Florida Senate - 2022 CS for SB 800
By the Committee on Finance and Tax; and Senator Albritton
593-02949-22 2022800c1
1 A bill to be entitled
2 An act relating to economic development; amending s.
3 166.231, F.S.; authorizing municipalities to exempt by
4 ordinance the public service tax that specified users
5 would pay on energy purchases; requiring
6 municipalities to provide copies of such ordinances to
7 the Department of Revenue within a certain timeframe;
8 amending s. 212.02, F.S.; defining the term
9 “opportunity zone”; amending s. 212.08, F.S.; defining
10 terms; providing an exemption from the state tax on
11 sales, use, and other transactions for building
12 materials used in the rehabilitation of real property
13 in an opportunity zone; specifying requirements,
14 limitations, and procedures for the exemption;
15 requiring the department to adopt rules; authorizing
16 the department to establish guidelines; providing an
17 exemption from the state tax on sales, use, and other
18 transactions for energy used in an opportunity zone,
19 subject to certain ordinances adopted by
20 municipalities; specifying requirements, limitations,
21 and procedures for the exemption; providing a penalty;
22 requiring the department to adopt rules; authorizing
23 the department to establish guidelines; defining the
24 term “qualified business”; amending s. 288.018, F.S.;
25 revising the matching requirement for grant funds
26 received by a regional economic development
27 organization; amending s. 288.065, F.S.; deleting the
28 requirement for certain repayments to be matched in
29 rural areas of opportunity; amending s. 288.0655,
30 F.S.; revising the purpose of the Rural Infrastructure
31 Fund; revising authorized amounts and uses of certain
32 grants; providing that certain grants do not require
33 local matches; revising the requirements for review of
34 certain applications; creating s. 288.066, F.S.;
35 establishing a rural opportunity tax refund program
36 for qualified target industry businesses in rural
37 areas; defining terms; specifying the criteria the
38 Department of Economic Opportunity and Enterprise
39 Florida, Inc., must consider in identifying target
40 industries; authorizing the grant of certain tax
41 refunds under certain circumstances; specifying
42 limitations on refunds; providing administrative and
43 criminal penalties; specifying requirements and
44 procedures for applications; specifying requirements
45 and limitations for the review of applications by the
46 Department of Economic Opportunity; providing
47 construction; authorizing the Department of Economic
48 Opportunity to issue certain opinion letters;
49 providing requirements, procedures, and limitations
50 for annual refund claims; providing requirements for
51 the Chief Financial Officer for the issuance of
52 warrants for refunds; providing for administration by
53 the Department of Economic Opportunity; amending s.
54 288.095, F.S.; conforming provisions to changes made
55 by the act; providing an effective date.
56
57 Be It Enacted by the Legislature of the State of Florida:
58
59 Section 1. Present subsections (9) and (10) of section
60 166.231, Florida Statutes, are redesignated as subsections (10)
61 and (11), respectively, and a new subsection (9) is added to
62 that section, to read:
63 166.231 Municipalities; public service tax.—
64 (9) Beginning July 1, 2023, a municipality may by ordinance
65 exempt not less than 100 percent of the tax imposed under this
66 section on purchasers of electrical energy, natural gas, or
67 propane who the Department of Revenue determines are eligible
68 for the exemption provided by s. 212.08(19). The exemption shall
69 be administered as provided in that section. The municipality
70 shall provide a copy of any ordinance adopted pursuant to this
71 subsection to the Department of Revenue not less than 14 days
72 before its effective date.
73 Section 2. Subsection (35) is added to section 212.02,
74 Florida Statutes, to read:
75 212.02 Definitions.—The following terms and phrases when
76 used in this chapter have the meanings ascribed to them in this
77 section, except where the context clearly indicates a different
78 meaning:
79 (35) “Opportunity zone” means a population census tract
80 designated by the United States Department of the Treasury as a
81 qualified opportunity zone pursuant to s. 1400Z-1(b)(1)(B) of
82 the Internal Revenue Code and located in a rural community as
83 defined in s. 288.0656.
84 Section 3. Paragraph (v) is added to subsection (5) of
85 section 212.08, Florida Statutes, and subsection (19) is added
86 to that section, to read:
87 212.08 Sales, rental, use, consumption, distribution, and
88 storage tax; specified exemptions.—The sale at retail, the
89 rental, the use, the consumption, the distribution, and the
90 storage to be used or consumed in this state of the following
91 are hereby specifically exempt from the tax imposed by this
92 chapter.
93 (5) EXEMPTIONS; ACCOUNT OF USE.—
94 (v) Building materials used in the rehabilitation of real
95 property located in an opportunity zone.—
96 1. For the purposes of the exemption provided in this
97 paragraph, the term:
98 a. “Building materials” means tangible personal property
99 that becomes a component part of improvements to real property.
100 b. “Real property” has the same meaning as provided in s.
101 192.001(12), except that the term does not include a condominium
102 parcel or condominium property as defined in s. 718.103.
103 c. “Rehabilitation of real property” means the
104 reconstruction, renovation, restoration, rehabilitation,
105 construction, or expansion of improvements to real property.
106 d. “Substantially completed” has the same meaning as
107 provided in s. 192.042(1).
108 2. Building materials used in the rehabilitation of real
109 property are exempt from the tax imposed by this chapter upon an
110 affirmative showing to the satisfaction of the department that
111 the items have been used for the rehabilitation of real property
112 located in an opportunity zone. This exemption inures to the
113 owner, lessee, or lessor at the time the real property is
114 rehabilitated, but only through a refund of previously paid
115 taxes. To receive a refund pursuant to this paragraph, the
116 owner, lessee, or lessor of the rehabilitated real property must
117 file an application under oath with the governing body having
118 jurisdiction over the opportunity zone where the property is
119 located, as applicable. A single application for a refund may be
120 submitted for multiple, contiguous parcels that were part of a
121 single parcel divided as part of the rehabilitation of the real
122 property. All other requirements of this paragraph apply to each
123 parcel on an individual basis. The application must include all
124 of the following:
125 a. The name and address of the person claiming the refund.
126 b. An address and assessment roll parcel number of the
127 rehabilitated real property for which a refund of previously
128 paid taxes is being sought.
129 c. A description of the improvements made to accomplish the
130 rehabilitation of the real property.
131 d. A copy of a valid building permit issued by the county
132 or municipal building department for the rehabilitation of the
133 real property.
134 e. A sworn statement, under penalty of perjury, from the
135 general contractor licensed in this state with whom the
136 applicant contracted to make the improvements necessary to
137 rehabilitate the real property. The sworn statement must list
138 the building materials used to rehabilitate the real property,
139 the actual cost of the building materials, and the amount of
140 sales tax paid in this state on the building materials. If a
141 general contractor was not used, the applicant, not a general
142 contractor, shall make the sworn statement required by this sub
143 subparagraph. Copies of the invoices that show the purchase of
144 the building materials used in the rehabilitation and the
145 payment of sales tax on the building materials must be attached
146 to the sworn statement provided by the general contractor or by
147 the applicant. Unless the actual cost of building materials used
148 in the rehabilitation of real property and the payment of sales
149 taxes are documented by a general contractor or by the applicant
150 in this manner, the cost of the building materials is deemed to
151 be an amount equal to 40 percent of the increase in assessed
152 value for ad valorem tax purposes.
153 f. The census tract number of the opportunity zone in which
154 the rehabilitated real property is located.
155 g. A certification by the local building code inspector
156 that the improvements necessary to rehabilitate the real
157 property are substantially completed.
158 3. Within 10 working days after receipt of an application,
159 the governing body shall review the application to determine if
160 it contains all the information required by subparagraph 1. and
161 meets the criteria set forth in this paragraph. The governing
162 body shall certify all applications that contain the required
163 information and are eligible to receive a refund. The
164 certification must be in writing, and a copy of the
165 certification shall be transmitted to the executive director of
166 the department. The applicant is responsible for forwarding a
167 certified application to the department within the time
168 specified in subparagraph 4.
169 4. An application for a refund must be submitted to the
170 department within 6 months after the rehabilitation of the real
171 property is deemed to be substantially completed by the local
172 building code inspector or by November 1 after the rehabilitated
173 real property is first subject to assessment.
174 5. Only one exemption through a refund of previously paid
175 taxes for the rehabilitation of real property is allowed for any
176 single parcel of real property unless there is a change in
177 ownership, a new lessor, or a new lessee of the real property. A
178 refund may not be granted unless the amount to be refunded
179 exceeds $500. A refund may not exceed the lesser of 97 percent
180 of the Florida sales or use tax paid on the cost of the building
181 materials used in the rehabilitation of the real property, as
182 determined pursuant to sub-subparagraph 2.e., or $7,500. The
183 department shall make the refund within 30 days after formally
184 approving the application.
185 6. The department shall adopt rules governing the manner
186 and form of refund applications and may establish guidelines as
187 to the requisites for an affirmative showing of qualification
188 for exemption under this paragraph.
189 (19) ENERGY USED IN AN OPPORTUNITY ZONE.—
190 (a) Beginning July 1, 2023, a qualified business that uses
191 electrical energy, natural gas, or propane at a fixed location
192 in an opportunity zone in a municipality that has enacted an
193 ordinance pursuant to s. 166.231(9) which provides for exemption
194 of municipal utility taxes on such businesses shall receive an
195 exemption equal to 50 percent of the tax imposed by this
196 chapter. A qualified business may receive such exemption for a
197 period of 5 years from the billing period beginning not more
198 than 30 days following the department notifying the applicable
199 utility company that an exemption has been authorized pursuant
200 to this subsection and s. 166.231(9).
201 (b) To receive this exemption, a business must file an
202 application with the department on a form provided for the
203 purposes of this subsection and s. 166.231(9). The application
204 must be made under oath and include all of the following:
205 1. The name and location of the business.
206 2. The census tract number of the opportunity zone in which
207 the business is located.
208 3. The date on which electrical, natural gas, or propane
209 service is to be first initiated at the business.
210 4. The name and mailing address of the entity from which
211 electrical energy, natural gas, or propane is to be purchased.
212 5. The date of the application.
213 6. The name of the city in which the business is located.
214 (c) An application for an exemption under this subsection
215 must be submitted to the department within 6 months after the
216 occurrence of the appropriate qualifying provision set out in
217 paragraph (f).
218 (d) If, in a subsequent audit conducted by the department,
219 it is determined that the business did not meet the criteria
220 mandated in this subsection, the amount of taxes exempted shall
221 immediately be due and payable to the department by the
222 business, together with the appropriate interest and penalty,
223 computed from the due date of each bill for the electrical
224 energy, natural gas, or propane purchased as exempt under this
225 subsection, in the manner prescribed by this chapter.
226 (e) The department shall adopt rules governing applications
227 and the required forms for, and issuance of, the exemption
228 authorized in this subsection and provisions for recapture of
229 taxes exempted under this subsection, and the department may
230 establish guidelines as to qualifications for the exemption.
231 (f) For the purpose of the exemption provided in this
232 subsection, the term “qualified business” means a business that
233 is:
234 1. First occupying a new structure to which electrical,
235 natural gas, or propane service, other than that used for
236 construction purposes, has not been previously provided or
237 furnished;
238 2. Newly occupying an existing, remodeled, renovated, or
239 rehabilitated structure to which electrical, natural gas, or
240 propane service, other than that used for remodeling,
241 renovation, or rehabilitation of the structure, has not been
242 provided or furnished in the three preceding billing periods; or
243 3. Occupying a new, remodeled, rebuilt, renovated, or
244 rehabilitated structure for which a refund has been granted
245 pursuant to paragraph (5)(v).
246 Section 4. Paragraph (d) of subsection (1) of section
247 288.018, Florida Statutes, is amended to read:
248 288.018 Regional Rural Development Grants Program.—
249 (1)
250 (d) Grant funds received by a regional economic development
251 organization must be matched each year by nonstate financial or
252 in-kind contributions resources in an amount equal to 15 25
253 percent of the state contribution.
254 Section 5. Paragraph (c) of subsection (2) of section
255 288.065, Florida Statutes, is amended to read:
256 288.065 Rural Community Development Revolving Loan Fund.—
257 (2)
258 (c) All repayments of principal and interest shall be
259 returned to the loan fund and made available for loans to other
260 applicants. However, in a rural area of opportunity designated
261 by the Governor, and upon approval by the department, repayments
262 of principal and interest may be retained by the applicant if
263 such repayments are dedicated and matched to fund regionally
264 based economic development organizations representing the rural
265 area of opportunity.
266 Section 6. Subsection (1), paragraphs (b), (c), and (e) of
267 subsection (2), and subsection (3) of section 288.0655, Florida
268 Statutes, are amended to read:
269 288.0655 Rural Infrastructure Fund.—
270 (1) There is created within the department the Rural
271 Infrastructure Fund to facilitate the planning, preparing, and
272 financing of infrastructure projects in rural communities which
273 will encourage job creation, capital investment, and the
274 strengthening and diversification of rural economies by
275 promoting tourism, trade, and economic development.
276 (2)
277 (b) To facilitate access of rural communities and rural
278 areas of opportunity as defined by the Rural Economic
279 Development Initiative to infrastructure funding programs of the
280 Federal Government, such as those offered by the United States
281 Department of Agriculture and the United States Department of
282 Commerce, and state programs, including those offered by Rural
283 Economic Development Initiative agencies, and to facilitate
284 local government or private infrastructure funding efforts, the
285 department may award grants for up to 75 50 percent of the total
286 infrastructure project cost, or up to 100 percent of the total
287 infrastructure project cost for a project that is located in a
288 rural community as defined in s. 288.0656(2)(e) or a rural area
289 of opportunity as defined in s. 288.0656(2)(d) and that is also
290 located in a fiscally constrained county as defined in s.
291 218.67(1). Eligible projects must be related to specific job
292 creation or job-retention opportunities. Eligible uses of funds
293 projects may also include improving any inadequate
294 infrastructure that has resulted in regulatory action that
295 prohibits economic or community growth, reducing the costs to
296 community users of proposed infrastructure improvements that
297 exceed such costs in comparable communities, and improving
298 access to and the availability of broadband Internet service.
299 Eligible uses of funds shall include improvements to public
300 infrastructure for industrial or commercial sites, upgrades to
301 or development of public tourism infrastructure, and
302 improvements to broadband Internet service and access in
303 unserved or underserved rural communities. Improvements to
304 broadband Internet service and access must be conducted through
305 a partnership or partnerships with one or more dealers, as
306 defined in s. 202.11(2), and the partnership or partnerships
307 must be established through a competitive selection process that
308 is publicly noticed. Authorized infrastructure may include the
309 following public or public-private partnership facilities: storm
310 water systems; telecommunications facilities; broadband
311 facilities; roads or other remedies to transportation
312 impediments; nature-based tourism facilities; or other physical
313 requirements necessary to facilitate tourism, trade, and
314 economic development activities in the community. Authorized
315 infrastructure may also include publicly or privately owned
316 self-powered nature-based tourism facilities, publicly owned
317 telecommunications facilities, and broadband facilities, and
318 additions to the distribution facilities of the existing natural
319 gas utility as defined in s. 366.04(3)(c), the existing electric
320 utility as defined in s. 366.02, or the existing water or
321 wastewater utility as defined in s. 367.021(12), or any other
322 existing water or wastewater facility, which owns a gas or
323 electric distribution system or a water or wastewater system in
324 this state where:
325 1. A contribution-in-aid of construction is required to
326 serve public or public-private partnership facilities under the
327 tariffs of any natural gas, electric, water, or wastewater
328 utility as defined herein; and
329 2. Such utilities as defined herein are willing and able to
330 provide such service.
331 (c) To facilitate timely response and induce the location
332 or expansion of specific job creating opportunities, The
333 department may award grants of up to $300,000 for infrastructure
334 feasibility studies, design and engineering activities, or other
335 infrastructure planning and preparation activities. Authorized
336 grants shall be up to $50,000 for an employment project with a
337 business committed to create at least 100 jobs; up to $150,000
338 for an employment project with a business committed to create at
339 least 300 jobs; and up to $300,000 for a project in a rural area
340 of opportunity. Grants awarded under this paragraph may be used
341 in conjunction with grants awarded under paragraph (b), provided
342 that the total amount of both grants does not exceed 30 percent
343 of the total project cost. In evaluating applications under this
344 paragraph, the department shall consider the extent to which the
345 application seeks to minimize administrative and consultant
346 expenses.
347 (e) To enable local governments to access the resources
348 available pursuant to s. 403.973(18), the department may award
349 grants for surveys, feasibility studies, and other activities
350 related to the identification and preclearance review of land
351 which is suitable for preclearance review. Authorized grants
352 under this paragraph do not require a local match and may not
353 exceed $75,000 each, except in the case of a project in a rural
354 area of opportunity, in which case the grant may not exceed
355 $300,000. Any funds awarded under this paragraph must be matched
356 at a level of 50 percent with local funds, except that any funds
357 awarded for a project in a rural area of opportunity must be
358 matched at a level of 33 percent with local funds. If an
359 application for funding is for a catalyst site, as defined in s.
360 288.0656, the requirement for local match may be waived pursuant
361 to the process in s. 288.06561. In evaluating applications under
362 this paragraph, the department shall consider the extent to
363 which the application seeks to minimize administrative and
364 consultant expenses.
365 (3) The department, in consultation with Enterprise
366 Florida, Inc., the Florida Tourism Industry Marketing
367 Corporation, the Department of Environmental Protection, and the
368 Florida Fish and Wildlife Conservation Commission, as
369 appropriate, shall review and certify applications pursuant to
370 s. 288.061. The review shall include an evaluation of the
371 economic benefit of the projects and their long-term viability.
372 The department shall have final approval for any grant under
373 this section.
374 Section 7. Section 288.066, Florida Statutes, is created to
375 read:
376 288.066 Rural opportunity tax refund program.—
377 (1) DEFINITIONS.—As used in this section:
378 (a) “Account” means the Economic Development Incentives
379 Account within the Economic Development Trust Fund established
380 under s. 288.095.
381 (b) “Authorized local economic development agency” means a
382 public or private entity, including an entity defined in s.
383 288.075, authorized by a county or municipality to promote the
384 general business or industrial interests of that county or
385 municipality.
386 (c) “Average private sector wage in the area” means the
387 statewide private sector average wage or the average of all
388 private sector wages and salaries in the county or in the
389 standard metropolitan area in which the business is located.
390 (d) “Business” means an employing unit, as defined in s.
391 443.036, registered for reemployment assistance purposes with
392 the state agency providing reemployment assistance tax
393 collection services under an interagency agreement pursuant to
394 s. 443.1316, or a subcategory or division of an employing unit
395 accepted by the state agency providing reemployment assistance
396 tax collection services as a reporting unit.
397 (e) “Corporate headquarters business” means an
398 international, national, or regional headquarters office of a
399 multinational or multistate business enterprise or national
400 trade association, whether separate from or connected with other
401 facilities used by such business.
402 (f) “Expansion of an existing business” means the expansion
403 of an existing Florida business by or through additions to real
404 and personal property, resulting in a net increase in
405 employment.
406 (g) “Fiscal year” means the fiscal year of the state.
407 (h) “Jobs” means full-time equivalent positions, including,
408 but not limited to, positions obtained from a temporary
409 employment agency or employee leasing company or through a union
410 agreement or coemployment under a professional employer
411 organization agreement, that result directly from a project in
412 this state. The term does not include temporary construction
413 jobs involved with the construction of facilities for the
414 project or any jobs previously included in any application for
415 tax refunds under s. 288.1045 or this section.
416 (i) “Local financial support” means funding from local
417 sources, public or private, which is paid to the Economic
418 Development Trust Fund and which is equal to 20 percent of the
419 annual tax refund for a qualified target industry business. A
420 qualified target industry business may not provide, directly or
421 indirectly, more than 5 percent of such funding in any fiscal
422 year. The sources of such funding may not include, directly or
423 indirectly, state funds appropriated from the General Revenue
424 Fund or any state trust fund, excluding tax revenues shared with
425 local governments pursuant to law.
426 (j) “Local financial support exemption option” means the
427 option to exercise an exemption from the local financial support
428 requirement available to any applicant whose project is located
429 in a brownfield area, a rural city, or a rural community. Any
430 applicant that exercises this option is not eligible for more
431 than 80 percent of the total tax refunds allowed such applicant
432 under this section.
433 (k) “New business” means a business that applies for a tax
434 refund under this section before beginning operations in this
435 state and that is a legal entity separate from any other
436 commercial or industrial operations owned by the same business.
437 (l) “Project” means the creation of a new business or
438 expansion of an existing business.
439 (m) “Qualified target industry business” means a target
440 industry business approved by the department to be eligible for
441 tax refunds under this section.
442 (n) “Rural city” means a city having a population of 10,000
443 or less, or a city having a population of greater than 10,000
444 but less than 20,000, which has been determined by the
445 department to have such economic characteristics as, but not
446 limited to, a significant percentage of residents on public
447 assistance, a significant percentage of residents with incomes
448 below the poverty level, or a significant percentage of the
449 city’s employment base in agriculture-related jobs.
450 (o) “Rural community” means:
451 1. A county having a population of 75,000 or less.
452 2. A county having a population of 125,000 or less which is
453 contiguous to a county having a population of 75,000 or less.
454 3. A municipality within a county described in subparagraph
455 1. or subparagraph 2.
456
457 For purposes of this paragraph, population shall be determined
458 in accordance with the most recent official estimate pursuant to
459 s. 186.901.
460 (p) “Target industry business” means a corporate
461 headquarters business or any business engaged in one of the
462 target industries identified pursuant to subsection (2). The
463 term does not include any business engaged in retail industry
464 activities; any electric utility company as defined in s.
465 366.02(2); any phosphate or other solid minerals severance,
466 mining, or processing operation; any oil or gas exploration or
467 production operation; or any business subject to regulation by
468 the Division of Hotels and Restaurants of the Department of
469 Business and Professional Regulation. Any business in NAICS code
470 5611 or 5614, office administrative services and business
471 support services, respectively, may be considered a target
472 industry business only after the local governing body and
473 Enterprise Florida, Inc., determine that the community where the
474 business may locate has conditions affecting the fiscal and
475 economic viability of the local community or area, including,
476 but not limited to, such factors as low per capita income, high
477 unemployment, high underemployment, and a lack of year-round
478 stable employment opportunities, and such conditions may be
479 improved by the location of such a business to the community. By
480 January 1 of every 3rd year, beginning January 1, 2023, the
481 department, in consultation with Enterprise Florida, Inc.,
482 economic development organizations, the State University System,
483 local governments, employee and employer organizations, market
484 analysts, and economists, shall review and, as appropriate,
485 revise the list of such target industries and submit the list to
486 the Governor, the President of the Senate, and the Speaker of
487 the House of Representatives.
488 (q) “Taxable year” has the same meaning as provided in s.
489 220.03(1)(y).
490 (2) DESIGNATION OF TARGET INDUSTRIES.—In identifying target
491 industries, the department, in consultation with Enterprise
492 Florida, Inc., shall consider the following criteria:
493 (a) Future growth.—Whether industry forecasts indicate
494 strong expectation for future growth in both employment and
495 output, according to the most recent available data. Special
496 consideration must be given to businesses that export goods to,
497 or provide services in, international markets and to businesses
498 that replace international imports of goods or services.
499 (b) Stability.—Special consideration must be given to an
500 industry not subject to periodic layoffs, whether due to
501 seasonality or sensitivity to volatile economic variables, such
502 as weather. The industry must also be relatively resistant to
503 recession, so that the demand for products of this industry is
504 not typically subject to decline during an economic downturn.
505 (c) High wage.—Whether the industry pays relatively high
506 wages compared to statewide or area averages.
507 (d) Market and resource independent.—Whether industry
508 business locations are not dependent upon Florida markets or
509 resources, as indicated by industry analysis, except for
510 businesses in the renewable energy industry.
511 (e) Industrial base diversification and strengthening.
512 Whether the industry is contributing toward expanding or
513 diversifying the state’s or area’s economic base, as indicated
514 by analysis of the industry’s share of employment and output,
515 compared to national and regional trends. Special consideration
516 must be given to industries that strengthen regional economies
517 by adding value to basic products or building regional
518 industrial clusters, as indicated by industry analysis. Special
519 consideration must also be given to the development of strong
520 industrial clusters that include defense and homeland security
521 businesses.
522 (f) Positive economic impact.—Whether the industry is
523 expected to have strong positive economic impacts on or benefits
524 to the state or regional economies. Special consideration must
525 be given to industries that facilitate the development of this
526 state as a hub for domestic and global trade and logistics.
527 (3) TAX REFUND; ELIGIBLE AMOUNTS.—
528 (a) A qualified target industry business may be allowed a
529 refund from the account for the amount of eligible taxes the
530 business paid which is certified by the department. The total
531 amount of refunds for all fiscal years for each qualified target
532 industry business must be determined pursuant to subsection (4).
533 The annual amount of a refund to a qualified target industry
534 business must be determined pursuant to subsection (5).
535 (b) Upon approval by the department, a qualified target
536 industry business located in a rural community is allowed tax
537 refund payments equal to $6,000 multiplied by the number of jobs
538 the business creates.
539 (c) A qualified target industry business may:
540 1. Receive refunds from the account for the following taxes
541 due and paid by that business beginning with the first taxable
542 year of the business which begins after the business has been
543 certified as a qualified target industry business:
544 a. Corporate income taxes under chapter 220.
545 b. Insurance premium tax under s. 624.509.
546 2. Receive refunds from the account for the following taxes
547 due and paid by that business after being certified as a
548 qualified target industry business:
549 a. Taxes on sales, use, and other transactions under
550 chapter 212.
551 b. Intangible personal property taxes under chapter 199.
552 c. Excise taxes on documents under chapter 201.
553 d. Ad valorem taxes paid, as defined in s. 220.03(1).
554 e. State communications services taxes administered under
555 chapter 202. This provision does not apply to the gross receipts
556 tax imposed under chapter 203 and administered under chapter 202
557 or the local communications services tax authorized under s.
558 202.19.
559 (d) A qualified target industry business may not receive a
560 refund under this section for any amount of credit, refund, or
561 exemption previously granted to that business for any of the
562 taxes listed in paragraph (c). If the department provides a
563 refund for such taxes and the taxes are subsequently adjusted by
564 the application of any credit, refund, or exemption granted to
565 the qualified target industry business other than as provided in
566 this section, the business must reimburse the account for the
567 amount of that credit, refund, or exemption. A qualified target
568 industry business shall notify and tender payment to the
569 department within 20 days after receiving any credit, refund, or
570 exemption other than one provided under this section.
571 (e) Refunds made available under this section may not be
572 expended in connection with the relocation of a business from
573 one community to another community in this state unless the
574 department determines that, without such relocation, the
575 business will move outside this state, or it determines that the
576 business has a compelling economic rationale for relocation and
577 that the relocation will create additional jobs.
578 (f) A qualified target industry business that fraudulently
579 claims a refund under this section:
580 1. Is liable for repayment of the amount of the refund to
581 the account, plus a mandatory penalty in the amount of 200
582 percent of the tax refund. The repayment shall be deposited into
583 the General Revenue Fund.
584 2. Commits a felony of the third degree, punishable as
585 provided in s. 775.082, s. 775.083, or s. 775.084.
586 (4) APPLICATION AND APPROVAL PROCESS.—
587 (a) To apply for certification as a qualified target
588 industry business under this section, the business must file an
589 application with the department before the business decides to
590 locate in this state or before the business decides to expand
591 its existing operations in this state. The application must
592 include, but need not be limited to, the following information:
593 1. The applicant’s federal employer identification number
594 and, if applicable, state sales tax registration number.
595 2. The proposed permanent location of the applicant’s
596 facility in this state where the project is to be located.
597 3. A description of the type of business activity or
598 product covered by the project, including a minimum of a five
599 digit NAICS code for all activities included in the project. As
600 used in this paragraph, the term “NAICS” means those
601 classifications contained in the North American Industry
602 Classification System, as published in 2007 by the Office of
603 Management and Budget, Executive Office of the President, and
604 updated periodically.
605 4. The proposed number of net new full-time equivalent
606 Florida jobs at the qualified target industry business as of
607 December 31 of each year included in the project and the average
608 wage of those jobs. If more than one type of business activity
609 or product is included in the project, the number of jobs and
610 average wage for those jobs must be separately stated for each
611 type of business activity or product.
612 5. The total number of full-time equivalent employees
613 employed by the applicant in this state, if applicable.
614 6. The anticipated commencement date of the project.
615 7. A brief statement explaining the role that the estimated
616 tax refunds to be requested will play in the decision of the
617 applicant to locate or expand in this state.
618 8. An estimate of the proportion of the sales resulting
619 from the project which will be made outside this state.
620 9. An estimate of the proportion of the cost of the
621 machinery and equipment, and any other resources necessary in
622 the development of its product or service, to be used by the
623 business in its Florida operations which will be purchased
624 outside this state.
625 10. A resolution adopted by the governing board of the
626 county or municipality in which the project will be located,
627 which resolution recommends that the applicant be approved as a
628 qualified target industry business and specifies that the
629 commitments of local financial support necessary for the target
630 industry business exist. Before the passage of such resolution,
631 the department may also accept an official letter from an
632 authorized local economic development agency which endorses the
633 proposed target industry project and pledges that sources of
634 local financial support for such project exist. For the purposes
635 of making pledges of local financial support under this
636 subparagraph, the local governing board shall pass a one-time
637 resolution officially designating the authorized local economic
638 development agency.
639 11. Any additional information requested by the department.
640 (b) Each application must be submitted to the department
641 for determination of eligibility. The department shall review
642 and evaluate each application based on, but not limited to, the
643 following criteria:
644 1. Expected contributions to the state’s economy,
645 consistent with the state strategic economic development plan
646 prepared by the department.
647 2. The economic benefits of the proposed award of tax
648 refunds under this section.
649 3. The amount of capital investment to be made by the
650 applicant in this state.
651 4. The local financial commitment and support for the
652 project.
653 5. The expected effect of the project on the unemployed and
654 underemployed in the county where the project will be located.
655 6. The expected effect of the award on the viability of the
656 project and the probability that the project would be undertaken
657 in this state if such tax refunds are granted to the applicant.
658 7. Whether the business activity or project is in an
659 industry identified by the department as a target industry
660 business that contributes to the economic growth of this state
661 and the area in which the business is located, produces a higher
662 standard of living for residents of this state in the new global
663 economy, or can be shown to make an equivalent contribution to
664 the area’s and this state’s economic progress.
665 8. A review of the business’ past activities in this state
666 or other states, including whether the business has been
667 subjected to criminal or civil fines and penalties. This
668 subparagraph does not require the disclosure of confidential
669 information.
670 (c) Applications shall be reviewed and certified pursuant
671 to s. 288.061. The department shall include in its review
672 projections of the tax refunds the business would be eligible to
673 receive in each fiscal year based on the creation and
674 maintenance of the net new Florida jobs specified in
675 subparagraph (a)4. as of December 31 of the preceding state
676 fiscal year.
677 (d) The department may not certify any target industry
678 business as a qualified target industry business if the value of
679 tax refunds to be included in that letter of certification
680 exceeds the available amount of authority to certify new
681 businesses as determined in s. 288.095(3). However, if the
682 commitments of local financial support represent less than 20
683 percent of the eligible tax refund payments, or to otherwise
684 preserve the viability and fiscal integrity of the program, the
685 department may certify a qualified target industry business to
686 receive tax refund payments of less than the allowable amount
687 specified in paragraph (3)(b). A letter of certification that
688 approves an application must specify the maximum amount of tax
689 refund that will be available to the qualified target industry
690 business in each fiscal year and the total amount of tax refunds
691 that will be available to the business for all fiscal years.
692 (e) This section does not create a presumption that an
693 applicant will receive any tax refunds under this section.
694 However, the department may issue nonbinding opinion letters,
695 upon the request of prospective applicants, as to the
696 applicants’ eligibility and the potential amount of refunds.
697 (5) ANNUAL CLAIM FOR REFUND.—
698 (a) To be eligible to claim any scheduled tax refund, a
699 qualified target industry business must apply by January 31 of
700 each fiscal year to the department for the tax refund scheduled
701 to be paid from the appropriation for the fiscal year that
702 begins on July 1 following the January 31 claims-submission
703 date. The department may, upon written request, grant a 30-day
704 extension of the filing date.
705 (b) The claim for refund by the qualified target industry
706 business must include a copy of all receipts pertaining to the
707 payment of taxes for which the refund is sought.
708 (c) The department may waive the requirement for proof of
709 taxes paid in future years for a qualified target industry
710 business that provides the department with proof that, in a
711 single year, the business has paid an amount of state taxes from
712 the categories in paragraph (3)(c) which is at least equal to
713 the total amount of tax refunds that the business may receive
714 through successful completion of its project.
715 (d) A tax refund may not be approved for a qualified target
716 industry business unless the required local financial support
717 has been paid into the account for that refund. If the local
718 financial support provided is less than 20 percent of the
719 approved tax refund, the tax refund must be reduced. The tax
720 refund may not exceed an amount equal to 5 times the amount of
721 the local financial support received. The qualified target
722 industry business must provide a report listing all sources of
723 the local financial support to the department when such support
724 is paid to the account.
725 (e) The department, with such assistance as may be required
726 from the Department of Revenue, shall, by June 30 following the
727 scheduled date for submission of the tax refund claim, specify
728 by written order the approval or disapproval of the tax refund
729 claim and, if approved, the amount of the tax refund authorized
730 to be paid to the qualified target industry business. The
731 department may grant an extension of this date upon the request
732 of the qualified target industry business for the purpose of
733 filing additional information in support of the claim.
734 (f) The total amount of tax refund claims approved by the
735 department under this section in any fiscal year must not exceed
736 the amount authorized under s. 288.095(3).
737 (g) This section does not create a presumption that a tax
738 refund claim will be approved and paid.
739 (h) Upon approval of the tax refund under paragraphs (d)
740 and (e), the Chief Financial Officer shall issue a warrant for
741 the amount specified in the written order. If the written order
742 is appealed, the Chief Financial Officer may not issue a warrant
743 for a refund to the qualified target industry business until the
744 conclusion of all appeals of that order.
745 (6) ADMINISTRATION.—
746 (a) The department may verify information provided in any
747 claim submitted for tax credits under this section with regard
748 to employment and wage levels or the payment of the taxes to the
749 appropriate agency or authority, including the Department of
750 Revenue or any local government or authority.
751 (b) To facilitate the process of monitoring and auditing
752 applications made under this section, the department may provide
753 a list of qualified target industry businesses to the Department
754 of Revenue or to any local government or authority. The
755 department may request the assistance of those entities with
756 respect to monitoring jobs, wages, and the payment of the taxes
757 listed in subsection (3).
758 (c) Funds specifically appropriated for tax refunds for
759 qualified target industry businesses under this section may not
760 be used by the department for any purpose other than the payment
761 of tax refunds authorized by this section.
762 Section 8. Section 288.095, Florida Statutes, is amended to
763 read:
764 288.095 Economic Development Trust Fund.—
765 (1) The Economic Development Trust Fund is created within
766 the Department of Economic Opportunity. Moneys deposited into
767 the fund must be used only to support the authorized activities
768 and operations of the department.
769 (2) There is created, within the Economic Development Trust
770 Fund, the Economic Development Incentives Account. The Economic
771 Development Incentives Account consists of moneys appropriated
772 to the account for purposes of the tax incentives programs
773 authorized under ss. 288.066, 288.1045, and 288.106 ss. 288.1045
774 and 288.106, and local financial support provided under ss.
775 288.066, 288.1045, and 288.106. Moneys in the Economic
776 Development Incentives Account shall be subject to the
777 provisions of s. 216.301(1)(a).
778 (3)(a) The department may approve applications for
779 certification pursuant to ss. 288.066, 288.1045(3), and 288.106.
780 However, the total state share of tax refund payments may not
781 exceed $35 million.
782 (b) The total amount of tax refund claims approved for
783 payment by the department based on actual project performance
784 may not exceed the amount appropriated to the Economic
785 Development Incentives Account for such purposes for the fiscal
786 year. Claims for tax refunds under ss. 288.066, 288.1045, and
787 288.106 shall be paid in the order the claims are approved by
788 the department. In the event the Legislature does not
789 appropriate an amount sufficient to satisfy the tax refunds
790 under ss. 288.066, 288.1045, and 288.106 in a fiscal year, the
791 department shall pay the tax refunds from the appropriation for
792 the following fiscal year. By March 1 of each year, the
793 department shall notify the legislative appropriations
794 committees of the Senate and House of Representatives of any
795 anticipated shortfall in the amount of funds needed to satisfy
796 claims for tax refunds from the appropriation for the current
797 fiscal year.
798 (c) Moneys in the Economic Development Incentives Account
799 may be used only to pay tax refunds and make other payments
800 authorized under s. 288.066, s. 288.1045, s. 288.106, or s.
801 288.107.
802 (d) The department may adopt rules necessary to carry out
803 the provisions of this subsection, including rules providing for
804 the use of moneys in the Economic Development Incentives Account
805 and for the administration of the Economic Development
806 Incentives Account.
807 Section 9. This act shall take effect July 1, 2022.