Florida Senate - 2020                        COMMITTEE AMENDMENT
       Bill No. SB 1642
       
       
       
       
       
       
                                Ì854736BÎ854736                         
       
                              LEGISLATIVE ACTION                        
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       The Committee on Commerce and Tourism (Gruters) recommended the
       following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete everything after the enacting clause
    4  and insert:
    5         Section 1. Effective January 1, 2021, section 196.1978,
    6  Florida Statutes, is amended to read:
    7         196.1978 Affordable housing property exemption.—
    8         (1) Property used to provide affordable housing to eligible
    9  persons as defined by s. 159.603 and natural persons or families
   10  meeting the extremely-low-income, very-low-income, low-income,
   11  or moderate-income limits specified in s. 420.0004, which is
   12  owned entirely by a nonprofit entity that is a corporation not
   13  for profit, qualified as charitable under s. 501(c)(3) of the
   14  Internal Revenue Code and in compliance with Rev. Proc. 96-32,
   15  1996-1 C.B. 717, is considered property owned by an exempt
   16  entity and used for a charitable purpose, and those portions of
   17  the affordable housing property that provide housing to natural
   18  persons or families classified as extremely low income, very low
   19  income, low income, or moderate income under s. 420.0004 are
   20  exempt from ad valorem taxation to the extent authorized under
   21  s. 196.196. All property identified in this subsection section
   22  must comply with the criteria provided under s. 196.195 for
   23  determining exempt status and applied by property appraisers on
   24  an annual basis. The Legislature intends that any property owned
   25  by a limited liability company which is disregarded as an entity
   26  for federal income tax purposes pursuant to Treasury Regulation
   27  301.7701-3(b)(1)(ii) be treated as owned by its sole member.
   28         (2)(a) Notwithstanding ss. 196.195 and 196.196, property in
   29  a multifamily project that meets the requirements of this
   30  paragraph is considered property used for a charitable purpose
   31  and shall receive a 100 50 percent discount from the amount of
   32  ad valorem tax otherwise owed beginning in the 16th with the
   33  January 1 assessment after the 15th completed year of the term
   34  of the recorded agreement on those portions of the affordable
   35  housing property that provide housing to natural persons or
   36  families meeting the extremely-low-income, very-low-income, or
   37  low-income limits specified in s. 420.0004. The multifamily
   38  project must:
   39         1. Contain more than 70 units that are used to provide
   40  affordable housing to natural persons or families meeting the
   41  extremely-low-income, very-low-income, or low-income persons
   42  limits specified in s. 420.0004; and
   43         2. Be subject to an agreement with the Florida Housing
   44  Finance Corporation recorded in the official records of the
   45  county in which the property is located to provide affordable
   46  housing to natural persons or families meeting the extremely
   47  low-income, very-low-income, or low-income limits specified in
   48  s. 420.0004.
   49  
   50  This discount terminates if the property no longer serves
   51  extremely-low-income, very-low-income, or low-income persons
   52  pursuant to the recorded agreement.
   53         (b) To receive the discount under paragraph (a), a
   54  qualified applicant must submit an application to the county
   55  property appraiser by March 1.
   56         (c) The property appraiser shall apply the discount by
   57  reducing the taxable value on those portions of the affordable
   58  housing property that provide housing to natural persons or
   59  families meeting the extremely-low-income, very-low-income, or
   60  low-income limits specified in s. 420.0004 before certifying the
   61  tax roll to the tax collector.
   62         1. The property appraiser shall first ascertain all other
   63  applicable exemptions, including exemptions provided pursuant to
   64  local option, and deduct all other exemptions from the assessed
   65  value.
   66         2. One hundred Fifty percent of the remaining value shall
   67  be subtracted to yield the discounted taxable value.
   68         3. The resulting taxable value shall be included in the
   69  certification for use by taxing authorities in setting millage.
   70         4. The property appraiser shall place the discounted amount
   71  on the tax roll when it is extended.
   72         Section 2. Effective July 1, 2020, paragraph (fff) of
   73  subsection (7) of section 212.08, Florida Statutes, is amended,
   74  and paragraph (u) is added to subsection (5) of that section, to
   75  read:
   76         212.08 Sales, rental, use, consumption, distribution, and
   77  storage tax; specified exemptions.—The sale at retail, the
   78  rental, the use, the consumption, the distribution, and the
   79  storage to be used or consumed in this state of the following
   80  are hereby specifically exempt from the tax imposed by this
   81  chapter.
   82         (5) EXEMPTIONS; ACCOUNT OF USE.—
   83         (u)Aircraft equipment used in governmental contracts.
   84  Equipment, including electric and hydraulic ground power units,
   85  jet starter units, oxygen servicing and test equipment, engine
   86  trim boxes, and communications and avionics test sets, which is
   87  used to service, test, operate, upgrade, or configure aircraft
   88  for advanced training purposes as part of any contract with the
   89  United States Department of Defense or with a military branch of
   90  a recognized foreign government, is exempt from the tax imposed
   91  by this chapter.
   92         (7) MISCELLANEOUS EXEMPTIONS.—Exemptions provided to any
   93  entity by this chapter do not inure to any transaction that is
   94  otherwise taxable under this chapter when payment is made by a
   95  representative or employee of the entity by any means,
   96  including, but not limited to, cash, check, or credit card, even
   97  when that representative or employee is subsequently reimbursed
   98  by the entity. In addition, exemptions provided to any entity by
   99  this subsection do not inure to any transaction that is
  100  otherwise taxable under this chapter unless the entity has
  101  obtained a sales tax exemption certificate from the department
  102  or the entity obtains or provides other documentation as
  103  required by the department. Eligible purchases or leases made
  104  with such a certificate must be in strict compliance with this
  105  subsection and departmental rules, and any person who makes an
  106  exempt purchase with a certificate that is not in strict
  107  compliance with this subsection and the rules is liable for and
  108  shall pay the tax. The department may adopt rules to administer
  109  this subsection.
  110         (fff) Aircraft temporarily in the state.—
  111         1. An aircraft owned by a nonresident is exempt from the
  112  use tax imposed under this chapter if the aircraft enters and
  113  remains in this state for less than a total of 21 days during
  114  the 6-month period after the date of purchase. The temporary use
  115  of the aircraft and subsequent removal from this state may be
  116  proven by invoices for fuel, tie-down, or hangar charges issued
  117  by out-of-state vendors or suppliers or similar documentation
  118  that clearly and specifically identifies the aircraft. The
  119  exemption provided in this subparagraph is in addition to the
  120  exemptions provided in subparagraphs 2. and 3. subparagraph 2.
  121  and s. 212.05(1)(a).
  122         2. An aircraft owned by a nonresident is exempt from the
  123  use tax imposed under this chapter if the aircraft enters or
  124  remains in this state exclusively for purposes of flight
  125  training, repairs, alterations, refitting, or modification. Such
  126  purposes shall be supported by written documentation issued by
  127  in-state vendors or suppliers which clearly and specifically
  128  identifies the aircraft. The exemption provided in this
  129  subparagraph is in addition to the exemptions provided in
  130  subparagraph 1. and s. 212.05(1)(a).
  131         3.An aircraft owned by a nonresident is exempt from the
  132  use tax imposed under this chapter if the aircraft enters or
  133  remains in this state exclusively to be used in service of a
  134  contract with the United States Department of Defense or with a
  135  military branch of a recognized foreign government. The
  136  exemption provided in this subparagraph is in addition to the
  137  exemptions provided in subparagraph 1. and s. 212.05(1)(a).
  138         Section 3. Effective October 1, 2020, paragraph (jjj) of
  139  subsection (7) of section 212.08, Florida Statutes, is amended
  140  to read:
  141         212.08 Sales, rental, use, consumption, distribution, and
  142  storage tax; specified exemptions.—The sale at retail, the
  143  rental, the use, the consumption, the distribution, and the
  144  storage to be used or consumed in this state of the following
  145  are hereby specifically exempt from the tax imposed by this
  146  chapter.
  147         (7) MISCELLANEOUS EXEMPTIONS.—Exemptions provided to any
  148  entity by this chapter do not inure to any transaction that is
  149  otherwise taxable under this chapter when payment is made by a
  150  representative or employee of the entity by any means,
  151  including, but not limited to, cash, check, or credit card, even
  152  when that representative or employee is subsequently reimbursed
  153  by the entity. In addition, exemptions provided to any entity by
  154  this subsection do not inure to any transaction that is
  155  otherwise taxable under this chapter unless the entity has
  156  obtained a sales tax exemption certificate from the department
  157  or the entity obtains or provides other documentation as
  158  required by the department. Eligible purchases or leases made
  159  with such a certificate must be in strict compliance with this
  160  subsection and departmental rules, and any person who makes an
  161  exempt purchase with a certificate that is not in strict
  162  compliance with this subsection and the rules is liable for and
  163  shall pay the tax. The department may adopt rules to administer
  164  this subsection.
  165         (jjj) Certain machinery and equipment.—
  166         1. Industrial machinery and equipment purchased by eligible
  167  manufacturing businesses which is used at a fixed location in
  168  this state for the manufacture, processing, compounding, or
  169  production of items of tangible personal property for sale is
  170  exempt from the tax imposed by this chapter. If, at the time of
  171  purchase, the purchaser furnishes the seller with a signed
  172  certificate certifying the purchaser’s entitlement to exemption
  173  pursuant to this paragraph, the seller is not required to
  174  collect the tax on the sale of such items, and the department
  175  shall look solely to the purchaser for recovery of the tax if it
  176  determines that the purchaser was not entitled to the exemption.
  177         2. For purposes of this paragraph, the term:
  178         a. “Eligible manufacturing business” means any business
  179  whose primary business activity at the location where the
  180  industrial machinery and equipment is located is within the
  181  industries classified under NAICS codes 31, 32, 33, 112511, and
  182  423930.
  183         b. “Eligible postharvest activity business” means a
  184  business whose primary business activity, at the location where
  185  the postharvest machinery and equipment is located, is within
  186  the industries classified under NAICS code 115114.
  187         c. “NAICS” means those classifications contained in the
  188  North American Industry Classification System, as published in
  189  2007 by the Office of Management and Budget, Executive Office of
  190  the President.
  191         d. “Primary business activity” means an activity
  192  representing more than 50 percent of the activities conducted at
  193  the location where the industrial machinery and equipment or
  194  postharvest machinery and equipment is located.
  195         e. “Industrial machinery and equipment” means tangible
  196  personal property or other property that has a depreciable life
  197  of 3 years or more and that is used as an integral part in the
  198  manufacturing, processing, compounding, or production of
  199  tangible personal property for sale. The term includes tangible
  200  personal property or other property that has a depreciable life
  201  of 3 years or more which is used as an integral part in the
  202  recycling of metals for sale. A building and its structural
  203  components are not industrial machinery and equipment unless the
  204  building or structural component is so closely related to the
  205  industrial machinery and equipment that it houses or supports
  206  that the building or structural component can be expected to be
  207  replaced when the machinery and equipment are replaced. Heating
  208  and air conditioning systems are not industrial machinery and
  209  equipment unless the sole justification for their installation
  210  is to meet the requirements of the production process, even
  211  though the system may provide incidental comfort to employees or
  212  serve, to an insubstantial degree, nonproduction activities. The
  213  term includes parts and accessories for industrial machinery and
  214  equipment only to the extent that the parts and accessories are
  215  necessary for the continued operation of the industrial
  216  machinery or equipment or were purchased before the date the
  217  machinery and equipment were are placed in service.
  218         f. “Postharvest activities” means services performed on
  219  crops, after their harvest, with the intent of preparing them
  220  for market or further processing. Postharvest activities
  221  include, but are not limited to, crop cleaning, sun drying,
  222  shelling, fumigating, curing, sorting, grading, packing, and
  223  cooling.
  224         g. “Postharvest machinery and equipment” means tangible
  225  personal property or other property with a depreciable life of 3
  226  years or more which is used primarily for postharvest
  227  activities. A building and its structural components are not
  228  postharvest industrial machinery and equipment unless the
  229  building or structural component is so closely related to the
  230  postharvest machinery and equipment that it houses or supports
  231  that the building or structural component can be expected to be
  232  replaced when the postharvest machinery and equipment is
  233  replaced. Heating and air conditioning systems are not
  234  postharvest machinery and equipment unless the sole
  235  justification for their installation is to meet the requirements
  236  of the postharvest activities process, even though the system
  237  may provide incidental comfort to employees or serve, to an
  238  insubstantial degree, nonpostharvest activities.
  239         3. Postharvest machinery and equipment purchased by an
  240  eligible postharvest activity business which is used at a fixed
  241  location in this state is exempt from the tax imposed by this
  242  chapter. All labor charges for the repair of, and parts and
  243  materials used in the repair of and incorporated into, such
  244  postharvest machinery and equipment are also exempt. If, at the
  245  time of purchase, the purchaser furnishes the seller with a
  246  signed certificate certifying the purchaser’s entitlement to
  247  exemption pursuant to this subparagraph, the seller is not
  248  required to collect the tax on the sale of such items, and the
  249  department shall look solely to the purchaser for recovery of
  250  the tax if it determines that the purchaser was not entitled to
  251  the exemption.
  252         Section 4. Section 220.191, Florida Statutes, is amended to
  253  read:
  254         220.191 Capital investment tax credit.—
  255         (1) DEFINITIONS.—As used in For purposes of this section,
  256  the term:
  257         (a) “Commencement of operations” means the beginning of
  258  active operations by a qualifying business of the principal
  259  function for which a qualifying project was constructed.
  260         (b) “Cumulative capital investment” means the total capital
  261  investment in land, buildings, and equipment, and intellectual
  262  property made in connection with a qualifying project during the
  263  period from the beginning of construction or the start date of
  264  the project to the commencement of operations or the completion
  265  of the project, as applicable.
  266         (c) “Eligible capital costs” means all expenses incurred by
  267  a qualifying business in connection with the acquisition,
  268  construction, installation, and equipping, and development of a
  269  qualifying project during the period from the beginning of
  270  construction or the start date of the project to the
  271  commencement of operations or the completion of the project, as
  272  applicable, including, but not limited to:
  273         1. The costs of acquiring, constructing, installing,
  274  equipping, and financing a qualifying project, including all
  275  obligations incurred for labor and obligations to contractors,
  276  subcontractors, builders, and materialmen.
  277         2. The costs of acquiring land or rights to land and any
  278  cost incidental thereto, including recording fees.
  279         3. The costs of architectural and engineering services,
  280  including test borings, surveys, estimates, plans and
  281  specifications, preliminary investigations, environmental
  282  mitigation, and supervision of construction, as well as the
  283  performance of all duties required by or consequent to the
  284  acquisition, construction, installation, and equipping of a
  285  qualifying project.
  286         4. The costs associated with the installation of fixtures
  287  and equipment; surveys, including archaeological and
  288  environmental surveys; site tests and inspections; subsurface
  289  site work and excavation; removal of structures, roadways, and
  290  other surface obstructions; filling, grading, paving, and
  291  provisions for drainage, storm water retention, and installation
  292  of utilities, including water, sewer, sewage treatment, gas,
  293  electricity, communications, and similar facilities; and offsite
  294  construction of utility extensions to the boundaries of the
  295  property.
  296         5.For the development of intellectual property, the wages,
  297  salaries, or other compensation paid to legal residents of this
  298  state and the costs of newly purchased computer software and
  299  hardware unique to the project, including servers, data
  300  processing, and visualization technologies, which are located
  301  and used exclusively in this state for the project.
  302  
  303  Eligible capital costs shall not include the cost of any
  304  property previously owned or leased by the qualifying business.
  305         (d) “Income generated by or arising out of the qualifying
  306  project” means the qualifying project’s annual taxable income as
  307  determined by generally accepted accounting principles and under
  308  s. 220.13.
  309         (e) “Intellectual property” means a copyrightable project
  310  for which the eligible capital costs are principally paid
  311  directly or indirectly for the creation of the project. As used
  312  in this paragraph, the term “copyrightable project” includes,
  313  but is not limited to, a copyrightable software or multimedia
  314  application and its expansion content made available to an end
  315  user, internal development platforms that support the production
  316  of multiple applications, cloud-based services that support the
  317  functionality of multiple applications, and copyrighted projects
  318  registered with the United States Copyright Office which include
  319  digital visualization and sound synchronization technologies.
  320  The project may not be intended for distribution solely inside
  321  this state, and at least 75 percent of forecasted revenues for
  322  the project must be from outside this state.
  323         (f) “Jobs” means full-time equivalent positions, as that
  324  term is consistent with terms used by the Department of Economic
  325  Opportunity and the United States Department of Labor for
  326  purposes of reemployment assistance tax administration and
  327  employment estimation, resulting directly from a project in this
  328  state. The term does not include temporary construction jobs
  329  involved in the construction of the project facility.
  330         (g)(f) “Qualifying business” means a business which
  331  establishes a qualifying project in this state and which is
  332  certified by the Department of Economic Opportunity to receive
  333  tax credits pursuant to this section.
  334         (h)(g) “Qualifying project” means a facility or project in
  335  this state meeting one or more of the following criteria:
  336         1. A new or expanding facility in this state which creates
  337  at least 100 new jobs in this state and is in one of the high
  338  impact sectors identified by Enterprise Florida, Inc., and
  339  certified by the Department of Economic Opportunity pursuant to
  340  s. 288.108(6), including, but not limited to, aviation,
  341  aerospace, automotive, and silicon technology industries.
  342  However, between July 1, 2011, and June 30, 2014, the
  343  requirement that a facility be in a high-impact sector is waived
  344  for any otherwise eligible business from another state which
  345  locates all or a portion of its business to a Disproportionally
  346  Affected County. For purposes of this section, the term
  347  “Disproportionally Affected County” means Bay County, Escambia
  348  County, Franklin County, Gulf County, Okaloosa County, Santa
  349  Rosa County, Walton County, or Wakulla County.
  350         2. A new or expanded facility in this state which is
  351  engaged in a target industry designated pursuant to the
  352  procedure specified in s. 288.106(2) and which is induced by
  353  this credit to create or retain at least 1,000 jobs in this
  354  state, provided that at least 100 of those jobs are new, pay an
  355  annual average wage of at least 130 percent of the average
  356  private sector wage in the area as defined in s. 288.106(2), and
  357  make a cumulative capital investment of at least $100 million.
  358  Jobs may be considered retained only if there is significant
  359  evidence that the loss of jobs is imminent. Notwithstanding
  360  subsection (2), annual credits against the tax imposed by this
  361  chapter may not exceed 50 percent of the increased annual
  362  corporate income tax liability or the premium tax liability
  363  generated by or arising out of a project qualifying under this
  364  subparagraph. A facility that qualifies under this subparagraph
  365  for an annual credit against the tax imposed by this chapter may
  366  take the tax credit for a period not to exceed 5 years.
  367         3. A new or expanded headquarters facility in this state
  368  which locates in an enterprise zone and brownfield area and is
  369  induced by this credit to create at least 1,500 jobs which on
  370  average pay at least 200 percent of the statewide average annual
  371  private sector wage, as published by the Department of Economic
  372  Opportunity, and which new or expanded headquarters facility
  373  makes a cumulative capital investment in this state of at least
  374  $250 million.
  375         4.For the creation of intellectual property, a qualifying
  376  project may be made up of one or more projects with different
  377  start and completion dates. The annual average wage of the
  378  project jobs in this state must be at least 150 percent of the
  379  average private sector wage in the area as defined in s.
  380  288.106(2)(c).
  381         (2)(a) An annual credit against the tax imposed by this
  382  chapter shall be granted to any qualifying business in an amount
  383  equal to 5 percent of the eligible capital costs generated by a
  384  qualifying project, for a period not to exceed 20 years
  385  beginning with the commencement of operations of the project.
  386  Unless assigned as described in this subsection, the tax credit
  387  shall be granted against only the corporate income tax liability
  388  or the premium tax liability generated by or arising out of the
  389  qualifying project, and the sum of all tax credits provided
  390  pursuant to this section shall not exceed 100 percent of the
  391  eligible capital costs of the project. In no event may any
  392  credit granted under this section be carried forward or backward
  393  by any qualifying business with respect to a subsequent or prior
  394  year. The annual tax credit granted under this section shall not
  395  exceed the following percentages of the annual corporate income
  396  tax liability or the premium tax liability generated by or
  397  arising out of a qualifying project:
  398         1. One hundred percent for a qualifying project which
  399  results in a cumulative capital investment of at least $100
  400  million.
  401         2. Seventy-five percent for a qualifying project which
  402  results in a cumulative capital investment of at least $50
  403  million but less than $100 million.
  404         3. Fifty percent for a qualifying project which results in
  405  a cumulative capital investment of at least $25 million but less
  406  than $50 million.
  407         (b) A qualifying project which results in a cumulative
  408  capital investment of less than $25 million is not eligible for
  409  the capital investment tax credit. An insurance company claiming
  410  a credit against premium tax liability under this program shall
  411  not be required to pay any additional retaliatory tax levied
  412  pursuant to s. 624.5091 as a result of claiming such credit.
  413  Because credits under this section are available to an insurance
  414  company, s. 624.5091 does not limit such credit in any manner.
  415         (c) A qualifying business that establishes a qualifying
  416  project that includes locating a new solar panel manufacturing
  417  facility in this state that generates a minimum of 400 jobs
  418  within 6 months after commencement of operations with an average
  419  salary of at least $50,000 may assign or transfer the annual
  420  credit, or any portion thereof, granted under this section to
  421  any other business. However, the amount of the tax credit that
  422  may be transferred in any year shall be the lesser of the
  423  qualifying business’s state corporate income tax liability for
  424  that year, as limited by the percentages applicable under
  425  paragraph (a) and as calculated prior to taking any credit
  426  pursuant to this section, or the credit amount granted for that
  427  year. A business receiving the transferred or assigned credits
  428  may use the credits only in the year received, and the credits
  429  may not be carried forward or backward. To perfect the transfer,
  430  the transferor shall provide the department with a written
  431  transfer statement notifying the department of the transferor’s
  432  intent to transfer the tax credits to the transferee; the date
  433  the transfer is effective; the transferee’s name, address, and
  434  federal taxpayer identification number; the tax period; and the
  435  amount of tax credits to be transferred. The department shall,
  436  upon receipt of a transfer statement conforming to the
  437  requirements of this paragraph, provide the transferee with a
  438  certificate reflecting the tax credit amounts transferred. A
  439  copy of the certificate must be attached to each tax return for
  440  which the transferee seeks to apply such tax credits.
  441         (d) If the credit granted under subparagraph (a)1. is not
  442  fully used in any one year because of insufficient tax liability
  443  on the part of the qualifying business, the unused amounts may
  444  be used in any one year or years beginning with the 21st year
  445  after the commencement of operations of the project and ending
  446  the 30th year after the commencement of operations of the
  447  project.
  448         (3)(a) Notwithstanding subsection (2), a credit against the
  449  tax imposed by this chapter, against state taxes collected or
  450  accrued under chapter 212, or against a stated combination of
  451  the two taxes shall be granted to a qualifying business that
  452  establishes a qualifying project pursuant to subparagraph
  453  (1)(h)4. for which the cumulative capital investment of one or
  454  more projects is an aggregate of at least $50 million per year
  455  for 3 years, and the capital investment of each individual
  456  project is at least $3.75 million. The tax credit shall be
  457  granted in an amount equal to 20 percent of the eligible capital
  458  costs generated by the qualifying project. The tax credit shall
  459  be granted against the tax liability of the qualifying business.
  460         (b)If the credit granted under this subsection is not
  461  fully used in 1 year because of insufficient tax liability on
  462  the part of the qualifying business, the unused amounts may be
  463  transferred or used in any one year or years beginning with the
  464  year of the completion date of the project and ending the 9th
  465  year after the completion date of the project. A business
  466  receiving the transferred credits may use the credits only in
  467  the year received, and the credits may not be carried forward or
  468  backward. A transfer must be perfected in accordance with the
  469  requirements of paragraph (2)(c).
  470         (4)(a) Notwithstanding subsection (2), an annual credit
  471  against the tax imposed by this chapter shall be granted to a
  472  qualifying business which establishes a qualifying project
  473  pursuant to subparagraph (1)(h)3. (1)(g)3., in an amount equal
  474  to the lesser of $15 million or 5 percent of the eligible
  475  capital costs made in connection with a qualifying project, for
  476  a period not to exceed 20 years beginning with the commencement
  477  of operations of the project. The tax credit shall be granted
  478  against the corporate income tax liability of the qualifying
  479  business and as further provided in paragraph (c). The total tax
  480  credit provided pursuant to this subsection shall be equal to no
  481  more than 100 percent of the eligible capital costs of the
  482  qualifying project.
  483         (b) If the credit granted under this subsection is not
  484  fully used in any one year because of insufficient tax liability
  485  on the part of the qualifying business, the unused amount may be
  486  carried forward for a period not to exceed 20 years after the
  487  commencement of operations of the project. The carryover credit
  488  may be used in a subsequent year when the tax imposed by this
  489  chapter for that year exceeds the credit for which the
  490  qualifying business is eligible in that year under this
  491  subsection after applying the other credits and unused
  492  carryovers in the order provided by s. 220.02(8).
  493         (c) The credit granted under this subsection may be used in
  494  whole or in part by the qualifying business or any corporation
  495  that is either a member of that qualifying business’s affiliated
  496  group of corporations, is a related entity taxable as a
  497  cooperative under subchapter T of the Internal Revenue Code, or,
  498  if the qualifying business is an entity taxable as a cooperative
  499  under subchapter T of the Internal Revenue Code, is related to
  500  the qualifying business. Any entity related to the qualifying
  501  business may continue to file as a member of a Florida-nexus
  502  consolidated group pursuant to a prior election made under s.
  503  220.131(1), Florida Statutes (1985), even if the parent of the
  504  group changes due to a direct or indirect acquisition of the
  505  former common parent of the group. Any credit can be used by any
  506  of the affiliated companies or related entities referenced in
  507  this paragraph to the same extent as it could have been used by
  508  the qualifying business. However, any such use shall not operate
  509  to increase the amount of the credit or extend the period within
  510  which the credit must be used.
  511         (5)(4) Prior to receiving tax credits pursuant to this
  512  section, a qualifying business must achieve and maintain the
  513  minimum employment goals beginning with the commencement of
  514  operations or the completion date of at a qualifying project and
  515  continuing each year thereafter during which tax credits are
  516  available pursuant to this section.
  517         (6)(5) Applications shall be reviewed and certified
  518  pursuant to s. 288.061. The Department of Economic Opportunity,
  519  upon a recommendation by Enterprise Florida, Inc., shall first
  520  certify a business as eligible to receive tax credits pursuant
  521  to this section prior to the commencement of operations or the
  522  completion date of a qualifying project, and such certification
  523  shall be transmitted to the Department of Revenue. Upon receipt
  524  of the certification, the Department of Revenue shall enter into
  525  a written agreement with the qualifying business specifying, at
  526  a minimum, the method by which income generated by or arising
  527  out of the qualifying project will be determined.
  528         (7)(6) The Department of Economic Opportunity, in
  529  consultation with Enterprise Florida, Inc., is authorized to
  530  develop the necessary guidelines and application materials for
  531  the certification process described in subsection (6) (5).
  532         (8)(7) It shall be the responsibility of the qualifying
  533  business to affirmatively demonstrate to the satisfaction of the
  534  Department of Revenue that such business meets the job creation
  535  and capital investment requirements of this section.
  536         (9)(8) The Department of Revenue may specify by rule the
  537  methods by which a project’s pro forma annual taxable income is
  538  determined.
  539         Section 5. Paragraph (d) of subsection (2) of section
  540  288.1089, Florida Statutes, is amended to read:
  541         288.1089 Innovation Incentive Program.—
  542         (2) As used in this section, the term:
  543         (d) “Cumulative investment” means cumulative capital
  544  investment and all eligible capital costs, as defined in former
  545  s. 220.191, Florida Statutes 2019.
  546         Section 6. Except as otherwise expressly provided in this
  547  act, this act shall take effect upon becoming a law.
  548  
  549  ================= T I T L E  A M E N D M E N T ================
  550  And the title is amended as follows:
  551         Delete everything before the enacting clause
  552  and insert:
  553                        A bill to be entitled                      
  554         An act relating to tax exemptions; amending s.
  555         196.1978, F.S.; revising the affordable housing
  556         property exemption to exempt from ad valorem taxation,
  557         rather than provide a discount to, certain multifamily
  558         projects after a certain timeframe; making clarifying
  559         changes; amending s. 212.08, F.S.; providing a sales
  560         tax exemption for certain aircraft equipment used as
  561         part of certain governmental contracts; providing a
  562         use tax exemption for certain aircraft owned by
  563         nonresidents and used in service of certain
  564         governmental contracts; providing construction;
  565         providing a sales tax exemption for parts and
  566         accessories necessary for the continued operation of
  567         certain industrial machinery or equipment; amending s.
  568         220.191, F.S.; redefining terms; defining the term
  569         “intellectual property”; providing a credit against
  570         the corporate income tax, the sales and use tax, or a
  571         stated combination of the two taxes to a qualifying
  572         business that establishes a qualifying project for the
  573         creation of intellectual property which meets certain
  574         capital investment criteria; specifying the
  575         calculation of the credit; authorizing the carryover
  576         or transfer of credits, subject to certain conditions;
  577         conforming provisions to changes made by the act;
  578         amending s. 288.1089, F.S.; revising the definition of
  579         the term “cumulative investment” to conform to changes
  580         made by the act; providing effective dates.