HB 679

1	A bill to be entitled
2	An act relating to freight mobility development;
3	providing definitions; providing tax credits of a
4	specified amount relating to increased trade
5	activities at port facilities for use against
6	specifically enumerated taxes for a specified number
7	of tax years; providing eligibility criteria,
8	limitations, conditions, requirements, and
9	prohibitions relating to applying for, approving,
10	calculating, claiming, issuing, recapturing, carrying
11	over, and redeeming such tax credits; providing
12	application; requiring the Department of Economic
13	Opportunity to adopt implementing rules; providing
14	definitions; providing tax credits of a specified
15	amount relating to the achievement of increased cargo
16	volumes by manufacturers that distribute manufactured
17	goods through port facilities; providing for the use
18	of such tax credits against specifically enumerated
19	taxes for a specified number of tax years; providing
20	eligibility criteria, limitations, conditions,
21	requirements, and prohibitions relating to applying
22	for, approving, claiming, calculating, issuing,
23	carrying over, and redeeming such tax credits;
24	providing application; requiring the Department of
25	Economic Opportunity to adopt implementing rules;
26	providing an effective date.
27
28	Be It Enacted by the Legislature of the State of Florida:
29
30	Section 1.  Freight and logistics facility credit.-
31	(1)  DEFINITIONS.-As used in this section, the term:
32	(a)  "Capital investment" means the amount properly
33	chargeable to a capital account for improvements to rehabilitate
34	or expand depreciable real property placed in service during the
35	taxable year and the cost of machinery, tools, and equipment
36	used in a freight and logistics facility directly related to the
37	movement of cargo. The term includes expenditures associated
38	with any exterior, structural, mechanical, or electrical
39	improvements necessary to expand or rehabilitate a building for
40	commercial or industrial use and excavations, grading, paving,
41	driveways, roads, sidewalks, landscaping, or other land
42	improvements. For purposes of this section, machinery, tools,
43	and equipment shall be deemed to include only that property
44	placed in service by the freight and logistics facility on or
45	after January 1, 2013. The term does not include the following:
46	1.  The cost of acquiring any real property or building.
47	2.  The cost of furnishings.
48	3.  Any expenditure associated with appraisal,
49	architectural, engineering, or interior design fees.
50	4.  Loan fees, points, or capitalized interest.
51	5.  Legal, accounting, realtor, sales and marketing, or
52	other professional fees.
53	6.  Closing costs, permit fees, user fees, zoning fees,
54	impact fees, or inspection fees.
55	7.  Bids, insurance, signage, utilities, bonding, copying,
56	rent loss, or temporary facilities' costs incurred during
57	construction.
58	8.  Utility hookup or access fees.
59	9.  Outbuildings.
60	10.  The cost of any well or septic system.
61	(b)  "Freight and logistics facility" means a company that:
62	1.  Is engaged in port-related activities, including, but
63	not limited to, warehousing, distribution, freight forwarding
64	and handling, and goods processing;
65	2.  Uses maritime port facilities as identified in s.
66	311.09, Florida Statutes; and
67	3.  Transports at least 10 percent more cargo, measured in
68	20-foot equivalent marine containers, through maritime port
69	facilities identified in s. 311.09, Florida Statutes, during the
70	taxable year than was transported by the company through such
71	facilities during the previous taxable year.
72	(c)  "New, permanent full-time position" means a job of
73	indefinite duration, created by the company after establishing
74	or expanding a freight and logistics facility in this state,
75	requiring a minimum of 35 hours of employment per week for each
76	employee for the entire normal year of the company's operations,
77	or a position of indefinite duration that requires a minimum of
78	35 hours of employment per week for each employee for the
79	portion of the taxable year in which the employee was initially
80	hired for, or transferred to, the freight and logistics facility
81	in this state. Seasonal or temporary positions, or a job created
82	when a job function is shifted from an existing location in this
83	state to the freight and logistics facility, and positions in
84	building and grounds maintenance, security, and other such
85	positions that are ancillary to the principal activities
86	performed by the employees at the freight and logistics facility
87	do not qualify as new, permanent full-time positions.
88	(d)  "Normal year" means at least 48 weeks in a calendar
89	year.
90	(e)  "Qualified full-time employee" means an employee
91	filling a new, permanent full-time position in an freight and
92	logistics facility in this state.
93	(f)  "Qualified trade activities" means the completed
94	exportation or importation of at least one International
95	Organization for Standardization ocean container, with a minimum
96	20-foot length, through a port facility identified in s. 311.09,
97	Florida Statutes. An export container must be loaded on a barge
98	or ocean-going vessel, and an import container must be
99	discharged from a barge or ocean-going vessel, at such facility.
100	(g)  "Taxable year" means taxable year as defined in s.
101	220.03(1)(y), Florida Statutes.
102	(2)  ELIGIBLE CREDIT AMOUNTS.-
103	(a)  For taxable years beginning on or after January 1,
104	2013, but before January 1, 2017, a taxpayer satisfying the
105	requirements of this section is allowed a credit against the
106	taxes imposed by chapters 199, 201, 212, and 220 and s. 624.509,
107	Florida Statutes. The amount of the credit earned under this
108	section equals:
109	1.  Three thousand dollars per qualified full-time employee
110	that results from increased qualified trade activities by the
111	taxpayer; or
112	2.  Five percent of the capital investment made by the
113	taxpayer to facilitate the increased qualified trade activities.
114
115	The election of which tax credit amount to claim is the
116	responsibility of the taxpayer. Both tax credits may not be
117	claimed for the same activities occurring in a calendar year.
118	The portion of the $3,000 credit earned with respect to any
119	qualified full-time employee who works in this state for less
120	than 12 full months during the applicable taxable year is
121	determined by multiplying the credit amount by a fraction the
122	numerator of which is the number of full months the employee
123	worked for the freight and logistics facility in this state
124	during the applicable taxable year and the denominator of which
125	is 12. A taxpayer is not eligible for more than $500,000 in tax
126	credit for a taxable year.
127	(b)  The Department of Economic Opportunity shall issue the
128	tax credits under this section and may not issue more than $10
129	million in tax credits under this section in any fiscal year. If
130	the amount of tax credits requested under this section for any
131	taxable year exceeds $10 million, the credits shall be allocated
132	proportionately among all qualified taxpayers who requested the
133	credit. The department may not issue tax credits under this
134	section after the fiscal year ending on June 30, 2017. A
135	taxpayer may not claim any tax credit under this section unless
136	the taxpayer has applied to the department for the tax credit
137	and the department has approved the credit. The department shall
138	determine the credit amount allowable for the taxable year and
139	provide a written certification to the taxpayer that specifies
140	the amount of the tax credit approved by the department. The
141	taxpayer must attach the certification to the applicable income
142	tax return.
143	(c)  The taxpayer may carry forward any unused credit
144	amount for the next 10 taxable years.
145	(d)  Credit may not be earned for any employee:
146	1.  For whom a credit was previously earned under this
147	section or s. 288.106, Florida Statutes, by a related party as
148	defined in s. 267(b) of the Internal Revenue Code, as amended,
149	or a trade or business under common control as defined in s.
150	52(b) of the Internal Revenue Code, as amended;
151	2.  Who was previously employed in the same job function in
152	this state by a related party as defined in s. 267(b) of the
153	Internal Revenue Code, as amended, or a trade or business under
154	common control as defined in s. 52(b) of the Internal Revenue
155	Code, as amended;
156	3.  Whose job function was previously performed at a
157	different location in this state by an employee of the taxpayer,
158	by a related party as defined in s. 267(b) of the Internal
159	Revenue Code, as amended, or by a trade or business under common
160	control as defined in s. 52(b) of the Internal Revenue Code, as
161	amended; or
162	4.  Whose job function previously qualified for a credit
163	under this section at a different major business facility that
164	constitutes an employing unit, as defined in s. 443.036, Florida
165	Statutes, on behalf of the taxpayer, by a related party as
166	defined in s. 267(b) of the Internal Revenue Code, as amended,
167	or a trade or business under common control as defined in s.
168	52(b) of the Internal Revenue Code, as amended.
169	(e)  For purposes of this section, the amount of any credit
170	attributable to a partnership, an electing small business
171	corporation (S corporation), or a limited liability company
172	shall be allocated to the individual partners, shareholders, or
173	members, respectively, in proportion to their ownership or
174	interest in such business entities.
175	(f)  For purposes of this section, two or more affiliated
176	companies may elect to aggregate the number of jobs created for
177	qualified full-time employees or the amounts of capital
178	investments as the result of the establishment or expansion by
179	the individual companies in order to qualify for the credit
180	allowed.
181	(g)  Recapture of the credit amount is required, and shall
182	be accomplished by increasing the tax in any of the 5 taxable
183	years after the year in which a credit has been earned under
184	this section, if the number of qualified full-time employees
185	falls below the average number of qualified full-time employees
186	during the taxable year. The tax increase amount shall be
187	determined by:
188	1.  Recalculating the credit that would have been earned
189	for the original taxable year using the decreased number of
190	qualified full-time employees; and
191	2.  Subtracting the recalculated credit amount from the
192	amount previously earned.
193
194	If the average number of qualified full-time employees employed
195	at a freight and logistics facility falls below the number
196	employed by the taxpayer before claiming any credits under this
197	section in any of the 5 taxable years after the year in which
198	the credits were earned, all credits earned with respect to the
199	freight and logistics facility must be recaptured. A credit
200	amount may not be recaptured more than once under this
201	subsection. Any recapture under this subsection shall reduce the
202	credits earned but not yet allowed, and the credits allowed but
203	carried forward, before the taxpayer's tax liability is
204	increased.
205	(3)  ADMINISTRATION.-The Department of Economic Opportunity
206	shall adopt rules that provide the guidelines and forms that are
207	necessary to implement this section, including, but not limited
208	to:
209	(a)  The computation, carryover, and recapture of credits
210	under this section.
211	(b)  The establishment of criteria to determine eligibility
212	for credits under this section, including, but not limited to,
213	the identification of freight and logistics facilities,
214	qualified full-time employees at such facilities, and capital
215	investments.
216	(c)  The computation, carryover, recapture, and redemption
217	of credits under this section by affiliated companies.
218	Section 2.  Port volume increase credit.-
219	(1)  DEFINITIONS.-As used in this section, the term:
220	(a)  "Base year port cargo volume" means the total amount
221	of net tons of noncontainerized cargo or TEUs of cargo actually
222	transported by way of a waterborne ship or vehicle through a
223	port facility identified in s. 311.09, Florida Statutes, during
224	the period from January 1, 2011, through December 31, 2011. Base
225	year port cargo volume must be at least 75 net tons of
226	noncontainerized cargo or 10 loaded TEUs for a taxpayer to be
227	eligible for the credits provided under this section. For a
228	taxpayer that did not ship that amount in the year ending
229	December 31, 2011, including a taxpayer who locates in this
230	after December 31, 2011, its base cargo volume shall be measured
231	by the initial January 1 through December 31 calendar year in
232	which it meets the requirements of 75 net tons of
233	noncontainerized cargo or 10 loaded TEUs. Base year port cargo
234	volume must be recalculated each calendar year after the initial
235	base year.
236	(b)  "Major facility" means a new facility to be located in
237	this state that is projected to import or export cargo through a
238	port identified in s. 311.09, Florida Statutes, in excess of
239	25,000 TEUs in its first calendar year.
240	(c)  "Port cargo volume" means the total amount of net tons
241	of noncontainerized cargo or containers measured in TEUs of
242	cargo transported by way of a waterborne ship or vehicle through
243	a port facility.
244	(d)  "Port facility" means any publicly or privately owned
245	facility located on a port identified in s. 311.09, Florida
246	Statutes, through which cargo is transported by way of a
247	waterborne ship or vehicle to or from destinations outside this
248	state and which handles cargo owned by third parties in addition
249	to cargo owned by the port facility's owner.
250	(e)  "Taxable year" means taxable year as defined in s.
251	220.03(1)(y), Florida Statutes.
252	(f)  "TEU" or "20-foot equivalent unit" means a volumetric
253	measure based on the size of a container that is 20 feet long by
254	8 feet wide by 8 feet, 6 inches high.
255	(2)  ELIGIBLE CREDIT AMOUNTS.-
256	(a)  For taxable years beginning on or after January 1,
257	2013, but before January 1, 2018, a taxpayer engaged in the
258	manufacturing of goods or the distribution of manufactured goods
259	that uses port facilities in this state and increases its port
260	cargo volume at these facilities by a minimum of 10 percent in a
261	single calendar year over its base year port cargo volume is
262	eligible to claim a credit against the taxes imposed by chapters
263	199, 201, 212, and 220 and s. 624.509, Florida Statutes, in an
264	amount determined by the Department of Economic Opportunity. The
265	department may waive the requirement that port cargo volume be
266	increased by a minimum of 10 percent over base year port cargo
267	volume for any taxpayer that qualifies as a major facility.
268	(b)  Qualifying taxpayers that increase their port cargo
269	volume by a minimum of 10 percent in a qualifying calendar year
270	shall receive a $50 credit against the taxes imposed by chapters
271	199, 201, 212, and 220 and s. 624.509, Florida Statutes, for
272	each TEU above the base year port cargo volume. A qualifying
273	taxpayer that is a major facility shall receive a $50 credit
274	against such taxes for each TEU transported through a port
275	facility during the major facility's first calendar year. A
276	qualifying taxpayer may not receive more than $250,000 in tax
277	credits for a taxable year. The maximum amount of credits
278	allowed for all qualifying taxpayers under this section may not
279	exceed $5 million for any fiscal year. The department shall
280	allocate the credits in accordance with subsection (3).
281	(c)  If the credit exceeds the taxpayer's tax liability for
282	the taxable year, the excess amount may be carried forward and
283	claimed against eligible taxes in the next 5 succeeding taxable
284	years.
285	(d)  The credit may be claimed by the taxpayer as provided
286	in this subsection only if the taxpayer owns the cargo at the
287	time the port facilities are used.
288	(3)  ADMINISTRATION.-
289	(a)  For every taxable year in which a taxpayer claims the
290	credit, the taxpayer must submit an application to the
291	Department of Economic Opportunity by March 1 of the calendar
292	year after the calendar year in which the increase in port cargo
293	volume occurs. The taxpayer must attach a schedule to the
294	taxpayer's application to the department with the following
295	information and any other information requested by the
296	department:
297	1.  A description of how the base year port cargo volume
298	and the increase in port cargo volume were determined.
299	2.  The amount of the base year port cargo volume.
300	3.  The amount of the increase in port cargo volume for the
301	taxable year stated both as a percentage increase and as a total
302	increase in net tons of noncontainerized cargo or TEUs of cargo,
303	including information that demonstrates an increase in port
304	cargo volume in excess of the minimum amount required to claim
305	the tax credits under this section.
306	4.  Any tax credit under this section used by the taxpayer
307	in previous years.
308	5.  The amount of tax credits under this section carried
309	over from previous years.
310	(b)  If on March 15 of each year the cumulative amount of
311	tax credits requested under this section for the previous year
312	exceeds $5 million, the credits shall be allocated
313	proportionately among the qualifying taxpayers who requested the
314	credit.
315	(c)  The amount of any credit attributable to a
316	partnership, an electing small business corporation (S
317	corporation), or a limited liability company shall be allocated
318	to the individual partners, shareholders, or members,
319	respectively, in proportion to their ownership or interest in
320	such business entities.
321	(d)  The Department of Economic Opportunity shall adopt
322	rules that provide for the necessary guidelines and forms to
323	implement this section, including, but not limited to:
324	1.  The computation and carryover of credits under this
325	section.
326	2.  The establishment of criteria to determine eligibility
327	for credits under this section.
328	3.  The computation, carryover, and redemption of credits
329	under this section by affiliated companies.
330	Section 3.  This act shall take effect July 1, 2012.

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