) in this state. The credit shall be computed
1149 annually as ad valorem taxes paid in this state, in the case of
1150 a new business; the additional ad valorem tax paid in this state
1151 resulting from assessments on additional real or tangible
1152 personal property acquired to facilitate the expansion of an
1153 existing business; or the ad valorem taxes paid in this state
1154 resulting from assessments on property replaced or restored, in
1155 the case of a rebuilt business, including pollution and waste
1156 control facilities, or any part thereof, and including one or
1157 more buildings or other structures, machinery, fixtures, and
1158 equipment.
1159 (b) If the credit granted pursuant to this section is not
1160 fully used in any one year, the unused amount may be carried
1161 forward for a period not to exceed 5 years. The carryover credit
1162 may be used in a subsequent year when the tax imposed by this
1163 chapter for such year exceeds the credit for such year under
1164 this section after applying the other credits and unused credit
1165 carryovers in the order provided in s. 220.02(8). The amount of
1166 credit taken under this section in any one year, however, may
1167 shall not exceed $25,000, or, if no less than 20 percent of the
1168 employees of the business are residents of an enterprise zone,
1169 excluding temporary employees, the amount shall not exceed
1170 $50,000.
1171 (2) To be eligible to receive an expanded enterprise zone
1172 property tax credit of up to $50,000, the business must provide
1173 a statement, under oath, on the form prescribed by the
1174 department for claiming the credit authorized by this section,
1175 that no less than 20 percent of its employees, excluding
1176 temporary and part-time employees, are residents of an
1177 enterprise zone. It shall be a condition precedent to the
1178 granting of each annual tax credit that such employment
1179 requirements be fulfilled throughout each year during the 5-year
1180 period of the credit. The statement shall set forth the name and
1181 place of residence of each permanent employee on the last day of
1182 business of the tax year for which the credit is claimed or, if
1183 the employee is no longer employed or eligible for the credit on
1184 that date, the last calendar day of the last full calendar month
1185 the employee was employed or eligible for the credit at the
1186 relevant site.
1187 (2)(3) The credit shall be available to a new business for
1188 a period not to exceed the year in which ad valorem taxes are
1189 first levied against the business and the 4 years immediately
1190 thereafter. The credit shall be available to an expanded
1191 existing business for a period not to exceed the year in which
1192 ad valorem taxes are first levied on additional real or tangible
1193 personal property acquired to facilitate the expansion or
1194 rebuilding and the 4 years immediately thereafter. A No business
1195 may not shall be entitled to claim the credit authorized by this
1196 section, except any amount attributable to the carryover of a
1197 previously earned credit, for more than 5 consecutive years.
1198 (3)(4) To be eligible for an enterprise zone property tax
1199 credit, a new, expanded, or rebuilt business shall file a notice
1200 with the property appraiser of the county in which the business
1201 property is located or to be located. The notice shall be filed
1202 no later than April 1 of the year in which new or additional
1203 real or tangible personal property acquired to facilitate such
1204 new, expanded, or rebuilt facility is first subject to
1205 assessment. The notice shall be made on a form prescribed by the
1206 department and shall include separate descriptions of:
1207 (a) Real and tangible personal property owned or leased by
1208 the business before prior to expansion, if any.
1209 (b) Net new or additional real and tangible personal
1210 property acquired to facilitate the new, expanded, or rebuilt
1211 facility.
1212 (4)(5) When filing for an enterprise zone property tax
1213 credit as a new business, a business shall include a copy of its
1214 receipt indicating payment of ad valorem taxes for the current
1215 year.
1216 (5)(6) When filing for an enterprise zone property tax
1217 credit as an expanded or rebuilt business, a business shall
1218 include copies of its receipts indicating payment of ad valorem
1219 taxes for the current year for prior existing property and for
1220 expansion-related or rebuilt property.
1221 (6)(7) The receipts described in subsections (4) (5) and
1222 (5) (6) shall indicate the assessed value of the property, the
1223 property taxes paid, a brief description of the property, and an
1224 indication, if applicable, that the property was separately
1225 assessed as expansion-related or rebuilt property.
1226 (7)(8) The department may has authority to adopt rules
1227 pursuant to ss. 120.536(1) and 120.54 to implement the
1228 provisions of this section act.
1229 (8)(9) It shall be the responsibility of The taxpayer must
1230 to affirmatively demonstrate to the satisfaction of the
1231 department that he or she meets the requirements of this section
1232 act.
1233 (9)(10) When filing for an enterprise zone property tax
1234 credit as an expansion of an existing business or as a new
1235 business, it shall be a condition precedent to the granting of
1236 each annual tax credit that there have been, throughout each
1237 year during the 5-year period, at least no fewer than five more
1238 employees than in the year preceding the initial granting of the
1239 credit.
1240 (10)(11) To apply for an enterprise zone property tax
1241 credit, a new, expanded, or rebuilt business must file under
1242 oath with the governing body or enterprise zone development
1243 agency having jurisdiction over the enterprise zone where the
1244 business is located, as applicable, an application prescribed by
1245 the department for claiming the credit authorized by this
1246 section. Within 10 working days after receipt of an application,
1247 the governing body or enterprise zone development agency shall
1248 review the application to determine if it contains all the
1249 information required pursuant to this section and meets the
1250 criteria set out in this section. The governing body or agency
1251 shall certify all applications that contain the information
1252 required pursuant to this section and meet the criteria set out
1253 in this section as eligible to receive a credit. If applicable,
1254 the governing body or agency shall also certify if 20 percent of
1255 the employees of the business are residents of an enterprise
1256 zone, excluding temporary and part-time employees. The
1257 certification shall be in writing, and a copy of the
1258 certification shall be transmitted to the executive director of
1259 the Department of Revenue. The business shall be responsible for
1260 forwarding all certified applications to the department.
1261 (11)(12) When filing for an enterprise zone property tax
1262 credit, a business shall include the identifying number assigned
1263 pursuant to s. 290.0065 to the enterprise zone in which the
1264 business is located.
1265 (12)(13) When filing for an enterprise zone property tax
1266 credit, a business shall indicate whether the business is a
1267 small business as defined in by s. 288.703(1).
1268 (13)(14) This section expires on the date specified in s.
1269 290.016 for the expiration of the Florida Enterprise Zone Act,
1270 and a business may not begin claiming the enterprise zone
1271 property tax credit after that date; however, the expiration of
1272 this section does not affect the operation of any credit for
1273 which a business has qualified under this section before that
1274 date, or any carryforward of unused credit amounts as provided
1275 in paragraph (1)(b).
1276 Section 14. Subsection (1) of section 193.077, Florida
1277 Statutes, is amended to read:
1278 193.077 Notice of new, rebuilt, or expanded property.—
1279 (1) The property appraiser shall accept notices on or
1280 before April 1 of the year in which the new or additional real
1281 or personal property acquired to establish a new business or
1282 facilitate a business expansion or restoration is first subject
1283 to assessment. The notice shall be filed, on a form prescribed
1284 by the department, by any business seeking to qualify for an
1285 enterprise zone property tax credit as a new or expanded
1286 business pursuant to s. 220.182(3)(4).
1287 Section 15. Paragraph (a) of subsection (5) of section
1288 193.085, Florida Statutes, is amended to read:
1289 193.085 Listing all property.—
1290 (5)(a) Beginning in the year in which a notice of new,
1291 rebuilt, or expanded property is accepted and certified pursuant
1292 to s. 193.077 and for the 4 years immediately thereafter, the
1293 property appraiser shall separately assess the prior existing
1294 property and the expansion-related or rebuilt property, if any,
1295 of each business having submitted said notice pursuant to s.
1296 220.182(3)(4). The listing of expansion-related or rebuilt
1297 property on an assessment roll shall immediately follow the
1298 listing of prior existing property for each expanded business.
1299 However, beginning with the first assessment roll following
1300 receipt of a notice from the department that a business has been
1301 disallowed an enterprise zone property tax credit, the property
1302 appraiser shall singly list the property of such business.
1303 Section 16. Paragraph (a) of subsection (15) of section
1304 212.06, Florida Statutes, is amended to read:
1305 212.06 Sales, storage, use tax; collectible from dealers;
1306 “dealer” defined; dealers to collect from purchasers;
1307 legislative intent as to scope of tax.—
1308 (15)(a) When a contractor secures rock, shell, fill dirt,
1309 or similar materials from a location that he or she owns or
1310 leases and uses such materials to fulfill a real property
1311 contract on the property of another person, the contractor is
1312 the ultimate consumer of such materials and is liable for use
1313 tax thereon. This paragraph does not apply to a person or a
1314 corporation or affiliated group as defined in by s. 220.03(1)(b)
1315 or (g) (e) that secures such materials from a location that he,
1316 she, or it owns for use on his, her, or its own property. The
1317 basis upon which the contractor shall remit the tax is the fair
1318 retail market value determined by establishing either the price
1319 he or she would have to pay for it on the open market or the
1320 price he or she would regularly charge if he or she sold it to
1321 other contractors or users.
1322 Section 17. Paragraph (b) of subsection (6) and paragraph
1323 (b) of subsection (7) of section 220.02, Florida Statutes, are
1324 amended to read:
1325 220.02 Legislative intent.—
1326 (6)
1327 (b) Any person charged with any criminal offense arising
1328 from a civil disorder associated with an emergency, as defined
1329 in s. 220.03(1)(i), and found guilty, whether or not
1330 adjudication of guilt or imposition of sentence is suspended,
1331 deferred, or withheld, is not eligible to make application for,
1332 receive, or in any other manner enjoy the benefits or any form
1333 of assistance available under chapter 80-247, Laws of Florida.
1334 (7)
1335 (b) Any person charged with any criminal offense arising
1336 from a civil disorder associated with an emergency, as defined
1337 in s. 220.03(1)(i), and found guilty, whether or not
1338 adjudication of guilt or imposition of sentence is suspended,
1339 deferred, or withheld, is not eligible to make application for,
1340 receive, or in any other manner enjoy the benefits or any form
1341 of assistance available under chapter 80-248, Laws of Florida.
1342 Section 18. Paragraphs (a) and (b) of subsection (2) of
1343 section 220.183, Florida Statutes, are amended to read:
1344 220.183 Community contribution tax credit.—
1345 (2) ELIGIBILITY REQUIREMENTS.—
1346 (a) All community contributions by a business firm shall be
1347 in the form specified in s. 220.03(1)(f)(d).
1348 (b)1. All community contributions must be reserved
1349 exclusively for use in projects as defined in s.
1350 220.03(1)(cc)(t).
1351 2. If, during the first 10 business days of the state
1352 fiscal year, eligible tax credit applications for projects that
1353 provide homeownership opportunities for low-income or very-low
1354 income households as defined in s. 420.9071(19) and (28) are
1355 received for less than the annual tax credits available for
1356 those projects, the Office of Tourism, Trade, and Economic
1357 Development shall grant tax credits for those applications and
1358 shall grant remaining tax credits on a first-come, first-served
1359 basis for any subsequent eligible applications received before
1360 the end of the state fiscal year. If, during the first 10
1361 business days of the state fiscal year, eligible tax credit
1362 applications for projects that provide homeownership
1363 opportunities for low-income or very-low-income households as
1364 defined in s. 420.9071(19) and (28) are received for more than
1365 the annual tax credits available for those projects, the office
1366 shall grant the tax credits for those applications as follows:
1367 a. If tax credit applications submitted for approved
1368 projects of an eligible sponsor do not exceed $200,000 in total,
1369 the credit shall be granted in full if the tax credit
1370 applications are approved.
1371 b. If tax credit applications submitted for approved
1372 projects of an eligible sponsor exceed $200,000 in total, the
1373 amount of tax credits granted under sub-subparagraph a. shall be
1374 subtracted from the amount of available tax credits, and the
1375 remaining credits shall be granted to each approved tax credit
1376 application on a pro rata basis.
1377 3. If, during the first 10 business days of the state
1378 fiscal year, eligible tax credit applications for projects other
1379 than those that provide homeownership opportunities for low
1380 income or very-low-income households as defined in s.
1381 420.9071(19) and (28) are received for less than the annual tax
1382 credits available for those projects, the office shall grant tax
1383 credits for those applications and shall grant remaining tax
1384 credits on a first-come, first-served basis for any subsequent
1385 eligible applications received before the end of the state
1386 fiscal year. If, during the first 10 business days of the state
1387 fiscal year, eligible tax credit applications for projects other
1388 than those that provide homeownership opportunities for low
1389 income or very-low-income households as defined in s.
1390 420.9071(19) and (28) are received for more than the annual tax
1391 credits available for those projects, the office shall grant the
1392 tax credits for those applications on a pro rata basis.
1393 Section 19. Paragraph (g) of subsection (2) of section
1394 220.193, Florida Statutes, is amended to read:
1395 220.193 Florida renewable energy production credit.—
1396 (2) As used in this section, the term:
1397 (g) “Taxpayer” includes a general partnership, limited
1398 partnership, limited liability company, trust, or other
1399 artificial entity in which a corporation, as defined in s.
1400 220.03(1)(e), owns an interest and is taxed as a partnership or
1401 is disregarded as a separate entity from the corporation under
1402 this chapter.
1403 Section 20. Paragraphs (a) and (u) of subsection (1) and
1404 paragraph (f) of subsection (2) of section 288.1045, Florida
1405 Statutes, are amended to read:
1406 288.1045 Qualified defense contractor and space flight
1407 business tax refund program.—
1408 (1) DEFINITIONS.—As used in this section:
1409 (a) “Applicant” means any business entity that holds a
1410 valid Department of Defense contract or space flight business
1411 contract, any business entity that is a subcontractor under a
1412 valid Department of Defense contract or space flight business
1413 contract, or any business entity that holds a valid contract for
1414 the reuse of a defense-related facility, including all members
1415 of an affiliated group of corporations as defined in s.
1416 220.03(1)(b).
1417 (u) “Taxable year” has means the same meaning as provided
1418 in s. 220.03(1)(y).
1419 (2) GRANTING OF A TAX REFUND; ELIGIBLE AMOUNTS.—
1420 (f) After entering into a tax refund agreement pursuant to
1421 subsection (4), a qualified applicant may:
1422 1. Receive refunds from the account for corporate income
1423 taxes due and paid pursuant to chapter 220 by that business
1424 beginning with the first taxable year of the business which
1425 begins after entering into the agreement.
1426 2. Receive refunds from the account for the following taxes
1427 due and paid by that business after entering into the agreement:
1428 a. Taxes on sales, use, and other transactions paid
1429 pursuant to chapter 212.
1430 b. Intangible personal property taxes paid pursuant to
1431 chapter 199.
1432 c. Emergency excise taxes paid pursuant to chapter 221.
1433 d. Excise taxes paid on documents pursuant to chapter 201.
1434 e. Ad valorem taxes paid, as defined in s. 220.03(1)(a) on
1435 June 1, 1996.
1436 f. State communications services taxes administered under
1437 chapter 202. This provision does not apply to the gross receipts
1438 tax imposed under chapter 203 and administered under chapter 202
1439 or the local communications services tax authorized under s.
1440 202.19.
1441
1442 However, a qualified applicant may not receive a tax refund
1443 pursuant to this section for any amount of credit, refund, or
1444 exemption granted such contractor for any of such taxes. If a
1445 refund for such taxes is provided by the office, which taxes are
1446 subsequently adjusted by the application of any credit, refund,
1447 or exemption granted to the qualified applicant other than that
1448 provided in this section, the qualified applicant shall
1449 reimburse the Economic Development Trust Fund for the amount of
1450 such credit, refund, or exemption. A qualified applicant must
1451 notify and tender payment to the office within 20 days after
1452 receiving a credit, refund, or exemption, other than that
1453 provided in this section. The addition of communications
1454 services taxes administered under chapter 202 is remedial in
1455 nature and retroactive to October 1, 2001. The office may make
1456 supplemental tax refund payments to allow for tax refunds for
1457 communications services taxes paid by an eligible qualified
1458 defense contractor after October 1, 2001.
1459 Section 21. Paragraph (u) of subsection (2) of section
1460 288.106, Florida Statutes, is amended to read:
1461 288.106 Tax refund program for qualified target industry
1462 businesses.—
1463 (2) DEFINITIONS.—As used in this section:
1464 (u) “Taxable year” has the same meaning as provided means
1465 taxable year as defined in s. 220.03(1)(y).
1466 Section 22. Section 290.00677, Florida Statutes, is amended
1467 to read:
1468 290.00677 Rural enterprise zones; special qualifications.—
1469 (1) An Notwithstanding the enterprise zone residency
1470 requirements set out in s. 212.096(1)(c), eligible business
1471 businesses as defined in s. 212.096(1)(a) located in rural
1472 enterprise zones as defined in s. 290.004 may receive the basic
1473 minimum credit provided under s. 212.096 for creating a new job
1474 and hiring a person residing within the jurisdiction of a rural
1475 community as defined in s. 288.106(2). All other provisions of
1476 s. 212.096, including, but not limited to, those relating to the
1477 award of enhanced credits, apply to such businesses.
1478 (2) A business Notwithstanding the enterprise zone
1479 residency requirements set out in s. 220.03(1)(q), businesses as
1480 defined in s. 220.03(1)(c) located in rural enterprise zones as
1481 defined in s. 290.004 may receive the basic minimum credit
1482 provided under s. 220.181 for creating a new job and hiring a
1483 person residing within the jurisdiction of a rural community as
1484 defined in s. 288.106(2). The All other provisions of s.
1485 220.181, including, but not limited to, those relating to the
1486 award of enhanced credits, apply to such businesses.
1487 Section 23. Paragraph (b) of subsection (2) and paragraph
1488 (e) of subsection (5) of section 624.5105, Florida Statutes, are
1489 amended to read:
1490 624.5105 Community contribution tax credit; authorization;
1491 limitations; eligibility and application requirements;
1492 administration; definitions; expiration.—
1493 (2) ELIGIBILITY REQUIREMENTS.—
1494 (b) Each community contribution must be reserved
1495 exclusively for use in a project as defined in s. 220.03(1)(t).
1496 (5) DEFINITIONS.—For the purpose of this section:
1497 (e) “Project” means an activity as defined in s.
1498 220.03(1)(cc)(t).
1499 Section 24. The amendments made by this act to ss. 212.08,
1500 212.096, 220.03, 220.181, and 220.182, Florida Statutes, shall
1501 apply prospectively and do not affect the operation of any
1502 credit for which a business has qualified before the effective
1503 date of this act.
1504 Section 25. This act shall take effect July 1, 2011.
