Florida Senate - 2016                          SENATOR AMENDMENT
       Bill No. CS for CS for SB 868
       
       
       
       
       
       
                                Ì238922/Î238922                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                                       .                                
                                       .                                
                                       .                                
                 Floor: NC/2R          .                                
             03/08/2016 04:29 PM       .                                
       —————————————————————————————————————————————————————————————————




       —————————————————————————————————————————————————————————————————
       Senator Smith moved the following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete everything after the enacting clause
    4  and insert:
    5         Section 1. Paragraph (d) of subsection (1) of section
    6  220.03, Florida Statutes, is amended to read:
    7         220.03 Definitions.—
    8         (1) SPECIFIC TERMS.—When used in this code, and when not
    9  otherwise distinctly expressed or manifestly incompatible with
   10  the intent thereof, the following terms shall have the following
   11  meanings:
   12         (d) “Community contribution” means the grant by a business
   13  firm of any of the following items:
   14         1. Cash or other liquid assets.
   15         2. Real property, which for purposes of this subparagraph
   16  includes 100 percent ownership of a real property holding
   17  company. The term “real property holding company” means a
   18  Florida entity, such as a Florida limited liability company,
   19  that:
   20         a.Is wholly owned by the business firm.
   21         b.Is the sole owner of real property, as defined in s.
   22  192.001(12), located in the state.
   23         c.Is disregarded as an entity for federal income tax
   24  purposes pursuant to 26 C.F.R. s. 301.7701-3(b)(1)(ii).
   25         d.At the time of contribution to an eligible sponsor, has
   26  no material assets other than the real property and any other
   27  property that qualifies as a community contribution.
   28         3. Goods or inventory.
   29         4. Other physical resources as identified by the
   30  department.
   31  
   32  This paragraph expires June 30, 2018.
   33         Section 2. Paragraph (p) of subsection (5) of section
   34  212.08, Florida Statutes, is amended to read:
   35         212.08 Sales, rental, use, consumption, distribution, and
   36  storage tax; specified exemptions.—The sale at retail, the
   37  rental, the use, the consumption, the distribution, and the
   38  storage to be used or consumed in this state of the following
   39  are hereby specifically exempt from the tax imposed by this
   40  chapter.
   41         (5) EXEMPTIONS; ACCOUNT OF USE.—
   42         (p) Community contribution tax credit for donations.—
   43         1. Authorization.—Persons who are registered with the
   44  department under s. 212.18 to collect or remit sales or use tax
   45  and who make donations to eligible sponsors are eligible for tax
   46  credits against their state sales and use tax liabilities as
   47  provided in this paragraph:
   48         a. The credit shall be computed as 50 percent of the
   49  person’s approved annual community contribution.
   50         b. The credit shall be granted as a refund against state
   51  sales and use taxes reported on returns and remitted in the 12
   52  months preceding the date of application to the department for
   53  the credit as required in sub-subparagraph 3.c. If the annual
   54  credit is not fully used through such refund because of
   55  insufficient tax payments during the applicable 12-month period,
   56  the unused amount may be included in an application for a refund
   57  made pursuant to sub-subparagraph 3.c. in subsequent years
   58  against the total tax payments made for such year. Carryover
   59  credits may be applied for a 3-year period without regard to any
   60  time limitation that would otherwise apply under s. 215.26.
   61         c. A person may not receive more than $200,000 in annual
   62  tax credits for all approved community contributions made in any
   63  one year.
   64         d. All proposals for the granting of the tax credit require
   65  the prior approval of the Department of Economic Opportunity.
   66         e. The total amount of tax credits which may be granted for
   67  all programs approved under this paragraph, s. 220.183, and s.
   68  624.5105 is $18.4 million in the 2015-2016 fiscal year, $21.4
   69  million in the 2016-2017 fiscal year, and $21.4 million in the
   70  2017-2018 fiscal year for projects that provide housing
   71  opportunities for persons with special needs or homeownership
   72  opportunities for low-income households or very-low-income
   73  households and $3.5 million annually for all other projects. As
   74  used in this paragraph, the term “person with special needs” has
   75  the same meaning as in s. 420.0004 and the terms “low-income
   76  person,” “low-income household,” “very-low-income person,” and
   77  “very-low-income household” have the same meanings as in s.
   78  420.9071.
   79         f. A person who is eligible to receive the credit provided
   80  in this paragraph, s. 220.183, or s. 624.5105 may receive the
   81  credit only under one section of the person’s choice.
   82         2. Eligibility requirements.—
   83         a. A community contribution by a person must be in the
   84  following form:
   85         (I) Cash or other liquid assets;
   86         (II) Real property, including 100 percent ownership of a
   87  real property holding company;
   88         (III) Goods or inventory; or
   89         (IV) Other physical resources identified by the Department
   90  of Economic Opportunity.
   91  
   92  For purposes of this subparagraph, the term “real property
   93  holding company” means a Florida entity, such as a Florida
   94  limited liability company, that is wholly owned by the person;
   95  is the sole owner of real property, as defined in s.
   96  192.001(12), located in the state; is disregarded as an entity
   97  for federal income tax purposes pursuant to 26 C.F.R. s.
   98  301.7701-3(b)(1)(ii); and at the time of contribution to an
   99  eligible sponsor, has no material assets other than the real
  100  property and any other property that qualifies as a community
  101  contribution.
  102         b. All community contributions must be reserved exclusively
  103  for use in a project. As used in this sub-subparagraph, the term
  104  “project” means activity undertaken by an eligible sponsor which
  105  is designed to construct, improve, or substantially rehabilitate
  106  housing that is affordable to low-income households or very-low
  107  income households; designed to provide housing opportunities for
  108  persons with special needs; designed to provide commercial,
  109  industrial, or public resources and facilities; or designed to
  110  improve entrepreneurial and job-development opportunities for
  111  low-income persons. A project may be the investment necessary to
  112  increase access to high-speed broadband capability in a rural
  113  community that had an enterprise zone designated pursuant to
  114  chapter 290 as of May 1, 2015, including projects that result in
  115  improvements to communications assets that are owned by a
  116  business. A project may include the provision of museum
  117  educational programs and materials that are directly related to
  118  a project approved between January 1, 1996, and December 31,
  119  1999, and located in an area which was in an enterprise zone
  120  designated pursuant to s. 290.0065 as of May 1, 2015. This
  121  paragraph does not preclude projects that propose to construct
  122  or rehabilitate housing for low-income households or very-low
  123  income households on scattered sites or housing opportunities
  124  for persons with special needs. With respect to housing,
  125  contributions may be used to pay the following eligible special
  126  needs, low-income, and very-low-income housing-related
  127  activities:
  128         (I) Project development impact and management fees for
  129  special needs, low-income, or very-low-income housing projects;
  130         (II) Down payment and closing costs for persons with
  131  special needs, low-income persons, and very-low-income persons;
  132         (III) Administrative costs, including housing counseling
  133  and marketing fees, not to exceed 10 percent of the community
  134  contribution, directly related to special needs, low-income, or
  135  very-low-income projects; and
  136         (IV) Removal of liens recorded against residential property
  137  by municipal, county, or special district local governments if
  138  satisfaction of the lien is a necessary precedent to the
  139  transfer of the property to a low-income person or very-low
  140  income person for the purpose of promoting home ownership.
  141  Contributions for lien removal must be received from a
  142  nonrelated third party.
  143         c. The project must be undertaken by an “eligible sponsor,”
  144  which includes:
  145         (I) A community action program;
  146         (II) A nonprofit community-based development organization
  147  whose mission is the provision of housing for persons with
  148  specials needs, low-income households, or very-low-income
  149  households or increasing entrepreneurial and job-development
  150  opportunities for low-income persons;
  151         (III) A neighborhood housing services corporation;
  152         (IV) A local housing authority created under chapter 421;
  153         (V) A community redevelopment agency created under s.
  154  163.356;
  155         (VI) A historic preservation district agency or
  156  organization;
  157         (VII) A regional workforce board;
  158         (VIII) A direct-support organization as provided in s.
  159  1009.983;
  160         (IX) An enterprise zone development agency created under s.
  161  290.0056;
  162         (X) A community-based organization incorporated under
  163  chapter 617 which is recognized as educational, charitable, or
  164  scientific pursuant to s. 501(c)(3) of the Internal Revenue Code
  165  and whose bylaws and articles of incorporation include
  166  affordable housing, economic development, or community
  167  development as the primary mission of the corporation;
  168         (XI) Units of local government;
  169         (XII) Units of state government; or
  170         (XIII) Any other agency that the Department of Economic
  171  Opportunity designates by rule.
  172  
  173  A contributing person may not have a financial interest in the
  174  eligible sponsor.
  175         d. The project must be located in an area which was in an
  176  enterprise zone designated pursuant to chapter 290 as of May 1,
  177  2015, or a Front Porch Florida Community, unless the project
  178  increases access to high-speed broadband capability in a rural
  179  community that had an enterprise zone designated pursuant to
  180  chapter 290 as of May 1, 2015, but is physically located outside
  181  the designated rural zone boundaries. Any project designed to
  182  construct or rehabilitate housing for low-income households or
  183  very-low-income households or housing opportunities for persons
  184  with special needs is exempt from the area requirement of this
  185  sub-subparagraph.
  186         e.(I) If, during the first 10 business days of the state
  187  fiscal year, eligible tax credit applications for projects that
  188  provide housing opportunities for persons with special needs or
  189  homeownership opportunities for low-income households or very
  190  low-income households are received for less than the annual tax
  191  credits available for those projects, the Department of Economic
  192  Opportunity shall grant tax credits for those applications and
  193  grant remaining tax credits on a first-come, first-served basis
  194  for subsequent eligible applications received before the end of
  195  the state fiscal year. If, during the first 10 business days of
  196  the state fiscal year, eligible tax credit applications for
  197  projects that provide housing opportunities for persons with
  198  special needs or homeownership opportunities for low-income
  199  households or very-low-income households are received for more
  200  than the annual tax credits available for those projects, the
  201  Department of Economic Opportunity shall grant the tax credits
  202  for those applications as follows:
  203         (A) If tax credit applications submitted for approved
  204  projects of an eligible sponsor do not exceed $200,000 in total,
  205  the credits shall be granted in full if the tax credit
  206  applications are approved.
  207         (B) If tax credit applications submitted for approved
  208  projects of an eligible sponsor exceed $200,000 in total, the
  209  amount of tax credits granted pursuant to sub-sub-sub
  210  subparagraph (A) shall be subtracted from the amount of
  211  available tax credits, and the remaining credits shall be
  212  granted to each approved tax credit application on a pro rata
  213  basis.
  214         (II) If, during the first 10 business days of the state
  215  fiscal year, eligible tax credit applications for projects other
  216  than those that provide housing opportunities for persons with
  217  special needs or homeownership opportunities for low-income
  218  households or very-low-income households are received for less
  219  than the annual tax credits available for those projects, the
  220  Department of Economic Opportunity shall grant tax credits for
  221  those applications and shall grant remaining tax credits on a
  222  first-come, first-served basis for subsequent eligible
  223  applications received before the end of the state fiscal year.
  224  If, during the first 10 business days of the state fiscal year,
  225  eligible tax credit applications for projects other than those
  226  that provide housing opportunities for persons with special
  227  needs or homeownership opportunities for low-income households
  228  or very-low-income households are received for more than the
  229  annual tax credits available for those projects, the Department
  230  of Economic Opportunity shall grant the tax credits for those
  231  applications on a pro rata basis.
  232         3. Application requirements.—
  233         a. An eligible sponsor seeking to participate in this
  234  program must submit a proposal to the Department of Economic
  235  Opportunity which sets forth the name of the sponsor, a
  236  description of the project, and the area in which the project is
  237  located, together with such supporting information as is
  238  prescribed by rule. The proposal must also contain a resolution
  239  from the local governmental unit in which the project is located
  240  certifying that the project is consistent with local plans and
  241  regulations.
  242         b. A person seeking to participate in this program must
  243  submit an application for tax credit to the Department of
  244  Economic Opportunity which sets forth the name of the sponsor, a
  245  description of the project, and the type, value, and purpose of
  246  the contribution. The sponsor shall verify, in writing, the
  247  terms of the application and indicate its receipt of the
  248  contribution, and such verification must accompany the
  249  application for tax credit. The person must submit a separate
  250  tax credit application to the Department of Economic Opportunity
  251  for each individual contribution that it makes to each
  252  individual project.
  253         c. A person who has received notification from the
  254  Department of Economic Opportunity that a tax credit has been
  255  approved must apply to the department to receive the refund.
  256  Application must be made on the form prescribed for claiming
  257  refunds of sales and use taxes and be accompanied by a copy of
  258  the notification. A person may submit only one application for
  259  refund to the department within a 12-month period.
  260         4. Administration.—
  261         a. The Department of Economic Opportunity may adopt rules
  262  necessary to administer this paragraph, including rules for the
  263  approval or disapproval of proposals by a person.
  264         b. The decision of the Department of Economic Opportunity
  265  must be in writing, and, if approved, the notification shall
  266  state the maximum credit allowable to the person. Upon approval,
  267  the Department of Economic Opportunity shall transmit a copy of
  268  the decision to the department.
  269         c. The Department of Economic Opportunity shall
  270  periodically monitor all projects in a manner consistent with
  271  available resources to ensure that resources are used in
  272  accordance with this paragraph; however, each project must be
  273  reviewed at least once every 2 years.
  274         d. The Department of Economic Opportunity shall, in
  275  consultation with the statewide and regional housing and
  276  financial intermediaries, market the availability of the
  277  community contribution tax credit program to community-based
  278  organizations.
  279         5. Expiration.—This paragraph expires June 30, 2018;
  280  however, any accrued credit carryover that is unused on that
  281  date may be used until the expiration of the 3-year carryover
  282  period for such credit.
  283         Section 3. Paragraph (a) of subsection (5) of section
  284  624.5105, Florida Statutes, is amended to read:
  285         624.5105 Community contribution tax credit; authorization;
  286  limitations; eligibility and application requirements;
  287  administration; definitions; expiration.—
  288         (5) DEFINITIONS.—As used in this section, the term:
  289         (a) “Community contribution” means the grant by an insurer
  290  of any of the following items:
  291         1. Cash or other liquid assets.
  292         2. Real property, including 100 percent ownership of a real
  293  property holding company.
  294         3. Goods or inventory.
  295         4. Other physical resources which are identified by the
  296  department.
  297  
  298  For purposes of this paragraph, the term “real property holding
  299  company” means a Florida entity, such as a Florida limited
  300  liability company, that is wholly owned by the insurer; is the
  301  sole owner of real property, as defined in s. 192.001(12),
  302  located in the state; is disregarded as an entity for federal
  303  income tax purposes pursuant to 26 C.F.R. s. 301.7701
  304  3(b)(1)(ii); and at the time of contribution to an eligible
  305  sponsor, has no material assets other than the real property and
  306  any other property that qualifies as a community contribution.
  307         Section 4. This act shall take effect July 1, 2016.
  308  
  309  ================= T I T L E  A M E N D M E N T ================
  310  And the title is amended as follows:
  311         Delete everything before the enacting clause
  312  and insert:
  313                        A bill to be entitled                      
  314         An act relating to community contribution tax credits;
  315         amending s. 220.03, F.S.; revising the definition of
  316         the term “community contribution”; amending s. 212.08,
  317         F.S.; revising and providing definitions related to
  318         community contribution tax credits that may apply
  319         against sales and use tax liabilities; amending s.
  320         624.5105, F.S.; revising and providing definitions
  321         related to community contribution tax credits that may
  322         apply against certain premium tax liabilities;
  323         providing an effective date.