Bill Text: FL H0697 | 2010 | Regular Session | Engrossed

---

Bill Title: Entertainment Industry Economic Development

Spectrum: Slight Partisan Bill (Republican 71-42)

Status: (Failed) 2010-04-30 - Died in Messages, companion bill(s) passed, see CS/SB 1752 (Ch. 2010-147) [H0697 Detail]

Download: Florida-2010-H0697-Engrossed.html

---

CS/CS/HB 697

1	A bill to be entitled
2	An act relating to entertainment industry economic
3	development; amending s. 288.1254, F.S.; revising the
4	entertainment industry financial incentive program to
5	provide corporate income tax and sales and use tax credits
6	to qualified entertainment entities rather than
7	reimbursements from appropriations; revising provisions
8	relating to definitions, creation and scope, application
9	procedures, approval process, eligibility, required
10	documents, qualified and certified productions, and annual
11	reports; providing duties and responsibilities of the
12	Office of Film and Entertainment, the Office of Tourism,
13	Trade, and Economic Development, and the Department of
14	Revenue relating to the tax credits; providing criteria
15	and limitations for awards of tax credits; providing for
16	uses, allocations, election, distributions, and
17	carryforward of the tax credits; providing for withdrawal
18	of tax credit eligibility; providing for use of
19	consolidated returns; providing for partnership and
20	noncorporate distributions of tax credits; providing for
21	succession of tax credits; providing requirements for
22	transfer of tax credits; authorizing the Office of
23	Tourism, Trade, and Economic Development to adopt rules,
24	policies, and procedures; authorizing the Department of
25	Revenue to adopt rules and conduct audits; providing for
26	revocation and forfeiture of tax credits; providing
27	liability for reimbursement of certain costs and fees
28	associated with a fraudulent claim; requiring an annual
29	report to the Governor and the Legislature; providing for
30	future repeal; amending s. 212.08, F.S.; limiting
31	application of the entertainment industry tax credits;
32	requiring electronic funds transfer for the tax credits;
33	providing procedures; amending s. 213.053, F.S.;
34	authorizing the Department of Revenue to provide tax
35	credit information to the Office of Film and Entertainment
36	and the Office of Tourism, Trade, and Economic
37	Development; amending s. 220.02, F.S.; including tax
38	credits enumerated in s. 220.1899, F.S., in the order of
39	application of credits against certain taxes; creating s.
40	220.1899, F.S.; providing for credits against the
41	corporate income tax in the amounts awarded under the
42	entertainment industry financial incentive program;
43	providing for carryforward of the tax credits under
44	certain circumstances; providing an appropriation and
45	authorizing an additional position; providing
46	severability; providing an effective date.
47
48	Be It Enacted by the Legislature of the State of Florida:
49
50	Section 1. Section 288.1254, Florida Statutes, is amended
51	to read:
52	(Substantial rewording of section. See
53	s. 288.1254, F.S., for present text.)
54	288.1254 Entertainment industry financial incentive
55	program.-
56	(1) DEFINITIONS.-As used in this section, the term:
57	(a) "Certified production" means a qualified production
58	that has tax credits allocated to it by the Office of Tourism,
59	Trade, and Economic Development based on the production's
60	estimated qualified expenditures, up to the production's maximum
61	certified amount of tax credits, by the Office of Tourism,
62	Trade, and Economic Development. The term does not include a
63	production if its first day of principal photography or project
64	start date in this state occurs before the production is
65	certified by the Office of Tourism, Trade, and Economic
66	Development, unless the production spans more than one fiscal
67	year, was a certified production on its first day of principal
68	photography or project start date in this state, and submits an
69	application for continuing the same production for the
70	subsequent fiscal year.
71	(b) "Digital media project" means a production of
72	interactive entertainment that is produced for distribution in
73	commercial or educational markets. The term includes a video
74	game or production intended for Internet or wireless
75	distribution. The term does not include a production deemed by
76	the Office of Film and Entertainment to contain obscene content
77	as defined in s. 847.001(10).
78	(c) "High-impact television series" means a production
79	created to run multiple production seasons and having an
80	estimated order of at least seven episodes per season and
81	qualified expenditures of at least $625,000 per episode.
82	(d) "Off-season certified production" means a feature
83	film, independent film, or television series or pilot which
84	films 75 percent or more of its principal photography days from
85	June 1 through November 30.
86	(e) "Principal photography" means the filming of major or
87	significant components of the qualified production which involve
88	lead actors.
89	(f) "Production" means a theatrical or direct-to-video
90	motion picture; a made-for-television motion picture; visual
91	effects or digital animation sequences produced in conjunction
92	with a motion picture; a commercial; a music video; an
93	industrial or educational film; an infomercial; a documentary
94	film; a television pilot program; a presentation for a
95	television pilot program; a television series, including, but
96	not limited to, a drama, a reality show, a comedy, a soap opera,
97	a telenovela, a game show, an awards show, or a miniseries
98	production; or a digital media project by the entertainment
99	industry. One season of a television series is considered one
100	production. The term does not include a weather or market
101	program; a sporting event; a sports show; a gala; a production
102	that solicits funds; a home shopping program; a political
103	program; a political documentary; political advertising; a
104	gambling-related project or production; a concert production; or
105	a local, regional, or Internet-distributed-only news show,
106	current-events show, pornographic production, or current-affairs
107	show. A production may be produced on or by film, tape, or
108	otherwise by means of a motion picture camera; electronic camera
109	or device; tape device; computer; any combination of the
110	foregoing; or any other means, method, or device now used or
111	later adopted.
112	(g) "Production expenditures" means the costs of tangible
113	and intangible property used for, and services performed
114	primarily and customarily in, production, including
115	preproduction and postproduction, but excluding costs for
116	development, marketing, and distribution. The term includes, but
117	is not limited to:
118	1. Wages, salaries, or other compensation paid to legal
119	residents of this state, including amounts paid through payroll
120	service companies, for technical and production crews,
121	directors, producers, and performers.
122	2. Expenditures for sound stages, backlots, production
123	editing, digital effects, sound recordings, sets, and set
124	construction.
125	3. Expenditures for rental equipment, including, but not
126	limited to, cameras and grip or electrical equipment.
127	4. Up to $300,000 of the costs of newly purchased computer
128	software and hardware unique to the project, including servers,
129	data processing, and visualization technologies, which are
130	located in and used exclusively in the state for the production
131	of digital media.
132	5. Expenditures for meals, travel, and accommodations.
133	(h) "Qualified expenditures" means production expenditures
134	incurred in this state by a qualified production for:
135	1. Goods purchased or leased from, or services, including,
136	but not limited to, insurance costs and bonding, payroll
137	services, and legal fees, which are provided by, a vendor or
138	supplier in this state that is registered with the Department of
139	State or the Department of Revenue and has a physical location
140	in this state at which one or more legal Florida residents are
141	employed.
142	2. Payments to legal residents of this state in the form
143	of salary, wages, or other compensation up to a maximum of
144	$650,000 per resident unless otherwise specified in subsection
145	(4).
146
147	For a qualified production involving an event, such as an awards
148	show, the term does not include expenditures solely associated
149	with the event itself and not directly required by the
150	production. The term does not include expenditures incurred
151	before certification, with the exception of those incurred for a
152	commercial, a music video, or the pickup of additional episodes
153	of a high-impact television series within a single season.
154	(i) "Qualified production" means a production in this
155	state meeting the requirements of this section. The term does
156	not include a production:
157	1. In which, for the first 2 years of the incentive
158	program, less than 50 percent, and thereafter, less than 60
159	percent, of the positions that make up its production cast and
160	below-the-line production crew, or, in the case of digital media
161	projects, less than 75 percent of such positions, are filled by
162	legal residents of this state, whose residency is demonstrated
163	by a valid Florida driver's license or other state-issued
164	identification confirming residency, or students enrolled full-
165	time in a film-and-entertainment-related course of study at an
166	institution of higher education in this state; or
167	2. That is deemed by the Office of Film and Entertainment
168	to contain obscene content as defined in s. 847.001(10).
169	(j) "Qualified production company" means a corporation,
170	limited liability company, partnership, or other legal entity
171	engaged in one or more productions in this state.
172	(2) CREATION AND PURPOSE OF PROGRAM.-The entertainment
173	industry financial incentive program is created within the
174	Office of Film and Entertainment. The purpose of this program is
175	to encourage the use of this state as a site for filming, for
176	the digital production of films, and to develop and sustain the
177	workforce and infrastructure for film, digital media, and
178	entertainment production.
179	(3) APPLICATION PROCEDURE; APPROVAL PROCESS.-
180	(a) Program application.-A qualified production company
181	producing a qualified production in this state may submit a
182	program application to the Office of Film and Entertainment for
183	the purpose of determining qualification for an award of tax
184	credits authorized by this section no earlier than 180 days
185	before the first day of principal photography or project start
186	date in this state. The applicant shall provide the Office of
187	Film and Entertainment with information required to determine
188	whether the production is a qualified production and to
189	determine the qualified expenditures and other information
190	necessary for the office to determine eligibility for the tax
191	credit.
192	(b) Required documentation.-The Office of Film and
193	Entertainment shall develop an application form for qualifying
194	an applicant as a qualified production. The form must include,
195	but need not be limited to, production-related information
196	concerning employment of residents in this state, a detailed
197	budget of planned qualified expenditures, and the applicant's
198	signed affirmation that the information on the form has been
199	verified and is correct. The Office of Film and Entertainment
200	and local film commissions shall distribute the form.
201	(c) Application process.-The Office of Film and
202	Entertainment shall establish a process by which an application
203	is accepted and reviewed and by which tax credit eligibility and
204	award amount are determined. The Office of Film and
205	Entertainment may request assistance from a duly appointed local
206	film commission in determining compliance with this section.
207	(d) Certification.-The Office of Film and Entertainment
208	shall review the application within 15 business days after
209	receipt. Upon its determination that the application contains
210	all the information required by this subsection and meets the
211	criteria set out in this section, the Office of Film and
212	Entertainment shall qualify the applicant and recommend to the
213	Office of Tourism, Trade, and Economic Development that the
214	applicant be certified for the maximum tax credit award amount.
215	Within 5 business days after receipt of the recommendation, the
216	Office of Tourism, Trade, and Economic Development shall reject
217	the recommendation or certify the maximum recommended tax credit
218	award, if any, to the applicant and to the executive director of
219	the Department of Revenue.
220	(e) Grounds for denial.-The Office of Film and
221	Entertainment shall deny an application if it determines that
222	the application is not complete or the production or application
223	does not meet the requirements of this section.
224	(f) Verification of actual qualified expenditures.-
225	1. The Office of Film and Entertainment shall develop a
226	process to verify the actual qualified expenditures of a
227	certified production. The process must require:
228	a. A certified production to submit, in a timely manner
229	after production ends in this state and after making all of its
230	qualified expenditures in this state, data substantiating each
231	qualified expenditure to an independent certified public
232	accountant licensed in this state;
233	b. Such accountant to conduct a compliance audit, at the
234	certified production's expense, to substantiate each qualified
235	expenditure and submit the results as a report, along with the
236	required substantiating data, to the Office of Film and
237	Entertainment; and
238	c. The Office of Film and Entertainment to review the
239	accountant's submittal and report to the Office of Tourism,
240	Trade, and Economic Development the final verified amount of
241	actual qualified expenditures made by the certified production.
242	2. The Office of Tourism, Trade, and Economic Development
243	shall determine and approve the final tax credit award amount to
244	each certified applicant based on the final verified amount of
245	actual qualified expenditures and shall notify the executive
246	director of the Department of Revenue in writing that the
247	certified production has met the requirements of the incentive
248	program and of the final amount of the tax credit award. The
249	final tax credit award amount may not exceed the maximum tax
250	credit award amount certified under paragraph (d).
251	(g) Promoting Florida.-The Office of Film and
252	Entertainment shall ensure that, as a condition of receiving a
253	tax credit under this section, marketing materials promoting
254	this state as a tourist destination or film and entertainment
255	production destination are included, when appropriate, at no
256	cost to the state, which must, at a minimum, include placement
257	of a "Filmed in Florida" or "Produced in Florida" logo in the
258	end credits. The placement of a "Filmed in Florida" or "Produced
259	in Florida" logo on all packaging material and hard media is
260	also required, unless such placement is prohibited by licensing
261	or other contractual obligations. The size and placement of such
262	logo shall be commensurate to other logos used. If no logos are
263	used, the statement "Filmed in Florida using Florida's
264	Entertainment Industry Financial Incentive," or a similar
265	statement approved by the Office of Film and Entertainment,
266	shall be used. The Office of Film and Entertainment shall
267	provide a logo and supply it for the purposes specified in this
268	paragraph. A 30-second "Visit Florida" promotional video must
269	also be included on all optical disc formats of a film, unless
270	such placement is prohibited by licensing or other contractual
271	obligations. The 30-second promotional video shall be approved
272	and provided by the Florida Tourism Industry Marketing
273	Corporation in consultation with the Commissioner of Film and
274	Entertainment.
275	(4) TAX CREDIT ELIGIBILITY; TAX CREDIT AWARDS; QUEUES;
276	ELECTION AND DISTRIBUTION; CARRYFORWARD; CONSOLIDATED RETURNS;
277	PARTNERSHIP AND NONCORPORATE DISTRIBUTIONS; MERGERS AND
278	ACQUISITIONS.-
279	(a) Priority for tax credit award.-The priority of a
280	qualified production for tax credit awards must be determined on
281	a first-come, first-served basis within its appropriate queue.
282	Each qualified production must be placed into the appropriate
283	queue and is subject to the requirements of that queue.
284	(b) Tax credit eligibility.-
285	1. General production queue.-Ninety-four percent of tax
286	credits authorized in any state fiscal year must be dedicated to
287	the general production queue. The general production queue
288	consists of all qualified productions other than those eligible
289	for the commercial and music video queue or the independent and
290	emerging media production queue. A qualified production that
291	demonstrates a minimum of $625,000 in qualified expenditures is
292	eligible for tax credits equal to 20 percent of its actual
293	qualified expenditures, up to a maximum of $8 million. A
294	qualified production that incurs qualified expenditures during
295	multiple state fiscal years may combine those expenditures to
296	satisfy the $625,000 minimum threshold.
297	a. An off-season certified production that is a feature
298	film, independent film, or television series or pilot is
299	eligible for an additional 5-percent tax credit on actual
300	qualified expenditures. An off-season certified production that
301	does not complete 75 percent of principal photography due to a
302	disruption caused by a hurricane or tropical storm may not be
303	disqualified from eligibility for the additional 5-percent
304	credit as a result of the disruption.
305	b. A qualified high-impact television series shall be
306	allowed first position in this queue for tax credit awards not
307	yet certified.
308	2. Commercial and music video queue.-Three percent of tax
309	credits authorized in any state fiscal year must be dedicated to
310	the commercial and music video queue. A qualified production
311	company that produces national or regional commercials or music
312	videos may be eligible for a tax credit award if it demonstrates
313	a minimum of $100,000 in qualified expenditures per national or
314	regional commercial or music video and exceeds a combined
315	threshold of $500,000 after combining actual qualified
316	expenditures from qualified commercials and music videos during
317	a single state fiscal year. After a qualified production company
318	that produces commercials, music videos, or both reaches the
319	threshold of $500,000, it is eligible to apply for certification
320	for a tax credit award. The maximum credit award shall be equal
321	to 20 percent of its actual qualified expenditures up to a
322	maximum of $500,000. If there is a surplus at the end of a
323	fiscal year after the Office of Film and Entertainment certifies
324	and determines the tax credits for all qualified commercial and
325	video projects, such surplus tax credits shall be carried
326	forward to the following fiscal year and be available to any
327	eligible qualified productions under the general production
328	queue.
329	3. Independent and emerging media production queue.-Three
330	percent of tax credits authorized in any state fiscal year must
331	be dedicated to the independent and emerging media production
332	queue. This queue is intended to encourage Florida independent
333	film and emerging media production as described in paragraph
334	(1)(f). Any qualified production, excluding commercials,
335	infomercials, or music videos, that demonstrates at least
336	$100,000, but not more than $625,000, in total qualified
337	expenditures is eligible for tax credits equal to 20 percent of
338	its actual qualified expenditures. If a surplus exists at the
339	end of a fiscal year after the Office of Film and Entertainment
340	certifies and determines the tax credits for all qualified
341	independent and emerging media production projects, such surplus
342	tax credits shall be carried forward to the following fiscal
343	year and be available to any eligible qualified productions
344	under the general production queue.
345	4. Family-friendly productions.-A certified theatrical or
346	direct-to-video motion picture production or video game
347	determined by the Commissioner of Film and Entertainment, with
348	the advice of the Florida Film and Entertainment Advisory
349	Council, to be family-friendly, based on the review of the
350	script and the review of the final release version, is eligible
351	for an additional tax credit equal to 5 percent of its actual
352	qualified expenditures. Family-friendly productions are those
353	that have cross-generational appeal; would be considered
354	suitable for viewing by children age 5 or older; do not contain
355	any theme, language, nudity, sex, violence, or other matter that
356	would offend the parent of a 5-year-old child that views the
357	motion picture or game; are appropriate in theme, content, and
358	language for a broad family audience; embody a responsible
359	resolution of issues; and do not exhibit or imply any act of
360	smoking, sex, nudity, gratuitous violence, or vulgar or profane
361	language.
362	(c) Withdrawal of tax credit eligibility.-A qualified or
363	certified production must continue on a reasonable schedule,
364	which includes beginning principal photography or the production
365	project in this state no more than 45 calendar days before or
366	after the principal photography or project start date provided
367	in the production's program application. The Office of Tourism,
368	Trade, and Economic Development shall withdraw the eligibility
369	of a qualified or certified production that does not continue on
370	a reasonable schedule.
371	(d) Election and distribution of tax credits.-
372	1. A certified production company receiving a tax credit
373	award under this section shall, at the time the credit is
374	awarded by the Office of Tourism, Trade, and Economic
375	Development after production is completed and all requirements
376	to receive a credit award have been met, make an irrevocable
377	election to apply the credit against taxes due under chapter
378	220, against state taxes collected or accrued under chapter 212,
379	or against a stated combination of the two taxes. The election
380	is binding upon any distributee, successor, transferee, or
381	purchaser. The Office of Tourism, Trade, and Economic
382	Development shall notify the Department of Revenue of any
383	election made pursuant to this paragraph.
384	2. For the fiscal years beginning July 1, 2010, and ending
385	June 30, 2015, a qualified production company is eligible for
386	tax credits against its sales and use tax liabilities and
387	corporate income tax liabilities as provided in this section.
388	However, tax credits awarded under this section may not be
389	claimed against sales and use tax liabilities or corporate
390	income tax liabilities for any tax period beginning before July
391	1, 2011, regardless of when the credits are applied for or
392	awarded.
393	(e) Tax credit carryforward.-If the certified production
394	company cannot use the entire tax credit in the taxable year or
395	reporting period in which the credit is awarded, any excess
396	amount may be carried forward to a succeeding taxable year or
397	reporting period. A tax credit applied against taxes imposed
398	under chapter 212 may be carried forward for a maximum of 5
399	years after the date the credit is awarded. A tax credit applied
400	against taxes imposed under chapter 220 may be carried forward
401	for a maximum of 5 years after the date the credit is awarded,
402	after which the credit expires and may not be used.
403	(f) Consolidated returns.-A certified production company
404	that files a Florida consolidated return as a member of an
405	affiliated group under s. 220.131(1) may be allowed the credit
406	on a consolidated return basis up to the amount of the tax
407	imposed upon the consolidated group under chapter 220.
408	(g) Partnership and noncorporate distributions.-A
409	qualified production company that is not a corporation as
410	defined in s. 220.03 may elect to distribute tax credits awarded
411	under this section to its partners or members in proportion to
412	their respective distributive income or loss in the taxable
413	fiscal year in which the tax credits were awarded.
414	(h) Mergers or acquisitions.-Tax credits available under
415	this section to a certified production company may succeed to a
416	surviving or acquiring entity subject to the same conditions and
417	limitations as described in this section; however, they may not
418	be transferred again by the surviving or acquiring entity.
419	(5) TRANSFER OF TAX CREDITS.-
420	(a) Authorization.-Upon application to the Office of Film
421	and Entertainment and approval by the Office of Tourism, Trade,
422	and Economic Development, a certified production company, or a
423	partner or member that has received a distribution under
424	paragraph (4)(g), may elect to transfer, in whole or in part,
425	any unused credit amount granted under this section. An election
426	to transfer any unused tax credit amount under chapter 212 or
427	chapter 220 must be made no later than 5 years after the date
428	the credit is awarded, after which period the credit expires and
429	may not be used. The Office of Tourism, Trade, and Economic
430	Development shall notify the Department of Revenue of the
431	election and transfer.
432	(b) Number of transfers permitted.-A certified production
433	company that elects to apply a credit amount against taxes
434	remitted under chapter 212 is permitted a one-time transfer of
435	unused credits to one transferee. A certified production company
436	that elects to apply a credit amount against taxes due under
437	chapter 220 is permitted a one-time transfer of unused credits
438	to no more than four transferees, and such transfers must occur
439	in the same taxable year.
440	(c) Transferee rights and limitations.-The transferee is
441	subject to the same rights and limitations as the certified
442	production company awarded the tax credit, except that the
443	transferee may not sell or otherwise transfer the tax credit.
444	(d) Rulemaking.-The Department of Revenue may adopt rules
445	to administer this subsection, as provided in subsection (7).
446	(6) ANNUAL ALLOCATION OF TAX CREDITS.-
447	(a) The aggregate amount of the tax credits that may be
448	certified pursuant to paragraph (3)(d) may not exceed:
449	1. For fiscal year 2010-2011, $55 million.
450	2. For fiscal year 2011-2012, $50 million.
451	3. For fiscal years 2012-2013, 2013-2014, and 2014-2015,
452	$27 million per fiscal year.
453	(b) Any portion of the maximum amount of tax credits
454	established per fiscal year in paragraph (a) that is not
455	certified as of the end of a fiscal year shall be carried
456	forward and made available for certification during the
457	following two fiscal years in addition to the amounts available
458	for certification under paragraph (a) for those fiscal years.
459	(c) Upon approval of the final tax credit award amount
460	pursuant to subparagraph (3)(f)2., an amount equal to the
461	difference between the maximum tax credit award amount
462	previously certified under paragraph (3)(d) and the approved
463	final tax credit award amount shall immediately be available for
464	recertification during the current and following fiscal years in
465	addition to the amounts available for certification under
466	paragraph (a) for those fiscal years.
467	(d) Notwithstanding paragraph (a), if, during a fiscal
468	year, the total amount of credits applied for, pursuant to
469	paragraph (3)(a), exceeds the amount of credits available for
470	certification in that fiscal year, such excess shall be treated
471	as having been applied for on the first day of the next fiscal
472	year in which credits remain available for certification.
473	(7) RULES, POLICIES, AND PROCEDURES.-
474	(a) The Office of Tourism, Trade, and Economic Development
475	may adopt rules pursuant to ss. 120.536(1) and 120.54 and
476	develop policies and procedures to implement and administer this
477	section, including, but not limited to, rules specifying
478	requirements for the application and approval process, records
479	required for substantiation for tax credits, procedures for
480	making the election in paragraph (4)(d), the manner and form of
481	documentation required to claim tax credits awarded or
482	transferred under this section, and marketing requirements for
483	tax credit recipients.
484	(b) The Department of Revenue may adopt rules pursuant to
485	ss. 120.536(1) and 120.54 to administer this section, including
486	rules governing the examination and audit procedures required to
487	administer this section and the manner and form of documentation
488	required to claim tax credits awarded or transferred under this
489	section.
490	(8) AUDIT AUTHORITY; REVOCATION AND FORFEITURE OF TAX
491	CREDITS; FRAUDULENT CLAIMS.-
492	(a) Audit authority.-The Department of Revenue may conduct
493	examinations and audits as provided in s. 213.34 to verify that
494	tax credits under this section are received, transferred, and
495	applied according to the requirements of this section. If the
496	Department of Revenue determines that tax credits are not
497	received, transferred, or applied as required by this section,
498	it may, in addition to the remedies provided in this subsection,
499	pursue recovery of such funds pursuant to the laws and rules
500	governing the assessment of taxes.
501	(b) Revocation of tax credits.-The Office of Tourism,
502	Trade, and Economic Development may revoke or modify any written
503	decision qualifying, certifying, or otherwise granting
504	eligibility for tax credits under this section if it is
505	discovered that the tax credit applicant submitted any false
506	statement, representation, or certification in any application,
507	record, report, plan, or other document filed in an attempt to
508	receive tax credits under this section. The Office of Tourism,
509	Trade, and Economic Development shall immediately notify the
510	Department of Revenue of any revoked or modified orders
511	affecting previously granted tax credits. Additionally, the
512	applicant must notify the Department of Revenue of any change in
513	its tax credit claimed.
514	(c) Forfeiture of tax credits.-A determination by the
515	Department of Revenue, as a result of an audit pursuant to
516	paragraph (a) or from information received from the Office of
517	Film and Entertainment, that an applicant received tax credits
518	pursuant to this section to which the applicant was not entitled
519	is grounds for forfeiture of previously claimed and received tax
520	credits. The applicant is responsible for returning forfeited
521	tax credits to the Department of Revenue, and such funds shall
522	be paid into the General Revenue Fund of the state. Tax credits
523	purchased in good faith are not subject to forfeiture unless the
524	transferee submitted fraudulent information in the purchase or
525	failed to meet the requirements in subsection (5).
526	(d) Fraudulent claims.-Any applicant that submits
527	fraudulent information under this section is liable for
528	reimbursement of the reasonable costs and fees associated with
529	the review, processing, investigation, and prosecution of the
530	fraudulent claim. An applicant that obtains a credit payment
531	under this section through a claim that is fraudulent is liable
532	for reimbursement of the credit amount plus a penalty in an
533	amount double the credit amount. The penalty is in addition to
534	any criminal penalty to which the applicant is liable for the
535	same acts. The applicant is also liable for costs and fees
536	incurred by the state in investigating and prosecuting the
537	fraudulent claim.
538	(9) ANNUAL REPORT.-Each October 1, the Office of Film and
539	Entertainment shall provide an annual report for the previous
540	fiscal year to the Governor, the President of the Senate, and
541	the Speaker of the House of Representatives which outlines the
542	return on investment and economic benefits to the state.
543	(10) REPEAL.-This section is repealed July 1, 2015, except
544	that:
545	(a) Tax credits certified under paragraph (3)(d) before
546	July 1, 2015, may be awarded under paragraph (3)(f) on or after
547	July 1, 2015, if the other requirements of this section are met.
548	(b) Tax credits carried forward under paragraph (4)(e)
549	remain valid for the period specified.
550	Section 2. Paragraph (q) is added to subsection (5) of
551	section 212.08, Florida Statutes, to read:
552	212.08 Sales, rental, use, consumption, distribution, and
553	storage tax; specified exemptions.-The sale at retail, the
554	rental, the use, the consumption, the distribution, and the
555	storage to be used or consumed in this state of the following
556	are hereby specifically exempt from the tax imposed by this
557	chapter.
558	(5) EXEMPTIONS; ACCOUNT OF USE.-
559	(q) Entertainment industry tax credit; authorization;
560	eligibility for credits.-The credits against sales tax
561	authorized under s. 288.1254 shall be deducted from any sales
562	and use tax remitted by the dealer to the department by
563	electronic funds transfer and may only be deducted on a sales
564	and use tax return initiated through electronic data
565	interchange. The dealer shall separately state the credit on the
566	electronic return. The net amount of tax due and payable must be
567	remitted by electronic funds transfer. If the credit for the
568	qualified expenditures is larger than the amount owed on the
569	sales and use tax return that is eligible for the credit, the
570	unused amount of the credit may be carried forward to a
571	succeeding reporting period as provided in s. 288.1254(4)(e). A
572	dealer may only obtain a credit using the method described in
573	this subparagraph. A dealer is not authorized to obtain a credit
574	by applying for a refund.
575	Section 3. Paragraph (z) is added to subsection (8) of
576	section 213.053, Florida Statutes, to read:
577	213.053 Confidentiality and information sharing.-
578	(8) Notwithstanding any other provision of this section,
579	the department may provide:
580	(z) Information relative to tax credits taken under s.
581	288.1254 to the Office of Film and Entertainment and the Office
582	of Tourism, Trade, and Economic Development.
583
584	Disclosure of information under this subsection shall be
585	pursuant to a written agreement between the executive director
586	and the agency. Such agencies, governmental or nongovernmental,
587	shall be bound by the same requirements of confidentiality as
588	the Department of Revenue. Breach of confidentiality is a
589	misdemeanor of the first degree, punishable as provided by s.
590	775.082 or s. 775.083.
591	Section 4. Subsection (8) of section 220.02, Florida
592	Statutes, is amended to read:
593	220.02 Legislative intent.-
594	(8) It is the intent of the Legislature that credits
595	against either the corporate income tax or the franchise tax be
596	applied in the following order: those enumerated in s. 631.828,
597	those enumerated in s. 220.191, those enumerated in s. 220.181,
598	those enumerated in s. 220.183, those enumerated in s. 220.182,
599	those enumerated in s. 220.1895, those enumerated in s. 221.02,
600	those enumerated in s. 220.184, those enumerated in s. 220.186,
601	those enumerated in s. 220.1845, those enumerated in s. 220.19,
602	those enumerated in s. 220.185, those enumerated in s. 220.187,
603	those enumerated in s. 220.192, those enumerated in s. 220.193,
604	and those enumerated in s. 288.9916, and those enumerated in s.
605	220.1899.
606	Section 5. Section 220.1899, Florida Statutes, is created
607	to read:
608	220.1899 Entertainment industry tax credit.-
609	(1) There shall be a credit allowed against the tax
610	imposed by this chapter in the amounts awarded by the Office of
611	Tourism, Trade, and Economic Development under the entertainment
612	industry financial incentive program in s. 288.1254.
613	(2) A qualified production company as defined in s.
614	288.1254 that is awarded a tax credit under s. 288.1254 may not
615	claim the credit before July 1, 2011, regardless of when the
616	credit is awarded.
617	(3) To the extent that the amount of a tax credit exceeds
618	the amount due on a return, the balance of the credit may be
619	carried forward to a succeeding reporting period pursuant to s.
620	288.1254(4)(e).
621	Section 6. The sums of $94,250 in recurring funds and
622	$3,877 in nonrecurring funds are appropriated from the General
623	Revenue Fund to the Office of Tourism, Trade, and Economic
624	Development, and one additional full-time equivalent position
625	and the associated salary rate of $67,001 is authorized, for the
626	purpose of administering the entertainment industry financial
627	incentive program pursuant to s. 288.1254, Florida Statutes,
628	during the 2010-2011 fiscal year.
629	Section 7. If any provision of this act or the application
630	thereof to any person or circumstance is held invalid, the
631	invalidity shall not affect other provisions or applications of
632	the act which can be given effect without the invalid provision
633	or application, and to this end the provisions of this act are
634	declared severable.
635	Section 8. This act shall take effect July 1, 2010.

CODING: Words stricken are deletions; words underlined are additions.