Florida Senate - 2022                                     SB 946
       By Senator Gruters
       23-00366A-22                                           2022946__
    1                        A bill to be entitled                      
    2         An act relating to the entertainment industry;
    3         creating the Targeted High Wage Production Program
    4         within the Department of Economic Opportunity under
    5         the supervision of the Commissioner of Film and
    6         Entertainment; providing a purpose for the program;
    7         defining terms; requiring that film, television, and
    8         digital media projects being produced in this state
    9         meet specified criteria to be eligible for tax credit
   10         awards; authorizing applicants to receive awards up to
   11         a specified amount, including bonuses; requiring a
   12         certified project to make a good faith effort to use
   13         existing providers of infrastructure or equipment in
   14         this state and to employ residents of this state;
   15         requiring the commissioner to set application windows;
   16         providing requirements for the department relating to
   17         earmarking and setting aside tax credit awards;
   18         requiring applicants to either accept a partial tax
   19         credit award or reject the partial award and drop out
   20         of the program under certain circumstances; providing
   21         procedures and requirements for applicants; requiring
   22         the commissioner to take specified actions within a
   23         reasonable period of time; requiring the Florida Film
   24         and Entertainment Advisory Council to determine a
   25         score for each qualified project using specified
   26         criteria; requiring the commissioner to determine the
   27         priority order and scoring system of the specified
   28         criteria with assistance from the council and certain
   29         other persons; requiring the council to use specified
   30         criteria; requiring the commissioner to take specified
   31         actions in a timely manner relating to the
   32         certification or rejection of qualified projects;
   33         requiring the department to certify projects and
   34         maximum tax credit awards to qualified applicants and
   35         the executive director of the Department of Revenue;
   36         requiring the commissioner to develop a process to
   37         verify the actual qualified expenditures and bonus
   38         eligibility of a certified project after the project’s
   39         work in this state is complete; providing requirements
   40         for the verification process; requiring that the award
   41         be issued within a reasonable period of time upon
   42         approval of the final award amount; requiring that
   43         certain marketing be included with a project;
   44         requiring certified projects to allow certain persons
   45         to visit the production site upon request of the
   46         commissioner and after providing the commissioner with
   47         reasonable notice; specifying that the commissioner or
   48         his or her affiliate is not required to visit the
   49         production site; requiring the department to
   50         disqualify a project under certain circumstances;
   51         providing for liability and imposing civil and
   52         criminal penalties for an applicant that submits
   53         fraudulent information; requiring certified production
   54         companies to make elections relating to tax credit
   55         awards; providing requirements and prohibitions
   56         relating to tax credits; authorizing certain entities
   57         to transfer tax credits under certain circumstances;
   58         providing requirements and prohibitions relating to
   59         transferring tax credits; authorizing certain entities
   60         to relinquish tax credits for payments; providing
   61         requirements and prohibitions relating to
   62         relinquishing tax credits; providing for the annual
   63         allocation of tax credits for the program; authorizing
   64         the department to adopt rules; authorizing the
   65         Department of Revenue to conduct certain examinations
   66         and audits and pursue recovery of tax credits;
   67         authorizing the Department of Revenue to adopt rules;
   68         authorizing the Department of Economic Opportunity to
   69         revoke or modify certain decisions relating to tax
   70         credit eligibility under certain circumstances;
   71         requiring the department to notify the Department of
   72         Revenue of any such revocation or modification;
   73         requiring applicants to notify the Department of
   74         Revenue of any change in tax credit claimed; providing
   75         for forfeiture of tax credits; requiring the
   76         commissioner to provide an annual report to the
   77         Governor and the Legislature on a specified date;
   78         providing that certain appropriated funds are not
   79         subject to reversion; providing for the expiration of
   80         the program; providing an effective date.
   82  Be It Enacted by the Legislature of the State of Florida:
   84         Section 1. The Targeted High Wage Production Program.—
   85         (1) CREATION AND PURPOSE OF PROGRAM.—The Targeted High Wage
   86  Production Program is created within the Department of Economic
   87  Opportunity under the supervision of the Commissioner of Film
   88  and Entertainment.
   89         (a)The purpose of the performance-based program is to
   90  boost this state’s economic prosperity by:
   91         1.Creating high-paying jobs in an industry with an average
   92  salary 60 percent higher than the state average;
   93         2.Enhancing tourism by choosing projects that encourage
   94  tourists to visit this state;
   95         3.Broadening the film, television, and digital media
   96  industry’s impact on the state by offering a modest bonus for
   97  projects that take place in underutilized areas; and
   98         4.Encouraging more family-friendly productions to be
   99  produced in this state.
  100         (b)This purpose shall be accomplished by providing a
  101  limited tax credit award to projects that provide the highest
  102  return on investment and economic benefit to the state which is
  103  not awardable until after a project has made its expenditures in
  104  this state and the expenditures have been verified by the
  105  department.
  106         (2) DEFINITIONS.—As used in this act, unless the context
  107  otherwise requires, the term:
  108         (a) “Certified project” means a qualified project that has
  109  been scored by the council, has been determined by the
  110  commissioner to meet or exceed the desired economic impact and
  111  other criteria of the program, and has tax credits allocated to
  112  it based on the project’s estimated qualified expenditures. The
  113  term does not include a project that may be considered obscene
  114  as defined in s. 847.001, Florida Statutes.
  115         (b) “Commissioner” means the Commissioner of Film and
  116  Entertainment as described in s. 288.1251(1)(b), Florida
  117  Statutes.
  118         (c)“Council” means the Florida Film and Entertainment
  119  Advisory Council.
  120         (d) “Department” means the Department of Economic
  121  Opportunity.
  122         (e) “Digital media project” means a commercial video game,
  123  including an educational video game, which includes at least 30
  124  minutes of game play time.
  125         (f) “Family friendly” means having cross-generational
  126  appeal; being appropriate in theme, content, and language for a
  127  broad family audience; embodying a responsible resolution of
  128  issues; not containing any act of drunkenness, illicit drug use,
  129  sex, nudity, gratuitous violence, or vulgar or profane language;
  130  and not portraying smoking any substance in a positive manner.
  131         (g) “Film project” means a theatrical, direct-to-video,
  132  television, cable, Internet, streaming service, or animated
  133  narrative motion picture at least 75 minutes in length. The term
  134  does not include a project deemed by the office to have content
  135  that is obscene, as defined in s. 847.001, Florida Statutes.
  136         (h) “Florida resident” means a person who has a valid
  137  Florida driver license or Florida identification card issued
  138  under s. 322.051, Florida Statutes, and has signed an affidavit
  139  confirming residency.
  140         (i) “Office” means the Office of Film and Entertainment
  141  within the department.
  142         (j) “Principal photography” means, for a film project or
  143  television project, the filming of major or significant
  144  components of the project which involve lead actors, or, for a
  145  digital media project, the period of time during which the work
  146  of the majority of the crew is dedicated solely to the project.
  147         (k) “Production start date” means:
  148         1. For film and television projects, the start date of
  149  principal photography, as listed in the project’s application.
  150         2. For digital media projects, the start date of final
  151  storyboards or a later date as specified in the project’s
  152  application.
  153         (l) “Qualified expenditures” means:
  154         1.Expenditures made in this state and paid to residents of
  155  this state or to businesses registered in this state and made
  156  solely for preproduction, production, or postproduction of the
  157  qualified project, including the following:
  158         a. Rented or leased goods or services provided by a vendor
  159  or supplier in this state which is registered with the
  160  Department of State or the Department of Revenue; which has a
  161  physical address in this state other than a post office box; and
  162  which employs one or more Florida residents on a full-time
  163  basis. The term does not include rebilled goods or services
  164  provided by an in-state company from out-of-state vendors or
  165  suppliers. When services provided by the vendor or supplier
  166  include personal services or labor, only personal services or
  167  labor provided by Florida residents qualify.
  168         b. Payments to Florida residents in the form of salary or
  169  wages up to a maximum of $200,000 per resident, including
  170  amounts paid per diem to a worker who is a Florida resident and
  171  amounts paid through payroll service companies, and benefits
  172  such as pension, health, and welfare payments for technical and
  173  production crews, directors, producers, and performers. For
  174  purposes of this sub-subparagraph, payments do not include wages
  175  for executives, legal staff, or other corporate staff who are
  176  not employed to work solely on the project.
  177         c.Rented or leased cars, trucks, and trailers, if the
  178  vehicles or trailers are registered with the Florida Department
  179  of Highway Safety and Motor Vehicles.
  180         d.Purchases of catered meals and on-set craft service
  181  supplies.
  182         e.Rented hotel rooms or other accommodations for cast or
  183  crew.
  184         2. The term does not include expenditures not expressly
  185  identified in subparagraph 1., expenditures made before
  186  qualification for the program, expenditures made via Internet
  187  transactions, expenditures for airfare, or any costs associated
  188  with development, marketing, or distribution.
  189         3.For the purposes of a digital media project, the term
  190  includes only those qualified expenditures made within 9 months
  191  after the project’s first qualified expenditure.
  192         (m) “Qualified project” means a film project, television
  193  project, or digital media project that meets the application
  194  requirements and for which a complete application for the
  195  program has been submitted to the commissioner and accepted for
  196  consideration by the office. The term does not apply to any
  197  company doing subsidiary work on a certified production,
  198  including, but not limited to, postproduction, visual effects,
  199  and music. The term does not include a weather or market
  200  program; a sporting event or a sporting event broadcast; a gala;
  201  an awards show; a production that solicits funds; a home
  202  shopping program; a political program; a gambling-related
  203  project or production; a concert production; a news or current
  204  events show; a sports or sports recap show; a pornographic
  205  production; or any production deemed obscene under chapter 847,
  206  Florida Statutes.
  207         (n) “Television project” means a television pilot program
  208  or a television series that:
  209         1. Is a scripted drama, comedy, animation, or reality show;
  210         2. Has a runtime to fit, at a minimum, a 30-minute program
  211  slot, but no longer than required to fit a 60-minute program
  212  slot; and
  213         3. If the television project is a television series, has a
  214  minimum of 7 episodes, or, if the television project is a
  215  reality program or series, has at least 10 episodes.
  216         4.Does not include content that is deemed by the office to
  217  be obscene, as defined in s. 847.001, Florida Statutes.
  218         (o) “Underutilized area” means any county in this state
  219  other than Broward County, Hillsborough County, Miami-Dade
  220  County, Orange County, Pinellas County, or Seminole County.
  222         (a) To be eligible for a tax credit award, an applicant
  223  must be registered to do business in this state and must be
  224  producing a project that:
  225         1. Has projected qualified expenditures of:
  226         a. For a film project, at least $1.5 million;
  227         b. For a television project, at least $500,000 per episode;
  228  or
  229         c. For a digital media project, at least $1.5 million;
  230         2. Is projected to employ a crew, including cast and stand
  231  ins, but not including extras, also known as background
  232  performers, of which at least 60 percent will be residents of
  233  this state and at least one member will be a military veteran;
  234         3. Is projected to spend at least 70 percent of its total
  235  production days in this state; and
  236         4. Will not receive a sales tax certificate of exemption
  237  pursuant to s. 288.1258, Florida Statutes, for the project.
  238         (b) A certified project may receive a tax credit award in
  239  the amount of up to 20 percent of its verified qualified
  240  expenditures. A bonus may be earned in the amount of an
  241  additional 3 percentage points if 60 percent of the project’s
  242  production in this state will take place in an underutilized
  243  area or if its content is deemed family friendly. A certified
  244  project may not receive more than one bonus, and the total that
  245  may be awarded under any tax credit award may not exceed 23
  246  percent of its verified qualified expenditures or $2 million,
  247  whichever is less.
  248         (c) A certified project must make a good faith effort to
  249  use existing providers of infrastructure or equipment in this
  250  state, when available, including providers of camera gear, grip
  251  and lighting equipment, vehicles, and postproduction services,
  252  and to employ residents of this state as cast and crew.
  253         (4)APPLICATION WINDOWS.—Applications must be accepted for
  254  the program during two application windows each fiscal year. The
  255  commissioner shall set a start date for both application
  256  windows. However, the first application window may begin before
  257  the start of the fiscal year and must end no later than 5
  258  business days after July 1, and the second application window
  259  must end no later than 5 business days after December 1.
  260         (a) The department may not earmark or set aside more than
  261  60 percent of any tax credit awards available for any given
  262  fiscal year for applications submitted during each fiscal year’s
  263  first application window. Tax credit award funds not earmarked
  264  or set aside for applicants applying during one application
  265  window roll over for use in the next application window.
  266         (b) If all tax credit awards are earmarked and set aside
  267  for certified projects, additional applications may not be
  268  accepted until more funds become available for the program.
  269         (c)If during any application period only a partial amount
  270  of tax credit awards are available to certify to a project
  271  compared to the full amount for which it would be eligible, the
  272  applicant must elect to either accept the partial tax credit
  273  award as the maximum certified tax credit award it would be
  274  eligible for or reject it and drop out of the program. The
  275  applicant must notify the commissioner in writing of its
  276  decision before the application period ends. If additional tax
  277  credit awards become available after the application period, the
  278  project of an applicant that accepted a partial tax credit award
  279  is not eligible for any such awards.
  280         (5) APPLICATION PROCESS.—
  281         (a) A company that plans to produce a film, television, or
  282  digital project in this state may submit an application to the
  283  commissioner during one of the two application windows. Each
  284  fiscal year, a project must have a production start date that is
  285  within 6 months after July 1 if applying in the first window or
  286  within 6 months after January 1 if applying in the second
  287  window.
  288         (b)An applicant or its parent company may submit an
  289  application for no more than five projects in any single fiscal
  290  year. However, except in the case of a television pilot and the
  291  television series the pilot is based on being certified within
  292  the same fiscal year, only one project per applicant may be
  293  certified within a fiscal year.
  294         (c) The application must include:
  295         1. Proof of funding;
  296         2. Project-related employment information, including
  297  employment numbers for residents of this state;
  298         3. A full line-item budget and a detailed qualified
  299  expenditures budget;
  300         4. A detailed distribution plan to assist with determining
  301  the potential economic impact of the project in this state;
  302         5. The applicant’s expected total qualified expenditures
  303  for wages paid to residents of this state;
  304         6. The applicant’s expected total qualified expenditures
  305  and nonqualified expenditures in this state;
  306         7. For a film project, the latest script, a production
  307  schedule, a Day Out of Days report, and a list of the expected
  308  shooting locations;
  309         8. For a digital media project, a detailed game design
  310  document, including a production schedule;
  311         9.For a television project that is a pilot, a final
  312  script, a production schedule, a Day Out of Days report, and a
  313  list of the expected shooting locations;
  314         10.For a television project that is a series, the latest
  315  scripts for at least two episodes and a production schedule, a
  316  Day Out of Days report, and a list of the expected shooting
  317  locations for the first episode;
  318         11. An affirmation signed by the applicant that the
  319  information on the application is correct; and
  320         12. The applicant’s Florida tax identification number.
  321         (d)Within a reasonable period of time after the last
  322  business day of each application window, the commissioner shall:
  323         1. Review all applications submitted during the application
  324  window and determine the eligibility of each applicant;
  325         2. Determine each applicant’s expected qualified
  326  expenditures;
  327         3. Determine the maximum tax credit each qualified
  328  applicant may be awarded;
  329         4. Determine whether a qualified applicant’s project is
  330  deemed family friendly;
  331         5. Determine the percentage of the applicant’s production,
  332  if any, which is proposed to occur in an underutilized area;
  333         6. Determine whether each qualified applicant is a
  334  corporation registered in this state;
  335         7. Contact each applicant with any questions, as necessary;
  336         8. Gather any additional information needed to address the
  337  criteria specified under subsection (6);
  338         9. Assemble a package containing the details of each
  339  qualified applicant’s project and deliver it to each council
  340  member; and
  341         10. Give notice to the council of the date and time when
  342  the council must convene to assess each qualified project. The
  343  council may meet in person or by conference call.
  344         (e) The council shall determine a score for each qualified
  345  project using the criteria specified under subsection (6), with
  346  the highest scores going to projects determined to provide the
  347  best economic impact and return on investment to this state.
  349         (a)The priority order and scoring system of the criteria
  350  specified in paragraph (b) must be determined by the
  351  commissioner, with assistance from the council and other
  352  persons, as determined by the commissioner, before the first
  353  application window.
  354         (b)The council shall use, at a minimum, the following
  355  criteria in determining a qualified project’s score:
  356         1. The amount of the project’s overall qualified
  357  expenditures.
  358         2. The amount of the project’s Florida-resident wages.
  359         3. The number of full-time equivalent jobs created by the
  360  project.
  361         4. Whether the project provides pension, health, and
  362  welfare benefits to its workforce in this state.
  363         5.The estimated direct and indirect tourism benefit of the
  364  project, based on the submitted distribution plan.
  365         6. The duration of Florida-resident employment for the
  366  project.
  367         7.What percentage of the project, if any, is being made in
  368  an underutilized area.
  369         8. Whether the project is family friendly.
  370         9. Whether the project has a Florida-resident writer,
  371  producer, director, or star.
  372         10. Whether a Florida film, television, or digital media
  373  school will assist with the production of the project.
  374         11. Whether the project leadership team has a successful
  375  track record.
  376         12. The number of Florida-resident veterans the project
  377  will hire.
  378         13. The number of Florida film school graduates the project
  379  will hire as cast or crew.
  380         (7) NOTIFICATION OF DECISION.—
  381         (a) After the council determines a project’s score, the
  382  commissioner shall, in a timely manner:
  383         1.Make a final determination on certifying or rejecting
  384  each qualified project, giving consideration to the council’s
  385  scoring.
  386         2.Provide a list of certified projects to the department
  387  which includes the associated maximum tax credit that each
  388  respective applicant may be awarded.
  389         3. Notify each certified project of the specified
  390  percentage of qualified expenditures for which it is eligible
  391  and the maximum tax credit it may be awarded.
  392         4. Provide a notice of rejection to each rejected
  393  applicant; however, the failure to notify an applicant of its
  394  rejection does not deem the applicant’s project a certified
  395  project.
  396         (b) Based on the final determination of the commissioner,
  397  the department shall certify the project and its maximum tax
  398  credit award, if any, to the applicant and to the executive
  399  director of the Department of Revenue.
  400         (8)VERIFICATION PROCESS.—
  401         (a) The commissioner shall develop a process to verify the
  402  actual qualified expenditures and bonus eligibility of a
  403  certified project after the project’s work in this state is
  404  complete. The process must require all of the following:
  405         1.Submission to the commissioner of at least all of the
  406  following information, electronically or in hard copy, or both,
  407  by each certified project:
  408         a. Data substantiating each qualified expenditure which has
  409  been audited by an independent certified public accountant
  410  licensed in this state, as required under subparagraph 4.;
  411         b. Copies of documents verifying residency of persons
  412  represented as being residents of this state, including an
  413  affidavit signed by each resident;
  414         c. The final script;
  415         d. The most recent production board and shooting schedule;
  416         e. The most recent credit list showing where the credits
  417  required under subsection (9) will appear;
  418         f.A cast list and a final crew list with contact
  419  information;
  420         g. For any veterans employed by the project, a copy of at
  421  least one DD Form 214, as issued by the United States Department
  422  of Defense, or another acceptable form of identification as
  423  specified by the Department of Veterans’ Affairs; and
  424         h.Any other information determined necessary by the
  425  commissioner.
  426         2.Signing, and submission to the commissioner, by the lead
  427  producer or studio executive in charge of the certified project,
  428  of an affidavit or a written declaration signed under the
  429  penalty of perjury as specified in s. 92.525, Florida Statutes,
  430  stating that all salaries, wages, and other compensation
  431  submitted as qualified expenditures are in compliance with this
  432  section.
  433         3. The information and affidavit required by subparagraphs
  434  1. and 2. must be received by the commissioner within 120 days
  435  after the certified project has made its last qualified
  436  expenditure but no later than 1 year after its production start
  437  date. Pursuant to the rules adopted by the department, the
  438  commissioner may, upon a showing of good cause, grant a one-time
  439  extension of this deadline.
  440         4.A compliance audit conducted at the certified project’s
  441  expense by an independent certified public accountant who is a
  442  resident of this state to substantiate the qualified
  443  expenditures, and submission of a report of the audit findings,
  444  including substantiating data, to the commissioner within a
  445  reasonable period of time after the initial receipt of records
  446  from the certified project.
  447         (b) The commissioner shall review the report and data
  448  required under paragraph (a) within a reasonable period of time
  449  after receipt of the report and data and shall report to the
  450  department the final verified amount of actual qualified
  451  expenditures the certified project made and the amount of the
  452  total tax credit award due the project.
  453         (c)The department shall determine and approve the final
  454  tax credit award amount to each certified applicant based on the
  455  final verified amount of actual qualified expenditures and shall
  456  notify the executive director of the Department of Revenue in
  457  writing that the certified production has met the requirements
  458  of the incentive program and of the final amount of the tax
  459  credit award. The final tax credit award amount may not exceed
  460  the maximum tax credit award amount certified under subparagraph
  461  (7)(b). The tax credit must be issued within a reasonable period
  462  of time.
  464         (a) The commissioner shall ensure, as a condition of
  465  receiving a tax credit under this section, that a certified
  466  project includes marketing promoting this state as a tourist
  467  destination or film and entertainment production destination. At
  468  a minimum, the marketing must include placement in the end
  469  credits of a “Filmed in Florida” or “Produced in Florida” logo,
  470  with size and placement commensurate to other logos included in
  471  the end credits, or, if no logos are used, the statement “Filmed
  472  in Florida” or “Produced in Florida” or a similar statement
  473  approved by the commissioner and the logo of the local film
  474  office, if applicable. A digital media project must also supply
  475  a 5-second or longer animated logo with Produced in Florida” or
  476  other text, including the logo of the local digital media
  477  office, if applicable, as preapproved by the commissioner, in a
  478  manner easily seen by a consumer of the digital media project.
  479  The commissioner shall provide the logos for the purposes
  480  specified in this paragraph, not including the logo for a local
  481  office, which must be provided by the applicable office.
  482         (b) A certified project must allow the commissioner, or an
  483  affiliate, and a minimum of two guests to visit the production
  484  site upon the request of the commissioner. Upon such request,
  485  the certified project must give the commissioner reasonable
  486  notice of a visit date and time that is acceptable to the
  487  production. The commissioner or an affiliate is not required to
  488  make a visit to the set.
  489         (c)A certified project must provide at least five
  490  preapproved photos of the production to the commissioner and
  491  grant the commissioner free use of the photos in promoting this
  492  state as a film, television, or digital media production
  493  location or tourist destination.
  494         (10) DISQUALIFICATION.—The department shall disqualify a
  495  certified project and may not issue a tax credit award to the
  496  project if the project:
  497         (a) Does not begin principal photography in this state
  498  within the period beginning 30 days before and ending 90 days
  499  after the project’s listed production start date. Pursuant to
  500  department rule, the commissioner may, upon a showing of good
  501  cause, grant a one-time extension of this deadline;
  502         (b) Does not abide by the policies, procedures, deadlines,
  503  or requirements of the application verification process;
  504         (c) Does not notify the commissioner of any change in the
  505  production start date before commencing production;
  506         (d) Submits fraudulent information; or
  507         (e)Uses the state sales tax exemption established under s.
  508  288.1258, Florida Statutes.
  509         (11) FRAUD.—An applicant that submits fraudulent
  510  information under this section is liable for reimbursement of
  511  the reasonable costs and fees associated with the review,
  512  processing, investigation, and prosecution of the fraudulent
  513  submission. An applicant that obtains a tax credit award under
  514  this section through a claim that is fraudulent shall reimburse
  515  the program for the tax credit awarded and reasonable costs and
  516  fees associated with the review, processing, investigation, and
  517  prosecution of the fraudulent claim and shall pay a civil
  518  penalty in an amount equal to double the tax credit amount and
  519  any criminal penalty assessed against the applicant.
  521         (a) A certified production company receiving a tax credit
  522  award under this section shall, at the time the credit is
  523  awarded by the department after production is completed and all
  524  requirements to receive a credit award have been met, make an
  525  irrevocable election to apply the credit against taxes due under
  526  chapter 220, Florida Statutes; against state taxes collected or
  527  accrued under chapter 212, Florida Statutes; or against a stated
  528  combination of the two taxes. The election is binding upon any
  529  distributee, successor, transferee, or purchaser. The department
  530  shall notify the Department of Revenue of any election made
  531  pursuant to this paragraph.
  532         (b) A qualified production company is eligible for tax
  533  credits against its sales and use tax liabilities and corporate
  534  income tax liabilities as provided in this section. However, tax
  535  credits awarded under this section may not be claimed against
  536  sales and use tax liabilities or corporate income tax
  537  liabilities for any tax period beginning before July 1, 2022,
  538  regardless of when the credits are applied for or awarded.
  539         (c) If the certified production company cannot use the
  540  entire tax credit in the taxable year or reporting period in
  541  which the credit is awarded, any excess amount may be carried
  542  forward to a succeeding taxable year or reporting period. A tax
  543  credit applied against taxes imposed under chapter 212, Florida
  544  Statutes, or chapter 220, Florida Statutes, may be carried
  545  forward for a maximum of 5 years after the date the credit is
  546  awarded, after which the credit expires and may not be used.
  547         (d) A certified production company that files a
  548  consolidated return as a member of an affiliated group under s.
  549  220.131(1), Florida Statutes, may use the credit on a
  550  consolidated return basis up to the amount of the tax imposed
  551  upon the consolidated group under chapter 220, Florida Statutes.
  552         (e) A certified production company that is not a
  553  corporation as defined in s. 220.03(1)(e), Florida Statutes, may
  554  elect to distribute tax credits awarded under this section to
  555  its partners or members in proportion to their respective
  556  distributive income or loss in the taxable year in which the tax
  557  credits were awarded.
  558         (f)Tax credits available under this section to a certified
  559  production company may succeed to a surviving or acquiring
  560  entity subject to the same conditions and limitations as
  561  described in this section; however, the credits may not be
  562  transferred by the surviving or acquiring entity.
  563         (13) TRANSFER OF TAX CREDITS.—
  564         (a) Upon application to the Office of Film and
  565  Entertainment and approval by the department, a certified
  566  production company, or a partner or member of a certified
  567  production company, that has received a distribution under
  568  paragraph (4)(g) may elect to transfer, in whole or in part, any
  569  unused credit amount granted under this section. An election to
  570  transfer any unused tax credit amount under chapter 212, Florida
  571  Statutes, or chapter 220, Florida Statutes, must be made no
  572  later than 5 years after the date the credit is awarded, after
  573  which period the credit expires and may not be used. The
  574  department shall notify the Department of Revenue of the
  575  election and transfer. The original transferee and any
  576  subsequent transferees must be either the certified company’s
  577  parent company or a subsidiary company or a business with NAICS
  578  code 512110, 512120, 512191, 512199, 512240, 512250, 512290,
  579  515120, 515210, 517410, 541922, 711130, 711410, or 711510.
  580         (b) A certified production company that elects to apply a
  581  credit amount against taxes remitted under chapter 212, Florida
  582  Statutes, is allowed a one-time transfer of unused credits to
  583  one transferee. A certified production company that elects to
  584  apply a credit amount against taxes due under chapter 220,
  585  Florida Statutes, is allowed a one-time transfer of unused
  586  credits to no more than four transferees, and such transfers
  587  must occur in the same taxable year.
  588         (c) A transferee receiving a tax credit has the same rights
  589  and is subject to the same limitations as the certified
  590  production company awarded the tax credit except that a
  591  transferee receiving a tax credit may not subsequently transfer
  592  the tax credit.
  594         (a) Beginning July 1, 2022, a certified production company,
  595  or any person who has acquired a tax credit from a certified
  596  production company, may elect to relinquish the tax credit to
  597  the Department of Revenue in exchange for payment of 85 percent
  598  of the amount of the relinquished tax credit.
  599         (b) The Department of Revenue may approve payments to
  600  entities relinquishing tax credits pursuant to this subsection.
  601         (c) Subject to legislative appropriation, the Department of
  602  Revenue shall request the Chief Financial Officer to issue
  603  warrants to entities relinquishing tax credits. Payments under
  604  this subsection shall be made from the funds from which the
  605  proceeds from the taxes against which the tax credits could have
  606  been applied pursuant to the irrevocable election made by the
  607  certified production company under subsection (4) are deposited.
  609         (a) The aggregate amount of tax credits allocated to the
  610  program shall equal, but not exceed:
  611         1. For fiscal year 2022-2023, $20 million.
  612         2. For fiscal year 2023-2024, $20 million.
  613         3. For fiscal year 2024-2025, $20 million.
  614         4.For fiscal year 2025-2026, $20 million.
  615         (b) Any portion of the maximum amount of tax credits
  616  established per fiscal year in paragraph (a) which is not
  617  certified by the end of that fiscal year shall be carried
  618  forward and made available for certification during the
  619  following 2 fiscal years in addition to the amounts available
  620  under paragraph (a) for those fiscal years.
  621         (c) Upon approval of the final tax credit award amount
  622  pursuant to paragraph (8)(c), an amount equal to the difference
  623  between the maximum tax credit award amount previously certified
  624  under subsection (7) and the approved final tax credit award
  625  amount shall immediately be available for recertification during
  626  the current and following fiscal years in addition to the
  627  amounts available under paragraph (a) for those fiscal years.
  628         (d)If the total amount of credits applied for during a
  629  fiscal year pursuant to subsection (5) exceeds the amount of
  630  credits available for certification in that fiscal year, such
  631  excess shall be treated as having been applied for on the first
  632  day of the next fiscal year in which credits remain available
  633  for certification.
  634         (16) RULES, POLICIES, AND PROCEDURES.—The department may
  635  adopt rules and develop policies and procedures to implement and
  636  administer this section, including, but not limited to, rules
  637  specifying requirements for the application and approval
  638  process, records required for substantiation for tax credits,
  639  the manner and form of documentation required to claim tax
  640  credits awarded, transferred, or relinquished under this
  641  section, marketing requirements for tax credit recipients, and
  642  the examination and audit procedures required to administer this
  643  section.
  646         (a) The Department of Revenue may conduct examinations and
  647  audits as provided in s. 213.34 to verify that tax credits under
  648  this section are received, transferred, and applied according to
  649  the requirements of this section. If the Department of Revenue
  650  determines that tax credits are not received, transferred, or
  651  applied as required by this section, it may, in addition to the
  652  remedies provided in this subsection, pursue recovery of such
  653  funds pursuant to the laws and rules governing the assessment of
  654  taxes. The Department of Revenue may adopt rules to administer
  655  this paragraph.
  656         (b) The department may revoke or modify any written
  657  decision qualifying, certifying, or otherwise granting
  658  eligibility for tax credits under this section if it is
  659  discovered that the tax credit applicant submitted any false
  660  statement, representation, or certification in any application,
  661  record, report, plan, or other document filed in an attempt to
  662  receive tax credits under this section. The department shall
  663  immediately notify the Department of Revenue of any revoked or
  664  modified orders affecting previously granted tax credits.
  665  Additionally, the applicant must notify the Department of
  666  Revenue of any change in its tax credit claimed.
  667         (c) A determination by the Department of Revenue, as a
  668  result of an audit pursuant to paragraph (a) or from information
  669  received from the Office of Film and Entertainment, that an
  670  applicant received tax credits pursuant to this section to which
  671  the applicant was not entitled is grounds for forfeiture of
  672  previously claimed and received tax credits. The applicant is
  673  responsible for returning forfeited tax credits to the
  674  Department of Revenue, and such funds shall be paid into the
  675  General Revenue Fund of the state. Tax credits purchased in good
  676  faith are not subject to forfeiture unless the transferee
  677  submitted fraudulent information in the purchase or failed to
  678  meet the requirements in subsection (13).
  679         (18) ANNUAL REPORT.—Each November 1, the commissioner shall
  680  provide an annual report on the program for the previous fiscal
  681  year to the Governor, the President of the Senate, and the
  682  Speaker of the House of Representatives. The report must
  683  identify the return on investment associated with, and economic
  684  benefits to this state attributable to, the program.
  685         (19)FUNDS NOT SUBJECT TO REVERSION.—Notwithstanding s.
  686  216.301, Florida Statutes, funds appropriated for this purpose
  687  are not subject to reversion.
  688         (20) EXPIRATION.— The Targeted High Wage Production Program
  689  expires June 30, 2026, at which point all remaining appropriated
  690  funds not earmarked and set aside for certified projects must
  691  revert to the General Revenue Fund. All remaining appropriated
  692  funds must revert to the General Revenue Fund no later than
  693  October 31, 2027.
  694         Section 2. This act shall take effect upon becoming a law.