Bill Text: FL S1128 | 2015 | Regular Session | Introduced
Bill Title: Capital Investment Tax Credit
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2015-05-01 - Died in Commerce and Tourism [S1128 Detail]
Download: Florida-2015-S1128-Introduced.html
Florida Senate - 2015 SB 1128
By Senator Stargel
15-00628-15 20151128__
1 A bill to be entitled
2 An act relating to the capital investment tax credit;
3 amending s. 220.191, F.S.; redefining and defining
4 terms; revising the annual tax credit that may be
5 granted for a qualifying project that has a date of
6 certification on or after a specified date; decreasing
7 the minimum amount of a cumulative capital investment
8 that results in a qualifying project being ineligible
9 for the tax credit; conforming cross-references;
10 requiring the certification of a business as eligible
11 to receive the tax credit, which is executed by the
12 Department of Economic Opportunity, to be in writing
13 and to include specified information; limiting the
14 total amount of tax credits which may be granted
15 annually to a specified amount; specifying procedures,
16 requirements, and limitations for the tracking by the
17 department of the total amount of tax credits granted
18 annually; authorizing the Department of Revenue to
19 adopt certain rules with respect to a qualifying
20 project with a date of certification before a
21 specified date; reenacting s. 288.1089(2)(d), F.S.,
22 relating to the Innovation Incentive Program, to
23 incorporate the amendment made to s. 220.191, F.S., in
24 a reference thereto; providing an effective date.
25
26 Be It Enacted by the Legislature of the State of Florida:
27
28 Section 1. Paragraph (b) of subsection (1) of section
29 220.191, Florida Statutes, is amended, paragraphs (c) and (e)
30 are added to that subsection, present paragraph (c) of that
31 subsection is redesignated as paragraph (d), present paragraphs
32 (d), (e), and (f) of that subsection are redesignated as
33 paragraphs (f), (g), and (h), respectively, present paragraph
34 (g) of that subsection is amended, and subsection (2), paragraph
35 (a) of subsection (3), and subsections (5) and (8) of that
36 section are amended, to read:
37 220.191 Capital investment tax credit.—
38 (1) DEFINITIONS.—For purposes of this section:
39 (b) “Cumulative capital investment” for:
40 1. New or expanding businesses means the total capital
41 investment in land, buildings, and equipment made in connection
42 with a qualifying project during the period from the beginning
43 of construction of the project to the commencement of
44 operations.
45 2. Existing businesses means the total capital investment
46 in land, buildings, and equipment made in connection with a
47 qualifying project during a period of up to 5 years as
48 determined by the Department of Economic Opportunity as part of
49 the certification process.
50 (c) “Date of certification” means the date that the
51 Department of Economic Opportunity initially certifies in
52 writing that a qualifying project is eligible for the capital
53 investment tax credit. A revision of the terms of the
54 certification, including a change to the cumulative capital
55 investment, does not change the date of certification.
56 (e) “Existing facility” means a facility that has been
57 located in this state for at least 1 year before submitting an
58 application to the Department of Economic Opportunity for
59 certification pursuant to subsection (5).
60 (i)(g) “Qualifying project” means a facility in this state
61 meeting one or more of the following criteria:
62 1. A new or expanding facility in this state which creates
63 at least 100 new jobs in this state and is in one of the high
64 impact sectors identified by Enterprise Florida, Inc., and
65 certified by the Department of Economic Opportunity pursuant to
66 s. 288.108(6), including, but not limited to, aviation,
67 aerospace, automotive, and silicon technology industries.
68 However, between July 1, 2011, and June 30, 2014, the
69 requirement that a facility be in a high-impact sector is waived
70 for any otherwise eligible business from another state which
71 locates all or a portion of its business to a Disproportionally
72 Affected County. For purposes of this section, the term
73 “Disproportionally Affected County” means Bay County, Escambia
74 County, Franklin County, Gulf County, Okaloosa County, Santa
75 Rosa County, Walton County, or Wakulla County.
76 2. A new or expanded facility in this state which is
77 engaged in a target industry designated pursuant to the
78 procedure specified in s. 288.106(2) and which is induced by
79 this credit to create or retain at least 1,000 jobs in this
80 state, provided that at least 100 of those jobs that are new,
81 pay an annual average wage of at least 115 130 percent of the
82 average private sector wage in the area as defined in s.
83 288.106(2), and make a cumulative capital investment of at least
84 $100 million. Jobs may be considered retained only if there is
85 significant evidence that the loss of jobs is imminent.
86 Notwithstanding subsection (2), annual credits against the tax
87 imposed by this chapter may not exceed 50 percent of the
88 increased annual corporate income tax liability or the premium
89 tax liability generated by or arising out of a project
90 qualifying under this subparagraph. A facility that qualifies
91 under this subparagraph for an annual credit against the tax
92 imposed by this chapter may take the tax credit for a period not
93 to exceed 5 years.
94 3. A new or expanded facility in this state which is
95 engaged in a target industry designated pursuant to the
96 procedure specified in s. 288.106(2), and which is induced by
97 this credit to create at least 1,000 jobs paying an annual wage
98 of at least 100 percent of the average private sector wage in
99 the area as defined in s. 288.106(2), and makes a cumulative
100 capital investment of at least $100 million.
101 4.3. A new or expanded headquarters facility in this state
102 which locates in an enterprise zone and brownfield area and is
103 induced by this credit to create at least 1,500 jobs which on
104 average pay at least 200 percent of the statewide average annual
105 private sector wage, as published by the Department of Economic
106 Opportunity, and which new or expanded headquarters facility
107 makes a cumulative capital investment in this state of at least
108 $250 million.
109 5. An existing facility that is engaged in a target
110 industry designated pursuant to the procedure specified in s.
111 288.106(2), and that makes a cumulative capital investment in
112 this state of at least $25 million.
113 6. A new facility that is engaged in a target industry
114 designated pursuant s. 288.106(2) that makes a cumulative
115 capital investment of at least $10 million but less than $25
116 million, and that is located in a rural area of opportunity as
117 defined in s. 288.0656.
118 (2)(a) An annual credit against the tax imposed by this
119 chapter shall be granted to a any qualifying business in an
120 amount equal to 5 percent of the eligible capital costs
121 generated by a qualifying project, for a period not to exceed 20
122 years beginning with the commencement of operations of the
123 project.
124 (a) For a qualifying project with a date of certification
125 before July 1, 2015, unless assigned as described in this
126 subsection:
127 1., The tax credit shall be granted against only the
128 corporate income tax liability or the premium tax liability
129 generated by or arising out of the qualifying project, and the
130 sum of all tax credits granted provided pursuant to this section
131 may shall not exceed 100 percent of the eligible capital costs
132 of the project. A In no event may any credit granted under this
133 section may not be carried forward or backward by a any
134 qualifying business with respect to a subsequent or prior year.
135 2. The annual tax credit granted under this section shall
136 not exceed the following percentages of the annual corporate
137 income tax liability or the premium tax liability generated by
138 or arising out of a qualifying project:
139 a.1. One hundred percent for a qualifying project that
140 which results in a cumulative capital investment of at least
141 $100 million.
142 b.2. Seventy-five percent for a qualifying project that
143 which results in a cumulative capital investment of at least $50
144 million but less than $100 million.
145 c.3. Fifty percent for a qualifying project that which
146 results in a cumulative capital investment of at least $25
147 million but less than $50 million.
148 (b) For a qualifying project with a date of certification
149 on or after July 1, 2015:
150 1. The tax credit shall be granted against the annual
151 corporate income tax liability or the premium tax liability, and
152 the sum of all tax credits granted pursuant to this section may
153 not exceed 100 percent of the eligible capital costs of the
154 project. A credit granted under this section may not be carried
155 forward or backward by a qualifying business with respect to a
156 subsequent or prior year.
157 2. The annual tax credit granted under this section may not
158 exceed the following percentages of the annual corporate income
159 tax liability or the premium tax liability:
160 a. One hundred percent for a qualifying project that
161 results in a cumulative capital investment of at least $100
162 million.
163 b. Seventy-five percent for a qualifying project that
164 results in a cumulative capital investment of at least $50
165 million but less than $100 million.
166 c. Fifty percent for a qualifying project that results in a
167 cumulative capital investment of at least $25 million but less
168 than $50 million.
169 d. One hundred percent for a qualifying project that
170 results in a cumulative capital investment of at least $10
171 million but less than $25 million and occurs in a rural area of
172 opportunity as defined in s. 288.0656.
173 (c)(b) A qualifying project that which results in a
174 cumulative capital investment of less than $10 $25 million is
175 not eligible for the capital investment tax credit. An insurance
176 company claiming a credit against premium tax liability under
177 this program may shall not be required to pay any additional
178 retaliatory tax levied pursuant to s. 624.5091 as a result of
179 claiming such credit. Because credits under this section are
180 available to an insurance company, s. 624.5091 does not limit
181 such credit in any manner.
182 (d)(c) A qualifying business that establishes a qualifying
183 project that includes locating a new solar panel manufacturing
184 facility in this state that generates a minimum of 400 jobs
185 within 6 months after commencement of operations with an average
186 salary of at least $50,000 may assign or transfer the annual
187 credit, or any portion thereof, granted under this section to
188 any other business. However, the amount of the tax credit that
189 may be transferred in any year shall be the lesser of the
190 qualifying business’s state corporate income tax liability for
191 that year, as limited by the percentages applicable under
192 paragraph (a) or paragraph (b) and as calculated prior to taking
193 any credit pursuant to this section, or the credit amount
194 granted for that year. A business receiving the transferred or
195 assigned credits may use the credits only in the year received,
196 and the credits may not be carried forward or backward. To
197 perfect the transfer, the transferor shall provide the
198 department with a written transfer statement notifying the
199 department of the transferor’s intent to transfer the tax
200 credits to the transferee; the date the transfer is effective;
201 the transferee’s name, address, and federal taxpayer
202 identification number; the tax period; and the amount of tax
203 credits to be transferred. The department shall, upon receipt of
204 a transfer statement conforming to the requirements of this
205 paragraph, provide the transferee with a certificate reflecting
206 the tax credit amounts transferred. A copy of the certificate
207 must be attached to each tax return for which the transferee
208 seeks to apply such tax credits.
209 (e)(d) If the credit granted under sub-subparagraph (a)2.a.
210 or sub-subparagraph (b)2.a. subparagraph (a)1. is not fully used
211 in any one year because of insufficient tax liability on the
212 part of the qualifying business, the unused amounts may be used
213 in any one year or years beginning with the 21st year after the
214 commencement of operations of the project and ending the 30th
215 year after the commencement of operations of the project.
216 (3)(a) Notwithstanding subsection (2), an annual credit
217 against the tax imposed by this chapter shall be granted to a
218 qualifying business which establishes a qualifying project
219 pursuant to subparagraph (1)(i)4. subparagraph (1)(g)3., in an
220 amount equal to the lesser of $15 million or 5 percent of the
221 eligible capital costs made in connection with a qualifying
222 project, for a period not to exceed 20 years beginning with the
223 commencement of operations of the project. The tax credit shall
224 be granted against the corporate income tax liability of the
225 qualifying business and as further provided in paragraph (c).
226 The total tax credit provided pursuant to this subsection shall
227 be equal to no more than 100 percent of the eligible capital
228 costs of the qualifying project.
229 (5)(a) Applications shall be reviewed and certified
230 pursuant to s. 288.061. The Department of Economic Opportunity,
231 upon a recommendation by Enterprise Florida, Inc., shall first
232 certify in writing a business as eligible to receive tax credits
233 pursuant to this section prior to the commencement of operations
234 of a qualifying project, and such certification shall be
235 transmitted to the Department of Revenue. The certification must
236 state the anticipated cumulative capital investment and the date
237 of the commencement of operations if applicable. Upon receipt of
238 the certification, the Department of Revenue shall enter into a
239 written agreement with the qualifying business specifying, at a
240 minimum, the method by which income generated by or arising out
241 of the qualifying project will be determined.
242 (b) Beginning July 1, 2015, the total amount of tax credits
243 granted under this section may not exceed $50 million annually.
244 The Department of Economic Opportunity shall track the value of
245 all credits certified on or after July 1, 2015. If the
246 certification of an applicant would make the cumulative value of
247 all credits exceed $50 million annually, the project must be
248 denied certification for the credit. To determine whether the
249 $50 million cap will be met, the Department of Economic
250 Opportunity must assume that each project will use the full
251 value of 5 percent of the cumulative capital investment. If the
252 amount of a project’s cumulative capital investment decreases
253 between the date of certification and the commencement of
254 operations, the Department of Economic Opportunity shall
255 correspondingly revise its assessment of the available
256 allocation for this credit. The Department of Economic
257 Opportunity may not increase the value of a tax credit in excess
258 of the amount specified in the letter of certification. A
259 revision of the amount of cumulative capital investment does not
260 change the date of certification for the project.
261 (8) For a qualifying project with a date of certification
262 before July 1, 2015, the Department of Revenue may specify by
263 rule the methods by which a project’s pro forma annual taxable
264 income is determined.
265 Section 2. For the purpose of incorporating the amendment
266 made by this act to section 220.191, Florida Statutes, in a
267 reference thereto, paragraph (d) of subsection (2) of section
268 288.1089, Florida Statutes, is reenacted to read:
269 288.1089 Innovation Incentive Program.—
270 (2) As used in this section, the term:
271 (d) “Cumulative investment” means cumulative capital
272 investment and all eligible capital costs, as defined in s.
273 220.191.
274 Section 3. This act shall take effect July 1, 2015.
