Florida Senate - 2014                                     SB 474
       
       
        
       By Senator Simpson
       
       
       
       
       
       18-00416-14                                            2014474__
    1                        A bill to be entitled                      
    2         An act relating to the community contribution tax
    3         credit program; amending ss. 212.08, 220.183, and
    4         624.5105, F.S.; postponing the expiration date
    5         applicable to the granting of the community
    6         contribution tax credit against the sales and use tax,
    7         corporate income tax, and insurance premium tax for
    8         contributions and donations to eligible sponsors of
    9         revitalization and housing projects approved by the
   10         Department of Economic Opportunity; providing an
   11         effective date.
   12          
   13  Be It Enacted by the Legislature of the State of Florida:
   14  
   15         Section 1. Paragraph (p) of subsection (5) of section
   16  212.08, Florida Statutes, is amended to read:
   17         212.08 Sales, rental, use, consumption, distribution, and
   18  storage tax; specified exemptions.—The sale at retail, the
   19  rental, the use, the consumption, the distribution, and the
   20  storage to be used or consumed in this state of the following
   21  are hereby specifically exempt from the tax imposed by this
   22  chapter.
   23         (5) EXEMPTIONS; ACCOUNT OF USE.—
   24         (p) Community contribution tax credit for donations.—
   25         1. Authorization.—Persons who are registered with the
   26  department under s. 212.18 to collect or remit sales or use tax
   27  and who make donations to eligible sponsors are eligible for tax
   28  credits against their state sales and use tax liabilities as
   29  provided in this paragraph:
   30         a. The credit shall be computed as 50 percent of the
   31  person’s approved annual community contribution.
   32         b. The credit shall be granted as a refund against state
   33  sales and use taxes reported on returns and remitted in the 12
   34  months preceding the date of application to the department for
   35  the credit as required in sub-subparagraph 3.c. If the annual
   36  credit is not fully used through such refund because of
   37  insufficient tax payments during the applicable 12-month period,
   38  the unused amount may be included in an application for a refund
   39  made pursuant to sub-subparagraph 3.c. in subsequent years
   40  against the total tax payments made for such year. Carryover
   41  credits may be applied for a 3-year period without regard to any
   42  time limitation that would otherwise apply under s. 215.26.
   43         c. A person may not receive more than $200,000 in annual
   44  tax credits for all approved community contributions made in any
   45  one year.
   46         d. All proposals for the granting of the tax credit require
   47  the prior approval of the Department of Economic Opportunity.
   48         e. The total amount of tax credits which may be granted for
   49  all programs approved under this paragraph, s. 220.183, and s.
   50  624.5105 is $10.5 million annually for projects that provide
   51  homeownership opportunities for low-income households or very
   52  low-income households as those terms are defined in s.
   53  420.9071(19) and (28) and $3.5 million annually for all other
   54  projects.
   55         f. A person who is eligible to receive the credit provided
   56  for in this paragraph, s. 220.183, or s. 624.5105 may receive
   57  the credit only under the one section of the person’s choice.
   58         2. Eligibility requirements.—
   59         a. A community contribution by a person must be in the
   60  following form:
   61         (I) Cash or other liquid assets;
   62         (II) Real property;
   63         (III) Goods or inventory; or
   64         (IV) Other physical resources as identified by the
   65  Department of Economic Opportunity.
   66         b. All community contributions must be reserved exclusively
   67  for use in a project. As used in this sub-subparagraph, the term
   68  “project” means any activity undertaken by an eligible sponsor
   69  which is designed to construct, improve, or substantially
   70  rehabilitate housing that is affordable to low-income households
   71  or very-low-income households as those terms are defined in s.
   72  420.9071(19) and (28); designed to provide commercial,
   73  industrial, or public resources and facilities; or designed to
   74  improve entrepreneurial and job-development opportunities for
   75  low-income persons. A project may be the investment necessary to
   76  increase access to high-speed broadband capability in rural
   77  communities with enterprise zones, including projects that
   78  result in improvements to communications assets that are owned
   79  by a business. A project may include the provision of museum
   80  educational programs and materials that are directly related to
   81  a any project approved between January 1, 1996, and December 31,
   82  1999, and located in an enterprise zone designated pursuant to
   83  s. 290.0065. This paragraph does not preclude projects that
   84  propose to construct or rehabilitate housing for low-income
   85  households or very-low-income households on scattered sites.
   86  With respect to housing, contributions may be used to pay the
   87  following eligible low-income and very-low-income housing
   88  related activities:
   89         (I) Project development impact and management fees for low
   90  income or very-low-income housing projects;
   91         (II) Down payment and closing costs for low-income persons
   92  and very-low-income eligible persons, as those terms are defined
   93  in s. 420.9071(19) and (28);
   94         (III) Administrative costs, including housing counseling
   95  and marketing fees, not to exceed 10 percent of the community
   96  contribution, directly related to low-income or very-low-income
   97  projects; and
   98         (IV) Removal of liens recorded against residential property
   99  by municipal, county, or special district local governments if
  100  when satisfaction of the lien is a necessary precedent to the
  101  transfer of the property to a low-income person or very-low-
  102  income an eligible person, as those terms are defined in s.
  103  420.9071(19) and (28), for the purpose of promoting home
  104  ownership. Contributions for lien removal must be received from
  105  a nonrelated third party.
  106         c. The project must be undertaken by an “eligible sponsor,”
  107  which includes:
  108         (I) A community action program;
  109         (II) A nonprofit community-based development organization
  110  whose mission is the provision of housing for low-income
  111  households or very-low-income households or increasing
  112  entrepreneurial and job-development opportunities for low-income
  113  persons;
  114         (III) A neighborhood housing services corporation;
  115         (IV) A local housing authority created under chapter 421;
  116         (V) A community redevelopment agency created under s.
  117  163.356;
  118         (VI) A historic preservation district agency or
  119  organization;
  120         (VII) A regional workforce board;
  121         (VIII) A direct-support organization as provided in s.
  122  1009.983;
  123         (IX) An enterprise zone development agency created under s.
  124  290.0056;
  125         (X) A community-based organization incorporated under
  126  chapter 617 which is recognized as educational, charitable, or
  127  scientific pursuant to s. 501(c)(3) of the Internal Revenue Code
  128  and whose bylaws and articles of incorporation include
  129  affordable housing, economic development, or community
  130  development as the primary mission of the corporation;
  131         (XI) Units of local government;
  132         (XII) Units of state government; or
  133         (XIII) Any other agency that the Department of Economic
  134  Opportunity designates by rule.
  135  
  136  In no event may A contributing person may not have a financial
  137  interest in the eligible sponsor.
  138         d. The project must be located in an area designated an
  139  enterprise zone or a Front Porch Florida Community, unless the
  140  project increases access to high-speed broadband capability for
  141  rural communities that have with enterprise zones but is
  142  physically located outside the designated rural zone boundaries.
  143  Any project designed to construct or rehabilitate housing for
  144  low-income households or very-low-income households as those
  145  terms are defined in s. 420.9071(19) and (28) is exempt from the
  146  area requirement of this sub-subparagraph.
  147         e.(I) If, during the first 10 business days of the state
  148  fiscal year, eligible tax credit applications for projects that
  149  provide homeownership opportunities for low-income households or
  150  very-low-income households as those terms are defined in s.
  151  420.9071(19) and (28) are received for less than the annual tax
  152  credits available for those projects, the Department of Economic
  153  Opportunity shall grant tax credits for those applications and
  154  shall grant remaining tax credits on a first-come, first-served
  155  basis for any subsequent eligible applications received before
  156  the end of the state fiscal year. If, during the first 10
  157  business days of the state fiscal year, eligible tax credit
  158  applications for projects that provide homeownership
  159  opportunities for low-income households or very-low-income
  160  households as those terms are defined in s. 420.9071(19) and
  161  (28) are received for more than the annual tax credits available
  162  for those projects, the Department of Economic Opportunity shall
  163  grant the tax credits for those applications as follows:
  164         (A) If tax credit applications submitted for approved
  165  projects of an eligible sponsor do not exceed $200,000 in total,
  166  the credits shall be granted in full if the tax credit
  167  applications are approved.
  168         (B) If tax credit applications submitted for approved
  169  projects of an eligible sponsor exceed $200,000 in total, the
  170  amount of tax credits granted pursuant to sub-sub-sub
  171  subparagraph (A) shall be subtracted from the amount of
  172  available tax credits, and the remaining credits shall be
  173  granted to each approved tax credit application on a pro rata
  174  basis.
  175         (II) If, during the first 10 business days of the state
  176  fiscal year, eligible tax credit applications for projects other
  177  than those that provide homeownership opportunities for low
  178  income households or very-low-income households as those terms
  179  are defined in s. 420.9071(19) and (28) are received for less
  180  than the annual tax credits available for those projects, the
  181  Department of Economic Opportunity shall grant tax credits for
  182  those applications and shall grant remaining tax credits on a
  183  first-come, first-served basis for any subsequent eligible
  184  applications received before the end of the state fiscal year.
  185  If, during the first 10 business days of the state fiscal year,
  186  eligible tax credit applications for projects other than those
  187  that provide homeownership opportunities for low-income
  188  households or very-low-income households as those terms are
  189  defined in s. 420.9071(19) and (28) are received for more than
  190  the annual tax credits available for those projects, the
  191  Department of Economic Opportunity shall grant the tax credits
  192  for those applications on a pro rata basis.
  193         3. Application requirements.—
  194         a. Any eligible sponsor seeking to participate in this
  195  program must submit a proposal to the Department of Economic
  196  Opportunity which sets forth the name of the sponsor, a
  197  description of the project, and the area in which the project is
  198  located, together with such supporting information as is
  199  prescribed by rule. The proposal must also contain a resolution
  200  from the local governmental unit in which the project is located
  201  certifying that the project is consistent with local plans and
  202  regulations.
  203         b. Any person seeking to participate in this program must
  204  submit an application for tax credit to the Department of
  205  Economic Opportunity which sets forth the name of the sponsor, a
  206  description of the project, and the type, value, and purpose of
  207  the contribution. The sponsor shall verify, in writing, the
  208  terms of the application and indicate its receipt of the
  209  contribution, and such which verification must be in writing and
  210  accompany the application for tax credit. The person must submit
  211  a separate tax credit application to the Department of Economic
  212  Opportunity for each individual contribution that it makes to
  213  each individual project.
  214         c. Any person who has received notification from the
  215  Department of Economic Opportunity that a tax credit has been
  216  approved must apply to the department to receive the refund.
  217  Application must be made on the form prescribed for claiming
  218  refunds of sales and use taxes and be accompanied by a copy of
  219  the notification. A person may submit only one application for
  220  refund to the department within a any 12-month period.
  221         4. Administration.—
  222         a. The Department of Economic Opportunity may adopt rules
  223  pursuant to ss. 120.536(1) and 120.54 necessary to administer
  224  this paragraph, including rules for the approval or disapproval
  225  of proposals by a person.
  226         b. The decision of the Department of Economic Opportunity
  227  must be in writing, and, if approved, the notification shall
  228  state the maximum credit allowable to the person. Upon approval,
  229  the Department of Economic Opportunity shall transmit a copy of
  230  the decision to the department of Revenue.
  231         c. The Department of Economic Opportunity shall
  232  periodically monitor all projects in a manner consistent with
  233  available resources to ensure that resources are used in
  234  accordance with this paragraph; however, each project must be
  235  reviewed at least once every 2 years.
  236         d. The Department of Economic Opportunity shall, in
  237  consultation with the statewide and regional housing and
  238  financial intermediaries, market the availability of the
  239  community contribution tax credit program to community-based
  240  organizations.
  241         5. Expiration.—This paragraph expires June 30, 2025 2015;
  242  however, any accrued credit carryover that is unused on that
  243  date may be used until the expiration of the 3-year carryover
  244  period for such credit.
  245         Section 2. Subsection (5) of section 220.183, Florida
  246  Statutes, is amended to read:
  247         220.183 Community contribution tax credit.—
  248         (5) EXPIRATION.—The provisions of this section, except
  249  paragraph (1)(e), shall expire and are be void on June 30, 2025
  250  2015.
  251         Section 3. Subsection (6) of section 624.5105, Florida
  252  Statutes, is amended to read:
  253         624.5105 Community contribution tax credit; authorization;
  254  limitations; eligibility and application requirements;
  255  administration; definitions; expiration.—
  256         (6) EXPIRATION.—The provisions of this section, except
  257  paragraph (1)(e), shall expire and are be void on June 30, 2025
  258  2015.
  259         Section 4. This act shall take effect upon becoming a law.