Bill Text: FL H1457 | 2010 | Regular Session | Comm Sub

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Bill Title: Advanced Clean Energy Development Tax Credit

Spectrum: Partisan Bill (Republican 3-0)

Status: (Failed) 2010-04-30 - Died in Committee on Economic Development Policy (EDCA) [H1457 Detail]

Download: Florida-2010-H1457-Comm_Sub.html

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CS/HB 1457

1	A bill to be entitled
2	An act relating to the advanced clean energy development
3	tax credit; creating s. 220.194, F.S.; defining terms;
4	authorizing a business to receive the advanced clean
5	energy development tax credit for a project to conduct
6	clean energy research and development within the territory
7	of the John F. Kennedy Space Center; specifying amounts of
8	the credit; requiring a business to apply to Space Florida
9	for eligibility to receive the tax credit; requiring the
10	applicant that is qualified to receive the credit to
11	execute and deliver a written agreement to Space Florida
12	which includes a binding commitment to complete an
13	advanced clean energy research and development project;
14	providing that only one business may receive the tax
15	credit; specifying requirements for the application to
16	Space Florida; providing for Space Florida to issue an
17	order certifying that the business is qualified to receive
18	the tax credit; specifying requirements that an
19	application must satisfy in order to qualify to enter into
20	an agreement with Space Florida to establish an advanced
21	clean energy research and development project; authorizing
22	the Department of Revenue to conduct reviews and
23	investigations to verify the proper application of credits
24	taken in a tax return; authorizing Space Florida to order
25	the forfeiture of all or part of any previously claimed
26	tax credits or credits available to be taken under certain
27	circumstances; requiring Space Florida to notify the
28	Department of Revenue of any order affecting a previously
29	authorized tax credit; authorizing the Department of
30	Revenue to issue a notice of deficiency to the certified
31	business under certain circumstances; authorizing the
32	Department of Revenue and Space Florida to adopt rules
33	relating to the tax credit; providing an effective date.
34
35	Be It Enacted by the Legislature of the State of Florida:
36
37	Section 1. Section 220.194, Florida Statutes, is created
38	to read:
39	220.194 Advanced clean energy development tax credit.-
40	(1) DEFINITIONS.-As used in this section, the term:
41	(a) "Advanced clean energy research and development" means
42	the investigation of the latest processes and technologies
43	designed to improve efficiency, reduce cost, and limit emissions
44	from gas turbines during the production of energy.
45	(b) "Advanced clean energy research and development
46	project" or "the project" means the combination of facilities,
47	equipment, technology, personnel, and partnerships brought
48	together to conduct advanced clean energy research and
49	development so as to qualify a business to claim the tax credit
50	provided under this section. A facility consists of a single
51	building or structure, or a group of buildings or structures,
52	which are under common ownership or control and located within
53	the territory of the John F. Kennedy Space Center.
54	(c) "Business" has the same meaning as provided in s.
55	220.03. The term also includes an affiliated group of
56	corporations that file a consolidated return in this state.
57	(d) "Space Florida" means the entity created under s.
58	331.302 to foster the growth and development of a sustainable
59	and world-leading aerospace industry in this state.
60	(2) TAX CREDIT.-
61	(a) A business that is approved by Space Florida to
62	receive the advanced clean energy tax credit pursuant to this
63	section may apply the credit against the tax imposed by this
64	chapter.
65	(b) The credit consists of three components.
66	1. Upon approval of an application and the execution of a
67	written agreement with Space Florida, including a binding
68	commitment to complete an advanced clean energy research and
69	development project, the certified business is awarded a credit
70	in the amount of $3 million annually, which may be claimed
71	beginning with the corporate tax year of the business in which
72	the agreement is executed and ending in the 8th corporate tax
73	year thereafter, for a total credit amount of $27 million.
74	2. During the tax year of the business in which the
75	application for the project is approved and the written
76	agreement with Space Florida is executed, the business may claim
77	a tax credit in the amount of $3 million.
78	3. During the tax year of the business in which
79	construction begins on the facility for the project within the
80	territory of the John F. Kennedy Space Center, the business may
81	claim a tax credit in the amount of $3 million.
82	(c) The maximum tax credit amount that may be claimed by
83	the approved business during any tax year is $6 million. If the
84	business does not claim all of the credits for which it is
85	eligible in any tax year, the unused amount may be carried
86	forward for a period not to exceed 10 years following the date
87	that the credit became available to be claimed, after which time
88	the credit amount expires and may not be used. The business may
89	claim the carryover credit in a subsequent year when the tax
90	imposed by this chapter exceeds the credit for such year after
91	applying any other credits and unused credit carryovers listed
92	in s. 220.02(8).
93	(d) A business that files a consolidated return in this
94	state as a member of an affiliated group pursuant to s.
95	220.131(1) may claim the credit on a consolidated return basis
96	up to the amount of tax imposed on the consolidated group.
97	(3) APPLICATION PROCESS.-A business seeking to be eligible
98	for the tax credit under this section must submit an application
99	to Space Florida by the date established by Space Florida, which
100	may not be later than September 1, 2010. Space Florida shall
101	make application forms and guidelines available to applicants by
102	August 1, 2010.
103	(a) Space Florida shall review applications in the order
104	applications are received to determine whether an applicant is
105	qualified to receive the credit and shall approve a qualifying
106	application within 15 days after receipt. By December 1, 2010,
107	the qualified applicant must execute and deliver a written
108	agreement to Space Florida which includes a binding commitment
109	to complete an advanced clean energy research and development
110	project consistent with the requirements of this section. A
111	business may submit only one complete application. Space Florida
112	may not accept an incomplete or placeholder application. Space
113	Florida may certify only one applicant as eligible for the tax
114	credits under this section.
115	(b) An application must contain:
116	1. Documentation determined necessary by the applicant or
117	Space Florida demonstrating the applicant's ability to meet the
118	requirements of paragraph (4)(b);
119	2. Any other information or documentation prescribed by
120	Space Florida affirmatively demonstrating that the applicant
121	qualifies for the credit; and
122	3. An affidavit certifying that the information contained
123	in the application is correct.
124	(c) Upon execution of the agreement, Space Florida shall
125	issue an order to the qualified applicant and the Department of
126	Revenue certifying that the applicant is qualified for the tax
127	credits under this section. Thereafter, Space Florida shall
128	issue an annual recertification order to the business and the
129	Department of Revenue. The certified business must attach Space
130	Florida's most recent order to the tax return on which the
131	credit is claimed.
132	(d) Upon execution of the agreement and for each year
133	during which the business claims a credit on a return, the
134	business shall submit documentation required by Space Florida
135	demonstrating activity consistent with the representations in
136	the application and the requirements set forth in paragraph
137	(4)(b). The documentation must include an affidavit certifying
138	that the documentation submitted is correct.
139	(e) Space Florida shall ensure that the amount of
140	corporate income tax credits granted in this section does not
141	exceed the limits provided in this section.
142	(4) ELIGIBILITY REQUIREMENTS.-
143	(a) The credit authorized by this section is reserved for
144	a business that creates an advanced clean energy research and
145	development project, has entered into a written agreement with
146	Space Florida, and is certified to be eligible for tax credits
147	by Space Florida.
148	(b) Space Florida may not certify a business as eligible
149	to receive a tax credit under this section unless it determines
150	that the business's application affirmatively demonstrates that
151	the applicant agrees:
152	1. To incur a liability of at least $50 million to plan,
153	design, and construct the advanced clean energy research
154	facility.
155	2. To invest at least $20 million on the facility by 2014.
156	This investment includes the hard and soft costs customarily
157	associated with the use or acquisition of a site, site design
158	and preparation, and improvements to identified real property
159	located within the territory of the John F. Kennedy Space
160	Center, as well as the customary hard and soft costs associated
161	with the lease or purchase of depreciable machinery and
162	equipment, including attendant design services that are directly
163	related to the project.
164	3. That expenditures for the project will be allotted to
165	Florida vendors whenever feasible.
166	4. To enter into a sponsored research and development
167	agreement for the term of the project which qualifies for
168	certification pursuant to s. 220.15(2)(c).
169	5. That new full-time equivalent employees hired to work
170	on the project will receive a median hourly wage that is at
171	least 200 percent of the federal minimum wage.
172	(5) ADMINISTRATION; AUDIT AUTHORITY; RECAPTURE OF
173	CREDITS.-
174	(a) In addition to its existing audit authority, the
175	Department of Revenue may perform any financial or technical
176	review or investigation, including examining the accounts,
177	books, and records of the business, which is necessary to verify
178	the proper application of credits taken in a tax return and to
179	ensure compliance with this chapter.
180	(b) Space Florida may, by order, revoke or modify its
181	order certifying a business as eligible for a tax credit under
182	this section, and may also order the forfeiture of all or part
183	of any previously claimed tax credits or credits available to be
184	taken if, as the result of an audit, investigation, or
185	examination, it is proven that information provided by the
186	business in the application, or in a statement, representation,
187	record, report, plan, or other document provided to Space
188	Florida in an attempt to receive tax credits under this section,
189	was false in a material respect at the time it was submitted and
190	that a person acting on behalf of the business knew, or should
191	have known, that the information submitted was false.
192	(c) Space Florida may, by order, revoke or modify its
193	order certifying a business as eligible for a tax credit under
194	this section, and may also order the forfeiture of previously
195	claimed tax credits or credits available to be taken, if Space
196	Florida determines that the business has not incurred
197	liabilities in the amounts or within the period specified in
198	paragraph (4)(b). If actual expenditures are not made in the
199	amounts or in the period specified in paragraph (4)(b), Space
200	Florida may allow the business to provide adequate assurance
201	that qualifying expenditures will be made within a reasonable
202	time. Such adequate assurances require the business to provide
203	proof of financial security to ensure repayment of any
204	previously claimed tax credit. Until the qualifying expenditures
205	are made, the business may not claim any tax credits under this
206	section. The amount of any tax credits forfeited under this
207	paragraph shall be an amount equal to such proportion as the
208	required investment bears to the actual investment.
209	(d) Space Florida must immediately notify the Department
210	of Revenue of any order affecting a previously authorized tax
211	credit. A business that is liable for unpaid taxes shall file
212	with the Department of Revenue an amended return or such other
213	report as the Department of Revenue prescribes by rule. The
214	business shall pay any required tax and interest within 60 days
215	after Space Florida notifies the business that previously
216	approved credits have been forfeited or modified. If the
217	forfeiture or modification order is contested, the business
218	shall file an amended return or other report within 30 days
219	after the order revoking or forfeiting tax credits becomes
220	final. A business that is liable for taxes avoided must pay the
221	tax due plus interest at the rate established under s. 220.807,
222	computed from the date that tax would have been due if the
223	credit had not been taken. The taxes and interest are due at the
224	time the amended return is filed. A business that fails to pay
225	the taxes and interest by the due date is subject to the
226	penalties provided in s. 220.803.
227	(e) The department may issue a notice of deficiency at any
228	time within 3 years after the business claims a credit or
229	receives a final order from Space Florida that previously
230	approved tax credits have been revoked or modified.
231	(6) RULES.-Space Florida and the department may adopt
232	rules to administer this section, including rules relating to:
233	(a) The forms and procedures required to apply for the
234	credit and to review applications.
235	(b) The forms required to claim a tax credit under this
236	section, the requirements and basis for establishing an
237	entitlement to a credit, and examination and audit procedures
238	required to administer this section.
239	Section 2. This act shall take effect July 1, 2010.

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