| 1 | A bill to be entitled | 
| 2 | An act relating to entertainment industry economic  | 
| 3 | development; amending s. 288.1254, F.S.; revising the  | 
| 4 | entertainment industry financial incentive program to  | 
| 5 | provide corporate income tax and sales and use tax credits  | 
| 6 | to qualified entertainment entities rather than  | 
| 7 | reimbursements from appropriations; revising provisions  | 
| 8 | relating to definitions, creation and scope, application  | 
| 9 | procedures, approval process, eligibility, required  | 
| 10 | documents, qualified and certified productions, and annual  | 
| 11 | reports; providing duties and responsibilities of the  | 
| 12 | Office of Film and Entertainment, the Office of Tourism,  | 
| 13 | Trade, and Economic Development, and the Department of  | 
| 14 | Revenue relating to the tax credits; providing criteria  | 
| 15 | and limitations for awards of tax credits; providing for  | 
| 16 | uses, allocations, election, distributions, and  | 
| 17 | carryforward of the tax credits; providing for withdrawal  | 
| 18 | of tax credit eligibility; providing for use of  | 
| 19 | consolidated returns; providing for partnership and  | 
| 20 | noncorporate distributions of tax credits; providing for  | 
| 21 | succession of tax credits; providing requirements for  | 
| 22 | transfer of tax credits; authorizing the Office of  | 
| 23 | Tourism, Trade, and Economic Development to adopt rules,  | 
| 24 | policies, and procedures; authorizing the Department of  | 
| 25 | Revenue to adopt rules and conduct audits; providing for  | 
| 26 | revocation and forfeiture of tax credits; providing  | 
| 27 | liability for reimbursement of certain costs and fees  | 
| 28 | associated with a fraudulent claim; requiring an annual  | 
| 29 | report to the Governor and the Legislature; providing for  | 
| 30 | future repeal; amending s. 220.02, F.S.; including tax  | 
| 31 | credits enumerated in s. 288.1254, F.S., in the order of  | 
| 32 | application of credits against certain taxes; amending s.  | 
| 33 | 213.053, F.S.; authorizing the Department of Revenue to  | 
| 34 | provide tax credit information to the Office of Film and  | 
| 35 | Entertainment and the Office of Tourism, Trade, and  | 
| 36 | Economic Development; amending s. 212.08, F.S.; limiting  | 
| 37 | application of the entertainment industry tax credits;  | 
| 38 | requiring electronic funds transfer for the tax credits;  | 
| 39 | providing procedures; providing severability; providing an  | 
| 40 | effective date. | 
| 41 | 
  | 
| 42 | Be It Enacted by the Legislature of the State of Florida: | 
| 43 | 
  | 
| 44 |      Section 1.  Section 288.1254, Florida Statutes, is amended  | 
| 45 | to read: | 
| 46 | (Substantial rewording of section. See | 
| 47 | s. 288.1254, F.S., for present text.) | 
| 48 |      288.1254  Entertainment industry financial incentive  | 
| 49 | program.- | 
| 50 |      (1)  DEFINITIONS.-As used in this section, the term: | 
| 51 |      (a)  "Certified production" means a qualified production  | 
| 52 | that has tax credits allocated to it by the Office of Tourism,  | 
| 53 | Trade, and Economic Development based on the production's  | 
| 54 | estimated qualified expenditures, up to the production's maximum  | 
| 55 | certified amount of tax credits, by the Office of Tourism,  | 
| 56 | Trade, and Economic Development. The term does not include a  | 
| 57 | production if its first day of principal photography in this  | 
| 58 | state occurs before the production is certified by the Office of  | 
| 59 | Tourism, Trade, and Economic Development and does not include a  | 
| 60 | digital media project if its first day of production in this  | 
| 61 | state occurs before certification. | 
| 62 |      (b)  "Digital media project" means a production of  | 
| 63 | interactive entertainment that is produced for distribution in  | 
| 64 | commercial or educational markets. The term includes a video  | 
| 65 | game or production intended for Internet or wireless  | 
| 66 | distribution. The term does not include a production deemed by  | 
| 67 | the Office of Film and Entertainment to contain obscene content  | 
| 68 | as defined in s. 847.001(10). | 
| 69 |      (c)  "High-impact television series" means a production  | 
| 70 | created to run multiple production seasons and having an  | 
| 71 | estimated order of at least seven episodes per season and  | 
| 72 | qualified expenditures of at least $625,000 per episode. | 
| 73 |      (d)  "Off-season certified production" means a production,  | 
| 74 | other than a digital media project or an animated production,  | 
| 75 | commercial, music video, or documentary, which films 75 percent  | 
| 76 | or more of its principal photography days from June 1 through  | 
| 77 | November 30. | 
| 78 |      (e)  "Principal photography" means the filming of major or  | 
| 79 | significant components of the qualified production which involve  | 
| 80 | lead actors. | 
| 81 |      (f)  "Production" means a theatrical or direct-to-video  | 
| 82 | motion picture; a made-for-television motion picture; a  | 
| 83 | commercial; a music video; an industrial or educational film; an  | 
| 84 | infomercial; a documentary film; a television pilot program; a  | 
| 85 | presentation for a television pilot program; a television  | 
| 86 | series, including, but not limited to, a drama, a reality show,  | 
| 87 | a comedy, a soap opera, a telenovela, a game show, or a  | 
| 88 | miniseries production; or a digital media project by the  | 
| 89 | entertainment industry. One season of a television series is  | 
| 90 | considered one production. The term does not include a weather  | 
| 91 | or market program; a sporting event; a sports show; a gala; a  | 
| 92 | production that solicits funds; a home shopping program; a  | 
| 93 | political program; a political documentary; political  | 
| 94 | advertising; a gambling-related project or production; a concert  | 
| 95 | production; or a local, regional, or Internet-distributed-only  | 
| 96 | news show, current-events show, pornographic production, or  | 
| 97 | current-affairs show. A production may be produced on or by  | 
| 98 | film, tape, or otherwise by means of a motion picture camera;  | 
| 99 | electronic camera or device; tape device; computer; any  | 
| 100 | combination of the foregoing; or any other means, method, or  | 
| 101 | device now used or later adopted. | 
| 102 |      (g)  "Production expenditures" means the costs of tangible  | 
| 103 | and intangible property used for, and services performed  | 
| 104 | primarily and customarily in, production, including  | 
| 105 | preproduction and postproduction, but excluding costs for  | 
| 106 | development, marketing, and distribution. The term includes, but  | 
| 107 | is not limited to: | 
| 108 |      1.  Wages, salaries, or other compensation paid to legal  | 
| 109 | residents of this state, including amounts paid through payroll  | 
| 110 | service companies, for technical and production crews,  | 
| 111 | directors, producers, and performers. | 
| 112 |      2.  Expenditures for sound stages, backlots, production  | 
| 113 | editing, digital effects, sound recordings, sets, and set  | 
| 114 | construction. | 
| 115 |      3.  Expenditures for rental equipment, including, but not  | 
| 116 | limited to, cameras and grip or electrical equipment. | 
| 117 |      4.  Up to $300,000 of the costs of newly purchased computer  | 
| 118 | software and hardware unique to the project, including servers,  | 
| 119 | data processing, and visualization technologies, which are  | 
| 120 | located in and used exclusively in the state for the production  | 
| 121 | of digital media. | 
| 122 |      5.  Expenditures for meals, travel, and accommodations. | 
| 123 |      (h)  "Qualified expenditures" means production expenditures  | 
| 124 | incurred in this state by a qualified production for: | 
| 125 |      1.  Goods purchased or leased from, or services, including,  | 
| 126 | but not limited to, insurance costs and bonding, payroll  | 
| 127 | services, and legal fees, which are provided by, a vendor or  | 
| 128 | supplier in this state that is registered with the Department of  | 
| 129 | State or the Department of Revenue and doing business in the  | 
| 130 | state and whose primary employees that facilitated the  | 
| 131 | transaction are legal residents of and employed in this state. | 
| 132 |      2.  Payments to legal residents of this state in the form  | 
| 133 | of salary, wages, or other compensation up to a maximum of  | 
| 134 | $650,000 per resident unless otherwise specified in subsection  | 
| 135 | (4). | 
| 136 |  | 
| 137 | For a qualified production involving an event, such as an awards  | 
| 138 | show, the term does not include expenditures solely associated  | 
| 139 | with the event itself and not directly required by the  | 
| 140 | production. The term does not include expenditures incurred  | 
| 141 | before certification, with the exception of those incurred for  | 
| 142 | the pickup of additional episodes of a high-impact television  | 
| 143 | series within a single season. | 
| 144 |      (i)  "Qualified production" means a production in this  | 
| 145 | state meeting the requirements of this section. The term does  | 
| 146 | not include a production: | 
| 147 |      1.  In which, for the first 2 years, less than 50 percent,  | 
| 148 | and thereafter, less than 60 percent, of the positions that make  | 
| 149 | up its production cast and below-the-line production crew, or,  | 
| 150 | in the case of digital media projects, less than 75 percent of  | 
| 151 | such positions, are filled by legal residents of this state,  | 
| 152 | whose residency is demonstrated by a valid Florida driver's  | 
| 153 | license or other state-issued identification confirming  | 
| 154 | residency, or students enrolled full-time in a film-and- | 
| 155 | entertainment-related course of study at an institution of  | 
| 156 | higher education in this state; or | 
| 157 |      2.  That is deemed by the Office of Film and Entertainment  | 
| 158 | to contain obscene content as defined in s. 847.001(10). | 
| 159 |      (j)  "Qualified production company" means a corporation,  | 
| 160 | limited liability company, partnership, or other legal entity  | 
| 161 | engaged in one or more productions in this state. | 
| 162 |      (2)  CREATION AND PURPOSE OF PROGRAM.-The entertainment  | 
| 163 | industry financial incentive program is created within the  | 
| 164 | Office of Film and Entertainment. The purpose of this program is  | 
| 165 | to encourage the use of this state as a site for filming and to  | 
| 166 | develop and sustain the workforce and infrastructure for film,  | 
| 167 | digital media, and entertainment production. | 
| 168 |      (3)  APPLICATION PROCEDURE; APPROVAL PROCESS.- | 
| 169 |      (a)  Program application.-A qualified production company  | 
| 170 | producing a qualified production in this state may submit a  | 
| 171 | program application to the Office of Film and Entertainment for  | 
| 172 | the purpose of determining qualification for an award of tax  | 
| 173 | credits authorized by this section no earlier than 6 months  | 
| 174 | before the stated principal photography or digital media project  | 
| 175 | start date. The applicant shall provide the Office of Film and  | 
| 176 | Entertainment with information required to determine whether the  | 
| 177 | production is a qualified production and to determine the  | 
| 178 | qualified expenditures and other information necessary for the  | 
| 179 | office to determine eligibility for the tax credit. | 
| 180 |      (b)  Required documentation.-The Office of Film and  | 
| 181 | Entertainment shall develop an application form for qualifying  | 
| 182 | an applicant as a qualified production. The form must include,  | 
| 183 | but need not be limited to, production-related information  | 
| 184 | concerning employment of residents in this state, a detailed  | 
| 185 | budget of planned qualified expenditures, and the applicant's  | 
| 186 | signed affirmation that the information on the form has been  | 
| 187 | verified and is correct. The Office of Film and Entertainment  | 
| 188 | and local film commissions shall distribute the form. | 
| 189 |      (c)  Application process.-The Office of Film and  | 
| 190 | Entertainment shall establish a process by which an application  | 
| 191 | is accepted and reviewed and by which tax credit eligibility and  | 
| 192 | award amount are determined. The Office of Film and  | 
| 193 | Entertainment may request assistance from a duly appointed local  | 
| 194 | film commission in determining compliance with this section. | 
| 195 |      (d)  Certification.-The Office of Film and Entertainment  | 
| 196 | shall review the application within 15 business days after  | 
| 197 | receipt. Upon its determination that the application contains  | 
| 198 | all the information required by this subsection and meets the  | 
| 199 | criteria set out in this section, the Office of Film and  | 
| 200 | Entertainment shall qualify the applicant and recommend to the  | 
| 201 | Office of Tourism, Trade, and Economic Development that the  | 
| 202 | applicant be certified for the maximum tax credit award amount.  | 
| 203 | Within 5 business days after receipt of the recommendation, the  | 
| 204 | Office of Tourism, Trade, and Economic Development shall reject  | 
| 205 | the recommendation or certify the maximum recommended tax credit  | 
| 206 | award, if any, to the applicant and to the executive director of  | 
| 207 | the Department of Revenue. | 
| 208 |      (e)  Grounds for denial.-The Office of Film and  | 
| 209 | Entertainment shall deny an application if it determines that  | 
| 210 | the application is not complete or the production or application  | 
| 211 | does not meet the requirements of this section. | 
| 212 |      (f)  Verification of actual qualified expenditures.- | 
| 213 |      1.  The Office of Film and Entertainment shall develop a  | 
| 214 | process to verify the actual qualified expenditures of a  | 
| 215 | certified production. The process must require: | 
| 216 |      a.  A certified production to submit, in a timely manner  | 
| 217 | after principal photography or the digital media project ends  | 
| 218 | and after making all of its qualified expenditures, data  | 
| 219 | substantiating each qualified expenditure to an independent  | 
| 220 | certified public accountant licensed in this state; | 
| 221 |      b.  Such accountant to conduct a compliance audit, at the  | 
| 222 | certified production's expense, to substantiate each qualified  | 
| 223 | expenditure and submit the results as a report, along with the  | 
| 224 | required substantiating data, to the Office of Film and  | 
| 225 | Entertainment; and | 
| 226 |      c.  The Office of Film and Entertainment to review the  | 
| 227 | accountant's submittal and report to the Office of Tourism,  | 
| 228 | Trade, and Economic Development the final verified amount of  | 
| 229 | actual qualified expenditures made by the certified production. | 
| 230 |      2.  The Office of Tourism, Trade, and Economic Development  | 
| 231 | shall determine and approve the final tax credit award amount to  | 
| 232 | each certified applicant based on the final verified amount of  | 
| 233 | actual qualified expenditures and shall notify the executive  | 
| 234 | director of the Department of Revenue in writing that the  | 
| 235 | certified production has met the requirements of the incentive  | 
| 236 | program and of the final amount of the tax credit award. | 
| 237 |      (g)  Promoting Florida.-The Office of Film and  | 
| 238 | Entertainment shall ensure that, as a condition of receiving a  | 
| 239 | tax credit under this section, marketing materials promoting  | 
| 240 | this state as a tourist destination or film and entertainment  | 
| 241 | production destination are included, when appropriate, at no  | 
| 242 | cost to the state, which must, at a minimum, include placement  | 
| 243 | of a "Filmed in Florida" or "Produced in Florida" logo in the  | 
| 244 | opening credits and end credits and on all packaging material  | 
| 245 | and hard media, unless prohibited by licensing or other  | 
| 246 | contractual obligations. The size and placement of such logo  | 
| 247 | shall be commensurate to other logos used. If no logos are used,  | 
| 248 | the statement "Filmed in Florida using Florida's Entertainment  | 
| 249 | Industry Financial Incentive," or a similar statement approved  | 
| 250 | by the Office of Film and Entertainment, shall be used. The  | 
| 251 | Office of Film and Entertainment shall provide a logo and supply  | 
| 252 | it for the purposes specified in this paragraph. | 
| 253 |      (4)  TAX CREDIT ELIGIBILITY; TAX CREDIT AWARDS; QUEUES;  | 
| 254 | ELECTION AND DISTRIBUTION; CARRYFORWARD; CONSOLIDATED RETURNS;  | 
| 255 | PARTNERSHIP AND NONCORPORATE DISTRIBUTIONS; MERGERS AND  | 
| 256 | ACQUISITIONS.- | 
| 257 |      (a)  Priority for tax credit award.-The priority of a  | 
| 258 | qualified production for tax credit awards must be determined on  | 
| 259 | a first-come, first-served basis within its appropriate queue.  | 
| 260 | Each qualified production must be placed into the appropriate  | 
| 261 | queue and is subject to the requirements of that queue. | 
| 262 |      (b)  Tax credit eligibility.- | 
| 263 |      1.  General production queue.-Ninety-four percent of tax  | 
| 264 | credits authorized in any state fiscal year must be dedicated to  | 
| 265 | the general production queue. A qualified production, excluding  | 
| 266 | a commercial, music video, or independent Florida film, that  | 
| 267 | demonstrates a minimum of $625,000 in qualified expenditures is  | 
| 268 | eligible for tax credits equal to 20 percent of its actual  | 
| 269 | qualified expenditures. | 
| 270 |      a.  An off-season certified production that is a feature  | 
| 271 | film, independent film, commercial, or television series or  | 
| 272 | pilot is eligible for an additional 5-percent tax credit on  | 
| 273 | actual qualified expenditures. An off-season certified  | 
| 274 | production that does not complete 75 percent of principal  | 
| 275 | photography due to a disruption caused by a hurricane or  | 
| 276 | tropical storm may not be disqualified from eligibility for the  | 
| 277 | additional 5-percent credit as a result of the disruption. | 
| 278 |      b.  A qualified high-impact television series shall be  | 
| 279 | allowed first position in this queue for tax credit awards not  | 
| 280 | yet certified. | 
| 281 |      2.  Commercial and music video queue.-Three percent of tax  | 
| 282 | credits authorized in any state fiscal year must be dedicated to  | 
| 283 | the commercial and music video queue. A qualified production  | 
| 284 | company that produces national or regional commercials or music  | 
| 285 | videos may be eligible for a tax credit award if it demonstrates  | 
| 286 | a minimum of $100,000 in qualified expenditures per national or  | 
| 287 | regional commercial or music video and exceeds a combined  | 
| 288 | threshold of $500,000 after combining actual qualified  | 
| 289 | expenditures from qualified commercials and music videos during  | 
| 290 | a single state fiscal year. After a qualified production company  | 
| 291 | that produces commercials, music videos, or both reaches the  | 
| 292 | threshold of $500,000, it is eligible to apply for certification  | 
| 293 | for a tax credit award. The maximum credit award shall be equal  | 
| 294 | to 20 percent of its actual qualified expenditures up to a  | 
| 295 | maximum of $500,000. If there is a surplus of such tax credits  | 
| 296 | remaining after the Office of Film and Entertainment certifies  | 
| 297 | and determines the tax credits for all qualified commercial and  | 
| 298 | video projects for which applications are made within 270 days  | 
| 299 | after the opening of the application process, such surplus tax  | 
| 300 | credits shall be available to any eligible qualified productions  | 
| 301 | under the general production queue. | 
| 302 |      3.  Independent production queue.-Three percent of tax  | 
| 303 | credits authorized in any state fiscal year must be dedicated to  | 
| 304 | the independent production queue. An independent Florida film or  | 
| 305 | digital media project that meets the criteria of this  | 
| 306 | subparagraph and demonstrates a minimum of $100,000, but not  | 
| 307 | more than $625,000, in total qualified expenditures is eligible  | 
| 308 | for tax credits equal to 20 percent of its actual qualified  | 
| 309 | expenditures. To qualify for this tax credit, a qualified  | 
| 310 | production must: | 
| 311 |      a.  Be planned as a feature film or documentary of at least  | 
| 312 | 70 minutes in length. | 
| 313 |      b.  Employ legal residents of this state in at least two of  | 
| 314 | the following key positions: writer, director, producer, star,  | 
| 315 | or composer. | 
| 316 |      4.  Family-friendly productions.-A certified production  | 
| 317 | determined by the Commissioner of Film and Entertainment, with  | 
| 318 | the advice of the Florida Film and Entertainment Advisory  | 
| 319 | Council, to be family-friendly, based on the review of the  | 
| 320 | script and the review of the final release version, is eligible  | 
| 321 | for an additional tax credit equal to 5 percent of its actual  | 
| 322 | qualified expenditures. Family-friendly productions are those  | 
| 323 | that have cross-generational appeal; would be considered  | 
| 324 | suitable for viewing by children age 5 or older; are appropriate  | 
| 325 | in theme, content, and language for a broad family audience;  | 
| 326 | embody a responsible resolution of issues; and do not exhibit or  | 
| 327 | imply any act of smoking, sex, nudity, nontraditional family  | 
| 328 | values, gratuitous violence, or vulgar or profane language. | 
| 329 |      (c)  Withdrawal of tax credit eligibility.-A qualified or  | 
| 330 | certified production must continue on a reasonable schedule,  | 
| 331 | which means beginning principal photography, or, in the case of  | 
| 332 | a digital media project, the start date of the production, in  | 
| 333 | this state no more than 45 calendar days before or after the  | 
| 334 | date provided in the production's program application. The  | 
| 335 | Office of Tourism, Trade, and Economic Development shall  | 
| 336 | withdraw the eligibility of a qualified or certified production  | 
| 337 | that does not continue on a reasonable schedule. | 
| 338 |      (d)  Election and distribution of tax credits.-A certified  | 
| 339 | production company receiving a tax credit award under this  | 
| 340 | section shall, at the time the credit is awarded by the Office  | 
| 341 | of Tourism, Trade, and Economic Development after production is  | 
| 342 | completed and all requirements to receive a credit award have  | 
| 343 | been met, make an irrevocable election to apply the credit  | 
| 344 | against taxes due under chapter 220, against taxes collected or  | 
| 345 | accrued under chapter 212, or against a stated combination of  | 
| 346 | the two taxes. The election is binding upon any distributee,  | 
| 347 | successor, transferee, or purchaser. The Office of Tourism,  | 
| 348 | Trade, and Economic Development shall notify the Department of  | 
| 349 | Revenue of any election made pursuant to this paragraph. | 
| 350 |      (e)  Tax credit carryforward.-If the certified production  | 
| 351 | company cannot use the entire tax credit in the taxable year or  | 
| 352 | reporting period in which the credit is awarded, any excess  | 
| 353 | amount may be carried forward to a succeeding taxable year or  | 
| 354 | reporting period. A tax credit applied against taxes imposed  | 
| 355 | under chapter 212 may be carried forward for a maximum of 5  | 
| 356 | years after the date the credit is awarded. A tax credit applied  | 
| 357 | against taxes imposed under chapter 220 may be carried forward  | 
| 358 | for a maximum of 5 years after the date the credit is awarded,  | 
| 359 | after which the credit expires and may not be used. | 
| 360 |      (f)  Consolidated returns.-A certified production company  | 
| 361 | that files a Florida consolidated return as a member of an  | 
| 362 | affiliated group under s. 220.131(1) may be allowed the credit  | 
| 363 | on a consolidated return basis up to the amount of the tax  | 
| 364 | imposed upon the consolidated group under chapter 220. | 
| 365 |      (g)  Partnership and noncorporate distributions.-A  | 
| 366 | qualified production company that is not a corporation as  | 
| 367 | defined in s. 220.03 may elect to distribute tax credits awarded  | 
| 368 | under this section to its partners or members in proportion to  | 
| 369 | their respective distributive income or loss in the taxable  | 
| 370 | fiscal year in which the tax credits were awarded. | 
| 371 |      (h)  Mergers or acquisitions.-Tax credits available under  | 
| 372 | this section to a certified production company may succeed to a  | 
| 373 | surviving or acquiring entity subject to the same conditions and  | 
| 374 | limitations as described in this section; however, they may not  | 
| 375 | be transferred again by the surviving or acquiring entity. | 
| 376 |      (5)  TRANSFER OF TAX CREDITS.- | 
| 377 |      (a)  Authorization.-Upon application to the Office of Film  | 
| 378 | and Entertainment and approval by the Office of Tourism, Trade,  | 
| 379 | and Economic Development, a certified production company, or a  | 
| 380 | partner or member that has received a distribution under  | 
| 381 | paragraph (4)(g), may elect to transfer, in whole or in part,  | 
| 382 | any unused credit amount granted under this section. An election  | 
| 383 | to transfer any unused tax credit amount under chapter 212 or  | 
| 384 | chapter 220 must be made no later than 5 years after the date  | 
| 385 | the credit is awarded, after which period the credit expires and  | 
| 386 | may not be used. The Office of Tourism, Trade, and Economic  | 
| 387 | Development shall notify the Department of Revenue of the  | 
| 388 | election and transfer. | 
| 389 |      (b)  Number of transfers permitted.-A certified production  | 
| 390 | company that elects to apply a credit amount against taxes  | 
| 391 | remitted under chapter 212 is permitted a one-time transfer of  | 
| 392 | unused credits to one transferee. A certified production company  | 
| 393 | that elects to apply a credit amount against taxes due under  | 
| 394 | chapter 220 is permitted a one-time transfer of unused credits  | 
| 395 | to no more than four transferees, and such transfers must occur  | 
| 396 | in the same taxable year. | 
| 397 |      (c)  Transferee rights and limitations.-The transferee is  | 
| 398 | subject to the same rights and limitations as the certified  | 
| 399 | production company awarded the tax credit, except that the  | 
| 400 | transferee may not sell or otherwise transfer the tax credit. | 
| 401 |      (d)  Rulemaking.-The Department of Revenue may adopt rules  | 
| 402 | to administer this subsection, as provided in subsection (7). | 
| 403 |      (6)  ANNUAL ALLOCATION OF CREDITS.-The aggregate amount of  | 
| 404 | tax credits authorized under this section is $75 million per  | 
| 405 | year. Any unused tax credits at the end of a fiscal year shall  | 
| 406 | be carried forward and made available for award during the  | 
| 407 | following 2 fiscal years. If the total amount of allocated  | 
| 408 | credits applied for in any particular fiscal year exceeds the  | 
| 409 | aggregate amount of credits authorized annually under this  | 
| 410 | section, such excess shall be treated as having been applied for  | 
| 411 | on the first day of the next fiscal year in which credits remain  | 
| 412 | available for allocation. | 
| 413 |      (7)  RULES, POLICIES, AND PROCEDURES.- | 
| 414 |      (a)  The Office of Tourism, Trade, and Economic Development  | 
| 415 | may adopt rules pursuant to ss. 120.536(1) and 120.54 and  | 
| 416 | develop policies and procedures to implement and administer this  | 
| 417 | section, including, but not limited to, rules specifying  | 
| 418 | requirements for the application and approval process, records  | 
| 419 | required for substantiation for tax credits, procedures for  | 
| 420 | making the election in paragraph (4)(d), the manner and form of  | 
| 421 | documentation required to claim tax credits awarded or  | 
| 422 | transferred under this section, and marketing requirements for  | 
| 423 | tax credit recipients. | 
| 424 |      (b)  The Department of Revenue may adopt rules pursuant to  | 
| 425 | ss. 120.536(1) and 120.54 to administer this section, including  | 
| 426 | rules governing the examination and audit procedures required to  | 
| 427 | administer this section and the manner and form of documentation  | 
| 428 | required to claim tax credits awarded or transferred under this  | 
| 429 | section. | 
| 430 |      (8)  AUDIT AUTHORITY; REVOCATION AND FORFEITURE OF TAX  | 
| 431 | CREDITS; FRAUDULENT CLAIMS.- | 
| 432 |      (a)  Audit authority.-The Department of Revenue may conduct  | 
| 433 | examinations and audits as provided in s. 213.34 to verify that  | 
| 434 | tax credits under this section are received, transferred, and  | 
| 435 | applied according to the requirements of this section. If the  | 
| 436 | Department of Revenue determines that tax credits are not  | 
| 437 | received, transferred, or applied as required by this section,  | 
| 438 | it may, in addition to the remedies provided in this subsection,  | 
| 439 | pursue recovery of such funds pursuant to the laws and rules  | 
| 440 | governing the assessment of taxes. | 
| 441 |      (b)  Revocation of tax credits.-The Office of Tourism,  | 
| 442 | Trade, and Economic Development may revoke or modify any written  | 
| 443 | decision qualifying, certifying, or otherwise granting  | 
| 444 | eligibility for tax credits under this section if it is  | 
| 445 | discovered that the tax credit applicant submitted any false  | 
| 446 | statement, representation, or certification in any application,  | 
| 447 | record, report, plan, or other document filed in an attempt to  | 
| 448 | receive tax credits under this section. The Office of Tourism,  | 
| 449 | Trade, and Economic Development shall immediately notify the  | 
| 450 | Department of Revenue of any revoked or modified orders  | 
| 451 | affecting previously granted tax credits. Additionally, the  | 
| 452 | applicant must notify the Department of Revenue of any change in  | 
| 453 | its tax credit claimed. | 
| 454 |      (c)  Forfeiture of tax credits.-A determination by the  | 
| 455 | Department of Revenue, as a result of an audit or examination by  | 
| 456 | the Department of Revenue or from information received from the  | 
| 457 | Office of Film and Entertainment, that an applicant received tax  | 
| 458 | credits pursuant to this section to which the applicant was not  | 
| 459 | entitled is grounds for forfeiture of previously claimed and  | 
| 460 | received tax credits. The applicant is responsible for returning  | 
| 461 | forfeited tax credits to the Department of Revenue, and such  | 
| 462 | funds shall be paid into the General Revenue Fund of the state.  | 
| 463 | Tax credits purchased in good faith are not subject to  | 
| 464 | forfeiture unless the transferee submitted fraudulent  | 
| 465 | information in the purchase or failed to meet the requirements  | 
| 466 | in subsection (5). | 
| 467 |      (d)  Fraudulent claims.-Any applicant that submits  | 
| 468 | fraudulent information under this section is liable for  | 
| 469 | reimbursement of the reasonable costs and fees associated with  | 
| 470 | the review, processing, investigation, and prosecution of the  | 
| 471 | fraudulent claim. An applicant that obtains a credit payment  | 
| 472 | under this section through a claim that is fraudulent is liable  | 
| 473 | for reimbursement of the credit amount plus a penalty in an  | 
| 474 | amount double the credit amount. The penalty is in addition to  | 
| 475 | any criminal penalty to which the applicant is liable for the  | 
| 476 | same acts. The applicant is also liable for costs and fees  | 
| 477 | incurred by the state in investigating and prosecuting the  | 
| 478 | fraudulent claim. | 
| 479 |      (9)  ANNUAL REPORT.-Each October 1, the Office of Film and  | 
| 480 | Entertainment shall provide an annual report for the previous  | 
| 481 | fiscal year to the Governor, the President of the Senate, and  | 
| 482 | the Speaker of the House of Representatives which outlines the  | 
| 483 | return on investment and economic benefits to the state. | 
| 484 |      (10)  REPEAL.-This section is repealed July 1, 2015, except  | 
| 485 | that the tax credit carryforward provided in this section shall  | 
| 486 | continue to be valid for the period specified. | 
| 487 |      Section 2.  Subsection (8) of section 220.02, Florida  | 
| 488 | Statutes, is amended to read: | 
| 489 |      220.02  Legislative intent.- | 
| 490 |      (8)  It is the intent of the Legislature that credits  | 
| 491 | against either the corporate income tax or the franchise tax be  | 
| 492 | applied in the following order: those enumerated in s. 631.828,  | 
| 493 | those enumerated in s. 220.191, those enumerated in s. 220.181,  | 
| 494 | those enumerated in s. 220.183, those enumerated in s. 220.182,  | 
| 495 | those enumerated in s. 220.1895, those enumerated in s. 221.02,  | 
| 496 | those enumerated in s. 220.184, those enumerated in s. 220.186,  | 
| 497 | those enumerated in s. 220.1845, those enumerated in s. 220.19,  | 
| 498 | those enumerated in s. 220.185, those enumerated in s. 220.187,  | 
| 499 | those enumerated in s. 220.192, those enumerated in s. 220.193,  | 
| 500 | and those enumerated in s. 288.9916, and those enumerated in s.  | 
| 501 | 288.1254. | 
| 502 |      Section 3.  Paragraph (z) is added to subsection (8) of  | 
| 503 | section 213.053, Florida Statutes, to read: | 
| 504 |      213.053  Confidentiality and information sharing.- | 
| 505 |      (8)  Notwithstanding any other provision of this section,  | 
| 506 | the department may provide: | 
| 507 |      (z)  Information relative to tax credits taken under s.  | 
| 508 | 288.1254 to the Office of Film and Entertainment and the Office  | 
| 509 | of Tourism, Trade, and Economic Development. | 
| 510 | 
  | 
| 511 | Disclosure of information under this subsection shall be  | 
| 512 | pursuant to a written agreement between the executive director  | 
| 513 | and the agency. Such agencies, governmental or nongovernmental,  | 
| 514 | shall be bound by the same requirements of confidentiality as  | 
| 515 | the Department of Revenue. Breach of confidentiality is a  | 
| 516 | misdemeanor of the first degree, punishable as provided by s.  | 
| 517 | 775.082 or s. 775.083. | 
| 518 |      Section 4.  Paragraph (q) is added to subsection (5) of  | 
| 519 | section 212.08, Florida Statutes, to read: | 
| 520 |      212.08  Sales, rental, use, consumption, distribution, and  | 
| 521 | storage tax; specified exemptions.-The sale at retail, the  | 
| 522 | rental, the use, the consumption, the distribution, and the  | 
| 523 | storage to be used or consumed in this state of the following  | 
| 524 | are hereby specifically exempt from the tax imposed by this  | 
| 525 | chapter. | 
| 526 |      (5)  EXEMPTIONS; ACCOUNT OF USE.- | 
| 527 |      (q)  Entertainment industry tax credit; authorization;  | 
| 528 | eligibility for credits.- | 
| 529 |      1.  For the fiscal years beginning July 1, 2010, and ending  | 
| 530 | June 30, 2015, a qualified production company, as defined in s.  | 
| 531 | 288.1254(1)(j), is eligible for tax credits against its sales  | 
| 532 | and use tax liabilities as provided in s. 288.1254. However, tax  | 
| 533 | credits may not be applied, regardless of when the credits are  | 
| 534 | awarded, to returns filed for any tax period beginning before  | 
| 535 | July 1, 2011. | 
| 536 |      2.  The credit shall be deducted from any sales and use tax  | 
| 537 | remitted by the dealer to the department by electronic funds  | 
| 538 | transfer and may only be deducted on a sales and use tax return  | 
| 539 | initiated through electronic data interchange. The dealer shall  | 
| 540 | separately state the credit on the electronic return. The net  | 
| 541 | amount of tax due and payable must be remitted by electronic  | 
| 542 | funds transfer. If the credit for the qualified expenditures is  | 
| 543 | larger than the amount owed on the sales and use tax return, the  | 
| 544 | amount of the credit may be carried forward to a succeeding  | 
| 545 | reporting period. A dealer may only obtain a credit using the  | 
| 546 | method described in this subparagraph. A dealer is not  | 
| 547 | authorized to obtain a credit by applying for a refund. | 
| 548 |      Section 5.  If any provision of this act or the application  | 
| 549 | thereof to any person or circumstance is held invalid, the  | 
| 550 | invalidity shall not affect other provisions or applications of  | 
| 551 | the act which can be given effect without the invalid provision  | 
| 552 | or application, and to this end the provisions of this act are  | 
| 553 | declared severable. | 
| 554 |      Section 6.  This act shall take effect July 1, 2010. |