Florida Senate - 2022 COMMITTEE AMENDMENT
Bill No. SB 800
Ì264886[Î264886
LEGISLATIVE ACTION
Senate . House
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The Committee on Finance and Tax (Albritton) recommended the
following:
1 Senate Amendment (with title amendment)
2
3 Delete everything after the enacting clause
4 and insert:
5 Section 1. Subsection (35) is added to section 212.02,
6 Florida Statutes, to read:
7 212.02 Definitions.—The following terms and phrases when
8 used in this chapter have the meanings ascribed to them in this
9 section, except where the context clearly indicates a different
10 meaning:
11 (35) “Opportunity zone” means a population census tract
12 designated by the United States Department of the Treasury as a
13 qualified opportunity zone pursuant to s. 1400Z-1(b)(1)(B) of
14 the Internal Revenue Code and located in a rural community as
15 defined in s. 288.0656.
16 Section 2. Paragraph (v) is added to subsection (5) of
17 section 212.08, Florida Statutes, and subsection (19) is added
18 to that section, to read:
19 212.08 Sales, rental, use, consumption, distribution, and
20 storage tax; specified exemptions.—The sale at retail, the
21 rental, the use, the consumption, the distribution, and the
22 storage to be used or consumed in this state of the following
23 are hereby specifically exempt from the tax imposed by this
24 chapter.
25 (5) EXEMPTIONS; ACCOUNT OF USE.—
26 (v) Building materials used in the rehabilitation of real
27 property located in an opportunity zone.—
28 1. For the purposes of the exemption provided in this
29 paragraph, the term:
30 a. “Building materials” means tangible personal property
31 that becomes a component part of improvements to real property.
32 b. “Real property” has the same meaning as provided in s.
33 192.001(12), except that the term does not include a condominium
34 parcel or condominium property as defined in s. 718.103.
35 c. “Rehabilitation of real property” means the
36 reconstruction, renovation, restoration, rehabilitation,
37 construction, or expansion of improvements to real property.
38 d. “Substantially completed” has the same meaning as
39 provided in s. 192.042(1).
40 2. Building materials used in the rehabilitation of real
41 property are exempt from the tax imposed by this chapter upon an
42 affirmative showing to the satisfaction of the department that
43 the items have been used for the rehabilitation of real property
44 located in an opportunity zone. This exemption inures to the
45 owner, lessee, or lessor at the time the real property is
46 rehabilitated, but only through a refund of previously paid
47 taxes. To receive a refund pursuant to this paragraph, the
48 owner, lessee, or lessor of the rehabilitated real property must
49 file an application under oath with the governing body having
50 jurisdiction over the opportunity zone where the property is
51 located, as applicable. A single application for a refund may be
52 submitted for multiple, contiguous parcels that were part of a
53 single parcel divided as part of the rehabilitation of the real
54 property. All other requirements of this paragraph apply to each
55 parcel on an individual basis. The application must include all
56 of the following:
57 a. The name and address of the person claiming the refund.
58 b. An address and assessment roll parcel number of the
59 rehabilitated real property for which a refund of previously
60 paid taxes is being sought.
61 c. A description of the improvements made to accomplish the
62 rehabilitation of the real property.
63 d. A copy of a valid building permit issued by the county
64 or municipal building department for the rehabilitation of the
65 real property.
66 e. A sworn statement, under penalty of perjury, from the
67 general contractor licensed in this state with whom the
68 applicant contracted to make the improvements necessary to
69 rehabilitate the real property. The sworn statement must list
70 the building materials used to rehabilitate the real property,
71 the actual cost of the building materials, and the amount of
72 sales tax paid in this state on the building materials. If a
73 general contractor was not used, the applicant, not a general
74 contractor, shall make the sworn statement required by this sub
75 subparagraph. Copies of the invoices that show the purchase of
76 the building materials used in the rehabilitation and the
77 payment of sales tax on the building materials must be attached
78 to the sworn statement provided by the general contractor or by
79 the applicant. Unless the actual cost of building materials used
80 in the rehabilitation of real property and the payment of sales
81 taxes are documented by a general contractor or by the applicant
82 in this manner, the cost of the building materials is deemed to
83 be an amount equal to 40 percent of the increase in assessed
84 value for ad valorem tax purposes.
85 f. The census tract number of the opportunity zone in which
86 the rehabilitated real property is located.
87 g. A certification by the local building code inspector
88 that the improvements necessary to rehabilitate the real
89 property are substantially completed.
90 3. Within 10 working days after receipt of an application,
91 the governing body shall review the application to determine if
92 it contains all the information required by subparagraph 1. and
93 meets the criteria set forth in this paragraph. The governing
94 body shall certify all applications that contain the required
95 information and are eligible to receive a refund. The
96 certification must be in writing, and a copy of the
97 certification shall be transmitted to the executive director of
98 the department. The applicant is responsible for forwarding a
99 certified application to the department within the time
100 specified in subparagraph 4.
101 4. An application for a refund must be submitted to the
102 department within 6 months after the rehabilitation of the real
103 property is deemed to be substantially completed by the local
104 building code inspector or by November 1 after the rehabilitated
105 real property is first subject to assessment.
106 5. Only one exemption through a refund of previously paid
107 taxes for the rehabilitation of real property is allowed for any
108 single parcel of real property unless there is a change in
109 ownership, a new lessor, or a new lessee of the real property. A
110 refund may not be granted unless the amount to be refunded
111 exceeds $500. A refund may not exceed the lesser of 97 percent
112 of the Florida sales or use tax paid on the cost of the building
113 materials used in the rehabilitation of the real property, as
114 determined pursuant to sub-subparagraph 2.e., or $7,500. The
115 department shall make the refund within 30 days after formally
116 approving the application.
117 6. The department shall adopt rules governing the manner
118 and form of refund applications and may establish guidelines as
119 to the requisites for an affirmative showing of qualification
120 for exemption under this paragraph.
121 (19) ENERGY USED IN AN OPPORTUNITY ZONE.—
122 (a) Beginning July 1, 2023, a qualified business that uses
123 electrical energy, natural gas, or propane at a fixed location
124 in an opportunity zone in a municipality that has enacted an
125 ordinance pursuant to s. 166.231(9) which provides for exemption
126 of municipal utility taxes on such businesses shall receive an
127 exemption equal to 50 percent of the tax imposed by this
128 chapter. A qualified business may receive such exemption for a
129 period of 5 years from the billing period beginning not more
130 than 30 days following the department notifying the applicable
131 utility company that an exemption has been authorized pursuant
132 to this subsection and s. 166.231(9).
133 (b) To receive this exemption, a business must file an
134 application with the department on a form provided for the
135 purposes of this subsection and s. 166.231(9). The application
136 must be made under oath and include all of the following:
137 1. The name and location of the business.
138 2. The census tract number of the opportunity zone in which
139 the business is located.
140 3. The date on which electrical, natural gas, or propane
141 service is to be first initiated at the business.
142 4. The name and mailing address of the entity from which
143 electrical energy, natural gas, or propane is to be purchased.
144 5. The date of the application.
145 6. The name of the city in which the business is located.
146 (c) An application for an exemption under this subsection
147 must be submitted to the department within 6 months after the
148 occurrence of the appropriate qualifying provision set out in
149 paragraph (f).
150 (d) If, in a subsequent audit conducted by the department,
151 it is determined that the business did not meet the criteria
152 mandated in this subsection, the amount of taxes exempted shall
153 immediately be due and payable to the department by the
154 business, together with the appropriate interest and penalty,
155 computed from the due date of each bill for the electrical
156 energy, natural gas, or propane purchased as exempt under this
157 subsection, in the manner prescribed by this chapter.
158 (e) The department shall adopt rules governing applications
159 and the required forms for, and issuance of, the exemption
160 authorized in this subsection and provisions for recapture of
161 taxes exempted under this subsection, and the department may
162 establish guidelines as to qualifications for the exemption.
163 (f) For the purpose of the exemption provided in this
164 subsection, the term “qualified business” means a business that
165 is:
166 1. First occupying a new structure to which electrical,
167 natural gas, or propane service, other than that used for
168 construction purposes, has not been previously provided or
169 furnished;
170 2. Newly occupying an existing, remodeled, renovated, or
171 rehabilitated structure to which electrical, natural gas, or
172 propane service, other than that used for remodeling,
173 renovation, or rehabilitation of the structure, has not been
174 provided or furnished in the three preceding billing periods; or
175 3. Occupying a new, remodeled, rebuilt, renovated, or
176 rehabilitated structure for which a refund has been granted
177 pursuant to paragraph (5)(v).
178 Section 3. Paragraph (d) of subsection (1) of section
179 288.018, Florida Statutes, is amended to read:
180 288.018 Regional Rural Development Grants Program.—
181 (1)
182 (d) Grant funds received by a regional economic development
183 organization must be matched each year by nonstate financial or
184 in-kind contributions resources in an amount equal to 15 25
185 percent of the state contribution.
186 Section 4. Paragraph (c) of subsection (2) of section
187 288.065, Florida Statutes, is amended to read:
188 288.065 Rural Community Development Revolving Loan Fund.—
189 (2)
190 (c) All repayments of principal and interest shall be
191 returned to the loan fund and made available for loans to other
192 applicants. However, in a rural area of opportunity designated
193 by the Governor, and upon approval by the department, repayments
194 of principal and interest may be retained by the applicant if
195 such repayments are dedicated and matched to fund regionally
196 based economic development organizations representing the rural
197 area of opportunity.
198 Section 5. Subsection (1), paragraphs (b), (c), and (e) of
199 subsection (2), and subsection (3) of section 288.0655, Florida
200 Statutes, are amended to read:
201 288.0655 Rural Infrastructure Fund.—
202 (1) There is created within the department the Rural
203 Infrastructure Fund to facilitate the planning, preparing, and
204 financing of infrastructure projects in rural communities which
205 will encourage job creation, capital investment, and the
206 strengthening and diversification of rural economies by
207 promoting tourism, trade, and economic development.
208 (2)
209 (b) To facilitate access of rural communities and rural
210 areas of opportunity as defined by the Rural Economic
211 Development Initiative to infrastructure funding programs of the
212 Federal Government, such as those offered by the United States
213 Department of Agriculture and the United States Department of
214 Commerce, and state programs, including those offered by Rural
215 Economic Development Initiative agencies, and to facilitate
216 local government or private infrastructure funding efforts, the
217 department may award grants for up to 75 50 percent of the total
218 infrastructure project cost. Eligible projects must be related
219 to specific job-creation or job-retention opportunities.
220 Eligible uses of funds projects may also include improving any
221 inadequate infrastructure that has resulted in regulatory action
222 that prohibits economic or community growth, reducing the costs
223 to community users of proposed infrastructure improvements that
224 exceed such costs in comparable communities, and improving
225 access to and the availability of broadband Internet service.
226 Eligible uses of funds shall include improvements to public
227 infrastructure for industrial or commercial sites, upgrades to
228 or development of public tourism infrastructure, and
229 improvements to broadband Internet service and access in
230 unserved or underserved rural communities. Improvements to
231 broadband Internet service and access must be conducted through
232 a partnership or partnerships with one or more dealers, as
233 defined in s. 202.11(2), and the partnership or partnerships
234 must be established through a competitive selection process that
235 is publicly noticed. Authorized infrastructure may include the
236 following public or public-private partnership facilities: storm
237 water systems; telecommunications facilities; broadband
238 facilities; roads or other remedies to transportation
239 impediments; nature-based tourism facilities; or other physical
240 requirements necessary to facilitate tourism, trade, and
241 economic development activities in the community. Authorized
242 infrastructure may also include publicly or privately owned
243 self-powered nature-based tourism facilities, publicly owned
244 telecommunications facilities, and broadband facilities, and
245 additions to the distribution facilities of the existing natural
246 gas utility as defined in s. 366.04(3)(c), the existing electric
247 utility as defined in s. 366.02, or the existing water or
248 wastewater utility as defined in s. 367.021(12), or any other
249 existing water or wastewater facility, which owns a gas or
250 electric distribution system or a water or wastewater system in
251 this state where:
252 1. A contribution-in-aid of construction is required to
253 serve public or public-private partnership facilities under the
254 tariffs of any natural gas, electric, water, or wastewater
255 utility as defined herein; and
256 2. Such utilities as defined herein are willing and able to
257 provide such service.
258 (c) To facilitate timely response and induce the location
259 or expansion of specific job creating opportunities, The
260 department may award grants of up to $300,000 for infrastructure
261 feasibility studies, design and engineering activities, or other
262 infrastructure planning and preparation activities. Authorized
263 grants shall be up to $50,000 for an employment project with a
264 business committed to create at least 100 jobs; up to $150,000
265 for an employment project with a business committed to create at
266 least 300 jobs; and up to $300,000 for a project in a rural area
267 of opportunity. Grants awarded under this paragraph may be used
268 in conjunction with grants awarded under paragraph (b), provided
269 that the total amount of both grants does not exceed 30 percent
270 of the total project cost. In evaluating applications under this
271 paragraph, the department shall consider the extent to which the
272 application seeks to minimize administrative and consultant
273 expenses.
274 (e) To enable local governments to access the resources
275 available pursuant to s. 403.973(18), the department may award
276 grants for surveys, feasibility studies, and other activities
277 related to the identification and preclearance review of land
278 which is suitable for preclearance review. Authorized grants
279 under this paragraph do not require a local match and may not
280 exceed $75,000 each, except in the case of a project in a rural
281 area of opportunity, in which case the grant may not exceed
282 $300,000. Any funds awarded under this paragraph must be matched
283 at a level of 50 percent with local funds, except that any funds
284 awarded for a project in a rural area of opportunity must be
285 matched at a level of 33 percent with local funds. If an
286 application for funding is for a catalyst site, as defined in s.
287 288.0656, the requirement for local match may be waived pursuant
288 to the process in s. 288.06561. In evaluating applications under
289 this paragraph, the department shall consider the extent to
290 which the application seeks to minimize administrative and
291 consultant expenses.
292 (3) The department, in consultation with Enterprise
293 Florida, Inc., the Florida Tourism Industry Marketing
294 Corporation, the Department of Environmental Protection, and the
295 Florida Fish and Wildlife Conservation Commission, as
296 appropriate, shall review and certify applications pursuant to
297 s. 288.061. The review shall include an evaluation of the
298 economic benefit of the projects and their long-term viability.
299 The department shall have final approval for any grant under
300 this section.
301 Section 6. Section 288.066, Florida Statutes, is created to
302 read:
303 288.066 Rural opportunity tax refund program.—
304 (1) DEFINITIONS.—As used in this section:
305 (a) “Account” means the Economic Development Incentives
306 Account within the Economic Development Trust Fund established
307 under s. 288.095.
308 (b) “Authorized local economic development agency” means a
309 public or private entity, including an entity defined in s.
310 288.075, authorized by a county or municipality to promote the
311 general business or industrial interests of that county or
312 municipality.
313 (c) “Average private sector wage in the area” means the
314 statewide private sector average wage or the average of all
315 private sector wages and salaries in the county or in the
316 standard metropolitan area in which the business is located.
317 (d) “Business” means an employing unit, as defined in s.
318 443.036, registered for reemployment assistance purposes with
319 the state agency providing reemployment assistance tax
320 collection services under an interagency agreement pursuant to
321 s. 443.1316, or a subcategory or division of an employing unit
322 accepted by the state agency providing reemployment assistance
323 tax collection services as a reporting unit.
324 (e) “Corporate headquarters business” means an
325 international, national, or regional headquarters office of a
326 multinational or multistate business enterprise or national
327 trade association, whether separate from or connected with other
328 facilities used by such business.
329 (f) “Expansion of an existing business” means the expansion
330 of an existing Florida business by or through additions to real
331 and personal property, resulting in a net increase in
332 employment.
333 (g) “Fiscal year” means the fiscal year of the state.
334 (h) “Jobs” means full-time equivalent positions, including,
335 but not limited to, positions obtained from a temporary
336 employment agency or employee leasing company or through a union
337 agreement or coemployment under a professional employer
338 organization agreement, that result directly from a project in
339 this state. The term does not include temporary construction
340 jobs involved with the construction of facilities for the
341 project or any jobs previously included in any application for
342 tax refunds under s. 288.1045 or this section.
343 (i) “Local financial support” means funding from local
344 sources, public or private, which is paid to the Economic
345 Development Trust Fund and which is equal to 20 percent of the
346 annual tax refund for a qualified target industry business. A
347 qualified target industry business may not provide, directly or
348 indirectly, more than 5 percent of such funding in any fiscal
349 year. The sources of such funding may not include, directly or
350 indirectly, state funds appropriated from the General Revenue
351 Fund or any state trust fund, excluding tax revenues shared with
352 local governments pursuant to law.
353 (j) “Local financial support exemption option” means the
354 option to exercise an exemption from the local financial support
355 requirement available to any applicant whose project is located
356 in a brownfield area, a rural city, or a rural community. Any
357 applicant that exercises this option is not eligible for more
358 than 80 percent of the total tax refunds allowed such applicant
359 under this section.
360 (k) “New business” means a business that applies for a tax
361 refund under this section before beginning operations in this
362 state and that is a legal entity separate from any other
363 commercial or industrial operations owned by the same business.
364 (l) “Project” means the creation of a new business or
365 expansion of an existing business.
366 (m) “Qualified target industry business” means a target
367 industry business approved by the department to be eligible for
368 tax refunds under this section.
369 (n) “Rural city” means a city having a population of 10,000
370 or less, or a city having a population of greater than 10,000
371 but less than 20,000, which has been determined by the
372 department to have such economic characteristics as, but not
373 limited to, a significant percentage of residents on public
374 assistance, a significant percentage of residents with incomes
375 below the poverty level, or a significant percentage of the
376 city’s employment base in agriculture-related jobs.
377 (o) “Rural community” means:
378 1. A county having a population of 75,000 or less.
379 2. A county having a population of 125,000 or less which is
380 contiguous to a county having a population of 75,000 or less.
381 3. A municipality within a county described in subparagraph
382 1. or subparagraph 2.
383
384 For purposes of this paragraph, population shall be determined
385 in accordance with the most recent official estimate pursuant to
386 s. 186.901.
387 (p) “Target industry business” means a corporate
388 headquarters business or any business engaged in one of the
389 target industries identified pursuant to subsection (2). The
390 term does not include any business engaged in retail industry
391 activities; any electric utility company as defined in s.
392 366.02(2); any phosphate or other solid minerals severance,
393 mining, or processing operation; any oil or gas exploration or
394 production operation; or any business subject to regulation by
395 the Division of Hotels and Restaurants of the Department of
396 Business and Professional Regulation. Any business in NAICS code
397 5611 or 5614, office administrative services and business
398 support services, respectively, may be considered a target
399 industry business only after the local governing body and
400 Enterprise Florida, Inc., determine that the community where the
401 business may locate has conditions affecting the fiscal and
402 economic viability of the local community or area, including,
403 but not limited to, such factors as low per capita income, high
404 unemployment, high underemployment, and a lack of year-round
405 stable employment opportunities, and such conditions may be
406 improved by the location of such a business to the community. By
407 January 1 of every 3rd year, beginning January 1, 2023, the
408 department, in consultation with Enterprise Florida, Inc.,
409 economic development organizations, the State University System,
410 local governments, employee and employer organizations, market
411 analysts, and economists, shall review and, as appropriate,
412 revise the list of such target industries and submit the list to
413 the Governor, the President of the Senate, and the Speaker of
414 the House of Representatives.
415 (q) “Taxable year” has the same meaning as provided in s.
416 220.03(1)(y).
417 (2) DESIGNATION OF TARGET INDUSTRIES.—In identifying target
418 industries, the department, in consultation with Enterprise
419 Florida, Inc., shall consider the following criteria:
420 (a) Future growth.—Whether industry forecasts indicate
421 strong expectation for future growth in both employment and
422 output, according to the most recent available data. Special
423 consideration must be given to businesses that export goods to,
424 or provide services in, international markets and to businesses
425 that replace international imports of goods or services.
426 (b) Stability.—Special consideration must be given to an
427 industry not subject to periodic layoffs, whether due to
428 seasonality or sensitivity to volatile economic variables, such
429 as weather. The industry must also be relatively resistant to
430 recession, so that the demand for products of this industry is
431 not typically subject to decline during an economic downturn.
432 (c) High wage.—Whether the industry pays relatively high
433 wages compared to statewide or area averages.
434 (d) Market and resource independent.—Whether industry
435 business locations are not dependent upon Florida markets or
436 resources, as indicated by industry analysis, except for
437 businesses in the renewable energy industry.
438 (e) Industrial base diversification and strengthening.
439 Whether the industry is contributing toward expanding or
440 diversifying the state’s or area’s economic base, as indicated
441 by analysis of the industry’s share of employment and output,
442 compared to national and regional trends. Special consideration
443 must be given to industries that strengthen regional economies
444 by adding value to basic products or building regional
445 industrial clusters, as indicated by industry analysis. Special
446 consideration must also be given to the development of strong
447 industrial clusters that include defense and homeland security
448 businesses.
449 (f) Positive economic impact.—Whether the industry is
450 expected to have strong positive economic impacts on or benefits
451 to the state or regional economies. Special consideration must
452 be given to industries that facilitate the development of this
453 state as a hub for domestic and global trade and logistics.
454 (3) TAX REFUND; ELIGIBLE AMOUNTS.—
455 (a) A qualified target industry business may be allowed a
456 refund from the account for the amount of eligible taxes the
457 business paid which is certified by the department. The total
458 amount of refunds for all fiscal years for each qualified target
459 industry business must be determined pursuant to subsection (4).
460 The annual amount of a refund to a qualified target industry
461 business must be determined pursuant to subsection (5).
462 (b) Upon approval by the department, a qualified target
463 industry business located in a rural community is allowed tax
464 refund payments equal to $6,000 multiplied by the number of jobs
465 the business creates.
466 (c) A qualified target industry business may:
467 1. Receive refunds from the account for the following taxes
468 due and paid by that business beginning with the first taxable
469 year of the business which begins after the business has been
470 certified as a qualified target industry business:
471 a. Corporate income taxes under chapter 220.
472 b. Insurance premium tax under s. 624.509.
473 2. Receive refunds from the account for the following taxes
474 due and paid by that business after being certified as a
475 qualified target industry business:
476 a. Taxes on sales, use, and other transactions under
477 chapter 212.
478 b. Intangible personal property taxes under chapter 199.
479 c. Excise taxes on documents under chapter 201.
480 d. Ad valorem taxes paid, as defined in s. 220.03(1).
481 e. State communications services taxes administered under
482 chapter 202. This provision does not apply to the gross receipts
483 tax imposed under chapter 203 and administered under chapter 202
484 or the local communications services tax authorized under s.
485 202.19.
486 (d) A qualified target industry business may not receive a
487 refund under this section for any amount of credit, refund, or
488 exemption previously granted to that business for any of the
489 taxes listed in paragraph (c). If the department provides a
490 refund for such taxes and the taxes are subsequently adjusted by
491 the application of any credit, refund, or exemption granted to
492 the qualified target industry business other than as provided in
493 this section, the business must reimburse the account for the
494 amount of that credit, refund, or exemption. A qualified target
495 industry business shall notify and tender payment to the
496 department within 20 days after receiving any credit, refund, or
497 exemption other than one provided under this section.
498 (e) Refunds made available under this section may not be
499 expended in connection with the relocation of a business from
500 one community to another community in this state unless the
501 department determines that, without such relocation, the
502 business will move outside this state, or it determines that the
503 business has a compelling economic rationale for relocation and
504 that the relocation will create additional jobs.
505 (f) A qualified target industry business that fraudulently
506 claims a refund under this section:
507 1. Is liable for repayment of the amount of the refund to
508 the account, plus a mandatory penalty in the amount of 200
509 percent of the tax refund. The repayment shall be deposited into
510 the General Revenue Fund.
511 2. Commits a felony of the third degree, punishable as
512 provided in s. 775.082, s. 775.083, or s. 775.084.
513 (4) APPLICATION AND APPROVAL PROCESS.—
514 (a) To apply for certification as a qualified target
515 industry business under this section, the business must file an
516 application with the department before the business decides to
517 locate in this state or before the business decides to expand
518 its existing operations in this state. The application must
519 include, but need not be limited to, the following information:
520 1. The applicant’s federal employer identification number
521 and, if applicable, state sales tax registration number.
522 2. The proposed permanent location of the applicant’s
523 facility in this state where the project is to be located.
524 3. A description of the type of business activity or
525 product covered by the project, including a minimum of a five
526 digit NAICS code for all activities included in the project. As
527 used in this paragraph, the term “NAICS” means those
528 classifications contained in the North American Industry
529 Classification System, as published in 2007 by the Office of
530 Management and Budget, Executive Office of the President, and
531 updated periodically.
532 4. The proposed number of net new full-time equivalent
533 Florida jobs at the qualified target industry business as of
534 December 31 of each year included in the project and the average
535 wage of those jobs. If more than one type of business activity
536 or product is included in the project, the number of jobs and
537 average wage for those jobs must be separately stated for each
538 type of business activity or product.
539 5. The total number of full-time equivalent employees
540 employed by the applicant in this state, if applicable.
541 6. The anticipated commencement date of the project.
542 7. A brief statement explaining the role that the estimated
543 tax refunds to be requested will play in the decision of the
544 applicant to locate or expand in this state.
545 8. An estimate of the proportion of the sales resulting
546 from the project which will be made outside this state.
547 9. An estimate of the proportion of the cost of the
548 machinery and equipment, and any other resources necessary in
549 the development of its product or service, to be used by the
550 business in its Florida operations which will be purchased
551 outside this state.
552 10. A resolution adopted by the governing board of the
553 county or municipality in which the project will be located,
554 which resolution recommends that the applicant be approved as a
555 qualified target industry business and specifies that the
556 commitments of local financial support necessary for the target
557 industry business exist. Before the passage of such resolution,
558 the department may also accept an official letter from an
559 authorized local economic development agency which endorses the
560 proposed target industry project and pledges that sources of
561 local financial support for such project exist. For the purposes
562 of making pledges of local financial support under this
563 subparagraph, the local governing board shall pass a one-time
564 resolution officially designating the authorized local economic
565 development agency.
566 11. Any additional information requested by the department.
567 (b) Each application must be submitted to the department
568 for determination of eligibility. The department shall review
569 and evaluate each application based on, but not limited to, the
570 following criteria:
571 1. Expected contributions to the state’s economy,
572 consistent with the state strategic economic development plan
573 prepared by the department.
574 2. The economic benefits of the proposed award of tax
575 refunds under this section.
576 3. The amount of capital investment to be made by the
577 applicant in this state.
578 4. The local financial commitment and support for the
579 project.
580 5. The expected effect of the project on the unemployed and
581 underemployed in the county where the project will be located.
582 6. The expected effect of the award on the viability of the
583 project and the probability that the project would be undertaken
584 in this state if such tax refunds are granted to the applicant.
585 7. Whether the business activity or project is in an
586 industry identified by the department as a target industry
587 business that contributes to the economic growth of this state
588 and the area in which the business is located, produces a higher
589 standard of living for residents of this state in the new global
590 economy, or can be shown to make an equivalent contribution to
591 the area’s and this state’s economic progress.
592 8. A review of the business’ past activities in this state
593 or other states, including whether the business has been
594 subjected to criminal or civil fines and penalties. This
595 subparagraph does not require the disclosure of confidential
596 information.
597 (c) Applications shall be reviewed and certified pursuant
598 to s. 288.061. The department shall include in its review
599 projections of the tax refunds the business would be eligible to
600 receive in each fiscal year based on the creation and
601 maintenance of the net new Florida jobs specified in
602 subparagraph (a)4. as of December 31 of the preceding state
603 fiscal year.
604 (d) The department may not certify any target industry
605 business as a qualified target industry business if the value of
606 tax refunds to be included in that letter of certification
607 exceeds the available amount of authority to certify new
608 businesses as determined in s. 288.095(3). However, if the
609 commitments of local financial support represent less than 20
610 percent of the eligible tax refund payments, or to otherwise
611 preserve the viability and fiscal integrity of the program, the
612 department may certify a qualified target industry business to
613 receive tax refund payments of less than the allowable amount
614 specified in paragraph (3)(b). A letter of certification that
615 approves an application must specify the maximum amount of tax
616 refund that will be available to the qualified target industry
617 business in each fiscal year and the total amount of tax refunds
618 that will be available to the business for all fiscal years.
619 (e) This section does not create a presumption that an
620 applicant will receive any tax refunds under this section.
621 However, the department may issue nonbinding opinion letters,
622 upon the request of prospective applicants, as to the
623 applicants’ eligibility and the potential amount of refunds.
624 (5) ANNUAL CLAIM FOR REFUND.—
625 (a) To be eligible to claim any scheduled tax refund, a
626 qualified target industry business must apply by January 31 of
627 each fiscal year to the department for the tax refund scheduled
628 to be paid from the appropriation for the fiscal year that
629 begins on July 1 following the January 31 claims-submission
630 date. The department may, upon written request, grant a 30-day
631 extension of the filing date.
632 (b) The claim for refund by the qualified target industry
633 business must include a copy of all receipts pertaining to the
634 payment of taxes for which the refund is sought.
635 (c) The department may waive the requirement for proof of
636 taxes paid in future years for a qualified target industry
637 business that provides the department with proof that, in a
638 single year, the business has paid an amount of state taxes from
639 the categories in paragraph (3)(c) which is at least equal to
640 the total amount of tax refunds that the business may receive
641 through successful completion of its project.
642 (d) A tax refund may not be approved for a qualified target
643 industry business unless the required local financial support
644 has been paid into the account for that refund. If the local
645 financial support provided is less than 20 percent of the
646 approved tax refund, the tax refund must be reduced. The tax
647 refund may not exceed an amount equal to 5 times the amount of
648 the local financial support received. The qualified target
649 industry business must provide a report listing all sources of
650 the local financial support to the department when such support
651 is paid to the account.
652 (e) The department, with such assistance as may be required
653 from the Department of Revenue, shall, by June 30 following the
654 scheduled date for submission of the tax refund claim, specify
655 by written order the approval or disapproval of the tax refund
656 claim and, if approved, the amount of the tax refund authorized
657 to be paid to the qualified target industry business. The
658 department may grant an extension of this date upon the request
659 of the qualified target industry business for the purpose of
660 filing additional information in support of the claim.
661 (f) The total amount of tax refund claims approved by the
662 department under this section in any fiscal year must not exceed
663 the amount authorized under s. 288.095(3).
664 (g) This section does not create a presumption that a tax
665 refund claim will be approved and paid.
666 (h) Upon approval of the tax refund under paragraphs (d)
667 and (e), the Chief Financial Officer shall issue a warrant for
668 the amount specified in the written order. If the written order
669 is appealed, the Chief Financial Officer may not issue a warrant
670 for a refund to the qualified target industry business until the
671 conclusion of all appeals of that order.
672 (6) ADMINISTRATION.—
673 (a) The department may verify information provided in any
674 claim submitted for tax credits under this section with regard
675 to employment and wage levels or the payment of the taxes to the
676 appropriate agency or authority, including the Department of
677 Revenue or any local government or authority.
678 (b) To facilitate the process of monitoring and auditing
679 applications made under this section, the department may provide
680 a list of qualified target industry businesses to the Department
681 of Revenue or to any local government or authority. The
682 department may request the assistance of those entities with
683 respect to monitoring jobs, wages, and the payment of the taxes
684 listed in subsection (3).
685 (c) Funds specifically appropriated for tax refunds for
686 qualified target industry businesses under this section may not
687 be used by the department for any purpose other than the payment
688 of tax refunds authorized by this section.
689 Section 7. Section 288.095, Florida Statutes, is amended to
690 read:
691 288.095 Economic Development Trust Fund.—
692 (1) The Economic Development Trust Fund is created within
693 the Department of Economic Opportunity. Moneys deposited into
694 the fund must be used only to support the authorized activities
695 and operations of the department.
696 (2) There is created, within the Economic Development Trust
697 Fund, the Economic Development Incentives Account. The Economic
698 Development Incentives Account consists of moneys appropriated
699 to the account for purposes of the tax incentives programs
700 authorized under ss. 288.066, 288.1045, and 288.106 ss. 288.1045
701 and 288.106, and local financial support provided under ss.
702 288.066, 288.1045, and 288.106. Moneys in the Economic
703 Development Incentives Account shall be subject to the
704 provisions of s. 216.301(1)(a).
705 (3)(a) The department may approve applications for
706 certification pursuant to ss. 288.066, 288.1045(3), and 288.106.
707 However, the total state share of tax refund payments may not
708 exceed $35 million.
709 (b) The total amount of tax refund claims approved for
710 payment by the department based on actual project performance
711 may not exceed the amount appropriated to the Economic
712 Development Incentives Account for such purposes for the fiscal
713 year. Claims for tax refunds under ss. 288.066, 288.1045, and
714 288.106 shall be paid in the order the claims are approved by
715 the department. In the event the Legislature does not
716 appropriate an amount sufficient to satisfy the tax refunds
717 under ss. 288.066, 288.1045, and 288.106 in a fiscal year, the
718 department shall pay the tax refunds from the appropriation for
719 the following fiscal year. By March 1 of each year, the
720 department shall notify the legislative appropriations
721 committees of the Senate and House of Representatives of any
722 anticipated shortfall in the amount of funds needed to satisfy
723 claims for tax refunds from the appropriation for the current
724 fiscal year.
725 (c) Moneys in the Economic Development Incentives Account
726 may be used only to pay tax refunds and make other payments
727 authorized under s. 288.066, s. 288.1045, s. 288.106, or s.
728 288.107.
729 (d) The department may adopt rules necessary to carry out
730 the provisions of this subsection, including rules providing for
731 the use of moneys in the Economic Development Incentives Account
732 and for the administration of the Economic Development
733 Incentives Account.
734 Section 8. This act shall take effect July 1, 2022.
735
736 ================= T I T L E A M E N D M E N T ================
737 And the title is amended as follows:
738 Delete everything before the enacting clause
739 and insert:
740 A bill to be entitled
741 An act relating to economic development; amending s.
742 212.02, F.S.; defining the term “opportunity zone”;
743 amending s. 212.08, F.S.; defining terms; providing an
744 exemption from the state tax on sales, use, and other
745 transactions for building materials used in the
746 rehabilitation of real property in an opportunity
747 zone; specifying requirements, limitations, and
748 procedures for the exemption; requiring the department
749 to adopt rules; authorizing the department to
750 establish guidelines; providing an exemption from the
751 state tax on sales, use, and other transactions for
752 energy used in an opportunity zone, subject to certain
753 ordinances adopted by municipalities; specifying
754 requirements, limitations, and procedures for the
755 exemption; providing a penalty; requiring the
756 department to adopt rules; authorizing the department
757 to establish guidelines; defining the term “qualified
758 business”; amending s. 288.018, F.S.; revising the
759 matching requirement for grant funds received by a
760 regional economic development organization; amending
761 s. 288.065, F.S.; deleting the requirement for certain
762 repayments to be matched in rural areas of
763 opportunity; amending s. 288.0655, F.S.; revising the
764 purpose of the Rural Infrastructure Fund; revising
765 authorized amounts and uses of certain grants;
766 providing that certain grants do not require local
767 matches; revising the requirements for review of
768 certain applications; creating s. 288.066, F.S.;
769 establishing a rural opportunity tax refund program
770 for qualified target industry businesses in rural
771 areas; defining terms; specifying the criteria the
772 Department of Economic Opportunity and Enterprise
773 Florida, Inc., must consider in identifying target
774 industries; authorizing the grant of certain tax
775 refunds under certain circumstances; specifying
776 limitations on refunds; providing administrative and
777 criminal penalties; specifying requirements and
778 procedures for applications; specifying requirements
779 and limitations for the review of applications by the
780 Department of Economic Opportunity; providing
781 construction; authorizing the Department of Economic
782 Opportunity to issue certain opinion letters;
783 providing requirements, procedures, and limitations
784 for annual refund claims; providing requirements for
785 the Chief Financial Officer for the issuance of
786 warrants for refunds; providing for administration by
787 the Department of Economic Opportunity; amending s.
788 288.095, F.S.; conforming provisions to changes made
789 by the act; providing an effective date.