Title: Community Contribution Tax Credit Program

Summary: Extends expiration date applicable to granting of community contribution tax credit against sales & use tax, corporate income tax, & insurance premium tax for contributions to eligible sponsors of revitalization & housing projects approved by DEO; reenacts provisions to incorporate changes made by act.

Full Text:
An act relating to the community contribution tax credit program; amending ss. 212.08, 220.183, and 624.5105, F.S.; extending the expiration date applicable to the granting of the community contribution tax credit against the sales and use tax, corporate income tax, and insurance premium tax for contributions and donations to eligible sponsors of revitalization and housing projects approved by the Department of Econo mic Opportunity; reenacting s. 220.02(8), F.S., relating to legislative intent for the income tax code, to incorporate the amendment made to s. 220.183, F.S., in a reference thereto; reenacting s. 220.183(1)(c) and (g), F.S., relating to the community cont ribution tax credit, to incorporate the amendments made to ss. 212.08 and 624.5105, F.S., in references thereto; reenacting s. 624.5105(1)(c), F.S., relating to the community contribution tax credit, to incorporate the amendments made to ss. 212.08 and.183, F.S., in references thereto; reenacting s. 377.809(4)(a), F.S., relating to the Energy Economic Zone Pilot Program, to incorporate the amendments made to ss. 212.08, 220.183, and 624.5105, F.S., in references thereto; providing an effective date. HB 2015 Be It Enacted by the Legislature of the State of Florida: Section 1. Paragraph (p) of subsection (5) of section 212.08, Florida Statutes, is amended to read: 212.08 Sales, rental, use, consumption, distribution, and storage tax; specified exemptio ns.-The sale at retail, the rental, the use, the consumption, the distribution, and the storage to be used or consumed in this state of the following are hereby specifically exempt from the tax imposed by this chapter. (5) EXEMPTIONS; ACCOUNT OF USE.-(p) Community contribution tax credit for donations.-1. Authorization.-Persons who are registered with the department under s. 212.18 to collect or remit sales or use tax and who make donations to eligible sponsors are eligible for tax credits against their state sales and use tax liabilities as provided in this paragraph: a. The credit shall be computed as percent of the person's approved annual community contribution. b. The credit shall be granted as a refund against state sales and use taxes reported on returns and remitted in the 47 months preceding the date of application to the department for the credit as required in sub-subparagraph 3.c. If the annual credit is not fully used through such refund because of insufficient tax payments during the applicable-month period, the unused amount may be included in an application for a refund HB 2015 made pursuant to sub-subparagraph 3.c. in subsequent years against the total tax payments made for such year. Carryover credits may be applied for a-year per iod without regard to any time limitation that would otherwise apply under s. 215.26. c. A person may not receive more than $200,000 in annual tax credits for all approved community contributions made in any one year. d. All proposals for the granting of the tax credit require the prior approval of the Department of Economic Opportunity. e. The total amount of tax credits which may be granted for all programs approved under this paragraph, s. 220.183, and s. 624.5105 is $18.4 million annually for proj ects that provide homeownership opportunities for low-income households or very low-income households as those terms are defined in s. 420.9071 and $3.5 million annually for all other projects. f. A person who is eligible to receive the credit provided in this paragraph, s. 220.183, or s. 624.5105 may receive the credit only under one section of the person's choice. 2. Eligibility requirements.-a. A community contribution by a person must be in the following form: (I) Cash or other liquid assets; (II) Real property; (III) Goods or inventory; or (IV) Other physical resources identified by the Department HB 2015 of Economic Opportunity. b. All community contributions must be reserved exclusively for use in a project. As used in this sub subparagraph, the term "project" means activity undertaken by an eligible sponsor which is designed to construct, improve, or substantially rehabilitate housing that is affordable to low income households or very-low-income households as those terms are defined in s. 0.9071; designed to provide commercial, industrial, or public resources and facilities; or designed to improve entrepreneurial and job-development opportunities for low-income persons. A project may be the investment necessary to increase access to high-speed broadband capability in rural communities with enterprise zones, including projects that result in improvements to communications assets that are owned by a business. A project may include the provision of museum educational programs and materials that are directly related to a project approved between January 1, 1996, and December 31, 1999, and located in an enterprise zone designated pursuant to s. 290.0065. This paragraph does not preclude projects that propose to construct or rehabilitate housing fo rlow-income households or very-low-income households on scattered sites. With respect to housing, contributions may be used to pay the following eligible low-income and very-low-income housing related activities: (I) Project development impact and manag ement fees for low-income or very-low-income housing projects; HB 2015 (II) Down payment and closing costs for low-income persons and very-low-income persons, as those terms are defined in s. 420.9071; (III) Administrative costs, including housing counseling and marketing fees, not to exceed percent of the community contribution, directly related to low-income or very-low-income projects; and (IV) Removal of liens recorded against residential property by municipal, county, or special district local governments if satisfaction of the lien is a necessary precedent to the transfer of the property to a low-income person or very low-income person, as those terms are defined in s. 420.9071, for the purpose of promoting home ownership. Contributions for lien remov al must be received from a nonrelated third party. c. The project must be undertaken by an "eligible sponsor," which includes: (I) A community action program; (II) A nonprofit community-based development organization whose mission is the provision of housing for low-income households or very-low-income households or increasing entrepreneurial and job-development opportunities for low-income persons; (III) A neighborhood housing services corporation; (IV) A local housing authority created under cha pter 421; (V) A community redevelopment agency created under s. 163.356; HB 2015 (VI) A historic preservation district agency or organization; (VII) A regional workforce board; (VIII) A direct-support organization as provided in s. 1009.983; (IX) An ente rprise zone development agency created under s. 290.0056; (X) A community-based organization incorporated under chapter which is recognized as educational, charitable, or scientific pursuant to s. 501(c)(3) of the Internal Revenue Code and whose byla ws and articles of incorporation include affordable housing, economic development, or community development as the primary mission of the corporation; (XI) Units of local government; (XII) Units of state government; or (XIII) Any other agency that th eDepartment of Economic Opportunity designates by rule. A contributing person may not have a financial interest in the eligible sponsor. d. The project must be located in an area designated an enterprise zone or a Front Porch Florida Community, unless the project increases access to high-speed broadband capability for rural communities that have enterprise zones but is physically located outside the designated rural zone boundaries. Any project designed to construct or rehabilitate housing for low HB 2015 income households or very-low-income households as those terms are defined in s. 420.9071 is exempt from the area requirement of this sub-subparagraph. e.(I) If, during the first business days of the state fiscal year, eligible tax credit applications for projects that provide homeownership opportunities for low-income households or very-low-income households as those terms are defined in s. 420.9071 are received for less than the annual tax credits available for those projects, the Department of Economic Opportunity shall grant tax credits for those applications and grant remaining tax credits on a first-come, first-served basis for subsequent eligible applications received before the end of the state fiscal year. If, during the first business days of the state fiscal year, eligible tax credit applications for projects that provide homeownership opportunities for low-income households or very-low-income households as those terms are defined in s. 420.9071 are received for more than the annual tax credits available for those projects, the Department of Economic Opportunity shall grant the tax credits for those applications as follows: (A) If tax credit applications submitted for approved projects of an eligible sponsor do not exceed $200,000 in total, the credits shall be granted in full if the tax credit applications are approved. (B) If tax credit applications submitted for approved projects of an eligible sponsor exceed $200,000 in total, the HB 2015 amount of tax credits granted pursuant to sub-sub-sub-subparagraph (A) shall be subtracted from the amount of available tax credits, and the remaining credits shall be granted to each approved tax credit application on a pro rata basis. (II) If, during the first business days of the state fiscal year, eligibl etax credit applications for projects other than those that provide homeownership opportunities for low income households or very-low-income households as those terms are defined in s. 420.9071 are received for less than the annual tax credits available for those projects, the Department of Economic Opportunity shall grant tax credits for those applications and shall grant remaining tax credits on a first come, first-served basis for subsequent eligible applications received before the end of the state fis cal year. If, during the first business days of the state fiscal year, eligible tax credit applications for projects other than those that provide homeownership opportunities for low-income households or very low-income households as those terms are def ined in s. 420.9071 are received for more than the annual tax credits available for those projects, the Department of Economic Opportunity shall grant the tax credits for those applications on a pro rata basis. 3. Application requirements.-a. An Any eligible sponsor seeking to participate in this program must submit a proposal to the Department of Economic HB 2015 Opportunity which sets forth the name of the sponsor, a description of the project, and the area in which the project is located, together with such supporting information as is prescribed by rule. The proposal must also contain a resolution from the local governmental unit in which the project is located certifying that the project is consistent with local plans and regulations. b. A Any person see king to participate in this program must submit an application for tax credit to the Department of Economic Opportunity which sets forth the name of the sponsor, a description of the project, and the type, value, and purpose of the contribution. The sponso rshall verify, in writing, the terms of the application and indicate its receipt of the contribution, and such verification must accompany the application for tax credit. The person must submit a separate tax credit application to the Department of Econom ic Opportunity for each individual contribution that it makes to each individual project. c. A Any person who has received notification from the Department of Economic Opportunity that a tax credit has been approved must apply to the department to receive the refund. Application must be made on the form prescribed for claiming refunds of sales and use taxes and be accompanied by a copy of the notification. A person may submit only one application for refund to the department within a-month period. 4. Administration.- HB 2015 a. The Department of Economic Opportunity may adopt rules necessary to administe rthis paragraph, including rules for the approval or disapproval of proposals by a person. b. The decision of the Department of Economic Opportunity must be in writing, and, if approved, the notification shall state the maximum credit allowable to the person. Upon approval, the Department of Economic Opportunity shall transmit a copy of the decision to the department. c. The Department of Economic Opportunity shall periodically monitor all projects in a manner consistent with available resources to ens ure that resources are used in accordance with this paragraph; however, each project must be reviewed at least once every years. d. The Department of Economic Opportunity shall, in consultation with the statewide and regional housing and financial inte rmediaries, market the availability of the community contribution tax credit program to community-based organizations. 5. Expiration.-This paragraph expires June 30, 2025 2016; however, any accrued credit carryover that is unused on that date may be used until the expiration of the-year carryover period for such credit. Section 2. Subsection (5) of section 220.183, Florida Statutes, is amended to read: 220.183 Community contribution tax credit.-(5) EXPIRATION.-The provisions of this section, ex cept HB 2015 paragraph (1)(e), expire and are void on June 30, 2025 2016. Section 3. Subsection (6) of section 624.5105, Florida Statutes, is amended to read: 624.5105 Community contribution tax credit; authorization; limitations; eligibility and application requirements; administration; definitions; expiration.-(6) EXPIRATION.-The provisions of this section, except paragraph (1)(e), expire and are void on June 30, 2025 2016. Section 4. For the purpose of incorporating the amendment made by this act to section 220.183, Florida Statutes, in a reference thereto, subsection (8) of section 220.02, Florida Statutes, is reenacted to read: 220.02 Legislative intent.-(8) It is the intent of the Legislature that credits against either the corporate income tax or the franchise tax be applied in the following order: those enumerated in s. 631.828, those enumerated in s. 220.191, those enumerated in s. 220.181, those enumerated in s. 220.183, those enumerated in s. 220.182, those enumerated in s. 220.1895, thos eenumerated in s. 220.195, those enumerated in s. 220.184, those enumerated in s. 220.186, those enumerated in s. 220.1845, those enumerated in s. 220.19, those enumerated in s. 220.185, those enumerated in s. 220.1875, those enumerated in s. 220.192, tho se enumerated in s. 220.193, those enumerated in s. 288.9916, those enumerated in s. 220.1899, those enumerated in s. 220.194, and those enumerated in s. 220.196. HB 2015 Section 5. For the purpose of incorporating the amendments made by this act to sections 12.08 and 624.5105, Florida Statutes, in references thereto, paragraphs (c) and (g) of subsection (1) of section 220.183, Florida Statutes, are reenacted to read: 220.183 Community contribution tax credit.-(1) AUTHORIZATION TO GRANT COMMUNITY CONTRIBU TION TAX CREDITS; LIMITATIONS ON INDIVIDUAL CREDITS AND PROGRAM SPENDING.-(c) The total amount of tax credit which may be granted for all programs approved under this section, s. 212.08(5)(p), and s. 624.5105 is $18.4 million annually for projects that provide homeownership opportunities for low-income or very-low-income households as defined in s. 420.9071 and $3.5 million annually for all other projects. (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. Section 6. For the purpose of incorporating the amendments made by this act to sections 212.08 and 220.183, Florida Statutes, in references thereto, paragraph (c) of subsection (1) of section 624.5105, Fl orida Statutes, is reenacted to read: 624.5105 Community contribution tax credit; authorization; limitations; eligibility and application requirements; administration; definitions; expiration.-(1) AUTHORIZATION TO GRANT TAX CREDITS; LIMITATIONS.- HB 2015 (c) The total amount of tax credit which may be granted for all programs approved under this section and ss. 212.08(5)(p) and 220.183 is $18.4 million annually for projects that provide homeownership opportunities for low-income or very low-income households as defined in s. 420.9071 and $3.5 million annually for all other projects. Section 7. For the purpose of incorporating the amendments made by this act to sections 212.08, 220.183, and 624.5105, Florida Statutes, in references thereto, paragraph (a) of subsection (4) of section 377.809, Florida Statutes, is reenacted to read: 377.809 Energy Economic Zone Pilot Program.-(4)(a) Beginning July 1, 2012, all the incentives and benefits provided for enterprise zones pursuant to state law shall be availa ble to the energy economic zones designated pursuant to this section on or before July 1, 2010. In order to provide incentives, by March 1, 2012, each local governing body that has jurisdiction over an energy economic zone must, by local ordinance, establi sh the boundary of the energy economic zone, specify applicable energy-efficiency standards, and determine eligibility criteria for the application of state and local incentives and benefits in the energy economic zone. However, in order to receive benefit sprovided under s. 288.106, a business must be a qualified target industry business under s. 288.106 for state purposes. An energy economic zone's boundary may be revised by local ordinance. Such incentives and benefits HB 2015 include those in ss. 212.08, 212.09 6, 220.181, 220.182, 220.183, 288.106, and 624.5105 and the public utility discounts provided in s. 290.007(8). The exemption provided in s. 212.08(5)(c) shall be for renewable energy as defined in s. 377.803. For purposes of this section, any applicable requirements for employee residency for higher refund or credit thresholds must be based on employee residency in the energy economic zone or an enterprise zone. A business in an energy economic zone may also be eligible for funding under ss. 288.047 and 5.003, and a transportation project in an energy economic zone shall be provided priority in funding under s. 339.2821. Other projects shall be given priority ranking to the extent practicable for grants administered under state energy programs. Section 8. This act shall take effect upon becoming a law.