| 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 or project  | 
| 58 | start date in this state occurs before the production is  | 
| 59 | certified by the Office of Tourism, Trade, and Economic  | 
| 60 | Development, unless the production spans more than one fiscal  | 
| 61 | year, was a certified production on its first day of principal  | 
| 62 | photography or project start date in this state, and submits an  | 
| 63 | application for continuing the same production for the  | 
| 64 | subsequent fiscal year. | 
| 65 |      (b)  "Digital media project" means a production of  | 
| 66 | interactive entertainment that is produced for distribution in  | 
| 67 | commercial or educational markets. The term includes a video  | 
| 68 | game or production intended for Internet or wireless  | 
| 69 | distribution. The term does not include a production deemed by  | 
| 70 | the Office of Film and Entertainment to contain obscene content  | 
| 71 | as defined in s. 847.001(10). | 
| 72 |      (c)  "High-impact television series" means a production  | 
| 73 | created to run multiple production seasons and having an  | 
| 74 | estimated order of at least seven episodes per season and  | 
| 75 | qualified expenditures of at least $625,000 per episode. | 
| 76 |      (d)  "Off-season certified production" means a feature  | 
| 77 | film, independent film, or television series or pilot which  | 
| 78 | films 75 percent or more of its principal photography days from  | 
| 79 | June 1 through November 30. | 
| 80 |      (e)  "Principal photography" means the filming of major or  | 
| 81 | significant components of the qualified production which involve  | 
| 82 | lead actors. | 
| 83 |      (f)  "Production" means a theatrical or direct-to-video  | 
| 84 | motion picture; a made-for-television motion picture; visual  | 
| 85 | effects or digital animation sequences produced in conjunction  | 
| 86 | with a motion picture; a commercial; a music video; an  | 
| 87 | industrial or educational film; an infomercial; a documentary  | 
| 88 | film; a television pilot program; a presentation for a  | 
| 89 | television pilot program; a television series, including, but  | 
| 90 | not limited to, a drama, a reality show, a comedy, a soap opera,  | 
| 91 | a telenovela, a game show, an awards show, or a miniseries  | 
| 92 | production; or a digital media project by the entertainment  | 
| 93 | industry. One season of a television series is considered one  | 
| 94 | production. The term does not include a weather or market  | 
| 95 | program; a sporting event; a sports show; a gala; a production  | 
| 96 | that solicits funds; a home shopping program; a political  | 
| 97 | program; a political documentary; political advertising; a  | 
| 98 | gambling-related project or production; a concert production; or  | 
| 99 | a local, regional, or Internet-distributed-only news show,  | 
| 100 | current-events show, pornographic production, or current-affairs  | 
| 101 | show. A production may be produced on or by film, tape, or  | 
| 102 | otherwise by means of a motion picture camera; electronic camera  | 
| 103 | or device; tape device; computer; any combination of the  | 
| 104 | foregoing; or any other means, method, or device now used or  | 
| 105 | later adopted. | 
| 106 |      (g)  "Production expenditures" means the costs of tangible  | 
| 107 | and intangible property used for, and services performed  | 
| 108 | primarily and customarily in, production, including  | 
| 109 | preproduction and postproduction, but excluding costs for  | 
| 110 | development, marketing, and distribution. The term includes, but  | 
| 111 | is not limited to: | 
| 112 |      1.  Wages, salaries, or other compensation paid to legal  | 
| 113 | residents of this state, including amounts paid through payroll  | 
| 114 | service companies, for technical and production crews,  | 
| 115 | directors, producers, and performers. | 
| 116 |      2.  Expenditures for sound stages, backlots, production  | 
| 117 | editing, digital effects, sound recordings, sets, and set  | 
| 118 | construction. | 
| 119 |      3.  Expenditures for rental equipment, including, but not  | 
| 120 | limited to, cameras and grip or electrical equipment. | 
| 121 |      4.  Up to $300,000 of the costs of newly purchased computer  | 
| 122 | software and hardware unique to the project, including servers,  | 
| 123 | data processing, and visualization technologies, which are  | 
| 124 | located in and used exclusively in the state for the production  | 
| 125 | of digital media. | 
| 126 |      5.  Expenditures for meals, travel, and accommodations. | 
| 127 |      (h)  "Qualified expenditures" means production expenditures  | 
| 128 | incurred in this state by a qualified production for: | 
| 129 |      1.  Goods purchased or leased from, or services, including,  | 
| 130 | but not limited to, insurance costs and bonding, payroll  | 
| 131 | services, and legal fees, which are provided by, a vendor or  | 
| 132 | supplier in this state that is registered with the Department of  | 
| 133 | State or the Department of Revenue and has a physical location  | 
| 134 | in this state at which one or more legal Florida residents are  | 
| 135 | employed. | 
| 136 |      2.  Payments to legal residents of this state in the form  | 
| 137 | of salary, wages, or other compensation up to a maximum of  | 
| 138 | $650,000 per resident unless otherwise specified in subsection  | 
| 139 | (4). | 
| 140 | 
  | 
| 141 | For a qualified production involving an event, such as an awards  | 
| 142 | show, the term does not include expenditures solely associated  | 
| 143 | with the event itself and not directly required by the  | 
| 144 | production. The term does not include expenditures incurred  | 
| 145 | before certification, with the exception of those incurred for a  | 
| 146 | commercial, a music video, or the pickup of additional episodes  | 
| 147 | of a high-impact television series within a single season. | 
| 148 |      (i)  "Qualified production" means a production in this  | 
| 149 | state meeting the requirements of this section. The term does  | 
| 150 | not include a production: | 
| 151 |      1.  In which, for the first 2 years of the incentive  | 
| 152 | program, less than 50 percent, and thereafter, less than 60  | 
| 153 | percent, of the positions that make up its production cast and  | 
| 154 | below-the-line production crew, or, in the case of digital media  | 
| 155 | projects, less than 75 percent of such positions, are filled by  | 
| 156 | legal residents of this state, whose residency is demonstrated  | 
| 157 | by a valid Florida driver's license or other state-issued  | 
| 158 | identification confirming residency, or students enrolled full- | 
| 159 | time in a film-and-entertainment-related course of study at an  | 
| 160 | institution of higher education in this state; or | 
| 161 |      2.  That is deemed by the Office of Film and Entertainment  | 
| 162 | to contain obscene content as defined in s. 847.001(10). | 
| 163 |      (j)  "Qualified production company" means a corporation,  | 
| 164 | limited liability company, partnership, or other legal entity  | 
| 165 | engaged in one or more productions in this state. | 
| 166 |      (2)  CREATION AND PURPOSE OF PROGRAM.-The entertainment  | 
| 167 | industry financial incentive program is created within the  | 
| 168 | Office of Film and Entertainment. The purpose of this program is  | 
| 169 | to encourage the use of this state as a site for filming, for  | 
| 170 | the digital production of films, and to develop and sustain the  | 
| 171 | workforce and infrastructure for film, digital media, and  | 
| 172 | entertainment production. | 
| 173 |      (3)  APPLICATION PROCEDURE; APPROVAL PROCESS.- | 
| 174 |      (a)  Program application.-A qualified production company  | 
| 175 | producing a qualified production in this state may submit a  | 
| 176 | program application to the Office of Film and Entertainment for  | 
| 177 | the purpose of determining qualification for an award of tax  | 
| 178 | credits authorized by this section no earlier than 180 days  | 
| 179 | before the first date that production expenditures are incurred  | 
| 180 | in this state. The applicant shall provide the Office of Film  | 
| 181 | and Entertainment with information required to determine whether  | 
| 182 | the production is a qualified production and to determine the  | 
| 183 | qualified expenditures and other information necessary for the  | 
| 184 | office to determine eligibility for the tax credit. | 
| 185 |      (b)  Required documentation.-The Office of Film and  | 
| 186 | Entertainment shall develop an application form for qualifying  | 
| 187 | an applicant as a qualified production. The form must include,  | 
| 188 | but need not be limited to, production-related information  | 
| 189 | concerning employment of residents in this state, a detailed  | 
| 190 | budget of planned qualified expenditures, and the applicant's  | 
| 191 | signed affirmation that the information on the form has been  | 
| 192 | verified and is correct. The Office of Film and Entertainment  | 
| 193 | and local film commissions shall distribute the form. | 
| 194 |      (c)  Application process.-The Office of Film and  | 
| 195 | Entertainment shall establish a process by which an application  | 
| 196 | is accepted and reviewed and by which tax credit eligibility and  | 
| 197 | award amount are determined. The Office of Film and  | 
| 198 | Entertainment may request assistance from a duly appointed local  | 
| 199 | film commission in determining compliance with this section. | 
| 200 |      (d)  Certification.-The Office of Film and Entertainment  | 
| 201 | shall review the application within 15 business days after  | 
| 202 | receipt. Upon its determination that the application contains  | 
| 203 | all the information required by this subsection and meets the  | 
| 204 | criteria set out in this section, the Office of Film and  | 
| 205 | Entertainment shall qualify the applicant and recommend to the  | 
| 206 | Office of Tourism, Trade, and Economic Development that the  | 
| 207 | applicant be certified for the maximum tax credit award amount.  | 
| 208 | Within 5 business days after receipt of the recommendation, the  | 
| 209 | Office of Tourism, Trade, and Economic Development shall reject  | 
| 210 | the recommendation or certify the maximum recommended tax credit  | 
| 211 | award, if any, to the applicant and to the executive director of  | 
| 212 | the Department of Revenue. | 
| 213 |      (e)  Grounds for denial.-The Office of Film and  | 
| 214 | Entertainment shall deny an application if it determines that  | 
| 215 | the application is not complete or the production or application  | 
| 216 | does not meet the requirements of this section. | 
| 217 |      (f)  Verification of actual qualified expenditures.- | 
| 218 |      1.  The Office of Film and Entertainment shall develop a  | 
| 219 | process to verify the actual qualified expenditures of a  | 
| 220 | certified production. The process must require: | 
| 221 |      a.  A certified production to submit, in a timely manner  | 
| 222 | after production ends in this state and after making all of its  | 
| 223 | qualified expenditures in this state, data substantiating each  | 
| 224 | qualified expenditure to an independent certified public  | 
| 225 | accountant licensed in this state; | 
| 226 |      b.  Such accountant to conduct a compliance audit, at the  | 
| 227 | certified production's expense, to substantiate each qualified  | 
| 228 | expenditure and submit the results as a report, along with the  | 
| 229 | required substantiating data, to the Office of Film and  | 
| 230 | Entertainment; and | 
| 231 |      c.  The Office of Film and Entertainment to review the  | 
| 232 | accountant's submittal and report to the Office of Tourism,  | 
| 233 | Trade, and Economic Development the final verified amount of  | 
| 234 | actual qualified expenditures made by the certified production. | 
| 235 |      2.  The Office of Tourism, Trade, and Economic Development  | 
| 236 | shall determine and approve the final tax credit award amount to  | 
| 237 | each certified applicant based on the final verified amount of  | 
| 238 | actual qualified expenditures and shall notify the executive  | 
| 239 | director of the Department of Revenue in writing that the  | 
| 240 | certified production has met the requirements of the incentive  | 
| 241 | program and of the final amount of the tax credit award. The  | 
| 242 | final tax credit award amount may not exceed the maximum tax  | 
| 243 | credit award amount certified under paragraph (d). | 
| 244 |      (g)  Promoting Florida.-The Office of Film and  | 
| 245 | Entertainment shall ensure that, as a condition of receiving a  | 
| 246 | tax credit under this section, marketing materials promoting  | 
| 247 | this state as a tourist destination or film and entertainment  | 
| 248 | production destination are included, when appropriate, at no  | 
| 249 | cost to the state, which must, at a minimum, include placement  | 
| 250 | of a "Filmed in Florida" or "Produced in Florida" logo in the  | 
| 251 | end credits. The placement of a "Filmed in Florida" or "Produced  | 
| 252 | in Florida" logo on all packaging material and hard media is  | 
| 253 | also required, unless such placement is prohibited by licensing  | 
| 254 | or other contractual obligations. The size and placement of such  | 
| 255 | logo shall be commensurate to other logos used. If no logos are  | 
| 256 | used, the statement "Filmed in Florida using Florida's  | 
| 257 | Entertainment Industry Financial Incentive," or a similar  | 
| 258 | statement approved by the Office of Film and Entertainment,  | 
| 259 | shall be used. The Office of Film and Entertainment shall  | 
| 260 | provide a logo and supply it for the purposes specified in this  | 
| 261 | paragraph. A 30-second "Visit Florida" promotional video must  | 
| 262 | also be included on all optical disc formats of a film, unless  | 
| 263 | such placement is prohibited by licensing or other contractual  | 
| 264 | obligations. The 30-second promotional video shall be approved  | 
| 265 | and provided by the Florida Tourism Industry Marketing  | 
| 266 | Corporation in consultation with the Commissioner of Film and  | 
| 267 | Entertainment. | 
| 268 |      (4)  TAX CREDIT ELIGIBILITY; TAX CREDIT AWARDS; QUEUES;  | 
| 269 | ELECTION AND DISTRIBUTION; CARRYFORWARD; CONSOLIDATED RETURNS;  | 
| 270 | PARTNERSHIP AND NONCORPORATE DISTRIBUTIONS; MERGERS AND  | 
| 271 | ACQUISITIONS.- | 
| 272 |      (a)  Priority for tax credit award.-The priority of a  | 
| 273 | qualified production for tax credit awards must be determined on  | 
| 274 | a first-come, first-served basis within its appropriate queue.  | 
| 275 | Each qualified production must be placed into the appropriate  | 
| 276 | queue and is subject to the requirements of that queue. | 
| 277 |      (b)  Tax credit eligibility.- | 
| 278 |      1.  General production queue.-Ninety-four percent of tax  | 
| 279 | credits authorized in any state fiscal year must be dedicated to  | 
| 280 | the general production queue. The general production queue  | 
| 281 | consists of all qualified productions other than those eligible  | 
| 282 | for the commercial and music video queue or the independent and  | 
| 283 | emerging media production queue. A qualified production that  | 
| 284 | demonstrates a minimum of $625,000 in qualified expenditures is  | 
| 285 | eligible for tax credits equal to 20 percent of its actual  | 
| 286 | qualified expenditures, up to a maximum of $8 million. A  | 
| 287 | qualified production that incurs qualified expenditures during  | 
| 288 | multiple state fiscal years may combine those expenditures to  | 
| 289 | satisfy the $625,000 minimum threshold. | 
| 290 |      a.  An off-season certified production that is a feature  | 
| 291 | film, independent film, or television series or pilot is  | 
| 292 | eligible for an additional 5-percent tax credit on actual  | 
| 293 | qualified expenditures. An off-season certified production that  | 
| 294 | does not complete 75 percent of principal photography due to a  | 
| 295 | disruption caused by a hurricane or tropical storm may not be  | 
| 296 | disqualified from eligibility for the additional 5-percent  | 
| 297 | credit as a result of the disruption. | 
| 298 |      b.  A qualified high-impact television series shall be  | 
| 299 | allowed first position in this queue for tax credit awards not  | 
| 300 | yet certified. | 
| 301 |      2.  Commercial and music video queue.-Three percent of tax  | 
| 302 | credits authorized in any state fiscal year must be dedicated to  | 
| 303 | the commercial and music video queue. A qualified production  | 
| 304 | company that produces national or regional commercials or music  | 
| 305 | videos may be eligible for a tax credit award if it demonstrates  | 
| 306 | a minimum of $100,000 in qualified expenditures per national or  | 
| 307 | regional commercial or music video and exceeds a combined  | 
| 308 | threshold of $500,000 after combining actual qualified  | 
| 309 | expenditures from qualified commercials and music videos during  | 
| 310 | a single state fiscal year. After a qualified production company  | 
| 311 | that produces commercials, music videos, or both reaches the  | 
| 312 | threshold of $500,000, it is eligible to apply for certification  | 
| 313 | for a tax credit award. The maximum credit award shall be equal  | 
| 314 | to 20 percent of its actual qualified expenditures up to a  | 
| 315 | maximum of $500,000. If there is a surplus at the end of a  | 
| 316 | fiscal year after the Office of Film and Entertainment certifies  | 
| 317 | and determines the tax credits for all qualified commercial and  | 
| 318 | video projects, such surplus tax credits shall be carried  | 
| 319 | forward to the following fiscal year and be available to any  | 
| 320 | eligible qualified productions under the general production  | 
| 321 | queue. | 
| 322 |      3.  Independent and emerging media production queue.-Three  | 
| 323 | percent of tax credits authorized in any state fiscal year must  | 
| 324 | be dedicated to the independent and emerging media production  | 
| 325 | queue. This queue is intended to encourage Florida independent  | 
| 326 | film and emerging media production as described in paragraph  | 
| 327 | (1)(f). Any qualified production, excluding commercials,  | 
| 328 | infomercials, or music videos, that demonstrates at least  | 
| 329 | $100,000, but not more than $625,000, in total qualified  | 
| 330 | expenditures is eligible for tax credits equal to 20 percent of  | 
| 331 | its actual qualified expenditures. If a surplus exists at the  | 
| 332 | end of a fiscal year after the Office of Film and Entertainment  | 
| 333 | certifies and determines the tax credits for all qualified  | 
| 334 | independent and emerging media production projects, such surplus  | 
| 335 | tax credits shall be carried forward to the following fiscal  | 
| 336 | year and be available to any eligible qualified productions  | 
| 337 | under the general production queue. | 
| 338 |      4.  Family-friendly productions.-A certified theatrical or  | 
| 339 | direct-to-video motion picture production or video game  | 
| 340 | determined by the Commissioner of Film and Entertainment, with  | 
| 341 | the advice of the Florida Film and Entertainment Advisory  | 
| 342 | Council, to be family-friendly, based on the review of the  | 
| 343 | script and the review of the final release version, is eligible  | 
| 344 | for an additional tax credit equal to 5 percent of its actual  | 
| 345 | qualified expenditures. Family-friendly productions are those  | 
| 346 | that have cross-generational appeal; would be considered  | 
| 347 | suitable for viewing by children age 5 or older; do not contain  | 
| 348 | any theme, language, nudity, sex, violence, or other matter that  | 
| 349 | would offend the parent of a 5-year-old child that views the  | 
| 350 | motion picture or game; are appropriate in theme, content, and  | 
| 351 | language for a broad family audience; embody a responsible  | 
| 352 | resolution of issues; and do not exhibit or imply any act of  | 
| 353 | smoking, sex, nudity, gratuitous violence, or vulgar or profane  | 
| 354 | language. | 
| 355 |      (c)  Withdrawal of tax credit eligibility.-A qualified or  | 
| 356 | certified production must continue on a reasonable schedule,  | 
| 357 | which includes beginning principal photography or the production  | 
| 358 | project in this state no more than 45 calendar days before or  | 
| 359 | after the principal photography or project start date provided  | 
| 360 | in the production's program application. The Office of Tourism,  | 
| 361 | Trade, and Economic Development shall withdraw the eligibility  | 
| 362 | of a qualified or certified production that does not continue on  | 
| 363 | a reasonable schedule. | 
| 364 |      (d)  Election and distribution of tax credits.- | 
| 365 |      1.  A certified production company receiving a tax credit  | 
| 366 | award under this section shall, at the time the credit is  | 
| 367 | awarded by the Office of Tourism, Trade, and Economic  | 
| 368 | Development after production is completed and all requirements  | 
| 369 | to receive a credit award have been met, make an irrevocable  | 
| 370 | election to apply the credit against taxes due under chapter  | 
| 371 | 220, against taxes collected or accrued under chapter 212, or  | 
| 372 | against a stated combination of the two taxes, except that the  | 
| 373 | credit authorized under this section may not be applied against  | 
| 374 | discretionary sales surtaxes authorized under s. 212.055. The  | 
| 375 | election is binding upon any distributee, successor, transferee,  | 
| 376 | or purchaser. The Office of Tourism, Trade, and Economic  | 
| 377 | Development shall notify the Department of Revenue of any  | 
| 378 | election made pursuant to this paragraph. | 
| 379 |      2.  For the fiscal years beginning July 1, 2010, and ending  | 
| 380 | June 30, 2015, a qualified production company is eligible for  | 
| 381 | tax credits against its sales and use tax liabilities and  | 
| 382 | corporate income tax liabilities as provided in this section.  | 
| 383 | However, tax credits awarded under this section may not be  | 
| 384 | claimed against sales and use tax liabilities or corporate  | 
| 385 | income tax liabilities for any tax period beginning before July  | 
| 386 | 1, 2011, regardless of when the credits are applied for or  | 
| 387 | awarded. | 
| 388 |      (e)  Tax credit carryforward.-If the certified production  | 
| 389 | company cannot use the entire tax credit in the taxable year or  | 
| 390 | reporting period in which the credit is awarded, any excess  | 
| 391 | amount may be carried forward to a succeeding taxable year or  | 
| 392 | reporting period. A tax credit applied against taxes imposed  | 
| 393 | under chapter 212 may be carried forward for a maximum of 5  | 
| 394 | years after the date the credit is awarded. A tax credit applied  | 
| 395 | against taxes imposed under chapter 220 may be carried forward  | 
| 396 | for a maximum of 5 years after the date the credit is awarded,  | 
| 397 | after which the credit expires and may not be used. | 
| 398 |      (f)  Consolidated returns.-A certified production company  | 
| 399 | that files a Florida consolidated return as a member of an  | 
| 400 | affiliated group under s. 220.131(1) may be allowed the credit  | 
| 401 | on a consolidated return basis up to the amount of the tax  | 
| 402 | imposed upon the consolidated group under chapter 220. | 
| 403 |      (g)  Partnership and noncorporate distributions.-A  | 
| 404 | qualified production company that is not a corporation as  | 
| 405 | defined in s. 220.03 may elect to distribute tax credits awarded  | 
| 406 | under this section to its partners or members in proportion to  | 
| 407 | their respective distributive income or loss in the taxable  | 
| 408 | fiscal year in which the tax credits were awarded. | 
| 409 |      (h)  Mergers or acquisitions.-Tax credits available under  | 
| 410 | this section to a certified production company may succeed to a  | 
| 411 | surviving or acquiring entity subject to the same conditions and  | 
| 412 | limitations as described in this section; however, they may not  | 
| 413 | be transferred again by the surviving or acquiring entity. | 
| 414 |      (5)  TRANSFER OF TAX CREDITS.- | 
| 415 |      (a)  Authorization.-Upon application to the Office of Film  | 
| 416 | and Entertainment and approval by the Office of Tourism, Trade,  | 
| 417 | and Economic Development, a certified production company, or a  | 
| 418 | partner or member that has received a distribution under  | 
| 419 | paragraph (4)(g), may elect to transfer, in whole or in part,  | 
| 420 | any unused credit amount granted under this section. An election  | 
| 421 | to transfer any unused tax credit amount under chapter 212 or  | 
| 422 | chapter 220 must be made no later than 5 years after the date  | 
| 423 | the credit is awarded, after which period the credit expires and  | 
| 424 | may not be used. The Office of Tourism, Trade, and Economic  | 
| 425 | Development shall notify the Department of Revenue of the  | 
| 426 | election and transfer. | 
| 427 |      (b)  Number of transfers permitted.-A certified production  | 
| 428 | company that elects to apply a credit amount against taxes  | 
| 429 | remitted under chapter 212 is permitted a one-time transfer of  | 
| 430 | unused credits to one transferee. A certified production company  | 
| 431 | that elects to apply a credit amount against taxes due under  | 
| 432 | chapter 220 is permitted a one-time transfer of unused credits  | 
| 433 | to no more than four transferees, and such transfers must occur  | 
| 434 | in the same taxable year. | 
| 435 |      (c)  Transferee rights and limitations.-The transferee is  | 
| 436 | subject to the same rights and limitations as the certified  | 
| 437 | production company awarded the tax credit, except that the  | 
| 438 | transferee may not sell or otherwise transfer the tax credit. | 
| 439 |      (d)  Rulemaking.-The Department of Revenue may adopt rules  | 
| 440 | to administer this subsection, as provided in subsection (7). | 
| 441 |      (6)  ANNUAL ALLOCATION OF TAX CREDITS.- | 
| 442 |      (a)  The aggregate amount of the tax credits that may be  | 
| 443 | certified pursuant to paragraph (3)(d) may not exceed: | 
| 444 |      1.  For fiscal year 2010-2011, $55 million. | 
| 445 |      2.  For fiscal year 2011-2012, $50 million. | 
| 446 |      3.  For fiscal years 2012-2013, 2013-2014, and 2014-2015,  | 
| 447 | $27 million per fiscal year. | 
| 448 |      (b)  Any portion of the maximum amount of tax credits  | 
| 449 | established per fiscal year in paragraph (a) that is not  | 
| 450 | certified as of the end of a fiscal year shall be carried  | 
| 451 | forward and made available for certification during the  | 
| 452 | following two fiscal years in addition to the amounts available  | 
| 453 | for certification under paragraph (a) for those fiscal years. | 
| 454 |      (c)  Upon approval of the final tax credit award amount  | 
| 455 | pursuant to subparagraph (3)(f)2., an amount equal to the  | 
| 456 | difference between the maximum tax credit award amount  | 
| 457 | previously certified under paragraph (3)(d) and the approved  | 
| 458 | final tax credit award amount shall immediately be available for  | 
| 459 | recertification during the current and following fiscal years in  | 
| 460 | addition to the amounts available for certification under  | 
| 461 | paragraph (a) for those fiscal years. | 
| 462 |      (d)  Notwithstanding paragraph (a), if, during a fiscal  | 
| 463 | year, the total amount of credits applied for, pursuant to  | 
| 464 | paragraph (3)(a), exceeds the amount of credits available for  | 
| 465 | certification in that fiscal year, such excess shall be treated  | 
| 466 | as having been applied for on the first day of the next fiscal  | 
| 467 | year in which credits remain available for certification. | 
| 468 |      (7)  RULES, POLICIES, AND PROCEDURES.- | 
| 469 |      (a)  The Office of Tourism, Trade, and Economic Development  | 
| 470 | may adopt rules pursuant to ss. 120.536(1) and 120.54 and  | 
| 471 | develop policies and procedures to implement and administer this  | 
| 472 | section, including, but not limited to, rules specifying  | 
| 473 | requirements for the application and approval process, records  | 
| 474 | required for substantiation for tax credits, procedures for  | 
| 475 | making the election in paragraph (4)(d), the manner and form of  | 
| 476 | documentation required to claim tax credits awarded or  | 
| 477 | transferred under this section, and marketing requirements for  | 
| 478 | tax credit recipients. | 
| 479 |      (b)  The Department of Revenue may adopt rules pursuant to  | 
| 480 | ss. 120.536(1) and 120.54 to administer this section, including  | 
| 481 | rules governing the examination and audit procedures required to  | 
| 482 | administer this section and the manner and form of documentation  | 
| 483 | required to claim tax credits awarded or transferred under this  | 
| 484 | section. | 
| 485 |      (8)  AUDIT AUTHORITY; REVOCATION AND FORFEITURE OF TAX  | 
| 486 | CREDITS; FRAUDULENT CLAIMS.- | 
| 487 |      (a)  Audit authority.-The Department of Revenue may conduct  | 
| 488 | examinations and audits as provided in s. 213.34 to verify that  | 
| 489 | tax credits under this section are received, transferred, and  | 
| 490 | applied according to the requirements of this section. If the  | 
| 491 | Department of Revenue determines that tax credits are not  | 
| 492 | received, transferred, or applied as required by this section,  | 
| 493 | it may, in addition to the remedies provided in this subsection,  | 
| 494 | pursue recovery of such funds pursuant to the laws and rules  | 
| 495 | governing the assessment of taxes. | 
| 496 |      (b)  Revocation of tax credits.-The Office of Tourism,  | 
| 497 | Trade, and Economic Development may revoke or modify any written  | 
| 498 | decision qualifying, certifying, or otherwise granting  | 
| 499 | eligibility for tax credits under this section if it is  | 
| 500 | discovered that the tax credit applicant submitted any false  | 
| 501 | statement, representation, or certification in any application,  | 
| 502 | record, report, plan, or other document filed in an attempt to  | 
| 503 | receive tax credits under this section. The Office of Tourism,  | 
| 504 | Trade, and Economic Development shall immediately notify the  | 
| 505 | Department of Revenue of any revoked or modified orders  | 
| 506 | affecting previously granted tax credits. Additionally, the  | 
| 507 | applicant must notify the Department of Revenue of any change in  | 
| 508 | its tax credit claimed. | 
| 509 |      (c)  Forfeiture of tax credits.-A determination by the  | 
| 510 | Department of Revenue, as a result of an audit pursuant to  | 
| 511 | paragraph (a) or from information received from the Office of  | 
| 512 | Film and Entertainment, that an applicant received tax credits  | 
| 513 | pursuant to this section to which the applicant was not entitled  | 
| 514 | is grounds for forfeiture of previously claimed and received tax  | 
| 515 | credits. The applicant is responsible for returning forfeited  | 
| 516 | tax credits to the Department of Revenue, and such funds shall  | 
| 517 | be paid into the General Revenue Fund of the state. Tax credits  | 
| 518 | purchased in good faith are not subject to forfeiture unless the  | 
| 519 | transferee submitted fraudulent information in the purchase or  | 
| 520 | failed to meet the requirements in subsection (5). | 
| 521 |      (d)  Fraudulent claims.-Any applicant that submits  | 
| 522 | fraudulent information under this section is liable for  | 
| 523 | reimbursement of the reasonable costs and fees associated with  | 
| 524 | the review, processing, investigation, and prosecution of the  | 
| 525 | fraudulent claim. An applicant that obtains a credit payment  | 
| 526 | under this section through a claim that is fraudulent is liable  | 
| 527 | for reimbursement of the credit amount plus a penalty in an  | 
| 528 | amount double the credit amount. The penalty is in addition to  | 
| 529 | any criminal penalty to which the applicant is liable for the  | 
| 530 | same acts. The applicant is also liable for costs and fees  | 
| 531 | incurred by the state in investigating and prosecuting the  | 
| 532 | fraudulent claim. | 
| 533 |      (9)  ANNUAL REPORT.-Each October 1, the Office of Film and  | 
| 534 | Entertainment shall provide an annual report for the previous  | 
| 535 | fiscal year to the Governor, the President of the Senate, and  | 
| 536 | the Speaker of the House of Representatives which outlines the  | 
| 537 | return on investment and economic benefits to the state. | 
| 538 |      (10)  REPEAL.-This section is repealed July 1, 2015, except  | 
| 539 | that the tax credit carryforward provided in this section shall  | 
| 540 | continue to be valid for the period specified. | 
| 541 |      Section 2.  Subsection (8) of section 220.02, Florida  | 
| 542 | Statutes, is amended to read: | 
| 543 |      220.02  Legislative intent.- | 
| 544 |      (8)  It is the intent of the Legislature that credits  | 
| 545 | against either the corporate income tax or the franchise tax be  | 
| 546 | applied in the following order: those enumerated in s. 631.828,  | 
| 547 | those enumerated in s. 220.191, those enumerated in s. 220.181,  | 
| 548 | those enumerated in s. 220.183, those enumerated in s. 220.182,  | 
| 549 | those enumerated in s. 220.1895, those enumerated in s. 221.02,  | 
| 550 | those enumerated in s. 220.184, those enumerated in s. 220.186,  | 
| 551 | those enumerated in s. 220.1845, those enumerated in s. 220.19,  | 
| 552 | those enumerated in s. 220.185, those enumerated in s. 220.187,  | 
| 553 | those enumerated in s. 220.192, those enumerated in s. 220.193,  | 
| 554 | and those enumerated in s. 288.9916, and those enumerated in s.  | 
| 555 | 288.1254. | 
| 556 |      Section 3.  Paragraph (z) is added to subsection (8) of  | 
| 557 | section 213.053, Florida Statutes, to read: | 
| 558 |      213.053  Confidentiality and information sharing.- | 
| 559 |      (8)  Notwithstanding any other provision of this section,  | 
| 560 | the department may provide: | 
| 561 |      (z)  Information relative to tax credits taken under s.  | 
| 562 | 288.1254 to the Office of Film and Entertainment and the Office  | 
| 563 | of Tourism, Trade, and Economic Development. | 
| 564 | 
  | 
| 565 | Disclosure of information under this subsection shall be  | 
| 566 | pursuant to a written agreement between the executive director  | 
| 567 | and the agency. Such agencies, governmental or nongovernmental,  | 
| 568 | shall be bound by the same requirements of confidentiality as  | 
| 569 | the Department of Revenue. Breach of confidentiality is a  | 
| 570 | misdemeanor of the first degree, punishable as provided by s.  | 
| 571 | 775.082 or s. 775.083. | 
| 572 |      Section 4.  Paragraph (q) is added to subsection (5) of  | 
| 573 | section 212.08, Florida Statutes, to read: | 
| 574 |      212.08  Sales, rental, use, consumption, distribution, and  | 
| 575 | storage tax; specified exemptions.-The sale at retail, the  | 
| 576 | rental, the use, the consumption, the distribution, and the  | 
| 577 | storage to be used or consumed in this state of the following  | 
| 578 | are hereby specifically exempt from the tax imposed by this  | 
| 579 | chapter. | 
| 580 |      (5)  EXEMPTIONS; ACCOUNT OF USE.- | 
| 581 |      (q)  Entertainment industry tax credit; authorization;  | 
| 582 | eligibility for credits.-The credit shall be deducted from any  | 
| 583 | sales and use tax remitted by the dealer to the department by  | 
| 584 | electronic funds transfer and may only be deducted on a sales  | 
| 585 | and use tax return initiated through electronic data  | 
| 586 | interchange. The dealer shall separately state the credit on the  | 
| 587 | electronic return. The net amount of tax due and payable must be  | 
| 588 | remitted by electronic funds transfer. If the credit for the  | 
| 589 | qualified expenditures is larger than the amount owed on the  | 
| 590 | sales and use tax return that is eligible for the credit, the  | 
| 591 | unused amount of the credit may be carried forward to a  | 
| 592 | succeeding reporting period as provided in s. 288.1254(4)(e). A  | 
| 593 | dealer may only obtain a credit using the method described in  | 
| 594 | this subparagraph. A dealer is not authorized to obtain a credit  | 
| 595 | by applying for a refund. | 
| 596 |      Section 5.  If any provision of this act or the application  | 
| 597 | thereof to any person or circumstance is held invalid, the  | 
| 598 | invalidity shall not affect other provisions or applications of  | 
| 599 | the act which can be given effect without the invalid provision  | 
| 600 | or application, and to this end the provisions of this act are  | 
| 601 | declared severable. | 
| 602 |      Section 6.  This act shall take effect July 1, 2010. |