The Florida Senate

220.183  Community contribution tax credit.--

(1)  LEGISLATIVE FINDINGS.--The Legislature finds that:

(a)  There exist in the counties and municipalities conditions of blight evidenced by extensive deterioration of public and private facilities, abandonment of sound structures, and high unemployment which conditions impede the conservation and development of healthy, safe, and economically viable communities.

(b)  Deterioration of housing and industrial, commercial, and public facilities contributes to the decline of neighborhoods and communities and leads to the loss of their historic character and the sense of community which this inspires; reduces the value of property comprising the tax base of local communities; discourages private investment; and requires a disproportionate expenditure of public funds for the social services, unemployment benefits, and police protection required to combat the social and economic problems found in slum communities.

(c)  In order to ultimately restore social and economic viability to enterprise zones, it is necessary to renovate or construct new housing, water and sewer infrastructure, and transportation facilities and to specifically provide mechanisms to attract and encourage private economic activity.

(d)  The various local governments and other redevelopment organizations now undertaking physical revitalization projects are limited by tightly constrained budgets and inadequate resources.

(e)  In order to significantly improve revitalization efforts by local governments and community development organizations and to retain as much of the historic character of our communities as possible, it is necessary to provide additional resources, and the participation of private enterprise in revitalization efforts is an effective means for accomplishing that goal.

(2)  POLICY AND PURPOSE.--It is the policy of this state to encourage the participation of private corporations in revitalization projects undertaken by public redevelopment organizations. The purpose of this section is to provide an incentive for such participation by granting partial state income tax credits to corporations that contribute resources to public redevelopment organizations for the revitalization of enterprise zones for the benefit of low-income and moderate-income persons or to preserve existing historically significant properties within enterprise zones to the greatest extent possible. The Legislature thus declares this a public purpose for which public money may be borrowed, expended, loaned, and granted.

(3)  AUTHORIZATION TO GRANT COMMUNITY CONTRIBUTION TAX CREDITS; LIMITATIONS ON INDIVIDUAL CREDITS AND PROGRAM SPENDING.--

(a)  Beginning July 1, 1995, there shall be allowed a credit of 50 percent of a community contribution against any tax due for a taxable year under this chapter.

(b)  No business firm shall receive more than $200,000 in annual tax credits for all approved community contributions made in any one year.

(c)  The total amount of tax credit which may be granted for all programs approved under this section and s. 624.5105 is $2 million annually.

(d)  All proposals for the granting of the tax credit shall require the prior approval of the Office of Tourism, Trade, and Economic Development.

(e)  If the credit granted pursuant to this section is not fully used in any one year because of insufficient tax liability on the part of the business firm, the unused amount may be carried forward for a period not to exceed 5 years. The carryover credit may be used in a subsequent year when the tax imposed by this chapter for such year exceeds the credit for such year under this section after applying the other credits and unused credit carryovers in the order provided in s. 220.02(10).

(f)  A taxpayer who files a Florida consolidated return as a member of an affiliated group pursuant to s. 220.131(1) may be allowed the credit on a consolidated return basis.

(g)  A taxpayer who is eligible to receive the credit provided for in s. 624.5105 is not eligible to receive the credit provided by this section.

(4)  ELIGIBILITY REQUIREMENTS.--

(a)  All community contributions by a business firm shall be in the form specified in s. 220.03(1)(d).

(b)  All community contributions must be reserved exclusively for use in projects as defined in s. 220.03(1)(t).

(c)  The project must be undertaken by an "eligible sponsor," defined here as:

1.  A community action program;

2.  A community development corporation;

3.  A neighborhood housing services corporation;

4.  A local housing authority, created pursuant to chapter 421;

5.  A community redevelopment agency, created pursuant to s. 163.356;

6.  The Florida Industrial Development Corporation;

7.  An historic preservation district agency or organization;

8.  A private industry council;

9.  A direct-support organization as provided in s. 240.551;

10.  An enterprise zone development agency created pursuant to s. 290.0057; or

11.  Such other agency as the Office of Tourism, Trade, and Economic Development may, from time to time, designate by rule.

In no event shall a contributing business firm have a financial interest in the eligible sponsor.

(d)  The project shall be located in an area designated as an enterprise zone pursuant to s. 290.0065. Any project designed to construct or rehabilitate low-income housing is exempt from the area requirement of this paragraph.

(5)  APPLICATION REQUIREMENTS.--

(a)  Any eligible sponsor wishing to participate in this program must submit a proposal to the Office of Tourism, Trade, and Economic Development which sets forth the sponsor, the project, the area in which the project is located, and such supporting information as may be prescribed by rule. The proposal shall also contain a resolution from the local governmental unit in which it is located certifying that the project is consistent with local plans and regulations.

(b)  Any business wishing to participate in this program must submit an application for tax credit to the Office of Tourism, Trade, and Economic Development, which application sets forth the sponsor; the project; and the type, value, and purpose of the contribution. The sponsor shall verify the terms of the application and indicate its willingness to receive the contribution, which verification indicate its willingness to receive the contribution, which verification shall be in writing and shall accompany the application for tax credit.

(c)  The business firm must submit a separate application for tax credit for each individual contribution which it proposes to contribute to each individual project.

(6)  ADMINISTRATION.--

(a)  The Office of Tourism, Trade, and Economic Development is authorized to promulgate all rules necessary to administer this section, including rules for the approval or disapproval of proposals by business firms.

(b)  The decision of the Office of Tourism, Trade, and Economic Development shall be in writing, and, if approved, the proposal shall state the maximum credit allowable to the business firm. A copy of the decision shall be transmitted to the executive director of the Department of Revenue, who shall apply such credit to the tax liability of the business firm.

(c)  The Office of Tourism, Trade, and Economic Development shall periodically monitor all projects in a manner consistent with available resources to ensure that resources are utilized in accordance with this section; however, each project shall be reviewed no less often than once every 2 years.

(d)  The Department of Revenue shall promulgate any rules necessary to ensure the orderly implementation and administration of this section.

(7)  EXPIRATION.--The provisions of this section, except paragraph (3)(e), shall expire and be void on June 30, 2005.

History.--ss. 2, 3, 4, 5, 6, 7, 8, 10, ch. 80-249; s. 24, ch. 81-167; s. 127, ch. 81-259; s. 6, ch. 82-119; s. 41, ch. 84-356; s. 19, ch. 88-201; s. 1, ch. 89-352; s. 56, ch. 89-356; s. 4, ch. 90-130; s. 123, ch. 91-112; s. 53, ch. 94-136; s. 22, ch. 96-320.