Bill Text: FL S0302 | 2015 | Regular Session | Introduced


Bill Title: Community Contribution Tax Credit Program

Spectrum: Partisan Bill (Republican 1-0)

Status: (Failed) 2015-05-01 - Died in Appropriations [S0302 Detail]

Download: Florida-2015-S0302-Introduced.html
       Florida Senate - 2015                                     SB 302
       
       
        
       By Senator Simpson
       
       
       
       
       
       18-00339A-15                                           2015302__
    1                        A bill to be entitled                      
    2         An act relating to the community contribution tax
    3         credit program; amending ss. 212.08, 220.183, and
    4         624.5105, F.S.; extending the expiration date
    5         applicable to the granting of the community
    6         contribution tax credit against the sales and use tax,
    7         corporate income tax, and insurance premium tax for
    8         contributions and donations to eligible sponsors of
    9         revitalization and housing projects approved by the
   10         Department of Economic Opportunity; reenacting s.
   11         220.02(8), F.S., relating to legislative intent for
   12         the income tax code, to incorporate the amendment made
   13         to s. 220.183, F.S., in a reference thereto;
   14         reenacting s. 220.183(1)(c) and (g), F.S., relating to
   15         the community contribution tax credit, to incorporate
   16         the amendments made to ss. 212.08 and 624.5105, F.S.,
   17         in references thereto; reenacting s. 624.5105(1)(c),
   18         F.S., relating to the community contribution tax
   19         credit, to incorporate the amendments made to ss.
   20         212.08 and 220.183, F.S., in references thereto;
   21         reenacting s. 377.809(4)(a), F.S., relating to the
   22         Energy Economic Zone Pilot Program, to incorporate the
   23         amendments made to ss. 212.08, 220.183, and 624.5105,
   24         F.S., in references thereto; providing an effective
   25         date.
   26          
   27  Be It Enacted by the Legislature of the State of Florida:
   28  
   29         Section 1. Paragraph (p) of subsection (5) of section
   30  212.08, Florida Statutes, is amended to read:
   31         212.08 Sales, rental, use, consumption, distribution, and
   32  storage tax; specified exemptions.—The sale at retail, the
   33  rental, the use, the consumption, the distribution, and the
   34  storage to be used or consumed in this state of the following
   35  are hereby specifically exempt from the tax imposed by this
   36  chapter.
   37         (5) EXEMPTIONS; ACCOUNT OF USE.—
   38         (p) Community contribution tax credit for donations.—
   39         1. Authorization.—Persons who are registered with the
   40  department under s. 212.18 to collect or remit sales or use tax
   41  and who make donations to eligible sponsors are eligible for tax
   42  credits against their state sales and use tax liabilities as
   43  provided in this paragraph:
   44         a. The credit shall be computed as 50 percent of the
   45  person’s approved annual community contribution.
   46         b. The credit shall be granted as a refund against state
   47  sales and use taxes reported on returns and remitted in the 12
   48  months preceding the date of application to the department for
   49  the credit as required in sub-subparagraph 3.c. If the annual
   50  credit is not fully used through such refund because of
   51  insufficient tax payments during the applicable 12-month period,
   52  the unused amount may be included in an application for a refund
   53  made pursuant to sub-subparagraph 3.c. in subsequent years
   54  against the total tax payments made for such year. Carryover
   55  credits may be applied for a 3-year period without regard to any
   56  time limitation that would otherwise apply under s. 215.26.
   57         c. A person may not receive more than $200,000 in annual
   58  tax credits for all approved community contributions made in any
   59  one year.
   60         d. All proposals for the granting of the tax credit require
   61  the prior approval of the Department of Economic Opportunity.
   62         e. The total amount of tax credits which may be granted for
   63  all programs approved under this paragraph, s. 220.183, and s.
   64  624.5105 is $18.4 million annually for projects that provide
   65  homeownership opportunities for low-income households or very
   66  low-income households as those terms are defined in s. 420.9071
   67  and $3.5 million annually for all other projects.
   68         f. A person who is eligible to receive the credit provided
   69  in this paragraph, s. 220.183, or s. 624.5105 may receive the
   70  credit only under one section of the person’s choice.
   71         2. Eligibility requirements.—
   72         a. A community contribution by a person must be in the
   73  following form:
   74         (I) Cash or other liquid assets;
   75         (II) Real property;
   76         (III) Goods or inventory; or
   77         (IV) Other physical resources identified by the Department
   78  of Economic Opportunity.
   79         b. All community contributions must be reserved exclusively
   80  for use in a project. As used in this sub-subparagraph, the term
   81  “project” means activity undertaken by an eligible sponsor which
   82  is designed to construct, improve, or substantially rehabilitate
   83  housing that is affordable to low-income households or very-low
   84  income households as those terms are defined in s. 420.9071;
   85  designed to provide commercial, industrial, or public resources
   86  and facilities; or designed to improve entrepreneurial and job
   87  development opportunities for low-income persons. A project may
   88  be the investment necessary to increase access to high-speed
   89  broadband capability in rural communities with enterprise zones,
   90  including projects that result in improvements to communications
   91  assets that are owned by a business. A project may include the
   92  provision of museum educational programs and materials that are
   93  directly related to a project approved between January 1, 1996,
   94  and December 31, 1999, and located in an enterprise zone
   95  designated pursuant to s. 290.0065. This paragraph does not
   96  preclude projects that propose to construct or rehabilitate
   97  housing for low-income households or very-low-income households
   98  on scattered sites. With respect to housing, contributions may
   99  be used to pay the following eligible low-income and very-low
  100  income housing-related activities:
  101         (I) Project development impact and management fees for low
  102  income or very-low-income housing projects;
  103         (II) Down payment and closing costs for low-income persons
  104  and very-low-income persons, as those terms are defined in s.
  105  420.9071;
  106         (III) Administrative costs, including housing counseling
  107  and marketing fees, not to exceed 10 percent of the community
  108  contribution, directly related to low-income or very-low-income
  109  projects; and
  110         (IV) Removal of liens recorded against residential property
  111  by municipal, county, or special district local governments if
  112  satisfaction of the lien is a necessary precedent to the
  113  transfer of the property to a low-income person or very-low
  114  income person, as those terms are defined in s. 420.9071, for
  115  the purpose of promoting home ownership. Contributions for lien
  116  removal must be received from a nonrelated third party.
  117         c. The project must be undertaken by an “eligible sponsor,”
  118  which includes:
  119         (I) A community action program;
  120         (II) A nonprofit community-based development organization
  121  whose mission is the provision of housing for low-income
  122  households or very-low-income households or increasing
  123  entrepreneurial and job-development opportunities for low-income
  124  persons;
  125         (III) A neighborhood housing services corporation;
  126         (IV) A local housing authority created under chapter 421;
  127         (V) A community redevelopment agency created under s.
  128  163.356;
  129         (VI) A historic preservation district agency or
  130  organization;
  131         (VII) A regional workforce board;
  132         (VIII) A direct-support organization as provided in s.
  133  1009.983;
  134         (IX) An enterprise zone development agency created under s.
  135  290.0056;
  136         (X) A community-based organization incorporated under
  137  chapter 617 which is recognized as educational, charitable, or
  138  scientific pursuant to s. 501(c)(3) of the Internal Revenue Code
  139  and whose bylaws and articles of incorporation include
  140  affordable housing, economic development, or community
  141  development as the primary mission of the corporation;
  142         (XI) Units of local government;
  143         (XII) Units of state government; or
  144         (XIII) Any other agency that the Department of Economic
  145  Opportunity designates by rule.
  146  
  147  A contributing person may not have a financial interest in the
  148  eligible sponsor.
  149         d. The project must be located in an area designated an
  150  enterprise zone or a Front Porch Florida Community, unless the
  151  project increases access to high-speed broadband capability for
  152  rural communities that have enterprise zones but is physically
  153  located outside the designated rural zone boundaries. Any
  154  project designed to construct or rehabilitate housing for low
  155  income households or very-low-income households as those terms
  156  are defined in s. 420.9071 is exempt from the area requirement
  157  of this sub-subparagraph.
  158         e.(I) If, during the first 10 business days of the state
  159  fiscal year, eligible tax credit applications for projects that
  160  provide homeownership opportunities for low-income households or
  161  very-low-income households as those terms are defined in s.
  162  420.9071 are received for less than the annual tax credits
  163  available for those projects, the Department of Economic
  164  Opportunity shall grant tax credits for those applications and
  165  grant remaining tax credits on a first-come, first-served basis
  166  for subsequent eligible applications received before the end of
  167  the state fiscal year. If, during the first 10 business days of
  168  the state fiscal year, eligible tax credit applications for
  169  projects that provide homeownership opportunities for low-income
  170  households or very-low-income households as those terms are
  171  defined in s. 420.9071 are received for more than the annual tax
  172  credits available for those projects, the Department of Economic
  173  Opportunity shall grant the tax credits for those applications
  174  as follows:
  175         (A) If tax credit applications submitted for approved
  176  projects of an eligible sponsor do not exceed $200,000 in total,
  177  the credits shall be granted in full if the tax credit
  178  applications are approved.
  179         (B) If tax credit applications submitted for approved
  180  projects of an eligible sponsor exceed $200,000 in total, the
  181  amount of tax credits granted pursuant to sub-sub-sub
  182  subparagraph (A) shall be subtracted from the amount of
  183  available tax credits, and the remaining credits shall be
  184  granted to each approved tax credit application on a pro rata
  185  basis.
  186         (II) If, during the first 10 business days of the state
  187  fiscal year, eligible tax credit applications for projects other
  188  than those that provide homeownership opportunities for low
  189  income households or very-low-income households as those terms
  190  are defined in s. 420.9071 are received for less than the annual
  191  tax credits available for those projects, the Department of
  192  Economic Opportunity shall grant tax credits for those
  193  applications and shall grant remaining tax credits on a first
  194  come, first-served basis for subsequent eligible applications
  195  received before the end of the state fiscal year. If, during the
  196  first 10 business days of the state fiscal year, eligible tax
  197  credit applications for projects other than those that provide
  198  homeownership opportunities for low-income households or very
  199  low-income households as those terms are defined in s. 420.9071
  200  are received for more than the annual tax credits available for
  201  those projects, the Department of Economic Opportunity shall
  202  grant the tax credits for those applications on a pro rata
  203  basis.
  204         3. Application requirements.—
  205         a. An Any eligible sponsor seeking to participate in this
  206  program must submit a proposal to the Department of Economic
  207  Opportunity which sets forth the name of the sponsor, a
  208  description of the project, and the area in which the project is
  209  located, together with such supporting information as is
  210  prescribed by rule. The proposal must also contain a resolution
  211  from the local governmental unit in which the project is located
  212  certifying that the project is consistent with local plans and
  213  regulations.
  214         b. A Any person seeking to participate in this program must
  215  submit an application for tax credit to the Department of
  216  Economic Opportunity which sets forth the name of the sponsor, a
  217  description of the project, and the type, value, and purpose of
  218  the contribution. The sponsor shall verify, in writing, the
  219  terms of the application and indicate its receipt of the
  220  contribution, and such verification must accompany the
  221  application for tax credit. The person must submit a separate
  222  tax credit application to the Department of Economic Opportunity
  223  for each individual contribution that it makes to each
  224  individual project.
  225         c. A Any person who has received notification from the
  226  Department of Economic Opportunity that a tax credit has been
  227  approved must apply to the department to receive the refund.
  228  Application must be made on the form prescribed for claiming
  229  refunds of sales and use taxes and be accompanied by a copy of
  230  the notification. A person may submit only one application for
  231  refund to the department within a 12-month period.
  232         4. Administration.—
  233         a. The Department of Economic Opportunity may adopt rules
  234  necessary to administer this paragraph, including rules for the
  235  approval or disapproval of proposals by a person.
  236         b. The decision of the Department of Economic Opportunity
  237  must be in writing, and, if approved, the notification shall
  238  state the maximum credit allowable to the person. Upon approval,
  239  the Department of Economic Opportunity shall transmit a copy of
  240  the decision to the department.
  241         c. The Department of Economic Opportunity shall
  242  periodically monitor all projects in a manner consistent with
  243  available resources to ensure that resources are used in
  244  accordance with this paragraph; however, each project must be
  245  reviewed at least once every 2 years.
  246         d. The Department of Economic Opportunity shall, in
  247  consultation with the statewide and regional housing and
  248  financial intermediaries, market the availability of the
  249  community contribution tax credit program to community-based
  250  organizations.
  251         5. Expiration.—This paragraph expires June 30, 2025 2016;
  252  however, any accrued credit carryover that is unused on that
  253  date may be used until the expiration of the 3-year carryover
  254  period for such credit.
  255         Section 2. Subsection (5) of section 220.183, Florida
  256  Statutes, is amended to read:
  257         220.183 Community contribution tax credit.—
  258         (5) EXPIRATION.—The provisions of this section, except
  259  paragraph (1)(e), expire and are void on June 30, 2025 2016.
  260         Section 3. Subsection (6) of section 624.5105, Florida
  261  Statutes, is amended to read:
  262         624.5105 Community contribution tax credit; authorization;
  263  limitations; eligibility and application requirements;
  264  administration; definitions; expiration.—
  265         (6) EXPIRATION.—The provisions of this section, except
  266  paragraph (1)(e), expire and are void on June 30, 2025 2016.
  267         Section 4. For the purpose of incorporating the amendment
  268  made by this act to section 220.183, Florida Statutes, in a
  269  reference thereto, subsection (8) of section 220.02, Florida
  270  Statutes, is reenacted to read:
  271         220.02 Legislative intent.—
  272         (8) It is the intent of the Legislature that credits
  273  against either the corporate income tax or the franchise tax be
  274  applied in the following order: those enumerated in s. 631.828,
  275  those enumerated in s. 220.191, those enumerated in s. 220.181,
  276  those enumerated in s. 220.183, those enumerated in s. 220.182,
  277  those enumerated in s. 220.1895, those enumerated in s. 220.195,
  278  those enumerated in s. 220.184, those enumerated in s. 220.186,
  279  those enumerated in s. 220.1845, those enumerated in s. 220.19,
  280  those enumerated in s. 220.185, those enumerated in s. 220.1875,
  281  those enumerated in s. 220.192, those enumerated in s. 220.193,
  282  those enumerated in s. 288.9916, those enumerated in s.
  283  220.1899, those enumerated in s. 220.194, and those enumerated
  284  in s. 220.196.
  285         Section 5. For the purpose of incorporating the amendments
  286  made by this act to sections 212.08 and 624.5105, Florida
  287  Statutes, in references thereto, paragraphs (c) and (g) of
  288  subsection (1) of section 220.183, Florida Statutes, are
  289  reenacted to read:
  290         220.183 Community contribution tax credit.—
  291         (1) AUTHORIZATION TO GRANT COMMUNITY CONTRIBUTION TAX
  292  CREDITS; LIMITATIONS ON INDIVIDUAL CREDITS AND PROGRAM
  293  SPENDING.—
  294         (c) The total amount of tax credit which may be granted for
  295  all programs approved under this section, s. 212.08(5)(p), and
  296  s. 624.5105 is $18.4 million annually for projects that provide
  297  homeownership opportunities for low-income or very-low-income
  298  households as defined in s. 420.9071 and $3.5 million annually
  299  for all other projects.
  300         (g) A taxpayer who is eligible to receive the credit
  301  provided for in s. 624.5105 is not eligible to receive the
  302  credit provided by this section.
  303         Section 6. For the purpose of incorporating the amendments
  304  made by this act to sections 212.08 and 220.183, Florida
  305  Statutes, in references thereto, paragraph (c) of subsection (1)
  306  of section 624.5105, Florida Statutes, is reenacted to read:
  307         624.5105 Community contribution tax credit; authorization;
  308  limitations; eligibility and application requirements;
  309  administration; definitions; expiration.—
  310         (1) AUTHORIZATION TO GRANT TAX CREDITS; LIMITATIONS.—
  311         (c) The total amount of tax credit which may be granted for
  312  all programs approved under this section and ss. 212.08(5)(p)
  313  and 220.183 is $18.4 million annually for projects that provide
  314  homeownership opportunities for low-income or very-low-income
  315  households as defined in s. 420.9071 and $3.5 million annually
  316  for all other projects.
  317         Section 7. For the purpose of incorporating the amendments
  318  made by this act to sections 212.08, 220.183, and 624.5105,
  319  Florida Statutes, in references thereto, paragraph (a) of
  320  subsection (4) of section 377.809, Florida Statutes, is
  321  reenacted to read:
  322         377.809 Energy Economic Zone Pilot Program.—
  323         (4)(a) Beginning July 1, 2012, all the incentives and
  324  benefits provided for enterprise zones pursuant to state law
  325  shall be available to the energy economic zones designated
  326  pursuant to this section on or before July 1, 2010. In order to
  327  provide incentives, by March 1, 2012, each local governing body
  328  that has jurisdiction over an energy economic zone must, by
  329  local ordinance, establish the boundary of the energy economic
  330  zone, specify applicable energy-efficiency standards, and
  331  determine eligibility criteria for the application of state and
  332  local incentives and benefits in the energy economic zone.
  333  However, in order to receive benefits provided under s. 288.106,
  334  a business must be a qualified target industry business under s.
  335  288.106 for state purposes. An energy economic zone’s boundary
  336  may be revised by local ordinance. Such incentives and benefits
  337  include those in ss. 212.08, 212.096, 220.181, 220.182, 220.183,
  338  288.106, and 624.5105 and the public utility discounts provided
  339  in s. 290.007(8). The exemption provided in s. 212.08(5)(c)
  340  shall be for renewable energy as defined in s. 377.803. For
  341  purposes of this section, any applicable requirements for
  342  employee residency for higher refund or credit thresholds must
  343  be based on employee residency in the energy economic zone or an
  344  enterprise zone. A business in an energy economic zone may also
  345  be eligible for funding under ss. 288.047 and 445.003, and a
  346  transportation project in an energy economic zone shall be
  347  provided priority in funding under s. 339.2821. Other projects
  348  shall be given priority ranking to the extent practicable for
  349  grants administered under state energy programs.
  350         Section 8. This act shall take effect upon becoming a law.

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