| 1 | A bill to be entitled |
| 2 | An act relating to corporate income tax credits for small |
| 3 | business corporations; requiring the Department of Revenue |
| 4 | to establish a corporate income tax credit program for |
| 5 | certain small businesses; providing a definition; |
| 6 | requiring the department to provide tax credit |
| 7 | applications on its website; providing for department |
| 8 | approval of tax credit applications; requiring the |
| 9 | department to file copies of approved applications and |
| 10 | send copies to applicants; providing criteria and |
| 11 | requirements for and limitations on the tax credit; |
| 12 | authorizing not-for-profit small business corporations to |
| 13 | auction eligible tax credits to certain entities; |
| 14 | specifying uses of proceeds of auctioned credits; |
| 15 | requiring the department to develop a plan to auction tax |
| 16 | credits; requiring the department to establish a workgroup |
| 17 | for certain purposes; authorizing the department to adopt |
| 18 | rules; requiring the Office of Program Policy Analysis and |
| 19 | Government Accountability to review the program and report |
| 20 | to the Legislature; providing an effective date. |
| 21 |
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| 22 | Be It Enacted by the Legislature of the State of Florida: |
| 23 |
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| 24 | Section 1. (1) The Department of Revenue shall establish |
| 25 | a program to grant to small business corporations a credit |
| 26 | against the tax imposed under chapter 220, Florida Statutes, as |
| 27 | provided in this section. |
| 28 | (2) For purposes of this section, the term "small business |
| 29 | corporation" means a for-profit or not-for-profit corporation |
| 30 | registered with the Department of State that employs fewer than |
| 31 | 250 employees and is doing business in this state. |
| 32 | (3) The Department of Revenue shall make available on its |
| 33 | website to small business corporations an application for the |
| 34 | tax credit authorized by this section. |
| 35 | (4) Upon receipt of a completed application from an |
| 36 | eligible small business corporation that meets the requirements |
| 37 | of this section for a credit, the department shall approve the |
| 38 | application and shall place a copy of the approved application |
| 39 | on file with the corporation's tax file and send a copy of the |
| 40 | approved application to the corporation seeking the credit. |
| 41 | (5) Each small business corporation is eligible to receive |
| 42 | a credit against the tax imposed under chapter 220, Florida |
| 43 | Statutes, in an amount equal to 75 percent of each dollar the |
| 44 | applicant can demonstrate, through methods acceptable and |
| 45 | approved by the department, that the applicant invested in |
| 46 | employee training, expansion of employment of up to 15 new |
| 47 | positions, and investment in the purchase of new or used |
| 48 | business equipment for the year in which the investment |
| 49 | occurred. |
| 50 | (6) The total amount of the tax credit available to any |
| 51 | small business corporation is limited to $100,000 for each such |
| 52 | corporation. |
| 53 | (7)(a) A not-for-profit small business corporation may |
| 54 | auction any tax credit the corporation is eligible to receive to |
| 55 | any private investor and the funds generated from the sale of |
| 56 | the tax credit shall be used by such corporation as matching |
| 57 | funds for grants, Medicaid waivers, or investments in staff |
| 58 | training, construction of new buildings or renovation of current |
| 59 | buildings, purchase of new or used business equipment, or |
| 60 | expansions of its workforce. |
| 61 | (b) The purchase of a tax credit auctioned by a not-for- |
| 62 | profit small business corporation is limited to corporations |
| 63 | registered in this state or individuals that operate or live in |
| 64 | this state. |
| 65 | (c) The department shall develop a plan for auctioning tax |
| 66 | credits and shall make available on its website information as |
| 67 | to how individuals or corporations can participate in the |
| 68 | process. |
| 69 | (8) The department shall create a workgroup of advocates, |
| 70 | business leaders, and stakeholders to provide direction and |
| 71 | assistance with the development of rules required to implement |
| 72 | this program. |
| 73 | (9) The department may any adopt rules necessary to |
| 74 | implement the requirements of this section. |
| 75 | (10) The Office of Program Policy Analysis and Government |
| 76 | Accountability shall review the impact of the program on |
| 77 | stimulating economic expansion and investment in equipment, not- |
| 78 | for-profits, and workforce development and provide a report to |
| 79 | the President of the Senate and the Speaker of the House of |
| 80 | Representatives no later than January 1, 2012. |
| 81 | Section 2. This act shall take effect July 1, 2009. |