HB 1129

A bill to be entitled
2An act relating to stimulating small business growth;
3authorizing a tax credit of a specified amount for
4application against the corporate income tax for certain
5corporations engaging in contractual business
6relationships with certain small businesses; specifying
7eligibility requirements; providing limitations on the use
8of the tax credit; authorizing the Office of Tourism,
9Trade, and Economic Development and the Department of
10Revenue to adopt rules; providing an effective date.
12Be It Enacted by the Legislature of the State of Florida:
14     Section 1.  Corporate tax credit for corporations
15contracting with small businesses.-
16     (1)  A corporation, not including a financial organization
17as defined in s. 220.15(6), Florida Statutes, or a bank, savings
18association, international banking facility, or banking
19organization as defined in s. 220.62, Florida Statutes, doing
20business within this state that employs 300 full-time employees
21in this state and executes a business contract for the provision
22of goods or services with a small business that employs fewer
23than 25 employees is eligible for a tax credit against corporate
24income taxes imposed under s. 220.11, Florida Statutes, if:
25     (a)  The corporation and the small business were not
26engaged in a contractual business relationship before July 1,
28     (b)  The terms of the contract require the corporation to
29pay at least $100,000 to the small business for goods or
30services within 1 year after the date of execution of the
32     (c)  The small business certifies within 60 days after
33execution of the contract to the Office of Tourism, Trade, and
34Economic Development and the Department of Revenue that for the
35purpose of meeting its contractual obligations, it is necessary
36to hire and maintain the employment of at least two additional
37employees until completion of such contractual obligations.
38     (d)  The corporation notifies the Office of Tourism, Trade,
39and Economic Development and the Department of Revenue within 60
40days after execution of the contract that it intends to claim
41the credit authorized under this section against its corporate
42income tax liability under s. 220.11, Florida Statutes.
43     (2)  The corporation may apply 10 percent of the payments
44made to the small business under the terms of the contract
45during the taxable year against its corporate income tax
46liability under s. 220.11, Florida Statutes.
47     (3)  A corporation may not claim a tax credit in excess of
48its corporate income tax liability under s. 220.11, Florida
49Statutes. If the credit granted under this section is not fully
50used in any single year because of insufficient tax liability on
51the part of the corporation, the unused amount may not be
52carried forward or backward.
53     (4)  A tax credit earned under this section may not be sold
54or transferred.
55     (5)  The Office of Tourism, Trade, and Economic Development
56and the Department of Revenue may adopt rules to administer this
58     Section 2.  This act shall take effect July 1, 2011.

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