| 1 | A bill to be entitled |
| 2 | An act relating to the advanced clean energy development |
| 3 | tax credit; creating s. 220.194, F.S.; defining terms; |
| 4 | authorizing a business to receive the advanced clean |
| 5 | energy development tax credit for a project to conduct |
| 6 | clean energy research and development within the territory |
| 7 | of the John F. Kennedy Space Center; specifying amounts of |
| 8 | the credit; requiring a business to apply to Space Florida |
| 9 | for eligibility to receive the tax credit; requiring the |
| 10 | applicant that is qualified to receive the credit to |
| 11 | execute and deliver a written agreement to Space Florida |
| 12 | which includes a binding commitment to complete an |
| 13 | advanced clean energy research and development project; |
| 14 | providing that only one business may receive the tax |
| 15 | credit; specifying requirements for the application to |
| 16 | Space Florida; providing for Space Florida to issue an |
| 17 | order certifying that the business is qualified to receive |
| 18 | the tax credit; specifying requirements that an |
| 19 | application must satisfy in order to qualify to enter into |
| 20 | an agreement with Space Florida to establish an advanced |
| 21 | clean energy research and development project; authorizing |
| 22 | the Department of Revenue to conduct reviews and |
| 23 | investigations to verify the proper application of credits |
| 24 | taken in a tax return; authorizing Space Florida to order |
| 25 | the forfeiture of all or part of any previously claimed |
| 26 | tax credits or credits available to be taken under certain |
| 27 | circumstances; requiring Space Florida to notify the |
| 28 | Department of Revenue of any order affecting a previously |
| 29 | authorized tax credit; authorizing the Department of |
| 30 | Revenue to issue a notice of deficiency to the certified |
| 31 | business under certain circumstances; authorizing the |
| 32 | Department of Revenue and Space Florida to adopt rules |
| 33 | relating to the tax credit; providing an effective date. |
| 34 |
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| 35 | Be It Enacted by the Legislature of the State of Florida: |
| 36 |
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| 37 | Section 1. Section 220.194, Florida Statutes, is created |
| 38 | to 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 |
| 42 | the investigation of the latest processes and technologies |
| 43 | designed to improve efficiency, reduce cost, and limit emissions |
| 44 | from gas turbines during the production of energy. |
| 45 | (b) "Advanced clean energy research and development |
| 46 | project" or "the project" means the combination of facilities, |
| 47 | equipment, technology, personnel, and partnerships brought |
| 48 | together to conduct advanced clean energy research and |
| 49 | development so as to qualify a business to claim the tax credit |
| 50 | provided under this section. A facility consists of a single |
| 51 | building or structure, or a group of buildings or structures, |
| 52 | which are under common ownership or control and located within |
| 53 | the territory of the John F. Kennedy Space Center. |
| 54 | (c) "Business" has the same meaning as provided in s. |
| 55 | 220.03. The term also includes an affiliated group of |
| 56 | corporations that file a consolidated return in this state. |
| 57 | (d) "Space Florida" means the entity created under s. |
| 58 | 331.302 to foster the growth and development of a sustainable |
| 59 | and world-leading aerospace industry in this state. |
| 60 | (2) TAX CREDIT.- |
| 61 | (a) A business that is approved by Space Florida to |
| 62 | receive the advanced clean energy tax credit pursuant to this |
| 63 | section may apply the credit against the tax imposed by this |
| 64 | chapter. |
| 65 | (b) The credit consists of three components. |
| 66 | 1. Upon approval of an application and the execution of a |
| 67 | written agreement with Space Florida, including a binding |
| 68 | commitment to complete an advanced clean energy research and |
| 69 | development project, the certified business is awarded a credit |
| 70 | in the amount of $3 million annually, which may be claimed |
| 71 | beginning with the corporate tax year of the business in which |
| 72 | the agreement is executed and ending in the 8th corporate tax |
| 73 | year thereafter, for a total credit amount of $27 million. |
| 74 | 2. During the tax year of the business in which the |
| 75 | application for the project is approved and the written |
| 76 | agreement with Space Florida is executed, the business may claim |
| 77 | a tax credit in the amount of $3 million. |
| 78 | 3. During the tax year of the business in which |
| 79 | construction begins on the facility for the project within the |
| 80 | territory of the John F. Kennedy Space Center, the business may |
| 81 | claim a tax credit in the amount of $3 million. |
| 82 | (c) The maximum tax credit amount that may be claimed by |
| 83 | the approved business during any tax year is $6 million. If the |
| 84 | business does not claim all of the credits for which it is |
| 85 | eligible in any tax year, the unused amount may be carried |
| 86 | forward for a period not to exceed 10 years following the date |
| 87 | that the credit became available to be claimed, after which time |
| 88 | the credit amount expires and may not be used. The business may |
| 89 | claim the carryover credit in a subsequent year when the tax |
| 90 | imposed by this chapter exceeds the credit for such year after |
| 91 | applying any other credits and unused credit carryovers listed |
| 92 | in s. 220.02(8). |
| 93 | (d) A business that files a consolidated return in this |
| 94 | state as a member of an affiliated group pursuant to s. |
| 95 | 220.131(1) may claim the credit on a consolidated return basis |
| 96 | up to the amount of tax imposed on the consolidated group. |
| 97 | (3) APPLICATION PROCESS.-A business seeking to be eligible |
| 98 | for the tax credit under this section must submit an application |
| 99 | to Space Florida by the date established by Space Florida, which |
| 100 | may not be later than September 1, 2010. Space Florida shall |
| 101 | make application forms and guidelines available to applicants by |
| 102 | August 1, 2010. |
| 103 | (a) Space Florida shall review applications in the order |
| 104 | applications are received to determine whether an applicant is |
| 105 | qualified to receive the credit and shall approve a qualifying |
| 106 | application within 15 days after receipt. By December 1, 2010, |
| 107 | the qualified applicant must execute and deliver a written |
| 108 | agreement to Space Florida which includes a binding commitment |
| 109 | to complete an advanced clean energy research and development |
| 110 | project consistent with the requirements of this section. A |
| 111 | business may submit only one complete application. Space Florida |
| 112 | may not accept an incomplete or placeholder application. Space |
| 113 | Florida may certify only one applicant as eligible for the tax |
| 114 | credits under this section. |
| 115 | (b) An application must contain: |
| 116 | 1. Documentation determined necessary by the applicant or |
| 117 | Space Florida demonstrating the applicant's ability to meet the |
| 118 | requirements of paragraph (4)(b); |
| 119 | 2. Any other information or documentation prescribed by |
| 120 | Space Florida affirmatively demonstrating that the applicant |
| 121 | qualifies for the credit; and |
| 122 | 3. An affidavit certifying that the information contained |
| 123 | in the application is correct. |
| 124 | (c) Upon execution of the agreement, Space Florida shall |
| 125 | issue an order to the qualified applicant and the Department of |
| 126 | Revenue certifying that the applicant is qualified for the tax |
| 127 | credits under this section. Thereafter, Space Florida shall |
| 128 | issue an annual recertification order to the business and the |
| 129 | Department of Revenue. The certified business must attach Space |
| 130 | Florida's most recent order to the tax return on which the |
| 131 | credit is claimed. |
| 132 | (d) Upon execution of the agreement and for each year |
| 133 | during which the business claims a credit on a return, the |
| 134 | business shall submit documentation required by Space Florida |
| 135 | demonstrating activity consistent with the representations in |
| 136 | the application and the requirements set forth in paragraph |
| 137 | (4)(b). The documentation must include an affidavit certifying |
| 138 | that the documentation submitted is correct. |
| 139 | (e) Space Florida shall ensure that the amount of |
| 140 | corporate income tax credits granted in this section does not |
| 141 | exceed the limits provided in this section. |
| 142 | (4) ELIGIBILITY REQUIREMENTS.- |
| 143 | (a) The credit authorized by this section is reserved for |
| 144 | a business that creates an advanced clean energy research and |
| 145 | development project, has entered into a written agreement with |
| 146 | Space Florida, and is certified to be eligible for tax credits |
| 147 | by Space Florida. |
| 148 | (b) Space Florida may not certify a business as eligible |
| 149 | to receive a tax credit under this section unless it determines |
| 150 | that the business's application affirmatively demonstrates that |
| 151 | the applicant agrees: |
| 152 | 1. To incur a liability of at least $50 million to plan, |
| 153 | design, and construct the advanced clean energy research |
| 154 | facility. |
| 155 | 2. To invest at least $20 million on the facility by 2014. |
| 156 | This investment includes the hard and soft costs customarily |
| 157 | associated with the use or acquisition of a site, site design |
| 158 | and preparation, and improvements to identified real property |
| 159 | located within the territory of the John F. Kennedy Space |
| 160 | Center, as well as the customary hard and soft costs associated |
| 161 | with the lease or purchase of depreciable machinery and |
| 162 | equipment, including attendant design services that are directly |
| 163 | related to the project. |
| 164 | 3. That expenditures for the project will be allotted to |
| 165 | Florida vendors whenever feasible. |
| 166 | 4. To enter into a sponsored research and development |
| 167 | agreement for the term of the project which qualifies for |
| 168 | certification pursuant to s. 220.15(2)(c). |
| 169 | 5. That new full-time equivalent employees hired to work |
| 170 | on the project will receive a median hourly wage that is at |
| 171 | least 200 percent of the federal minimum wage. |
| 172 | (5) ADMINISTRATION; AUDIT AUTHORITY; RECAPTURE OF |
| 173 | CREDITS.- |
| 174 | (a) In addition to its existing audit authority, the |
| 175 | Department of Revenue may perform any financial or technical |
| 176 | review or investigation, including examining the accounts, |
| 177 | books, and records of the business, which is necessary to verify |
| 178 | the proper application of credits taken in a tax return and to |
| 179 | ensure compliance with this chapter. |
| 180 | (b) Space Florida may, by order, revoke or modify its |
| 181 | order certifying a business as eligible for a tax credit under |
| 182 | this section, and may also order the forfeiture of all or part |
| 183 | of any previously claimed tax credits or credits available to be |
| 184 | taken if, as the result of an audit, investigation, or |
| 185 | examination, it is proven that information provided by the |
| 186 | business in the application, or in a statement, representation, |
| 187 | record, report, plan, or other document provided to Space |
| 188 | Florida in an attempt to receive tax credits under this section, |
| 189 | was false in a material respect at the time it was submitted and |
| 190 | that a person acting on behalf of the business knew, or should |
| 191 | have known, that the information submitted was false. |
| 192 | (c) Space Florida may, by order, revoke or modify its |
| 193 | order certifying a business as eligible for a tax credit under |
| 194 | this section, and may also order the forfeiture of previously |
| 195 | claimed tax credits or credits available to be taken, if Space |
| 196 | Florida determines that the business has not incurred |
| 197 | liabilities in the amounts or within the period specified in |
| 198 | paragraph (4)(b). If actual expenditures are not made in the |
| 199 | amounts or in the period specified in paragraph (4)(b), Space |
| 200 | Florida may allow the business to provide adequate assurance |
| 201 | that qualifying expenditures will be made within a reasonable |
| 202 | time. Such adequate assurances require the business to provide |
| 203 | proof of financial security to ensure repayment of any |
| 204 | previously claimed tax credit. Until the qualifying expenditures |
| 205 | are made, the business may not claim any tax credits under this |
| 206 | section. The amount of any tax credits forfeited under this |
| 207 | paragraph shall be an amount equal to such proportion as the |
| 208 | required investment bears to the actual investment. |
| 209 | (d) Space Florida must immediately notify the Department |
| 210 | of Revenue of any order affecting a previously authorized tax |
| 211 | credit. A business that is liable for unpaid taxes shall file |
| 212 | with the Department of Revenue an amended return or such other |
| 213 | report as the Department of Revenue prescribes by rule. The |
| 214 | business shall pay any required tax and interest within 60 days |
| 215 | after Space Florida notifies the business that previously |
| 216 | approved credits have been forfeited or modified. If the |
| 217 | forfeiture or modification order is contested, the business |
| 218 | shall file an amended return or other report within 30 days |
| 219 | after the order revoking or forfeiting tax credits becomes |
| 220 | final. A business that is liable for taxes avoided must pay the |
| 221 | tax due plus interest at the rate established under s. 220.807, |
| 222 | computed from the date that tax would have been due if the |
| 223 | credit had not been taken. The taxes and interest are due at the |
| 224 | time the amended return is filed. A business that fails to pay |
| 225 | the taxes and interest by the due date is subject to the |
| 226 | penalties provided in s. 220.803. |
| 227 | (e) The department may issue a notice of deficiency at any |
| 228 | time within 3 years after the business claims a credit or |
| 229 | receives a final order from Space Florida that previously |
| 230 | approved tax credits have been revoked or modified. |
| 231 | (6) RULES.-Space Florida and the department may adopt |
| 232 | rules to administer this section, including rules relating to: |
| 233 | (a) The forms and procedures required to apply for the |
| 234 | credit and to review applications. |
| 235 | (b) The forms required to claim a tax credit under this |
| 236 | section, the requirements and basis for establishing an |
| 237 | entitlement to a credit, and examination and audit procedures |
| 238 | required to administer this section. |
| 239 | Section 2. This act shall take effect July 1, 2010. |