The Florida Senate

624.5105  Community contribution tax credit; legislative findings; policy and purpose; authorization; limitations; eligibility and application requirements; administration; definitions; expiration.--

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

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

(b)  The 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 insurers 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 insurance premium tax credits to insurers 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 such purpose a public purpose for which public money may be borrowed, expended, loaned, and granted.

(3)  AUTHORIZATION TO GRANT TAX CREDITS; LIMITATIONS.--

(a)  Beginning July 1, 1995, there shall be allowed a credit of 50 percent of a community contribution against any tax due for a calendar year under s. 624.509 or s. 624.510.

(b)  No insurer 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. 220.183 is $2 million annually.

(d)  Each proposal for the granting of such tax credit requires the prior approval of the director.

(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 insurer, 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 s. 624.509 or s. 624.510 for such year exceeds the credit under this section for such year.

(4)  ELIGIBILITY REQUIREMENTS.--

(a)  Each community contribution by an insurer must be in a form specified in subsection (7).

(b)  Each community contribution must be reserved exclusively for use in a project.

(c)  The project must be undertaken by an "eligible sponsor," which term is defined 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.  A historic preservation district agency or organization;

8.  A private industry council;

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

10.  Such other agency as the director may, from time to time, designate by rule.

In no event shall a contributing insurer 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 the proposed project is located certifying that the project is consistent with local plans and regulations.

(b)

1.  Any insurer wishing to participate in this program must submit an application for tax credit to the office which sets forth the sponsor; the project; and the type, value, and purpose of the contribution. The sponsor must verify, in writing, the terms of the application and indicate its willingness to receive the contribution, which verification must accompany the application for tax credit.

2.  The insurer must submit a separate application for tax credit for each individual contribution which it proposes to contribute to each individual project.

(6)  ADMINISTRATION.--

(a)

1.  The Office of Tourism, Trade, and Economic Development is authorized to adopt all rules necessary to administer this section, including rules for the approval or disapproval of proposals by insurers.

2.  The decision of the director shall be in writing, and, if approved, the proposal shall state the maximum credit allowable to the insurer. 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 insurer.

3.  The office shall monitor all projects periodically, 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 frequently than once every 2 years.

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

(7)  DEFINITIONS.--For the purpose of this section:

(a)  "Community contribution" means the grant by an insurer of any of the following items:

1.  Cash or other liquid assets.

2.  Real property.

3.  Goods or inventory.

4.  Other physical resources which are identified by the department.

(b)  "Director" means the director of the Office of Tourism, Trade, and Economic Development.

(c)  "Local government" means any county or incorporated municipality in the state.

(d)  "Office" means the Office of Tourism, Trade, and Economic Development.

(e)  "Project" means any activity undertaken by an eligible sponsor, as defined in subsection (4), which is designed to construct, improve, or substantially rehabilitate housing or commercial, industrial, or public resources and facilities or to improve entrepreneurial and job-development opportunities for low-income persons.

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

History.--s. 56, ch. 84-356; s. 124, ch. 91-112; s. 54, ch. 94-136; s. 149, ch. 96-320.