HB 1457

1
A bill to be entitled
2An act relating to the advanced clean energy development
3tax credit; creating s. 220.194, F.S.; defining terms;
4authorizing a business to receive the advanced clean
5energy development tax credit for a project to conduct
6clean energy research and development within the territory
7of the John F. Kennedy Space Center; specifying amounts of
8the credit; requiring a business to apply to Space Florida
9for eligibility to receive the tax credit; requiring the
10applicant that is qualified to receive the credit to
11execute and deliver a written agreement to Space Florida
12which includes a binding commitment to complete an
13advanced clean energy research and development project;
14providing that only one business may receive the tax
15credit; specifying requirements for the application to
16Space Florida; providing for Space Florida to issue an
17order certifying that the business is qualified to receive
18the tax credit; specifying requirements that an
19application must satisfy in order to qualify to enter into
20an agreement with Space Florida to establish an advanced
21clean energy research and development project; authorizing
22the Department of Revenue to conduct reviews and
23investigations to verify the proper application of credits
24taken in a tax return; authorizing Space Florida to order
25the forfeiture of all or part of any previously claimed
26tax credits or credits available to be taken under certain
27circumstances; requiring Space Florida to notify the
28Department of Revenue of any order affecting a previously
29authorized tax credit; authorizing the Department of
30Revenue to issue a notice of deficiency to the certified
31business under certain circumstances; authorizing the
32Department of Revenue and Space Florida to adopt rules
33relating to the tax credit; providing an effective date.
34
35Be It Enacted by the Legislature of the State of Florida:
36
37     Section 1.  Section 220.194, Florida Statutes, is created
38to read:
39     220.194  Advanced clean energy development tax credit.-
40     (1)  DEFINITIONS.-As used in this section, the term:
41     (a)  "Advanced clean energy research and development" means
42the investigation of the latest processes and technologies
43designed to improve efficiency, reduce cost, and limit emissions
44from gas turbines during the production of energy.
45     (b)  "Advanced clean energy research and development
46project" or "the project" means the combination of facilities,
47equipment, technology, personnel, and partnerships brought
48together to conduct advanced clean energy research and
49development so as to qualify a business to claim the tax credit
50provided under this section. A facility consists of a single
51building or structure, or a group of buildings or structures,
52which are under common ownership or control and located within
53the territory of the John F. Kennedy Space Center.
54     (c)  "Business" has the same meaning as provided in s.
55220.03. The term also includes an affiliated group of
56corporations that file a consolidated return in this state.
57     (d)  "Space Florida" means the entity created under s.
58331.302 to foster the growth and development of a sustainable
59and world-leading aerospace industry in this state.
60     (2)  TAX CREDIT.-
61     (a)  A business that is approved by Space Florida to
62receive the advanced clean energy tax credit pursuant to this
63section may apply the credit against the tax imposed by this
64chapter.
65     (b)  The credit consists of three components.
66     1.  Upon approval of an application and the execution of a
67written agreement with Space Florida, including a binding
68commitment to complete an advanced clean energy research and
69development project, the certified business is awarded a credit
70in the amount of $3 million annually, which may be claimed
71beginning with the corporate tax year of the business in which
72the agreement is executed and ending in the 8th corporate tax
73year thereafter, for a total credit amount of $27 million.
74     2.  During the tax year of the business in which the
75application for the project is approved and the written
76agreement with Space Florida is executed, the business may claim
77a tax credit in the amount of $3 million.
78     3.  During the tax year of the business in which
79construction begins on the facility for the project within the
80territory of the John F. Kennedy Space Center, the business may
81claim a tax credit in the amount of $3 million.
82     (c)  The maximum tax credit amount that may be claimed by
83the approved business during any tax year is $6 million. If the
84business does not claim all of the credits for which it is
85eligible in any tax year, the unused amount may be carried
86forward for a period not to exceed 10 years following the date
87that the credit became available to be claimed, after which time
88the credit amount expires and may not be used. The business may
89claim the carryover credit in a subsequent year when the tax
90imposed by this chapter exceeds the credit for such year after
91applying any other credits and unused credit carryovers listed
92in s. 220.02(8).
93     (d)  A business that files a consolidated return in this
94state as a member of an affiliated group pursuant to s.
95220.131(1) may claim the credit on a consolidated return basis
96up to the amount of tax imposed on the consolidated group.
97     (3)  APPLICATION PROCESS.-A business seeking to be eligible
98for the tax credit under this section must submit an application
99to Space Florida by the date established by Space Florida, which
100may not be later than September 1, 2010. Space Florida shall
101make application forms and guidelines available to applicants by
102August 1, 2010.
103     (a)  Space Florida shall review applications in the order
104applications are received to determine whether an applicant is
105qualified to receive the credit and shall approve a qualifying
106application within 15 days after receipt. By December 1, 2010,
107the qualified applicant must execute and deliver a written
108agreement to Space Florida which includes a binding commitment
109to complete an advanced clean energy research and development
110project consistent with the requirements of this section. A
111business may submit only one complete application. Space Florida
112may not accept an incomplete or placeholder application. Space
113Florida may certify only one applicant as eligible for the tax
114credits under this section.
115     (b)  An application must contain:
116     1.  Documentation determined necessary by the applicant or
117Space Florida demonstrating the applicant's ability to meet the
118requirements of paragraph (4)(b);
119     2.  Any other information or documentation prescribed by
120Space Florida affirmatively demonstrating that the applicant
121qualifies for the credit; and
122     3.  An affidavit certifying that the information contained
123in the application is correct.
124     (c)  Upon execution of the agreement, Space Florida shall
125issue an order to the qualified applicant and the Department of
126Revenue certifying that the applicant is qualified for the tax
127credits under this section. Thereafter, Space Florida shall
128issue an annual recertification order to the business and the
129Department of Revenue. The certified business must attach Space
130Florida's most recent order to the tax return on which the
131credit is claimed.
132     (d)  Upon execution of the agreement and for each year
133during which the business claims a credit on a return, the
134business shall submit documentation required by Space Florida
135demonstrating activity consistent with the representations in
136the application and the requirements set forth in paragraph
137(4)(b). The documentation must include an affidavit certifying
138that the documentation submitted is correct.
139     (e)  Space Florida shall ensure that the amount of
140corporate income tax credits granted in this section does not
141exceed the limits provided in this section.
142     (4)  ELIGIBILITY REQUIREMENTS.-
143     (a)  The credit authorized by this section is reserved for
144a business that creates an advanced clean energy research and
145development project, has entered into a written agreement with
146Space Florida, and is certified to be eligible for tax credits
147by Space Florida.
148     (b)  Space Florida may not certify a business as eligible
149to receive a tax credit under this section unless it determines
150that the business's application affirmatively demonstrates that
151the applicant agrees:
152     1.  To incur a liability of at least $50 million to plan,
153design, and construct the advanced clean energy research
154facility.
155     2.  To invest at least $20 million on the facility by 2014.
156This investment includes the hard and soft costs customarily
157associated with the use or acquisition of a site, site design
158and preparation, and improvements to identified real property
159located within the territory of the John F. Kennedy Space
160Center, as well as the customary hard and soft costs associated
161with the lease or purchase of depreciable machinery and
162equipment, including attendant design services that are directly
163related to the project.
164     3.  That expenditures for the project will be allotted to
165Florida vendors whenever feasible.
166     4.  To make its best efforts to enter into a sponsored
167research and development agreement for the term of the project
168which qualifies for certification pursuant to s. 220.15(2)(c).
169     5.  That new full-time equivalent employees hired to work
170on the project will receive a median hourly wage that is at
171least 200 percent of the federal minimum wage.
172     (5)  ADMINISTRATION; AUDIT AUTHORITY; RECAPTURE OF
173CREDITS.-
174     (a)  In addition to its existing audit authority, the
175Department of Revenue may perform any financial or technical
176review or investigation, including examining the accounts,
177books, and records of the business, which is necessary to verify
178the proper application of credits taken in a tax return and to
179ensure compliance with this chapter.
180     (b)  Space Florida may, by order, revoke or modify its
181order certifying a business as eligible for a tax credit under
182this section, and may also order the forfeiture of all or part
183of any previously claimed tax credits or credits available to be
184taken if, as the result of an audit, investigation, or
185examination, it is proven that information provided by the
186business in the application, or in a statement, representation,
187record, report, plan, or other document provided to Space
188Florida in an attempt to receive tax credits under this section,
189was false in a material respect at the time it was submitted and
190that a person acting on behalf of the business knew, or should
191have known, that the information submitted was false.
192     (c)  Space Florida may, by order, revoke or modify its
193order certifying a business as eligible for a tax credit under
194this section, and may also order the forfeiture of previously
195claimed tax credits or credits available to be taken, if Space
196Florida determines that the business has not incurred
197liabilities in the amounts or within the period specified in
198paragraph (4)(b). If actual expenditures are not made in the
199amounts or in the period specified in paragraph (4)(b), Space
200Florida may allow the business to provide adequate assurance
201that qualifying expenditures will be made within a reasonable
202time. Such adequate assurances require the business to provide
203proof of financial security to ensure repayment of any
204previously claimed tax credit. Until the qualifying expenditures
205are made, the business may not claim any tax credits under this
206section. The amount of any tax credits forfeited under this
207paragraph shall be an amount equal to such proportion as the
208required investment bears to the actual investment.
209     (d)  Space Florida must immediately notify the Department
210of Revenue of any order affecting a previously authorized tax
211credit. A business that is liable for unpaid taxes shall file
212with the Department of Revenue an amended return or such other
213report as the Department of Revenue prescribes by rule. The
214business shall pay any required tax and interest within 60 days
215after Space Florida notifies the business that previously
216approved credits have been forfeited or modified. If the
217forfeiture or modification order is contested, the business
218shall file an amended return or other report within 30 days
219after the order revoking or forfeiting tax credits becomes
220final. A business that is liable for taxes avoided must pay the
221tax due plus interest at the rate established under s. 220.807,
222computed from the date that tax would have been due if the
223credit had not been taken. The taxes and interest are due at the
224time the amended return is filed. A business that fails to pay
225the taxes and interest by the due date is subject to the
226penalties provided in s. 220.803.
227     (e)  The department may issue a notice of deficiency at any
228time within 3 years after the business claims a credit or
229receives a final order from Space Florida that previously
230approved tax credits have been revoked or modified.
231     (6)  RULES.-Space Florida and the department may adopt
232rules to administer this section, including rules relating to:
233     (a)  The forms and procedures required to apply for the
234credit and to review applications.
235     (b)  The forms required to claim a tax credit under this
236section, the requirements and basis for establishing an
237entitlement to a credit, and examination and audit procedures
238required to administer this section.
239     Section 2.  This act shall take effect July 1, 2010.


CODING: Words stricken are deletions; words underlined are additions.