Florida Senate - 2015 PROPOSED COMMITTEE SUBSTITUTE
Bill No. SB 302
Ì652930ÉÎ652930
576-01690-15
Proposed Committee Substitute by the Committee on Appropriations
(Appropriations Subcommittee on Transportation, Tourism, and
Economic Development)
1 A bill to be entitled
2 An act relating to the community contribution tax
3 credit program; amending s. 212.08, F.S.; defining
4 terms; expanding the community contribution tax credit
5 against the sales and use tax for contributions made
6 to eligible sponsors of specified projects to include
7 contributions made to eligible sponsors of housing
8 projects for persons with certain special needs;
9 extending the expiration date applicable to the
10 granting of such credit; amending s. 220.03, F.S.;
11 redefining the term “project”; extending the
12 expiration date applicable to the definition; amending
13 s. 220.183, F.S.; expanding the community contribution
14 tax credit against the corporate income tax for
15 contributions made to eligible sponsors of specified
16 projects to include contributions made to eligible
17 sponsors of housing projects for persons with certain
18 special needs; extending the expiration date
19 applicable to the granting of such credit; amending s.
20 624.5105, F.S.; expanding the community contribution
21 tax credit against the insurance premium tax for
22 contributions made to eligible sponsors of specified
23 projects to include contributions made to eligible
24 sponsors of housing projects for persons with certain
25 special needs; extending the expiration date
26 applicable to the granting of such credit; providing
27 an effective date.
28
29 Be It Enacted by the Legislature of the State of Florida:
30
31 Section 1. Paragraph (p) of subsection (5) of section
32 212.08, Florida Statutes, is amended to read:
33 212.08 Sales, rental, use, consumption, distribution, and
34 storage tax; specified exemptions.—The sale at retail, the
35 rental, the use, the consumption, the distribution, and the
36 storage to be used or consumed in this state of the following
37 are hereby specifically exempt from the tax imposed by this
38 chapter.
39 (5) EXEMPTIONS; ACCOUNT OF USE.—
40 (p) Community contribution tax credit for donations.—
41 1. Authorization.—Persons who are registered with the
42 department under s. 212.18 to collect or remit sales or use tax
43 and who make donations to eligible sponsors are eligible for tax
44 credits against their state sales and use tax liabilities as
45 provided in this paragraph:
46 a. The credit shall be computed as 50 percent of the
47 person’s approved annual community contribution.
48 b. The credit shall be granted as a refund against state
49 sales and use taxes reported on returns and remitted in the 12
50 months preceding the date of application to the department for
51 the credit as required in sub-subparagraph 3.c. If the annual
52 credit is not fully used through such refund because of
53 insufficient tax payments during the applicable 12-month period,
54 the unused amount may be included in an application for a refund
55 made pursuant to sub-subparagraph 3.c. in subsequent years
56 against the total tax payments made for such year. Carryover
57 credits may be applied for a 3-year period without regard to any
58 time limitation that would otherwise apply under s. 215.26.
59 c. A person may not receive more than $200,000 in annual
60 tax credits for all approved community contributions made in any
61 one year.
62 d. All proposals for the granting of the tax credit require
63 the prior approval of the Department of Economic Opportunity.
64 e. The total amount of tax credits which may be granted for
65 all programs approved under this paragraph, s. 220.183, and s.
66 624.5105 is $18.4 million annually for projects that provide
67 housing homeownership opportunities for persons with special
68 needs or homeownership opportunities for low-income households
69 or very-low-income households as those terms are defined in s.
70 420.9071 and $3.5 million annually for all other projects. As
71 used in this paragraph, the term “person with special needs” has
72 the same meaning as in s. 420.0004 and the terms “low-income
73 person,” “low-income household,” “very-low-income person,” and
74 “very-low-income household” have the same meaning as in s.
75 420.9071.
76 f. A person who is eligible to receive the credit provided
77 in this paragraph, s. 220.183, or s. 624.5105 may receive the
78 credit only under one section of the person’s choice.
79 2. Eligibility requirements.—
80 a. A community contribution by a person must be in the
81 following form:
82 (I) Cash or other liquid assets;
83 (II) Real property;
84 (III) Goods or inventory; or
85 (IV) Other physical resources identified by the Department
86 of Economic Opportunity.
87 b. All community contributions must be reserved exclusively
88 for use in a project. As used in this sub-subparagraph, the term
89 “project” means activity undertaken by an eligible sponsor which
90 is designed to construct, improve, or substantially rehabilitate
91 housing that is affordable to low-income households or very-low
92 income households as those terms are defined in s. 420.9071;
93 designed to provide housing opportunities for persons with
94 special needs; designed to provide commercial, industrial, or
95 public resources and facilities; or designed to improve
96 entrepreneurial and job-development opportunities for low-income
97 persons. A project may be the investment necessary to increase
98 access to high-speed broadband capability in rural communities
99 with enterprise zones, including projects that result in
100 improvements to communications assets that are owned by a
101 business. A project may include the provision of museum
102 educational programs and materials that are directly related to
103 a project approved between January 1, 1996, and December 31,
104 1999, and located in an enterprise zone designated pursuant to
105 s. 290.0065. This paragraph does not preclude projects that
106 propose to construct or rehabilitate housing for low-income
107 households or very-low-income households on scattered sites or
108 housing opportunities for persons with special needs. With
109 respect to housing, contributions may be used to pay the
110 following eligible special needs, low-income, and very-low
111 income housing-related activities:
112 (I) Project development impact and management fees for
113 special needs, low-income, or very-low-income housing projects;
114 (II) Down payment and closing costs for persons with
115 special needs, low-income persons, and very-low-income persons,
116 as those terms are defined in s. 420.9071;
117 (III) Administrative costs, including housing counseling
118 and marketing fees, not to exceed 10 percent of the community
119 contribution, directly related to special needs, low-income, or
120 very-low-income projects; and
121 (IV) Removal of liens recorded against residential property
122 by municipal, county, or special district local governments if
123 satisfaction of the lien is a necessary precedent to the
124 transfer of the property to a low-income person or very-low
125 income person, as those terms are defined in s. 420.9071, for
126 the purpose of promoting home ownership. Contributions for lien
127 removal must be received from a nonrelated third party.
128 c. The project must be undertaken by an “eligible sponsor,”
129 which includes:
130 (I) A community action program;
131 (II) A nonprofit community-based development organization
132 whose mission is the provision of housing for persons with
133 specials needs, low-income households, or very-low-income
134 households or increasing entrepreneurial and job-development
135 opportunities for low-income persons;
136 (III) A neighborhood housing services corporation;
137 (IV) A local housing authority created under chapter 421;
138 (V) A community redevelopment agency created under s.
139 163.356;
140 (VI) A historic preservation district agency or
141 organization;
142 (VII) A regional workforce board;
143 (VIII) A direct-support organization as provided in s.
144 1009.983;
145 (IX) An enterprise zone development agency created under s.
146 290.0056;
147 (X) A community-based organization incorporated under
148 chapter 617 which is recognized as educational, charitable, or
149 scientific pursuant to s. 501(c)(3) of the Internal Revenue Code
150 and whose bylaws and articles of incorporation include
151 affordable housing, economic development, or community
152 development as the primary mission of the corporation;
153 (XI) Units of local government;
154 (XII) Units of state government; or
155 (XIII) Any other agency that the Department of Economic
156 Opportunity designates by rule.
157
158 A contributing person may not have a financial interest in the
159 eligible sponsor.
160 d. The project must be located in an area designated an
161 enterprise zone or a Front Porch Florida Community, unless the
162 project increases access to high-speed broadband capability for
163 rural communities that have enterprise zones but is physically
164 located outside the designated rural zone boundaries. Any
165 project designed to construct or rehabilitate housing for low
166 income households or very-low-income households or housing
167 opportunities for persons with special needs as those terms are
168 defined in s. 420.9071 is exempt from the area requirement of
169 this sub-subparagraph.
170 e.(I) If, during the first 10 business days of the state
171 fiscal year, eligible tax credit applications for projects that
172 provide housing opportunities for persons with special needs or
173 homeownership opportunities for low-income households or very
174 low-income households as those terms are defined in s. 420.9071
175 are received for less than the annual tax credits available for
176 those projects, the Department of Economic Opportunity shall
177 grant tax credits for those applications and grant remaining tax
178 credits on a first-come, first-served basis for subsequent
179 eligible applications received before the end of the state
180 fiscal year. If, during the first 10 business days of the state
181 fiscal year, eligible tax credit applications for projects that
182 provide housing opportunities for persons with special needs or
183 homeownership opportunities for low-income households or very
184 low-income households as those terms are defined in s. 420.9071
185 are received for more than the annual tax credits available for
186 those projects, the Department of Economic Opportunity shall
187 grant the tax credits for those applications as follows:
188 (A) If tax credit applications submitted for approved
189 projects of an eligible sponsor do not exceed $200,000 in total,
190 the credits shall be granted in full if the tax credit
191 applications are approved.
192 (B) If tax credit applications submitted for approved
193 projects of an eligible sponsor exceed $200,000 in total, the
194 amount of tax credits granted pursuant to sub-sub-sub
195 subparagraph (A) shall be subtracted from the amount of
196 available tax credits, and the remaining credits shall be
197 granted to each approved tax credit application on a pro rata
198 basis.
199 (II) If, during the first 10 business days of the state
200 fiscal year, eligible tax credit applications for projects other
201 than those that provide housing opportunities for persons with
202 special needs or homeownership opportunities for low-income
203 households or very-low-income households as those terms are
204 defined in s. 420.9071 are received for less than the annual tax
205 credits available for those projects, the Department of Economic
206 Opportunity shall grant tax credits for those applications and
207 shall grant remaining tax credits on a first-come, first-served
208 basis for subsequent eligible applications received before the
209 end of the state fiscal year. If, during the first 10 business
210 days of the state fiscal year, eligible tax credit applications
211 for projects other than those that provide housing opportunities
212 for persons with special needs or homeownership opportunities
213 for low-income households or very-low-income households as those
214 terms are defined in s. 420.9071 are received for more than the
215 annual tax credits available for those projects, the Department
216 of Economic Opportunity shall grant the tax credits for those
217 applications on a pro rata basis.
218 3. Application requirements.—
219 a. An Any eligible sponsor seeking to participate in this
220 program must submit a proposal to the Department of Economic
221 Opportunity which sets forth the name of the sponsor, a
222 description of the project, and the area in which the project is
223 located, together with such supporting information as is
224 prescribed by rule. The proposal must also contain a resolution
225 from the local governmental unit in which the project is located
226 certifying that the project is consistent with local plans and
227 regulations.
228 b. A Any person seeking to participate in this program must
229 submit an application for tax credit to the Department of
230 Economic Opportunity which sets forth the name of the sponsor, a
231 description of the project, and the type, value, and purpose of
232 the contribution. The sponsor shall verify, in writing, the
233 terms of the application and indicate its receipt of the
234 contribution, and such verification must accompany the
235 application for tax credit. The person must submit a separate
236 tax credit application to the Department of Economic Opportunity
237 for each individual contribution that it makes to each
238 individual project.
239 c. A Any person who has received notification from the
240 Department of Economic Opportunity that a tax credit has been
241 approved must apply to the department to receive the refund.
242 Application must be made on the form prescribed for claiming
243 refunds of sales and use taxes and be accompanied by a copy of
244 the notification. A person may submit only one application for
245 refund to the department within a 12-month period.
246 4. Administration.—
247 a. The Department of Economic Opportunity may adopt rules
248 necessary to administer this paragraph, including rules for the
249 approval or disapproval of proposals by a person.
250 b. The decision of the Department of Economic Opportunity
251 must be in writing, and, if approved, the notification shall
252 state the maximum credit allowable to the person. Upon approval,
253 the Department of Economic Opportunity shall transmit a copy of
254 the decision to the department.
255 c. The Department of Economic Opportunity shall
256 periodically monitor all projects in a manner consistent with
257 available resources to ensure that resources are used in
258 accordance with this paragraph; however, each project must be
259 reviewed at least once every 2 years.
260 d. The Department of Economic Opportunity shall, in
261 consultation with the statewide and regional housing and
262 financial intermediaries, market the availability of the
263 community contribution tax credit program to community-based
264 organizations.
265 5. Expiration.—This paragraph expires June 30, 2025 2016;
266 however, any accrued credit carryover that is unused on that
267 date may be used until the expiration of the 3-year carryover
268 period for such credit.
269 Section 2. Paragraph (t) of subsection (1) of section
270 220.03, Florida Statutes, is amended to read:
271 220.03 Definitions.—
272 (1) SPECIFIC TERMS.—When used in this code, and when not
273 otherwise distinctly expressed or manifestly incompatible with
274 the intent thereof, the following terms shall have the following
275 meanings:
276 (t) “Project” means any activity undertaken by an eligible
277 sponsor, as defined in s. 220.183(2)(c), which is designed to
278 construct, improve, or substantially rehabilitate housing that
279 is affordable to low-income or very-low-income households as
280 defined in s. 420.9071(19) and (28); designed to provide housing
281 opportunities for persons with special needs as defined in s.
282 420.0004; designed to provide commercial, industrial, or public
283 resources and facilities; or designed to improve entrepreneurial
284 and job-development opportunities for low-income persons. A
285 project may be the investment necessary to increase access to
286 high-speed broadband capability in rural communities with
287 enterprise zones, including projects that result in improvements
288 to communications assets that are owned by a business. A project
289 may include the provision of museum educational programs and
290 materials that are directly related to any project approved
291 between January 1, 1996, and December 31, 1999, and located in
292 an enterprise zone designated pursuant to s. 290.0065. This
293 paragraph does not preclude projects that propose to construct
294 or rehabilitate low-income or very-low-income housing on
295 scattered sites or housing opportunities for persons with
296 special needs as defined in s. 420.0004. With respect to
297 housing, contributions may be used to pay the following eligible
298 project-related activities:
299 1. Project development, impact, and management fees for
300 special needs, low-income, or very-low-income housing projects;
301 2. Down payment and closing costs for eligible persons, as
302 defined in s. 420.9071(19) and (28);
303 3. Administrative costs, including housing counseling and
304 marketing fees, not to exceed 10 percent of the community
305 contribution, directly related to special needs, low-income, or
306 very-low-income projects; and
307 4. Removal of liens recorded against residential property
308 by municipal, county, or special-district local governments when
309 satisfaction of the lien is a necessary precedent to the
310 transfer of the property to an eligible person, as defined in s.
311 420.9071(19) and (28), for the purpose of promoting home
312 ownership. Contributions for lien removal must be received from
313 a nonrelated third party.
314
315 The provisions of this paragraph shall expire and be void on
316 June 30, 2025 2015.
317 Section 3. Paragraph (c) of subsection (1), paragraphs (b),
318 (c), and (d) of subsection (2), and subsection (5) of section
319 220.183, Florida Statutes, are amended to read:
320 220.183 Community contribution tax credit.—
321 (1) AUTHORIZATION TO GRANT COMMUNITY CONTRIBUTION TAX
322 CREDITS; LIMITATIONS ON INDIVIDUAL CREDITS AND PROGRAM
323 SPENDING.—
324 (c) The total amount of tax credit which may be granted for
325 all programs approved under this section, s. 212.08(5)(p), and
326 s. 624.5105 is $18.4 million annually for projects that provide
327 housing opportunities for persons with special needs as defined
328 in s. 420.0004 and homeownership opportunities for low-income
329 households or very-low-income households as defined in s.
330 420.9071 and $3.5 million annually for all other projects.
331 (2) ELIGIBILITY REQUIREMENTS.—
332 (b)1. All community contributions must be reserved
333 exclusively for use in projects as defined in s. 220.03(1)(t).
334 2. If, during the first 10 business days of the state
335 fiscal year, eligible tax credit applications for projects that
336 provide housing opportunities for persons with special needs as
337 defined in s. 420.0004 or homeownership opportunities for low
338 income or very-low-income households as defined in s.
339 420.9071(19) and (28) are received for less than the annual tax
340 credits available for those projects, the Department of Economic
341 Opportunity shall grant tax credits for those applications and
342 shall grant remaining tax credits on a first-come, first-served
343 basis for any subsequent eligible applications received before
344 the end of the state fiscal year. If, during the first 10
345 business days of the state fiscal year, eligible tax credit
346 applications for projects that provide housing opportunities for
347 persons with special needs as defined in s. 420.0004 or
348 homeownership opportunities for low-income or very-low-income
349 households as defined in s. 420.9071(19) and (28) are received
350 for more than the annual tax credits available for those
351 projects, the Department of Economic Opportunity shall grant the
352 tax credits for those applications as follows:
353 a. If tax credit applications submitted for approved
354 projects of an eligible sponsor do not exceed $200,000 in total,
355 the credit shall be granted in full if the tax credit
356 applications are approved.
357 b. If tax credit applications submitted for approved
358 projects of an eligible sponsor exceed $200,000 in total, the
359 amount of tax credits granted under sub-subparagraph a. shall be
360 subtracted from the amount of available tax credits, and the
361 remaining credits shall be granted to each approved tax credit
362 application on a pro rata basis.
363 3. If, during the first 10 business days of the state
364 fiscal year, eligible tax credit applications for projects other
365 than those that provide housing opportunities for persons with
366 special needs as defined in s. 420.0004 or homeownership
367 opportunities for low-income or very-low-income households as
368 defined in s. 420.9071(19) and (28) are received for less than
369 the annual tax credits available for those projects, the
370 Department of Economic Opportunity shall grant tax credits for
371 those applications and shall grant remaining tax credits on a
372 first-come, first-served basis for any subsequent eligible
373 applications received before the end of the state fiscal year.
374 If, during the first 10 business days of the state fiscal year,
375 eligible tax credit applications for projects other than those
376 that provide housing opportunities for persons with special
377 needs as defined in s. 420.0004 or homeownership opportunities
378 for low-income or very-low-income households as defined in s.
379 420.9071(19) and (28) are received for more than the annual tax
380 credits available for those projects, the Department of Economic
381 Opportunity shall grant the tax credits for those applications
382 on a pro rata basis.
383 (c) The project must be undertaken by an “eligible
384 sponsor,” defined here as:
385 1. A community action program;
386 2. A nonprofit community-based development organization
387 whose mission is the provision of housing for persons with
388 special needs or low-income or very-low-income households or
389 increasing entrepreneurial and job-development opportunities for
390 low-income persons;
391 3. A neighborhood housing services corporation;
392 4. A local housing authority, created pursuant to chapter
393 421;
394 5. A community redevelopment agency, created pursuant to s.
395 163.356;
396 6. A historic preservation district agency or organization;
397 7. A regional workforce board;
398 8. A direct-support organization as provided in s.
399 1009.983;
400 9. An enterprise zone development agency created pursuant
401 to s. 290.0056;
402 10. A community-based organization incorporated under
403 chapter 617 which is recognized as educational, charitable, or
404 scientific pursuant to s. 501(c)(3) of the Internal Revenue Code
405 and whose bylaws and articles of incorporation include
406 affordable housing, economic development, or community
407 development as the primary mission of the corporation;
408 11. Units of local government;
409 12. Units of state government; or
410 13. Such other agency as the Department of Economic
411 Opportunity may, from time to time, designate by rule.
412
413 In no event shall a contributing business firm have a financial
414 interest in the eligible sponsor.
415 (d) The project shall be located in an area designated as
416 an enterprise zone or a Front Porch Florida Community. Any
417 project designed to construct or rehabilitate housing for low
418 income or very-low-income households as defined in s.
419 420.9071(19) and (28) or provide housing opportunities for
420 persons with special needs as defined in s. 420.0004 is exempt
421 from the area requirement of this paragraph. This section does
422 not preclude projects that propose to construct or rehabilitate
423 housing for low-income or very-low-income households on
424 scattered sites or provide housing opportunities for persons
425 with special needs. Any project designed to provide increased
426 access to high-speed broadband capabilities which includes
427 coverage of a rural enterprise zone may locate the project’s
428 infrastructure in any area of a rural county.
429 (5) EXPIRATION.—The provisions of this section, except
430 paragraph (1)(e), expire and are void on June 30, 2025 2016.
431 Section 4. Paragraph (c) of subsection (1), paragraphs (d)
432 and (e) of subsection (2), and subsection (6) of section
433 624.5105, Florida Statutes, are amended to read:
434 624.5105 Community contribution tax credit; authorization;
435 limitations; eligibility and application requirements;
436 administration; definitions; expiration.—
437 (1) AUTHORIZATION TO GRANT TAX CREDITS; LIMITATIONS.—
438 (c) The total amount of tax credit which may be granted for
439 all programs approved under this section and ss. 212.08(5)(p)
440 and 220.183 is $18.4 million annually for projects that provide
441 housing opportunities for persons with special needs as defined
442 in s. 420.0004 or homeownership opportunities for low-income or
443 very-low-income households as defined in s. 420.9071 and $3.5
444 million annually for all other projects.
445 (2) ELIGIBILITY REQUIREMENTS.—
446 (d) The project shall be located in an area designated as
447 an enterprise zone or a Front Porch Community. Any project
448 designed to provide housing opportunities for persons with
449 special needs as defined in s. 420.0004 or designed to construct
450 or rehabilitate housing for low-income or very-low-income
451 households as defined in s. 420.9071(19) and (28) is exempt from
452 the area requirement of this paragraph.
453 (e)1. If, during the first 10 business days of the state
454 fiscal year, eligible tax credit applications for projects that
455 provide housing opportunities for persons with special needs as
456 defined in s. 420.0004 or provide homeownership opportunities
457 for low-income or very-low-income households as defined in s.
458 420.9071(19) and (28) are received for less than the annual tax
459 credits available for those projects, the Department of Economic
460 Opportunity shall grant tax credits for those applications and
461 shall grant remaining tax credits on a first-come, first-served
462 basis for any subsequent eligible applications received before
463 the end of the state fiscal year. If, during the first 10
464 business days of the state fiscal year, eligible tax credit
465 applications for projects that provide housing opportunities for
466 persons with special needs as defined in s. 420.0004 or provide
467 homeownership opportunities for low-income or very-low-income
468 households as defined in s. 420.9071(19) and (28) are received
469 for more than the annual tax credits available for those
470 projects, the Department of Economic Opportunity shall grant the
471 tax credits for those applications as follows:
472 a. If tax credit applications submitted for approved
473 projects of an eligible sponsor do not exceed $200,000 in total,
474 the credits shall be granted in full if the tax credit
475 applications are approved.
476 b. If tax credit applications submitted for approved
477 projects of an eligible sponsor exceed $200,000 in total, the
478 amount of tax credits granted under sub-subparagraph a. shall be
479 subtracted from the amount of available tax credits, and the
480 remaining credits shall be granted to each approved tax credit
481 application on a pro rata basis.
482 2. If, during the first 10 business days of the state
483 fiscal year, eligible tax credit applications for projects other
484 than those that provide housing opportunities for persons with
485 special needs as defined in s. 420.0004 or provide homeownership
486 opportunities for low-income or very-low-income households as
487 defined in s. 420.9071(19) and (28) are received for less than
488 the annual tax credits available for those projects, the
489 Department of Economic Opportunity shall grant tax credits for
490 those applications and shall grant remaining tax credits on a
491 first-come, first-served basis for any subsequent eligible
492 applications received before the end of the state fiscal year.
493 If, during the first 10 business days of the state fiscal year,
494 eligible tax credit applications for projects other than those
495 that provide housing opportunities for persons with special
496 needs as defined in s. 420.0004 or provide homeownership
497 opportunities for low-income or very-low-income households as
498 defined in s. 420.9071(19) and (28) are received for more than
499 the annual tax credits available for those projects, the
500 Department of Economic Opportunity shall grant the tax credits
501 for those applications on a pro rata basis.
502 (6) EXPIRATION.—The provisions of this section, except
503 paragraph (1)(e), expire and are void on June 30, 2025 2016.
504 Section 5. This act shall take effect upon becoming a law.