Bill Text: FL S0800 | 2022 | Regular Session | Comm Sub


Bill Title: Economic Development

Spectrum: Bipartisan Bill

Status: (Failed) 2022-03-14 - Died in Appropriations [S0800 Detail]

Download: Florida-2022-S0800-Comm_Sub.html
       Florida Senate - 2022                              CS for SB 800
       
       
        
       By the Committee on Finance and Tax; and Senator Albritton
       
       
       
       
       
       593-02949-22                                           2022800c1
    1                        A bill to be entitled                      
    2         An act relating to economic development; amending s.
    3         166.231, F.S.; authorizing municipalities to exempt by
    4         ordinance the public service tax that specified users
    5         would pay on energy purchases; requiring
    6         municipalities to provide copies of such ordinances to
    7         the Department of Revenue within a certain timeframe;
    8         amending s. 212.02, F.S.; defining the term
    9         “opportunity zone”; amending s. 212.08, F.S.; defining
   10         terms; providing an exemption from the state tax on
   11         sales, use, and other transactions for building
   12         materials used in the rehabilitation of real property
   13         in an opportunity zone; specifying requirements,
   14         limitations, and procedures for the exemption;
   15         requiring the department to adopt rules; authorizing
   16         the department to establish guidelines; providing an
   17         exemption from the state tax on sales, use, and other
   18         transactions for energy used in an opportunity zone,
   19         subject to certain ordinances adopted by
   20         municipalities; specifying requirements, limitations,
   21         and procedures for the exemption; providing a penalty;
   22         requiring the department to adopt rules; authorizing
   23         the department to establish guidelines; defining the
   24         term “qualified business”; amending s. 288.018, F.S.;
   25         revising the matching requirement for grant funds
   26         received by a regional economic development
   27         organization; amending s. 288.065, F.S.; deleting the
   28         requirement for certain repayments to be matched in
   29         rural areas of opportunity; amending s. 288.0655,
   30         F.S.; revising the purpose of the Rural Infrastructure
   31         Fund; revising authorized amounts and uses of certain
   32         grants; providing that certain grants do not require
   33         local matches; revising the requirements for review of
   34         certain applications; creating s. 288.066, F.S.;
   35         establishing a rural opportunity tax refund program
   36         for qualified target industry businesses in rural
   37         areas; defining terms; specifying the criteria the
   38         Department of Economic Opportunity and Enterprise
   39         Florida, Inc., must consider in identifying target
   40         industries; authorizing the grant of certain tax
   41         refunds under certain circumstances; specifying
   42         limitations on refunds; providing administrative and
   43         criminal penalties; specifying requirements and
   44         procedures for applications; specifying requirements
   45         and limitations for the review of applications by the
   46         Department of Economic Opportunity; providing
   47         construction; authorizing the Department of Economic
   48         Opportunity to issue certain opinion letters;
   49         providing requirements, procedures, and limitations
   50         for annual refund claims; providing requirements for
   51         the Chief Financial Officer for the issuance of
   52         warrants for refunds; providing for administration by
   53         the Department of Economic Opportunity; amending s.
   54         288.095, F.S.; conforming provisions to changes made
   55         by the act; providing an effective date.
   56          
   57  Be It Enacted by the Legislature of the State of Florida:
   58  
   59         Section 1. Present subsections (9) and (10) of section
   60  166.231, Florida Statutes, are redesignated as subsections (10)
   61  and (11), respectively, and a new subsection (9) is added to
   62  that section, to read:
   63         166.231 Municipalities; public service tax.—
   64         (9) Beginning July 1, 2023, a municipality may by ordinance
   65  exempt not less than 100 percent of the tax imposed under this
   66  section on purchasers of electrical energy, natural gas, or
   67  propane who the Department of Revenue determines are eligible
   68  for the exemption provided by s. 212.08(19). The exemption shall
   69  be administered as provided in that section. The municipality
   70  shall provide a copy of any ordinance adopted pursuant to this
   71  subsection to the Department of Revenue not less than 14 days
   72  before its effective date.
   73         Section 2. Subsection (35) is added to section 212.02,
   74  Florida Statutes, to read:
   75         212.02 Definitions.—The following terms and phrases when
   76  used in this chapter have the meanings ascribed to them in this
   77  section, except where the context clearly indicates a different
   78  meaning:
   79         (35) “Opportunity zone” means a population census tract
   80  designated by the United States Department of the Treasury as a
   81  qualified opportunity zone pursuant to s. 1400Z-1(b)(1)(B) of
   82  the Internal Revenue Code and located in a rural community as
   83  defined in s. 288.0656.
   84         Section 3. Paragraph (v) is added to subsection (5) of
   85  section 212.08, Florida Statutes, and subsection (19) is added
   86  to that section, to read:
   87         212.08 Sales, rental, use, consumption, distribution, and
   88  storage tax; specified exemptions.—The sale at retail, the
   89  rental, the use, the consumption, the distribution, and the
   90  storage to be used or consumed in this state of the following
   91  are hereby specifically exempt from the tax imposed by this
   92  chapter.
   93         (5) EXEMPTIONS; ACCOUNT OF USE.—
   94         (v)Building materials used in the rehabilitation of real
   95  property located in an opportunity zone.
   96         1. For the purposes of the exemption provided in this
   97  paragraph, the term:
   98         a. “Building materials” means tangible personal property
   99  that becomes a component part of improvements to real property.
  100         b. “Real property” has the same meaning as provided in s.
  101  192.001(12), except that the term does not include a condominium
  102  parcel or condominium property as defined in s. 718.103.
  103         c. “Rehabilitation of real property” means the
  104  reconstruction, renovation, restoration, rehabilitation,
  105  construction, or expansion of improvements to real property.
  106         d. “Substantially completed” has the same meaning as
  107  provided in s. 192.042(1).
  108         2. Building materials used in the rehabilitation of real
  109  property are exempt from the tax imposed by this chapter upon an
  110  affirmative showing to the satisfaction of the department that
  111  the items have been used for the rehabilitation of real property
  112  located in an opportunity zone. This exemption inures to the
  113  owner, lessee, or lessor at the time the real property is
  114  rehabilitated, but only through a refund of previously paid
  115  taxes. To receive a refund pursuant to this paragraph, the
  116  owner, lessee, or lessor of the rehabilitated real property must
  117  file an application under oath with the governing body having
  118  jurisdiction over the opportunity zone where the property is
  119  located, as applicable. A single application for a refund may be
  120  submitted for multiple, contiguous parcels that were part of a
  121  single parcel divided as part of the rehabilitation of the real
  122  property. All other requirements of this paragraph apply to each
  123  parcel on an individual basis. The application must include all
  124  of the following:
  125         a. The name and address of the person claiming the refund.
  126         b. An address and assessment roll parcel number of the
  127  rehabilitated real property for which a refund of previously
  128  paid taxes is being sought.
  129         c. A description of the improvements made to accomplish the
  130  rehabilitation of the real property.
  131         d. A copy of a valid building permit issued by the county
  132  or municipal building department for the rehabilitation of the
  133  real property.
  134         e. A sworn statement, under penalty of perjury, from the
  135  general contractor licensed in this state with whom the
  136  applicant contracted to make the improvements necessary to
  137  rehabilitate the real property. The sworn statement must list
  138  the building materials used to rehabilitate the real property,
  139  the actual cost of the building materials, and the amount of
  140  sales tax paid in this state on the building materials. If a
  141  general contractor was not used, the applicant, not a general
  142  contractor, shall make the sworn statement required by this sub
  143  subparagraph. Copies of the invoices that show the purchase of
  144  the building materials used in the rehabilitation and the
  145  payment of sales tax on the building materials must be attached
  146  to the sworn statement provided by the general contractor or by
  147  the applicant. Unless the actual cost of building materials used
  148  in the rehabilitation of real property and the payment of sales
  149  taxes are documented by a general contractor or by the applicant
  150  in this manner, the cost of the building materials is deemed to
  151  be an amount equal to 40 percent of the increase in assessed
  152  value for ad valorem tax purposes.
  153         f. The census tract number of the opportunity zone in which
  154  the rehabilitated real property is located.
  155         g. A certification by the local building code inspector
  156  that the improvements necessary to rehabilitate the real
  157  property are substantially completed.
  158         3. Within 10 working days after receipt of an application,
  159  the governing body shall review the application to determine if
  160  it contains all the information required by subparagraph 1. and
  161  meets the criteria set forth in this paragraph. The governing
  162  body shall certify all applications that contain the required
  163  information and are eligible to receive a refund. The
  164  certification must be in writing, and a copy of the
  165  certification shall be transmitted to the executive director of
  166  the department. The applicant is responsible for forwarding a
  167  certified application to the department within the time
  168  specified in subparagraph 4.
  169         4. An application for a refund must be submitted to the
  170  department within 6 months after the rehabilitation of the real
  171  property is deemed to be substantially completed by the local
  172  building code inspector or by November 1 after the rehabilitated
  173  real property is first subject to assessment.
  174         5. Only one exemption through a refund of previously paid
  175  taxes for the rehabilitation of real property is allowed for any
  176  single parcel of real property unless there is a change in
  177  ownership, a new lessor, or a new lessee of the real property. A
  178  refund may not be granted unless the amount to be refunded
  179  exceeds $500. A refund may not exceed the lesser of 97 percent
  180  of the Florida sales or use tax paid on the cost of the building
  181  materials used in the rehabilitation of the real property, as
  182  determined pursuant to sub-subparagraph 2.e., or $7,500. The
  183  department shall make the refund within 30 days after formally
  184  approving the application.
  185         6. The department shall adopt rules governing the manner
  186  and form of refund applications and may establish guidelines as
  187  to the requisites for an affirmative showing of qualification
  188  for exemption under this paragraph.
  189         (19) ENERGY USED IN AN OPPORTUNITY ZONE.—
  190         (a) Beginning July 1, 2023, a qualified business that uses
  191  electrical energy, natural gas, or propane at a fixed location
  192  in an opportunity zone in a municipality that has enacted an
  193  ordinance pursuant to s. 166.231(9) which provides for exemption
  194  of municipal utility taxes on such businesses shall receive an
  195  exemption equal to 50 percent of the tax imposed by this
  196  chapter. A qualified business may receive such exemption for a
  197  period of 5 years from the billing period beginning not more
  198  than 30 days following the department notifying the applicable
  199  utility company that an exemption has been authorized pursuant
  200  to this subsection and s. 166.231(9).
  201         (b) To receive this exemption, a business must file an
  202  application with the department on a form provided for the
  203  purposes of this subsection and s. 166.231(9). The application
  204  must be made under oath and include all of the following:
  205         1. The name and location of the business.
  206         2. The census tract number of the opportunity zone in which
  207  the business is located.
  208         3. The date on which electrical, natural gas, or propane
  209  service is to be first initiated at the business.
  210         4. The name and mailing address of the entity from which
  211  electrical energy, natural gas, or propane is to be purchased.
  212         5. The date of the application.
  213         6. The name of the city in which the business is located.
  214         (c) An application for an exemption under this subsection
  215  must be submitted to the department within 6 months after the
  216  occurrence of the appropriate qualifying provision set out in
  217  paragraph (f).
  218         (d) If, in a subsequent audit conducted by the department,
  219  it is determined that the business did not meet the criteria
  220  mandated in this subsection, the amount of taxes exempted shall
  221  immediately be due and payable to the department by the
  222  business, together with the appropriate interest and penalty,
  223  computed from the due date of each bill for the electrical
  224  energy, natural gas, or propane purchased as exempt under this
  225  subsection, in the manner prescribed by this chapter.
  226         (e) The department shall adopt rules governing applications
  227  and the required forms for, and issuance of, the exemption
  228  authorized in this subsection and provisions for recapture of
  229  taxes exempted under this subsection, and the department may
  230  establish guidelines as to qualifications for the exemption.
  231         (f) For the purpose of the exemption provided in this
  232  subsection, the term “qualified business” means a business that
  233  is:
  234         1. First occupying a new structure to which electrical,
  235  natural gas, or propane service, other than that used for
  236  construction purposes, has not been previously provided or
  237  furnished;
  238         2. Newly occupying an existing, remodeled, renovated, or
  239  rehabilitated structure to which electrical, natural gas, or
  240  propane service, other than that used for remodeling,
  241  renovation, or rehabilitation of the structure, has not been
  242  provided or furnished in the three preceding billing periods; or
  243         3. Occupying a new, remodeled, rebuilt, renovated, or
  244  rehabilitated structure for which a refund has been granted
  245  pursuant to paragraph (5)(v).
  246         Section 4. Paragraph (d) of subsection (1) of section
  247  288.018, Florida Statutes, is amended to read:
  248         288.018 Regional Rural Development Grants Program.—
  249         (1)
  250         (d) Grant funds received by a regional economic development
  251  organization must be matched each year by nonstate financial or
  252  in-kind contributions resources in an amount equal to 15 25
  253  percent of the state contribution.
  254         Section 5. Paragraph (c) of subsection (2) of section
  255  288.065, Florida Statutes, is amended to read:
  256         288.065 Rural Community Development Revolving Loan Fund.—
  257         (2)
  258         (c) All repayments of principal and interest shall be
  259  returned to the loan fund and made available for loans to other
  260  applicants. However, in a rural area of opportunity designated
  261  by the Governor, and upon approval by the department, repayments
  262  of principal and interest may be retained by the applicant if
  263  such repayments are dedicated and matched to fund regionally
  264  based economic development organizations representing the rural
  265  area of opportunity.
  266         Section 6. Subsection (1), paragraphs (b), (c), and (e) of
  267  subsection (2), and subsection (3) of section 288.0655, Florida
  268  Statutes, are amended to read:
  269         288.0655 Rural Infrastructure Fund.—
  270         (1) There is created within the department the Rural
  271  Infrastructure Fund to facilitate the planning, preparing, and
  272  financing of infrastructure projects in rural communities which
  273  will encourage job creation, capital investment, and the
  274  strengthening and diversification of rural economies by
  275  promoting tourism, trade, and economic development.
  276         (2)
  277         (b) To facilitate access of rural communities and rural
  278  areas of opportunity as defined by the Rural Economic
  279  Development Initiative to infrastructure funding programs of the
  280  Federal Government, such as those offered by the United States
  281  Department of Agriculture and the United States Department of
  282  Commerce, and state programs, including those offered by Rural
  283  Economic Development Initiative agencies, and to facilitate
  284  local government or private infrastructure funding efforts, the
  285  department may award grants for up to 75 50 percent of the total
  286  infrastructure project cost, or up to 100 percent of the total
  287  infrastructure project cost for a project that is located in a
  288  rural community as defined in s. 288.0656(2)(e) or a rural area
  289  of opportunity as defined in s. 288.0656(2)(d) and that is also
  290  located in a fiscally constrained county as defined in s.
  291  218.67(1). Eligible projects must be related to specific job
  292  creation or job-retention opportunities. Eligible uses of funds
  293  projects may also include improving any inadequate
  294  infrastructure that has resulted in regulatory action that
  295  prohibits economic or community growth, reducing the costs to
  296  community users of proposed infrastructure improvements that
  297  exceed such costs in comparable communities, and improving
  298  access to and the availability of broadband Internet service.
  299  Eligible uses of funds shall include improvements to public
  300  infrastructure for industrial or commercial sites, upgrades to
  301  or development of public tourism infrastructure, and
  302  improvements to broadband Internet service and access in
  303  unserved or underserved rural communities. Improvements to
  304  broadband Internet service and access must be conducted through
  305  a partnership or partnerships with one or more dealers, as
  306  defined in s. 202.11(2), and the partnership or partnerships
  307  must be established through a competitive selection process that
  308  is publicly noticed. Authorized infrastructure may include the
  309  following public or public-private partnership facilities: storm
  310  water systems; telecommunications facilities; broadband
  311  facilities; roads or other remedies to transportation
  312  impediments; nature-based tourism facilities; or other physical
  313  requirements necessary to facilitate tourism, trade, and
  314  economic development activities in the community. Authorized
  315  infrastructure may also include publicly or privately owned
  316  self-powered nature-based tourism facilities, publicly owned
  317  telecommunications facilities, and broadband facilities, and
  318  additions to the distribution facilities of the existing natural
  319  gas utility as defined in s. 366.04(3)(c), the existing electric
  320  utility as defined in s. 366.02, or the existing water or
  321  wastewater utility as defined in s. 367.021(12), or any other
  322  existing water or wastewater facility, which owns a gas or
  323  electric distribution system or a water or wastewater system in
  324  this state where:
  325         1. A contribution-in-aid of construction is required to
  326  serve public or public-private partnership facilities under the
  327  tariffs of any natural gas, electric, water, or wastewater
  328  utility as defined herein; and
  329         2. Such utilities as defined herein are willing and able to
  330  provide such service.
  331         (c) To facilitate timely response and induce the location
  332  or expansion of specific job creating opportunities, The
  333  department may award grants of up to $300,000 for infrastructure
  334  feasibility studies, design and engineering activities, or other
  335  infrastructure planning and preparation activities. Authorized
  336  grants shall be up to $50,000 for an employment project with a
  337  business committed to create at least 100 jobs; up to $150,000
  338  for an employment project with a business committed to create at
  339  least 300 jobs; and up to $300,000 for a project in a rural area
  340  of opportunity. Grants awarded under this paragraph may be used
  341  in conjunction with grants awarded under paragraph (b), provided
  342  that the total amount of both grants does not exceed 30 percent
  343  of the total project cost. In evaluating applications under this
  344  paragraph, the department shall consider the extent to which the
  345  application seeks to minimize administrative and consultant
  346  expenses.
  347         (e) To enable local governments to access the resources
  348  available pursuant to s. 403.973(18), the department may award
  349  grants for surveys, feasibility studies, and other activities
  350  related to the identification and preclearance review of land
  351  which is suitable for preclearance review. Authorized grants
  352  under this paragraph do not require a local match and may not
  353  exceed $75,000 each, except in the case of a project in a rural
  354  area of opportunity, in which case the grant may not exceed
  355  $300,000. Any funds awarded under this paragraph must be matched
  356  at a level of 50 percent with local funds, except that any funds
  357  awarded for a project in a rural area of opportunity must be
  358  matched at a level of 33 percent with local funds. If an
  359  application for funding is for a catalyst site, as defined in s.
  360  288.0656, the requirement for local match may be waived pursuant
  361  to the process in s. 288.06561. In evaluating applications under
  362  this paragraph, the department shall consider the extent to
  363  which the application seeks to minimize administrative and
  364  consultant expenses.
  365         (3) The department, in consultation with Enterprise
  366  Florida, Inc., the Florida Tourism Industry Marketing
  367  Corporation, the Department of Environmental Protection, and the
  368  Florida Fish and Wildlife Conservation Commission, as
  369  appropriate, shall review and certify applications pursuant to
  370  s. 288.061. The review shall include an evaluation of the
  371  economic benefit of the projects and their long-term viability.
  372  The department shall have final approval for any grant under
  373  this section.
  374         Section 7. Section 288.066, Florida Statutes, is created to
  375  read:
  376         288.066 Rural opportunity tax refund program.—
  377         (1) DEFINITIONS.—As used in this section:
  378         (a) “Account” means the Economic Development Incentives
  379  Account within the Economic Development Trust Fund established
  380  under s. 288.095.
  381         (b) “Authorized local economic development agency” means a
  382  public or private entity, including an entity defined in s.
  383  288.075, authorized by a county or municipality to promote the
  384  general business or industrial interests of that county or
  385  municipality.
  386         (c) “Average private sector wage in the area” means the
  387  statewide private sector average wage or the average of all
  388  private sector wages and salaries in the county or in the
  389  standard metropolitan area in which the business is located.
  390         (d) “Business” means an employing unit, as defined in s.
  391  443.036, registered for reemployment assistance purposes with
  392  the state agency providing reemployment assistance tax
  393  collection services under an interagency agreement pursuant to
  394  s. 443.1316, or a subcategory or division of an employing unit
  395  accepted by the state agency providing reemployment assistance
  396  tax collection services as a reporting unit.
  397         (e) “Corporate headquarters business” means an
  398  international, national, or regional headquarters office of a
  399  multinational or multistate business enterprise or national
  400  trade association, whether separate from or connected with other
  401  facilities used by such business.
  402         (f) “Expansion of an existing business” means the expansion
  403  of an existing Florida business by or through additions to real
  404  and personal property, resulting in a net increase in
  405  employment.
  406         (g) “Fiscal year” means the fiscal year of the state.
  407         (h) “Jobs” means full-time equivalent positions, including,
  408  but not limited to, positions obtained from a temporary
  409  employment agency or employee leasing company or through a union
  410  agreement or coemployment under a professional employer
  411  organization agreement, that result directly from a project in
  412  this state. The term does not include temporary construction
  413  jobs involved with the construction of facilities for the
  414  project or any jobs previously included in any application for
  415  tax refunds under s. 288.1045 or this section.
  416         (i) “Local financial support” means funding from local
  417  sources, public or private, which is paid to the Economic
  418  Development Trust Fund and which is equal to 20 percent of the
  419  annual tax refund for a qualified target industry business. A
  420  qualified target industry business may not provide, directly or
  421  indirectly, more than 5 percent of such funding in any fiscal
  422  year. The sources of such funding may not include, directly or
  423  indirectly, state funds appropriated from the General Revenue
  424  Fund or any state trust fund, excluding tax revenues shared with
  425  local governments pursuant to law.
  426         (j) “Local financial support exemption option” means the
  427  option to exercise an exemption from the local financial support
  428  requirement available to any applicant whose project is located
  429  in a brownfield area, a rural city, or a rural community. Any
  430  applicant that exercises this option is not eligible for more
  431  than 80 percent of the total tax refunds allowed such applicant
  432  under this section.
  433         (k) “New business” means a business that applies for a tax
  434  refund under this section before beginning operations in this
  435  state and that is a legal entity separate from any other
  436  commercial or industrial operations owned by the same business.
  437         (l) “Project” means the creation of a new business or
  438  expansion of an existing business.
  439         (m) “Qualified target industry business” means a target
  440  industry business approved by the department to be eligible for
  441  tax refunds under this section.
  442         (n) “Rural city” means a city having a population of 10,000
  443  or less, or a city having a population of greater than 10,000
  444  but less than 20,000, which has been determined by the
  445  department to have such economic characteristics as, but not
  446  limited to, a significant percentage of residents on public
  447  assistance, a significant percentage of residents with incomes
  448  below the poverty level, or a significant percentage of the
  449  city’s employment base in agriculture-related jobs.
  450         (o) “Rural community” means:
  451         1. A county having a population of 75,000 or less.
  452         2. A county having a population of 125,000 or less which is
  453  contiguous to a county having a population of 75,000 or less.
  454         3. A municipality within a county described in subparagraph
  455  1. or subparagraph 2.
  456  
  457  For purposes of this paragraph, population shall be determined
  458  in accordance with the most recent official estimate pursuant to
  459  s. 186.901.
  460         (p) “Target industry business” means a corporate
  461  headquarters business or any business engaged in one of the
  462  target industries identified pursuant to subsection (2). The
  463  term does not include any business engaged in retail industry
  464  activities; any electric utility company as defined in s.
  465  366.02(2); any phosphate or other solid minerals severance,
  466  mining, or processing operation; any oil or gas exploration or
  467  production operation; or any business subject to regulation by
  468  the Division of Hotels and Restaurants of the Department of
  469  Business and Professional Regulation. Any business in NAICS code
  470  5611 or 5614, office administrative services and business
  471  support services, respectively, may be considered a target
  472  industry business only after the local governing body and
  473  Enterprise Florida, Inc., determine that the community where the
  474  business may locate has conditions affecting the fiscal and
  475  economic viability of the local community or area, including,
  476  but not limited to, such factors as low per capita income, high
  477  unemployment, high underemployment, and a lack of year-round
  478  stable employment opportunities, and such conditions may be
  479  improved by the location of such a business to the community. By
  480  January 1 of every 3rd year, beginning January 1, 2023, the
  481  department, in consultation with Enterprise Florida, Inc.,
  482  economic development organizations, the State University System,
  483  local governments, employee and employer organizations, market
  484  analysts, and economists, shall review and, as appropriate,
  485  revise the list of such target industries and submit the list to
  486  the Governor, the President of the Senate, and the Speaker of
  487  the House of Representatives.
  488         (q) “Taxable year” has the same meaning as provided in s.
  489  220.03(1)(y).
  490         (2)DESIGNATION OF TARGET INDUSTRIES.—In identifying target
  491  industries, the department, in consultation with Enterprise
  492  Florida, Inc., shall consider the following criteria:
  493         (a)Future growth.Whether industry forecasts indicate
  494  strong expectation for future growth in both employment and
  495  output, according to the most recent available data. Special
  496  consideration must be given to businesses that export goods to,
  497  or provide services in, international markets and to businesses
  498  that replace international imports of goods or services.
  499         (b)Stability.Special consideration must be given to an
  500  industry not subject to periodic layoffs, whether due to
  501  seasonality or sensitivity to volatile economic variables, such
  502  as weather. The industry must also be relatively resistant to
  503  recession, so that the demand for products of this industry is
  504  not typically subject to decline during an economic downturn.
  505         (c)High wage.Whether the industry pays relatively high
  506  wages compared to statewide or area averages.
  507         (d)Market and resource independent.Whether industry
  508  business locations are not dependent upon Florida markets or
  509  resources, as indicated by industry analysis, except for
  510  businesses in the renewable energy industry.
  511         (e)Industrial base diversification and strengthening.
  512  Whether the industry is contributing toward expanding or
  513  diversifying the state’s or area’s economic base, as indicated
  514  by analysis of the industry’s share of employment and output,
  515  compared to national and regional trends. Special consideration
  516  must be given to industries that strengthen regional economies
  517  by adding value to basic products or building regional
  518  industrial clusters, as indicated by industry analysis. Special
  519  consideration must also be given to the development of strong
  520  industrial clusters that include defense and homeland security
  521  businesses.
  522         (f)Positive economic impact.Whether the industry is
  523  expected to have strong positive economic impacts on or benefits
  524  to the state or regional economies. Special consideration must
  525  be given to industries that facilitate the development of this
  526  state as a hub for domestic and global trade and logistics.
  527         (3) TAX REFUND; ELIGIBLE AMOUNTS.—
  528         (a) A qualified target industry business may be allowed a
  529  refund from the account for the amount of eligible taxes the
  530  business paid which is certified by the department. The total
  531  amount of refunds for all fiscal years for each qualified target
  532  industry business must be determined pursuant to subsection (4).
  533  The annual amount of a refund to a qualified target industry
  534  business must be determined pursuant to subsection (5).
  535         (b) Upon approval by the department, a qualified target
  536  industry business located in a rural community is allowed tax
  537  refund payments equal to $6,000 multiplied by the number of jobs
  538  the business creates.
  539         (c) A qualified target industry business may:
  540         1. Receive refunds from the account for the following taxes
  541  due and paid by that business beginning with the first taxable
  542  year of the business which begins after the business has been
  543  certified as a qualified target industry business:
  544         a. Corporate income taxes under chapter 220.
  545         b. Insurance premium tax under s. 624.509.
  546         2. Receive refunds from the account for the following taxes
  547  due and paid by that business after being certified as a
  548  qualified target industry business:
  549         a. Taxes on sales, use, and other transactions under
  550  chapter 212.
  551         b. Intangible personal property taxes under chapter 199.
  552         c. Excise taxes on documents under chapter 201.
  553         d. Ad valorem taxes paid, as defined in s. 220.03(1).
  554         e. State communications services taxes administered under
  555  chapter 202. This provision does not apply to the gross receipts
  556  tax imposed under chapter 203 and administered under chapter 202
  557  or the local communications services tax authorized under s.
  558  202.19.
  559         (d) A qualified target industry business may not receive a
  560  refund under this section for any amount of credit, refund, or
  561  exemption previously granted to that business for any of the
  562  taxes listed in paragraph (c). If the department provides a
  563  refund for such taxes and the taxes are subsequently adjusted by
  564  the application of any credit, refund, or exemption granted to
  565  the qualified target industry business other than as provided in
  566  this section, the business must reimburse the account for the
  567  amount of that credit, refund, or exemption. A qualified target
  568  industry business shall notify and tender payment to the
  569  department within 20 days after receiving any credit, refund, or
  570  exemption other than one provided under this section.
  571         (e) Refunds made available under this section may not be
  572  expended in connection with the relocation of a business from
  573  one community to another community in this state unless the
  574  department determines that, without such relocation, the
  575  business will move outside this state, or it determines that the
  576  business has a compelling economic rationale for relocation and
  577  that the relocation will create additional jobs.
  578         (f) A qualified target industry business that fraudulently
  579  claims a refund under this section:
  580         1. Is liable for repayment of the amount of the refund to
  581  the account, plus a mandatory penalty in the amount of 200
  582  percent of the tax refund. The repayment shall be deposited into
  583  the General Revenue Fund.
  584         2. Commits a felony of the third degree, punishable as
  585  provided in s. 775.082, s. 775.083, or s. 775.084.
  586         (4) APPLICATION AND APPROVAL PROCESS.—
  587         (a) To apply for certification as a qualified target
  588  industry business under this section, the business must file an
  589  application with the department before the business decides to
  590  locate in this state or before the business decides to expand
  591  its existing operations in this state. The application must
  592  include, but need not be limited to, the following information:
  593         1. The applicant’s federal employer identification number
  594  and, if applicable, state sales tax registration number.
  595         2. The proposed permanent location of the applicant’s
  596  facility in this state where the project is to be located.
  597         3. A description of the type of business activity or
  598  product covered by the project, including a minimum of a five
  599  digit NAICS code for all activities included in the project. As
  600  used in this paragraph, the term “NAICS” means those
  601  classifications contained in the North American Industry
  602  Classification System, as published in 2007 by the Office of
  603  Management and Budget, Executive Office of the President, and
  604  updated periodically.
  605         4. The proposed number of net new full-time equivalent
  606  Florida jobs at the qualified target industry business as of
  607  December 31 of each year included in the project and the average
  608  wage of those jobs. If more than one type of business activity
  609  or product is included in the project, the number of jobs and
  610  average wage for those jobs must be separately stated for each
  611  type of business activity or product.
  612         5. The total number of full-time equivalent employees
  613  employed by the applicant in this state, if applicable.
  614         6. The anticipated commencement date of the project.
  615         7. A brief statement explaining the role that the estimated
  616  tax refunds to be requested will play in the decision of the
  617  applicant to locate or expand in this state.
  618         8. An estimate of the proportion of the sales resulting
  619  from the project which will be made outside this state.
  620         9. An estimate of the proportion of the cost of the
  621  machinery and equipment, and any other resources necessary in
  622  the development of its product or service, to be used by the
  623  business in its Florida operations which will be purchased
  624  outside this state.
  625         10. A resolution adopted by the governing board of the
  626  county or municipality in which the project will be located,
  627  which resolution recommends that the applicant be approved as a
  628  qualified target industry business and specifies that the
  629  commitments of local financial support necessary for the target
  630  industry business exist. Before the passage of such resolution,
  631  the department may also accept an official letter from an
  632  authorized local economic development agency which endorses the
  633  proposed target industry project and pledges that sources of
  634  local financial support for such project exist. For the purposes
  635  of making pledges of local financial support under this
  636  subparagraph, the local governing board shall pass a one-time
  637  resolution officially designating the authorized local economic
  638  development agency.
  639         11. Any additional information requested by the department.
  640         (b) Each application must be submitted to the department
  641  for determination of eligibility. The department shall review
  642  and evaluate each application based on, but not limited to, the
  643  following criteria:
  644         1. Expected contributions to the state’s economy,
  645  consistent with the state strategic economic development plan
  646  prepared by the department.
  647         2. The economic benefits of the proposed award of tax
  648  refunds under this section.
  649         3. The amount of capital investment to be made by the
  650  applicant in this state.
  651         4. The local financial commitment and support for the
  652  project.
  653         5. The expected effect of the project on the unemployed and
  654  underemployed in the county where the project will be located.
  655         6. The expected effect of the award on the viability of the
  656  project and the probability that the project would be undertaken
  657  in this state if such tax refunds are granted to the applicant.
  658         7. Whether the business activity or project is in an
  659  industry identified by the department as a target industry
  660  business that contributes to the economic growth of this state
  661  and the area in which the business is located, produces a higher
  662  standard of living for residents of this state in the new global
  663  economy, or can be shown to make an equivalent contribution to
  664  the area’s and this state’s economic progress.
  665         8. A review of the business’ past activities in this state
  666  or other states, including whether the business has been
  667  subjected to criminal or civil fines and penalties. This
  668  subparagraph does not require the disclosure of confidential
  669  information.
  670         (c) Applications shall be reviewed and certified pursuant
  671  to s. 288.061. The department shall include in its review
  672  projections of the tax refunds the business would be eligible to
  673  receive in each fiscal year based on the creation and
  674  maintenance of the net new Florida jobs specified in
  675  subparagraph (a)4. as of December 31 of the preceding state
  676  fiscal year.
  677         (d) The department may not certify any target industry
  678  business as a qualified target industry business if the value of
  679  tax refunds to be included in that letter of certification
  680  exceeds the available amount of authority to certify new
  681  businesses as determined in s. 288.095(3). However, if the
  682  commitments of local financial support represent less than 20
  683  percent of the eligible tax refund payments, or to otherwise
  684  preserve the viability and fiscal integrity of the program, the
  685  department may certify a qualified target industry business to
  686  receive tax refund payments of less than the allowable amount
  687  specified in paragraph (3)(b). A letter of certification that
  688  approves an application must specify the maximum amount of tax
  689  refund that will be available to the qualified target industry
  690  business in each fiscal year and the total amount of tax refunds
  691  that will be available to the business for all fiscal years.
  692         (e) This section does not create a presumption that an
  693  applicant will receive any tax refunds under this section.
  694  However, the department may issue nonbinding opinion letters,
  695  upon the request of prospective applicants, as to the
  696  applicants’ eligibility and the potential amount of refunds.
  697         (5) ANNUAL CLAIM FOR REFUND.—
  698         (a) To be eligible to claim any scheduled tax refund, a
  699  qualified target industry business must apply by January 31 of
  700  each fiscal year to the department for the tax refund scheduled
  701  to be paid from the appropriation for the fiscal year that
  702  begins on July 1 following the January 31 claims-submission
  703  date. The department may, upon written request, grant a 30-day
  704  extension of the filing date.
  705         (b) The claim for refund by the qualified target industry
  706  business must include a copy of all receipts pertaining to the
  707  payment of taxes for which the refund is sought.
  708         (c) The department may waive the requirement for proof of
  709  taxes paid in future years for a qualified target industry
  710  business that provides the department with proof that, in a
  711  single year, the business has paid an amount of state taxes from
  712  the categories in paragraph (3)(c) which is at least equal to
  713  the total amount of tax refunds that the business may receive
  714  through successful completion of its project.
  715         (d) A tax refund may not be approved for a qualified target
  716  industry business unless the required local financial support
  717  has been paid into the account for that refund. If the local
  718  financial support provided is less than 20 percent of the
  719  approved tax refund, the tax refund must be reduced. The tax
  720  refund may not exceed an amount equal to 5 times the amount of
  721  the local financial support received. The qualified target
  722  industry business must provide a report listing all sources of
  723  the local financial support to the department when such support
  724  is paid to the account.
  725         (e) The department, with such assistance as may be required
  726  from the Department of Revenue, shall, by June 30 following the
  727  scheduled date for submission of the tax refund claim, specify
  728  by written order the approval or disapproval of the tax refund
  729  claim and, if approved, the amount of the tax refund authorized
  730  to be paid to the qualified target industry business. The
  731  department may grant an extension of this date upon the request
  732  of the qualified target industry business for the purpose of
  733  filing additional information in support of the claim.
  734         (f) The total amount of tax refund claims approved by the
  735  department under this section in any fiscal year must not exceed
  736  the amount authorized under s. 288.095(3).
  737         (g) This section does not create a presumption that a tax
  738  refund claim will be approved and paid.
  739         (h) Upon approval of the tax refund under paragraphs (d)
  740  and (e), the Chief Financial Officer shall issue a warrant for
  741  the amount specified in the written order. If the written order
  742  is appealed, the Chief Financial Officer may not issue a warrant
  743  for a refund to the qualified target industry business until the
  744  conclusion of all appeals of that order.
  745         (6) ADMINISTRATION.—
  746         (a) The department may verify information provided in any
  747  claim submitted for tax credits under this section with regard
  748  to employment and wage levels or the payment of the taxes to the
  749  appropriate agency or authority, including the Department of
  750  Revenue or any local government or authority.
  751         (b) To facilitate the process of monitoring and auditing
  752  applications made under this section, the department may provide
  753  a list of qualified target industry businesses to the Department
  754  of Revenue or to any local government or authority. The
  755  department may request the assistance of those entities with
  756  respect to monitoring jobs, wages, and the payment of the taxes
  757  listed in subsection (3).
  758         (c) Funds specifically appropriated for tax refunds for
  759  qualified target industry businesses under this section may not
  760  be used by the department for any purpose other than the payment
  761  of tax refunds authorized by this section.
  762         Section 8. Section 288.095, Florida Statutes, is amended to
  763  read:
  764         288.095 Economic Development Trust Fund.—
  765         (1) The Economic Development Trust Fund is created within
  766  the Department of Economic Opportunity. Moneys deposited into
  767  the fund must be used only to support the authorized activities
  768  and operations of the department.
  769         (2) There is created, within the Economic Development Trust
  770  Fund, the Economic Development Incentives Account. The Economic
  771  Development Incentives Account consists of moneys appropriated
  772  to the account for purposes of the tax incentives programs
  773  authorized under ss. 288.066, 288.1045, and 288.106 ss. 288.1045
  774  and 288.106, and local financial support provided under ss.
  775  288.066, 288.1045, and 288.106. Moneys in the Economic
  776  Development Incentives Account shall be subject to the
  777  provisions of s. 216.301(1)(a).
  778         (3)(a) The department may approve applications for
  779  certification pursuant to ss. 288.066, 288.1045(3), and 288.106.
  780  However, the total state share of tax refund payments may not
  781  exceed $35 million.
  782         (b) The total amount of tax refund claims approved for
  783  payment by the department based on actual project performance
  784  may not exceed the amount appropriated to the Economic
  785  Development Incentives Account for such purposes for the fiscal
  786  year. Claims for tax refunds under ss. 288.066, 288.1045, and
  787  288.106 shall be paid in the order the claims are approved by
  788  the department. In the event the Legislature does not
  789  appropriate an amount sufficient to satisfy the tax refunds
  790  under ss. 288.066, 288.1045, and 288.106 in a fiscal year, the
  791  department shall pay the tax refunds from the appropriation for
  792  the following fiscal year. By March 1 of each year, the
  793  department shall notify the legislative appropriations
  794  committees of the Senate and House of Representatives of any
  795  anticipated shortfall in the amount of funds needed to satisfy
  796  claims for tax refunds from the appropriation for the current
  797  fiscal year.
  798         (c) Moneys in the Economic Development Incentives Account
  799  may be used only to pay tax refunds and make other payments
  800  authorized under s. 288.066, s. 288.1045, s. 288.106, or s.
  801  288.107.
  802         (d) The department may adopt rules necessary to carry out
  803  the provisions of this subsection, including rules providing for
  804  the use of moneys in the Economic Development Incentives Account
  805  and for the administration of the Economic Development
  806  Incentives Account.
  807         Section 9. This act shall take effect July 1, 2022.

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