Florida Senate - 2015 SB 1556
By Senator Montford
3-01004-15 20151556__
1 A bill to be entitled
2 An act relating to economic development; amending s.
3 212.08, F.S.; deleting individual limits on the
4 amounts of sales tax refunds authorized for the
5 purchase of building materials used in the
6 rehabilitation of real property located in an
7 enterprise zone or for the purchase of business
8 property used by businesses in an enterprise zone;
9 providing cumulative annual limits on these sales tax
10 refunds; deleting the scheduled expiration of these
11 sales tax refunds and of a sales tax exemption for
12 charges for electrical energy used by certain
13 qualified businesses in an enterprise zone, to conform
14 to changes made by the act; amending s. 212.098, F.S.,
15 relating to the Rural Job Tax Credit Program; revising
16 definitions; authorizing Enterprise Florida, Inc., to
17 make recommendations regarding industrial
18 classifications used to determine an eligible
19 business; providing an exception for certain employees
20 to remain qualified employees; revising the amount of
21 tax credits per employee that eligible businesses may
22 receive; providing an additional tax credit per
23 employee for an eligible business located within a
24 rural area of opportunity; authorizing an ad valorem
25 tax reimbursement for eligible businesses whose tax
26 credits exceed their corporate income tax liability;
27 authorizing sales tax refunds for eligible businesses
28 for specified amounts of sales tax paid for
29 electricity; providing cumulative annual limits on
30 these sales tax refunds; authorizing the Department of
31 Revenue to adopt rules; amending s. 288.018, F.S.,
32 relating to the Regional Rural Development Grants
33 Program; authorizing the Department of Economic
34 Opportunity to determine the amount of nonstate
35 resources that must be used annually for matching
36 grants; amending s. 288.0655, F.S.; revising the
37 maximum percentage of total infrastructure project
38 costs for which the department may award grants;
39 revising requirements for eligible projects and uses
40 of funds; creating a program to provide funding for
41 speculative building construction in rural counties;
42 limiting the amount of grants for these rural
43 infrastructure projects; authorizing the department to
44 adopt rules; amending s. 288.106, F.S., relating to a
45 tax refund program for target industry businesses;
46 revising definitions; removing a limitation on
47 specified tax refunds; exempting qualified target
48 industry businesses located in a rural area of
49 opportunity from a reduction in specified tax refund
50 amounts when local financial support is less than a
51 specified amount; requiring regionally based economic
52 development organizations, in consultation with the
53 department and Enterprise Florida, Inc., to develop
54 target industry businesses specific to the rural area
55 of economic opportunity; authorizing businesses in a
56 rural area of opportunity to apply for waiver of
57 certain criteria; repealing s. 290.016, F.S., relating
58 to the scheduled repeal of the Florida Enterprise Zone
59 Act; amending ss. 166.231, 193.077, 193.085, 195.073,
60 195.099, 196.012, 205.022, 205.054, 212.02, 212.096,
61 220.02, 220.03, 220.13, 220.181, and 220.182, F.S.;
62 conforming provisions to changes made by the act;
63 providing an effective date.
64
65 Be It Enacted by the Legislature of the State of Florida:
66
67 Section 1. Paragraphs (g) and (h) of subsection (5) and
68 subsection (15) of section 212.08, Florida Statutes, are amended
69 to read:
70 212.08 Sales, rental, use, consumption, distribution, and
71 storage tax; specified exemptions.—The sale at retail, the
72 rental, the use, the consumption, the distribution, and the
73 storage to be used or consumed in this state of the following
74 are hereby specifically exempt from the tax imposed by this
75 chapter.
76 (5) EXEMPTIONS; ACCOUNT OF USE.—
77 (g) Building materials used in the rehabilitation of real
78 property located in an enterprise zone.—
79 1. Building materials used in the rehabilitation of real
80 property located in an enterprise zone are exempt from the tax
81 imposed by this chapter upon an affirmative showing to the
82 satisfaction of the department that the items have been used for
83 the rehabilitation of real property located in an enterprise
84 zone. Except as provided in subparagraph 2., this exemption
85 inures to the owner, lessee, or lessor at the time the real
86 property is rehabilitated, but only through a refund of
87 previously paid taxes. To receive a refund pursuant to this
88 paragraph, the owner, lessee, or lessor of the rehabilitated
89 real property must file an application under oath with the
90 governing body or enterprise zone development agency having
91 jurisdiction over the enterprise zone where the business is
92 located, as applicable. A single application for a refund may be
93 submitted for multiple, contiguous parcels that were part of a
94 single parcel that was divided as part of the rehabilitation of
95 the property. All other requirements of this paragraph apply to
96 each parcel on an individual basis. The application must
97 include:
98 a. The name and address of the person claiming the refund.
99 b. An address and assessment roll parcel number of the
100 rehabilitated real property for which a refund of previously
101 paid taxes is being sought.
102 c. A description of the improvements made to accomplish the
103 rehabilitation of the real property.
104 d. A copy of a valid building permit issued by the county
105 or municipal building department for the rehabilitation of the
106 real property.
107 e. A sworn statement, under penalty of perjury, from the
108 general contractor licensed in this state with whom the
109 applicant contracted to make the improvements necessary to
110 rehabilitate the real property, which lists the building
111 materials used to rehabilitate the real property, the actual
112 cost of the building materials, and the amount of sales tax paid
113 in this state on the building materials. If a general contractor
114 was not used, the applicant, not a general contractor, shall
115 make the sworn statement required by this sub-subparagraph.
116 Copies of the invoices that evidence the purchase of the
117 building materials used in the rehabilitation and the payment of
118 sales tax on the building materials must be attached to the
119 sworn statement provided by the general contractor or by the
120 applicant. Unless the actual cost of building materials used in
121 the rehabilitation of real property and the payment of sales
122 taxes is documented by a general contractor or by the applicant
123 in this manner, the cost of the building materials is deemed to
124 be an amount equal to 40 percent of the increase in assessed
125 value for ad valorem tax purposes.
126 f. The identifying number assigned pursuant to s. 290.0065
127 to the enterprise zone in which the rehabilitated real property
128 is located.
129 g. A certification by the local building code inspector
130 that the improvements necessary to rehabilitate the real
131 property are substantially completed.
132 h. A statement of whether the business is a small business
133 as defined by s. 288.703.
134 i. If applicable, the name and address of each permanent
135 employee of the business, including, for each employee who is a
136 resident of an enterprise zone, the identifying number assigned
137 pursuant to s. 290.0065 to the enterprise zone in which the
138 employee resides.
139 2. This exemption inures to a municipality, county, other
140 governmental unit or agency, or nonprofit community-based
141 organization through a refund of previously paid taxes if the
142 building materials used in the rehabilitation are paid for from
143 the funds of a community development block grant, State Housing
144 Initiatives Partnership Program, or similar grant or loan
145 program. To receive a refund, a municipality, county, other
146 governmental unit or agency, or nonprofit community-based
147 organization must file an application that includes the same
148 information required in subparagraph 1. In addition, the
149 application must include a sworn statement signed by the chief
150 executive officer of the municipality, county, other
151 governmental unit or agency, or nonprofit community-based
152 organization seeking a refund which states that the building
153 materials for which a refund is sought were funded by a
154 community development block grant, State Housing Initiatives
155 Partnership Program, or similar grant or loan program.
156 3. Within 10 working days after receipt of an application,
157 the governing body or enterprise zone development agency shall
158 review the application to determine if it contains all the
159 information required by subparagraph 1. or subparagraph 2. and
160 meets the criteria set out in this paragraph. The governing body
161 or agency shall certify all applications that contain the
162 required information and are eligible to receive a refund. If
163 applicable, the governing body or agency shall also certify if
164 20 percent of the employees of the business are residents of an
165 enterprise zone, excluding temporary and part-time employees.
166 The certification must be in writing, and a copy of the
167 certification shall be transmitted to the executive director of
168 the department. The applicant is responsible for forwarding a
169 certified application to the department within the time
170 specified in subparagraph 4.
171 4. An application for a refund must be submitted to the
172 department within 6 months after the rehabilitation of the
173 property is deemed to be substantially completed by the local
174 building code inspector or by November 1 after the rehabilitated
175 property is first subject to assessment.
176 5. Only one exemption through a refund of previously paid
177 taxes for the rehabilitation of real property is permitted for
178 any single parcel of property unless there is a change in
179 ownership, a new lessor, or a new lessee of the real property. A
180 refund may not be granted unless the amount to be refunded
181 exceeds $500. Refunds may not exceed $15 million annually. A
182 refund may not exceed the lesser of 97 percent of the Florida
183 sales or use tax paid on the cost of the building materials used
184 in the rehabilitation of the real property as determined
185 pursuant to sub-subparagraph 1.e. or $5,000, or, if at least 20
186 percent of the employees of the business are residents of an
187 enterprise zone, excluding temporary and part-time employees,
188 the amount of refund may not exceed the lesser of 97 percent of
189 the sales tax paid on the cost of the building materials or
190 $10,000. A refund shall be made within 30 days after formal
191 approval by the department of the application for the refund.
192 6. The department shall adopt rules governing the manner
193 and form of refund applications and may establish guidelines as
194 to the requisites for an affirmative showing of qualification
195 for exemption under this paragraph.
196 7. The department shall deduct an amount equal to 10
197 percent of each refund granted under this paragraph from the
198 amount transferred into the Local Government Half-cent Sales Tax
199 Clearing Trust Fund pursuant to s. 212.20 for the county area in
200 which the rehabilitated real property is located and shall
201 transfer that amount to the General Revenue Fund.
202 8. For the purposes of the exemption provided in this
203 paragraph, the term:
204 a. “Building materials” means tangible personal property
205 that becomes a component part of improvements to real property.
206 b. “Real property” has the same meaning as provided in s.
207 192.001(12), except that the term does not include a condominium
208 parcel or condominium property as defined in s. 718.103.
209 c. “Rehabilitation of real property” means the
210 reconstruction, renovation, restoration, rehabilitation,
211 construction, or expansion of improvements to real property.
212 d. “Substantially completed” has the same meaning as
213 provided in s. 192.042(1).
214 9. This paragraph expires on the date specified in s.
215 290.016 for the expiration of the Florida Enterprise Zone Act.
216 (h) Business property used in an enterprise zone.—
217 1. Business property purchased for use by businesses
218 located in an enterprise zone which is subsequently used in an
219 enterprise zone shall be exempt from the tax imposed by this
220 chapter. This exemption inures to the business only through a
221 refund of previously paid taxes. A refund shall be authorized
222 upon an affirmative showing by the taxpayer to the satisfaction
223 of the department that the requirements of this paragraph have
224 been met.
225 2. To receive a refund, the business must file under oath
226 with the governing body or enterprise zone development agency
227 having jurisdiction over the enterprise zone where the business
228 is located, as applicable, an application which includes:
229 a. The name and address of the business claiming the
230 refund.
231 b. The identifying number assigned pursuant to s. 290.0065
232 to the enterprise zone in which the business is located.
233 c. A specific description of the property for which a
234 refund is sought, including its serial number or other permanent
235 identification number.
236 d. The location of the property.
237 e. The sales invoice or other proof of purchase of the
238 property, showing the amount of sales tax paid, the date of
239 purchase, and the name and address of the sales tax dealer from
240 whom the property was purchased.
241 f. Whether the business is a small business as defined by
242 s. 288.703.
243 g. If applicable, the name and address of each permanent
244 employee of the business, including, for each employee who is a
245 resident of an enterprise zone, the identifying number assigned
246 pursuant to s. 290.0065 to the enterprise zone in which the
247 employee resides.
248 3. Within 10 working days after receipt of an application,
249 the governing body or enterprise zone development agency shall
250 review the application to determine if it contains all the
251 information required pursuant to subparagraph 2. and meets the
252 criteria set out in this paragraph. The governing body or agency
253 shall certify all applications that contain the information
254 required pursuant to subparagraph 2. and meet the criteria set
255 out in this paragraph as eligible to receive a refund. If
256 applicable, the governing body or agency shall also certify if
257 20 percent of the employees of the business are residents of an
258 enterprise zone, excluding temporary and part-time employees.
259 The certification shall be in writing, and a copy of the
260 certification shall be transmitted to the executive director of
261 the Department of Revenue. The business shall be responsible for
262 forwarding a certified application to the department within the
263 time specified in subparagraph 4.
264 4. An application for a refund pursuant to this paragraph
265 must be submitted to the department within 6 months after the
266 tax is due on the business property that is purchased.
267 5. The amount refunded on purchases of business property
268 under this paragraph may not exceed $15 million annually shall
269 be the lesser of 97 percent of the sales tax paid on such
270 business property or $5,000, or, if no less than 20 percent of
271 the employees of the business are residents of an enterprise
272 zone, excluding temporary and part-time employees, the amount
273 refunded on purchases of business property under this paragraph
274 shall be the lesser of 97 percent of the sales tax paid on such
275 business property or $10,000. A refund approved pursuant to this
276 paragraph shall be made within 30 days after formal approval by
277 the department of the application for the refund. A refund may
278 not be granted under this paragraph unless the amount to be
279 refunded exceeds $100 in sales tax paid on purchases made within
280 a 60-day time period.
281 6. The department shall adopt rules governing the manner
282 and form of refund applications and may establish guidelines as
283 to the requisites for an affirmative showing of qualification
284 for exemption under this paragraph.
285 7. If the department determines that the business property
286 is used outside an enterprise zone within 3 years from the date
287 of purchase, the amount of taxes refunded to the business
288 purchasing such business property shall immediately be due and
289 payable to the department by the business, together with the
290 appropriate interest and penalty, computed from the date of
291 purchase, in the manner provided by this chapter.
292 Notwithstanding this subparagraph, business property used
293 exclusively in:
294 a. Licensed commercial fishing vessels,
295 b. Fishing guide boats, or
296 c. Ecotourism guide boats
297
298 that leave and return to a fixed location within an area
299 designated under s. 379.2353, Florida Statutes 2010, are
300 eligible for the exemption provided under this paragraph if all
301 requirements of this paragraph are met. Such vessels and boats
302 must be owned by a business that is eligible to receive the
303 exemption provided under this paragraph. This exemption does not
304 apply to the purchase of a vessel or boat.
305 8. The department shall deduct an amount equal to 10
306 percent of each refund granted under this paragraph from the
307 amount transferred into the Local Government Half-cent Sales Tax
308 Clearing Trust Fund pursuant to s. 212.20 for the county area in
309 which the business property is located and shall transfer that
310 amount to the General Revenue Fund.
311 9. For the purposes of this exemption, “business property”
312 means new or used property defined as “recovery property” in s.
313 168(c) of the Internal Revenue Code of 1954, as amended, except:
314 a. Property classified as 3-year property under s.
315 168(c)(2)(A) of the Internal Revenue Code of 1954, as amended;
316 b. Industrial machinery and equipment as defined in sub
317 subparagraph (b)6.a. and eligible for exemption under paragraph
318 (b);
319 c. Building materials as defined in sub-subparagraph
320 (g)8.a.; and
321 d. Business property having a sales price of under $5,000
322 per unit.
323 10. This paragraph expires on the date specified in s.
324 290.016 for the expiration of the Florida Enterprise Zone Act.
325 (15) ELECTRICAL ENERGY USED IN AN ENTERPRISE ZONE.—
326 (a) Beginning July 1, 1995, charges for electrical energy
327 used by a qualified business at a fixed location in an
328 enterprise zone in a municipality which has enacted an ordinance
329 pursuant to s. 166.231(8) which provides for exemption of
330 municipal utility taxes on such businesses or in an enterprise
331 zone jointly authorized by a county and a municipality which has
332 enacted an ordinance pursuant to s. 166.231(8) which provides
333 for exemption of municipal utility taxes on such businesses
334 shall receive an exemption equal to 50 percent of the tax
335 imposed by this chapter, or, if no less than 20 percent of the
336 employees of the business are residents of an enterprise zone,
337 excluding temporary and part-time employees, the exemption shall
338 be equal to 100 percent of the tax imposed by this chapter. A
339 qualified business may receive such exemption for a period of 5
340 years from the billing period beginning not more than 30 days
341 following notification to the applicable utility company by the
342 department that an exemption has been authorized pursuant to
343 this subsection and s. 166.231(8).
344 (b) To receive this exemption, a business must file an
345 application, with the enterprise zone development agency having
346 jurisdiction over the enterprise zone where the business is
347 located, on a form provided by the department for the purposes
348 of this subsection and s. 166.231(8). The application shall be
349 made under oath and shall include:
350 1. The name and location of the business.
351 2. The identifying number assigned pursuant to s. 290.0065
352 to the enterprise zone in which the business is located.
353 3. The date on which electrical service is to be first
354 initiated to the business.
355 4. The name and mailing address of the entity from which
356 electrical energy is to be purchased.
357 5. The date of the application.
358 6. The name of the city in which the business is located.
359 7. If applicable, the name and address of each permanent
360 employee of the business including, for each employee who is a
361 resident of an enterprise zone, the identifying number assigned
362 pursuant to s. 290.0065 to the enterprise zone in which the
363 employee resides.
364 8. Whether the business is a small business as defined by
365 s. 288.703.
366 (c) Within 10 working days after receipt of an application,
367 the enterprise zone development agency shall review the
368 application to determine if it contains all information required
369 pursuant to paragraph (b) and meets the criteria set out in this
370 subsection. The agency shall certify all applications that
371 contain the information required pursuant to paragraph (b) and
372 meet the criteria set out in this subsection as eligible to
373 receive an exemption. If applicable, the agency shall also
374 certify if 20 percent of the employees of the business are
375 residents of an enterprise zone, excluding temporary and part
376 time employees. The certification shall be in writing, and a
377 copy of the certification shall be transmitted to the executive
378 director of the Department of Revenue. The applicant shall be
379 responsible for forwarding a certified application to the
380 department within 6 months after the occurrence of the
381 appropriate qualifying provision set out in paragraph (f).
382 (d) If, in a subsequent audit conducted by the department,
383 it is determined that the business did not meet the criteria
384 mandated in this subsection, the amount of taxes exempted shall
385 immediately be due and payable to the department by the
386 business, together with the appropriate interest and penalty,
387 computed from the due date of each bill for the electrical
388 energy purchased as exempt under this subsection, in the manner
389 prescribed by this chapter.
390 (e) The department shall adopt rules governing applications
391 for, issuance of, and the form of applications for the exemption
392 authorized in this subsection and provisions for recapture of
393 taxes exempted under this subsection, and the department may
394 establish guidelines as to qualifications for exemption.
395 (f) For the purpose of the exemption provided in this
396 subsection, the term “qualified business” means a business which
397 is:
398 1. First occupying a new structure to which electrical
399 service, other than that used for construction purposes, has not
400 been previously provided or furnished;
401 2. Newly occupying an existing, remodeled, renovated, or
402 rehabilitated structure to which electrical service, other than
403 that used for remodeling, renovation, or rehabilitation of the
404 structure, has not been provided or furnished in the three
405 preceding billing periods; or
406 3. Occupying a new, remodeled, rebuilt, renovated, or
407 rehabilitated structure for which a refund has been granted
408 pursuant to paragraph (5)(g).
409 (g) This subsection expires on the date specified in s.
410 290.016 for the expiration of the Florida Enterprise Zone Act,
411 except that:
412 1. Paragraph (d) shall not expire; and
413 2. Any qualified business which has been granted an
414 exemption under this subsection prior to that date shall be
415 allowed the full benefit of this exemption as if this subsection
416 had not expired on that date.
417 Section 2. Subsection (1) of section 212.098, Florida
418 Statutes, is reordered and amended, subsections (2) and (3) are
419 amended, subsections (5) through (12) are renumbered as
420 subsections (6) through (13), respectively, and new subsections
421 (5), (14), and (15) are added to that section, to read:
422 212.098 Rural Job Tax Credit Program.—
423 (1) As used in this section, the term:
424 (a) “Eligible business” means any sole proprietorship,
425 firm, partnership, or corporation that is located in a qualified
426 county and is predominantly engaged in, or is headquarters for a
427 business predominantly engaged in, activities usually provided
428 for consideration by firms classified within the following
429 standard industrial classifications: SIC 01-SIC 09 (agriculture,
430 forestry, and fishing); SIC 20-SIC 39 (manufacturing); SIC 52
431 SIC 57 and SIC 59 (retail); SIC 422 (public warehousing and
432 storage); SIC 70 (hotels and other lodging places); SIC 7391
433 (research and development); SIC 781 (motion picture production
434 and allied services); SIC 7992 (public golf courses); SIC 7996
435 (amusement parks); and a targeted industry eligible for the
436 qualified target industry business tax refund under s. 288.106.
437 A call center or similar customer service operation that
438 services a multistate market or an international market is also
439 an eligible business. In addition, the Department of Economic
440 Opportunity and Enterprise Florida, Inc., may, as part of their
441 its final budget requests request submitted pursuant to s.
442 216.023, recommend additions to or deletions from the list of
443 standard industrial classifications used to determine an
444 eligible business, and the Legislature may implement such
445 recommendations. Excluded from eligible receipts are receipts
446 from retail sales, except such receipts for hotels and other
447 lodging places classified in SIC 70, public golf courses in SIC
448 7992, and amusement parks in SIC 7996. For purposes of this
449 paragraph, the term “predominantly” means that more than 50
450 percent of the business’s gross receipts from all sources is
451 generated by those activities usually provided for consideration
452 by firms in the specified standard industrial classification.
453 The determination of whether the business is located in a
454 qualified county and the tier ranking of that county must be
455 based on the date of application for the credit under this
456 section. Commonly owned and controlled entities are to be
457 considered a single business entity.
458 (e)(b) “Qualified employee” means any employee of an
459 eligible business who performs duties in connection with the
460 operations of the business on a regular, full-time basis for an
461 average of at least 36 hours per week for at least 3 months
462 within the qualified county in which the eligible business is
463 located. The term also includes an employee leased from an
464 employee leasing company licensed under chapter 468, if such
465 employee has been continuously leased to the employer for an
466 average of at least 36 hours per week for more than 6 months. An
467 owner or partner of the eligible business is not a qualified
468 employee. If an employee meets the qualifications of this
469 paragraph but subsequently does not work an average of at least
470 36 hours per week in any one month, the employee remains a
471 qualified employee if he or she meets the qualifications of this
472 paragraph in the following month.
473 (d)(c) “Qualified area” means any area that is contained
474 within a rural area of opportunity designated under s. 288.0656,
475 a county that has a population of fewer than 75,000 persons, or
476 a county that has a population of 125,000 or less and is
477 contiguous to a county that has a population of less than
478 75,000, selected in the following manner: every third year, the
479 Department of Economic Opportunity shall rank and tier the
480 state’s counties according to the following four factors:
481 1. Highest unemployment rate for the most recent 36-month
482 period.
483 2. Lowest per capita income for the most recent 36-month
484 period.
485 3. Highest percentage of residents whose incomes are below
486 the poverty level, based upon the most recent data available.
487 4. Average weekly manufacturing wage, based upon the most
488 recent data available.
489 (c)(d) “New business” means any eligible business first
490 beginning operation on a site in a qualified county and clearly
491 separate from any other commercial or business operation of the
492 business entity within a qualified county. A business entity
493 that operated an eligible business within a qualified county
494 within the 48 months before the period provided for application
495 by subsection (2) is not considered a new business.
496 (b)(e) “Existing business” means any eligible business that
497 does not meet the criteria for a new business.
498 (2) A new eligible business may apply for a tax credit
499 under this subsection once at any time during its first year of
500 operation. A new eligible business in a qualified area that has
501 at least 10 qualified employees on the date of application shall
502 receive a $2,000 $1,000 tax credit for each such employee.
503 (3) An existing eligible business may apply for a tax
504 credit under this subsection at any time it is entitled to such
505 credit, except as restricted by this subsection. An existing
506 eligible business with fewer than 50 employees in a qualified
507 area that on the date of application has at least 20 percent
508 more qualified employees than it had 1 year before prior to its
509 date of application shall receive a $2,000 $1,000 tax credit for
510 each such additional employee. An existing eligible business
511 that has 50 employees or more in a qualified area that, on the
512 date of application, has at least 10 more qualified employees
513 than it had 1 year before prior to its date of application shall
514 receive a $2,000 $1,000 tax credit for each additional employee.
515 Any existing eligible business that received a credit under
516 subsection (2) may not apply for the credit under this
517 subsection sooner than 12 months after the application date for
518 the credit under subsection (2).
519 (5) A new eligible business that receives a tax credit
520 under subsection (2) shall receive an additional $3,000 tax
521 credit for each qualified employee if the new eligible business
522 is located within a rural area of opportunity as defined in s.
523 288.0656.
524 (14) If a new or existing eligible business takes a tax
525 credit under this section against its corporate income tax
526 liability, and the tax credit exceeds its corporate income tax
527 liability, the eligible business may apply for an ad valorem tax
528 reimbursement equal to the excess amount.
529 (15) Effective January 1, 2016, a new or existing eligible
530 business that receives a tax credit under subsection (2) or
531 subsection (3) is eligible for a tax refund of up to 50 percent
532 of the amount of sales tax paid by the business for electricity.
533 The total amount of tax refunds approved pursuant to this
534 subsection may not exceed $10 million during any calendar year.
535 The department may adopt rules to administer this subsection.
536 Section 3. Subsection (1) of section 288.018, Florida
537 Statutes, is amended to read:
538 288.018 Regional Rural Development Grants Program.—
539 (1) The department shall establish a matching grant program
540 to provide funding to regionally based economic development
541 organizations representing rural counties and communities for
542 the purpose of building the professional capacity of their
543 organizations. Such matching grants may also be used by an
544 economic development organization to provide technical
545 assistance to businesses within the rural counties and
546 communities that it serves. The department is authorized to
547 approve, on an annual basis, grants to such regionally based
548 economic development organizations. The maximum amount an
549 organization may receive in any year will be $50,000, or
550 $150,000 in a rural area of opportunity recommended by the Rural
551 Economic Development Initiative and designated by the Governor,
552 and must be matched each year by an equivalent amount of
553 nonstate resources as determined by the department.
554 Section 4. Paragraphs (b) and (c) of subsection (2) of
555 section 288.0655, Florida Statutes, are amended, subsection (5)
556 is renumbered as subsection (6), and a new subsection (5) is
557 added to that section, to read:
558 288.0655 Rural Infrastructure Fund.—
559 (2)
560 (b) To facilitate access of rural communities and rural
561 areas of opportunity as defined by the Rural Economic
562 Development Initiative to infrastructure funding programs of the
563 Federal Government, such as those offered by the United States
564 Department of Agriculture and the United States Department of
565 Commerce, and state programs, including those offered by Rural
566 Economic Development Initiative agencies, and to facilitate
567 local government or private infrastructure funding efforts, the
568 department may award grants for up to 40 30 percent of the total
569 infrastructure project cost. If an application for funding is
570 for a catalyst site, as defined in s. 288.0656, the department
571 may award grants for up to 50 40 percent of the total
572 infrastructure project cost. Eligible projects must be related
573 to specific job-creation or job-retention opportunities.
574 Eligible projects may also include improving any inadequate
575 infrastructure that has resulted in regulatory action that
576 prohibits economic or community growth or reducing the costs to
577 community users of proposed infrastructure improvements that
578 exceed such costs in comparable communities. Eligible uses of
579 funds shall include site certification costs and improvements to
580 public infrastructure for industrial or commercial sites and
581 upgrades to or development of public tourism infrastructure.
582 Authorized infrastructure may include the following public or
583 public-private partnership facilities: storm water systems;
584 telecommunications facilities; broadband facilities; roads or
585 other remedies to transportation impediments; nature-based
586 tourism facilities; or other physical requirements necessary to
587 facilitate tourism, trade, and economic development activities
588 in the community. Authorized infrastructure may also include
589 publicly or privately owned self-powered nature-based tourism
590 facilities, publicly owned telecommunications facilities, and
591 broadband facilities, and additions to the distribution
592 facilities of the existing natural gas utility as defined in s.
593 366.04(3)(c), the existing electric utility as defined in s.
594 366.02, or the existing water or wastewater utility as defined
595 in s. 367.021(12), or any other existing water or wastewater
596 facility, which owns a gas or electric distribution system or a
597 water or wastewater system in this state where:
598 1. A contribution-in-aid of construction is required to
599 serve public or public-private partnership facilities under the
600 tariffs of any natural gas, electric, water, or wastewater
601 utility as defined herein; and
602 2. Such utilities as defined herein are willing and able to
603 provide such service.
604 (c) To facilitate timely response and induce the location
605 or expansion of specific job creating opportunities, the
606 department may award grants for infrastructure feasibility
607 studies, design and engineering activities, or other
608 infrastructure planning and preparation activities. Authorized
609 grants shall be up to $50,000 for an employment project with a
610 business committed to create at least 100 jobs; up to $150,000
611 for an employment project with a business committed to create at
612 least 300 jobs; and up to $300,000 for a project in a rural area
613 of opportunity. Grants awarded under this paragraph may be used
614 in conjunction with grants awarded under paragraph (b), provided
615 that the total amount of both grants does not exceed 40 30
616 percent of the total project cost. In evaluating applications
617 under this paragraph, the department shall consider the extent
618 to which the application seeks to minimize administrative and
619 consultant expenses.
620 (5) The department shall create a speculative building
621 program for rural counties. The department may adopt rules to
622 administer the program and provide funding to eligible counties
623 for constructing speculative buildings. The department may not
624 grant a rural county more than 50 percent of the total cost of
625 the speculative building. Funding shall be based on available
626 funds provided by the Legislature for the purpose of rural
627 infrastructure.
628 Section 5. Paragraph (k) of subsection (2) and paragraph
629 (d) of subsection (6) of section 288.106, Florida Statutes, are
630 amended, and paragraph (e) is added to subsection (7) of that
631 section, to read:
632 288.106 Tax refund program for qualified target industry
633 businesses.—
634 (2) DEFINITIONS.—As used in this section:
635 (k) “Local financial support exemption option” means the
636 option to exercise an exemption from the local financial support
637 requirement available to any applicant whose project is located
638 in a brownfield area, a rural city, or a rural community. Any
639 applicant that exercises this option is not eligible for more
640 than 80 percent of the total tax refunds allowed such applicant
641 under this section.
642 (6) ANNUAL CLAIM FOR REFUND.—
643 (d) A tax refund may not be approved for a qualified target
644 industry business unless the required local financial support
645 has been paid into the account for that refund. If the local
646 financial support provided is less than 20 percent of the
647 approved tax refund, the tax refund must be reduced unless the
648 qualified target industry business is located in a rural area of
649 opportunity. In no event may the tax refund exceed an amount
650 that is equal to 5 times the amount of the local financial
651 support received. Further, funding from local sources includes
652 any tax abatement granted to that business under s. 196.1995 or
653 the appraised market value of municipal or county land conveyed
654 or provided at a discount to that business. The amount of any
655 tax refund for such business approved under this section must be
656 reduced by the amount of any such tax abatement granted or the
657 value of the land granted, and the limitations in subsection (3)
658 and paragraph (4)(e) must be reduced by the amount of any such
659 tax abatement or the value of the land granted. A report listing
660 all sources of the local financial support shall be provided to
661 the department when such support is paid to the account.
662 (7) ADMINISTRATION.—
663 (e) By July 1, 2015, for existing rural areas of
664 opportunity, and thereafter for new and existing rural areas of
665 opportunity, the regionally based economic development
666 organization representing the rural area of opportunity shall,
667 in consultation with the department and Enterprise Florida,
668 Inc., develop target industry businesses specific to the rural
669 area of opportunity but may not develop any target industry
670 business specifically prohibited by this chapter. A business in
671 a rural area of opportunity may apply to the department for a
672 waiver of the target industry business criteria provided in
673 paragraph (2)(q).
674 Section 6. Section 290.016, Florida Statutes, is repealed.
675 Section 7. Paragraph (c) of subsection (8) of section
676 166.231, Florida Statutes, is amended to read:
677 166.231 Municipalities; public service tax.—
678 (8)
679 (c) This subsection expires on the date specified in s.
680 290.016 for the expiration of the Florida Enterprise Zone Act,
681 except that any qualified business that has satisfied the
682 requirements of this subsection before that date shall be
683 allowed the full benefit of the exemption allowed under this
684 subsection as if this subsection had not expired on that date.
685 Section 8. Subsections (3) and (4) of section 193.077,
686 Florida Statutes, are amended to read:
687 193.077 Notice of new, rebuilt, or expanded property.—
688 (3) Within 10 days of extension or recertification of the
689 assessment rolls pursuant to s. 193.122, whichever is later, the
690 property appraiser shall forward to the department a list of all
691 property of new businesses and property separately assessed as
692 expansion-related or rebuilt property pursuant to s. 193.085(5)
693 s. 193.085(5)(a). The list shall include the name and address of
694 the business to which the property is assessed, the assessed
695 value of the property, the total taxes levied against the
696 property, the identifying number for the property as shown on
697 the assessment roll, and a description of the property.
698 (4) This section expires on the date specified in s.
699 290.016 for the expiration of the Florida Enterprise Zone Act.
700 Section 9. Subsection (5) of section 193.085, Florida
701 Statutes, is amended to read:
702 193.085 Listing all property.—
703 (5)(a) Beginning in the year in which a notice of new,
704 rebuilt, or expanded property is accepted and certified pursuant
705 to s. 193.077 and for the 4 years immediately thereafter, the
706 property appraiser shall separately assess the prior existing
707 property and the expansion-related or rebuilt property, if any,
708 of each business having submitted said notice pursuant to s.
709 220.182(4). The listing of expansion-related or rebuilt property
710 on an assessment roll shall immediately follow the listing of
711 prior existing property for each expanded business. However,
712 beginning with the first assessment roll following receipt of a
713 notice from the department that a business has been disallowed
714 an enterprise zone property tax credit, the property appraiser
715 shall singly list the property of such business.
716 (b) This subsection expires on the date specified in s.
717 290.016 for the expiration of the Florida Enterprise Zone Act.
718 Section 10. Subsection (4) of section 195.073, Florida
719 Statutes, is amended to read:
720 195.073 Classification of property.—All items required by
721 law to be on the assessment rolls must receive a classification
722 based upon the use of the property. The department shall
723 promulgate uniform definitions for all classifications. The
724 department may designate other subclassifications of property.
725 No assessment roll may be approved by the department which does
726 not show proper classifications.
727 (4)(a) Rules adopted pursuant to this section shall provide
728 for the separate identification of property as prior existing
729 property of an expanded or rebuilt business, as expansion
730 related property of an expanded or rebuilt business, and as
731 property of a new business, in the event the business qualifies
732 for an enterprise zone property tax credit pursuant to s.
733 220.182, in addition to classification according to use.
734 (b) This subsection expires on the date specified in s.
735 290.016 for the expiration of the Florida Enterprise Zone Act.
736 Section 11. Subsection (1) of section 195.099, Florida
737 Statutes, is amended to read:
738 195.099 Periodic review.—
739 (1)(a) The department may review the assessments of new,
740 rebuilt, and expanded business reported according to s.
741 193.077(3), to ensure parity of level of assessment with other
742 classifications of property.
743 (b) This subsection shall expire on the date specified in
744 s. 290.016 for the expiration of the Florida Enterprise Zone
745 Act.
746 Section 12. Subsection (18) of section 196.012, Florida
747 Statutes, is amended to read:
748 196.012 Definitions.—For the purpose of this chapter, the
749 following terms are defined as follows, except where the context
750 clearly indicates otherwise:
751 (18) “Enterprise zone” means an area designated as an
752 enterprise zone pursuant to s. 290.0065. This subsection expires
753 on the date specified in s. 290.016 for the expiration of the
754 Florida Enterprise Zone Act.
755 Section 13. Subsection (4) of section 205.022, Florida
756 Statutes, is amended to read:
757 205.022 Definitions.—When used in this chapter, the
758 following terms and phrases shall have the meanings ascribed to
759 them in this section, except when the context clearly indicates
760 a different meaning:
761 (4) “Enterprise zone” means an area designated as an
762 enterprise zone pursuant to s. 290.0065. This subsection expires
763 on the date specified in s. 290.016 for the expiration of the
764 Florida Enterprise Zone Act.
765 Section 14. Subsection (6) of section 205.054, Florida
766 Statutes, is amended to read:
767 205.054 Business tax; partial exemption for engaging in
768 business or occupation in enterprise zone.—
769 (6) This section expires on the date specified in s.
770 290.016 for the expiration of the Florida Enterprise Zone Act;
771 and a receipt may not be issued with the exemption authorized in
772 this section for any period beginning on or after that date.
773 Section 15. Subsection (6) of section 212.02, Florida
774 Statutes, is amended to read:
775 212.02 Definitions.—The following terms and phrases when
776 used in this chapter have the meanings ascribed to them in this
777 section, except where the context clearly indicates a different
778 meaning:
779 (6) “Enterprise zone” means an area of the state designated
780 pursuant to s. 290.0065. This subsection expires on the date
781 specified in s. 290.016 for the expiration of the Florida
782 Enterprise Zone Act.
783 Section 16. Subsection (12) of section 212.096, Florida
784 Statutes, is amended to read:
785 212.096 Sales, rental, storage, use tax; enterprise zone
786 jobs credit against sales tax.—
787 (12) This section, except for subsection (11), expires on
788 the date specified in s. 290.016 for the expiration of the
789 Florida Enterprise Zone Act.
790 Section 17. Paragraph (c) of subsection (6) and paragraph
791 (c) of subsection (7) of section 220.02, Florida Statutes, are
792 amended to read:
793 220.02 Legislative intent.—
794 (6)
795 (c) This subsection expires on the date specified in s.
796 290.016 for the expiration of the Florida Enterprise Zone Act.
797 (7)
798 (c) This subsection expires on the date specified in s.
799 290.016 for the expiration of the Florida Enterprise Zone Act.
800 Section 18. Paragraphs (a), (c), (d), (i), (j), (k), (o),
801 (p), (q), and (u) of subsection (1) of section 220.03, Florida
802 Statutes, are amended to read:
803 220.03 Definitions.—
804 (1) SPECIFIC TERMS.—When used in this code, and when not
805 otherwise distinctly expressed or manifestly incompatible with
806 the intent thereof, the following terms shall have the following
807 meanings:
808 (a) “Ad valorem taxes paid” means 96 percent of property
809 taxes levied for operating purposes and does not include
810 interest, penalties, or discounts foregone. In addition, the
811 term “ad valorem taxes paid,” for purposes of the credit in s.
812 220.182, means the ad valorem tax paid on new or additional real
813 or personal property acquired to establish a new business or
814 facilitate a business expansion, including pollution and waste
815 control facilities, or any part thereof, and including one or
816 more buildings or other structures, machinery, fixtures, and
817 equipment. This paragraph expires on the date specified in s.
818 290.016 for the expiration of the Florida Enterprise Zone Act.
819 (c) “Business” or “business firm” means any business entity
820 authorized to do business in this state as defined in paragraph
821 (e), and any bank or savings and loan association as defined in
822 s. 220.62, subject to the tax imposed by the provisions of this
823 chapter. This paragraph expires on the date specified in s.
824 290.016 for the expiration of the Florida Enterprise Zone Act.
825 (d) “Community contribution” means the grant by a business
826 firm of any of the following items:
827 1. Cash or other liquid assets.
828 2. Real property.
829 3. Goods or inventory.
830 4. Other physical resources as identified by the
831 department.
832
833 This paragraph expires on the date specified in s. 290.016 for
834 the expiration of the Florida Enterprise Zone Act.
835 (i) “Emergency,” as used in s. 220.02 and in paragraph (u)
836 of this subsection, means occurrence of widespread or severe
837 damage, injury, or loss of life or property proclaimed pursuant
838 to s. 14.022 or declared pursuant to s. 252.36. This paragraph
839 expires on the date specified in s. 290.016 for the expiration
840 of the Florida Enterprise Zone Act.
841 (j) “Enterprise zone” means an area in the state designated
842 pursuant to s. 290.0065. This paragraph expires on the date
843 specified in s. 290.016 for the expiration of the Florida
844 Enterprise Zone Act.
845 (k) “Expansion of an existing business,” for the purposes
846 of the enterprise zone property tax credit, means any business
847 entity authorized to do business in this state as defined in
848 paragraph (e), and any bank or savings and loan association as
849 defined in s. 220.62, subject to the tax imposed by the
850 provisions of this chapter, located in an enterprise zone, which
851 expands by or through additions to real and personal property
852 and which establishes five or more new jobs to employ five or
853 more additional full-time employees at such location. This
854 paragraph expires on the date specified in s. 290.016 for the
855 expiration of the Florida Enterprise Zone Act.
856 (o) “Local government” means any county or incorporated
857 municipality in the state. This paragraph expires on the date
858 specified in s. 290.016 for the expiration of the Florida
859 Enterprise Zone Act.
860 (p) “New business,” for the purposes of the enterprise zone
861 property tax credit, means any business entity authorized to do
862 business in this state as defined in paragraph (e), or any bank
863 or savings and loan association as defined in s. 220.62, subject
864 to the tax imposed by the provisions of this chapter, first
865 beginning operations on a site located in an enterprise zone and
866 clearly separate from any other commercial or industrial
867 operations owned by the same entity, bank, or savings and loan
868 association and which establishes five or more new jobs to
869 employ five or more additional full-time employees at such
870 location. This paragraph expires on the date specified in s.
871 290.016 for the expiration of the Florida Enterprise Zone Act.
872 (q) “New employee,” for the purposes of the enterprise zone
873 jobs credit, means a person residing in an enterprise zone or a
874 participant in the welfare transition program who is employed at
875 a business located in an enterprise zone who begins employment
876 in the operations of the business after July 1, 1995, and who
877 has not been previously employed full time within the preceding
878 12 months by the business or a successor business claiming the
879 credit pursuant to s. 220.181. A person shall be deemed to be
880 employed by such a business if the person performs duties in
881 connection with the operations of the business on a full-time
882 basis, provided she or he is performing such duties for an
883 average of at least 36 hours per week each month. The person
884 must be performing such duties at a business site located in an
885 enterprise zone. This paragraph expires on the date specified in
886 s. 290.016 for the expiration of the Florida Enterprise Zone
887 Act.
888 (u) “Rebuilding of an existing business” means replacement
889 or restoration of real or tangible property destroyed or damaged
890 in an emergency, as defined in paragraph (i), after July 1,
891 1995, in an enterprise zone, by a business entity authorized to
892 do business in this state as defined in paragraph (e), or a bank
893 or savings and loan association as defined in s. 220.62, subject
894 to the tax imposed by the provisions of this chapter, located in
895 the enterprise zone. This paragraph expires on the date
896 specified in s. 290.016 for the expiration of the Florida
897 Enterprise Zone Act.
898 Section 19. Paragraph (a) of subsection (1) of section
899 220.13, Florida Statutes, is amended to read:
900 220.13 “Adjusted federal income” defined.—
901 (1) The term “adjusted federal income” means an amount
902 equal to the taxpayer’s taxable income as defined in subsection
903 (2), or such taxable income of more than one taxpayer as
904 provided in s. 220.131, for the taxable year, adjusted as
905 follows:
906 (a) Additions.—There shall be added to such taxable income:
907 1. The amount of any tax upon or measured by income,
908 excluding taxes based on gross receipts or revenues, paid or
909 accrued as a liability to the District of Columbia or any state
910 of the United States which is deductible from gross income in
911 the computation of taxable income for the taxable year.
912 2. The amount of interest which is excluded from taxable
913 income under s. 103(a) of the Internal Revenue Code or any other
914 federal law, less the associated expenses disallowed in the
915 computation of taxable income under s. 265 of the Internal
916 Revenue Code or any other law, excluding 60 percent of any
917 amounts included in alternative minimum taxable income, as
918 defined in s. 55(b)(2) of the Internal Revenue Code, if the
919 taxpayer pays tax under s. 220.11(3).
920 3. In the case of a regulated investment company or real
921 estate investment trust, an amount equal to the excess of the
922 net long-term capital gain for the taxable year over the amount
923 of the capital gain dividends attributable to the taxable year.
924 4. That portion of the wages or salaries paid or incurred
925 for the taxable year which is equal to the amount of the credit
926 allowable for the taxable year under s. 220.181. This
927 subparagraph shall expire on the date specified in s. 290.016
928 for the expiration of the Florida Enterprise Zone Act.
929 5. That portion of the ad valorem school taxes paid or
930 incurred for the taxable year which is equal to the amount of
931 the credit allowable for the taxable year under s. 220.182. This
932 subparagraph shall expire on the date specified in s. 290.016
933 for the expiration of the Florida Enterprise Zone Act.
934 6. The amount taken as a credit under s. 220.195 which is
935 deductible from gross income in the computation of taxable
936 income for the taxable year.
937 7. That portion of assessments to fund a guaranty
938 association incurred for the taxable year which is equal to the
939 amount of the credit allowable for the taxable year.
940 8. In the case of a nonprofit corporation which holds a
941 pari-mutuel permit and which is exempt from federal income tax
942 as a farmers’ cooperative, an amount equal to the excess of the
943 gross income attributable to the pari-mutuel operations over the
944 attributable expenses for the taxable year.
945 9. The amount taken as a credit for the taxable year under
946 s. 220.1895.
947 10. Up to nine percent of the eligible basis of any
948 designated project which is equal to the credit allowable for
949 the taxable year under s. 220.185.
950 11. The amount taken as a credit for the taxable year under
951 s. 220.1875. The addition in this subparagraph is intended to
952 ensure that the same amount is not allowed for the tax purposes
953 of this state as both a deduction from income and a credit
954 against the tax. This addition is not intended to result in
955 adding the same expense back to income more than once.
956 12. The amount taken as a credit for the taxable year under
957 s. 220.192.
958 13. The amount taken as a credit for the taxable year under
959 s. 220.193.
960 14. Any portion of a qualified investment, as defined in s.
961 288.9913, which is claimed as a deduction by the taxpayer and
962 taken as a credit against income tax pursuant to s. 288.9916.
963 15. The costs to acquire a tax credit pursuant to s.
964 288.1254(5) that are deducted from or otherwise reduce federal
965 taxable income for the taxable year.
966 16. The amount taken as a credit for the taxable year
967 pursuant to s. 220.194.
968 17. The amount taken as a credit for the taxable year under
969 s. 220.196. The addition in this subparagraph is intended to
970 ensure that the same amount is not allowed for the tax purposes
971 of this state as both a deduction from income and a credit
972 against the tax. The addition is not intended to result in
973 adding the same expense back to income more than once.
974 Section 20. Subsection (9) of section 220.181, Florida
975 Statutes, is amended to read:
976 220.181 Enterprise zone jobs credit.—
977 (9) This section, except paragraph (1)(c) and subsection
978 (8), expires on the date specified in s. 290.016 for the
979 expiration of the Florida Enterprise Zone Act, and a business
980 may not begin claiming the enterprise zone jobs credit after
981 that date; however, the expiration of this section does not
982 affect the operation of any credit for which a business has
983 qualified under this section before that date, or any
984 carryforward of unused credit amounts as provided in paragraph
985 (1)(c).
986 Section 21. Subsection (14) of section 220.182, Florida
987 Statutes, is amended to read:
988 220.182 Enterprise zone property tax credit.—
989 (14) This section expires on the date specified in s.
990 290.016 for the expiration of the Florida Enterprise Zone Act,
991 and a business may not begin claiming the enterprise zone
992 property tax credit after that date; however, the expiration of
993 this section does not affect the operation of any credit for
994 which a business has qualified under this section before that
995 date, or any carryforward of unused credit amounts as provided
996 in paragraph (1)(b).
997 Section 22. This act shall take effect July 1, 2015.