Bill Text: FL S0868 | 2016 | Regular Session | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Community Redevelopment
Spectrum: Slight Partisan Bill (? 2-1)
Status: (Introduced - Dead) 2016-03-08 - Laid on Table, companion bill(s) passed, see CS/HB 627 (Ch. 2016-131) [S0868 Detail]
Download: Florida-2016-S0868-Introduced.html
Bill Title: Community Redevelopment
Spectrum: Slight Partisan Bill (? 2-1)
Status: (Introduced - Dead) 2016-03-08 - Laid on Table, companion bill(s) passed, see CS/HB 627 (Ch. 2016-131) [S0868 Detail]
Download: Florida-2016-S0868-Introduced.html
Florida Senate - 2016 SB 868 By Senator Smith 31-00682-16 2016868__ 1 A bill to be entitled 2 An act relating to community contribution tax credits; 3 amending s. 212.08, F.S.; specifying that ownership 4 interests in a real property holding company are an 5 eligible form of community contribution for the 6 purpose of a certain sales and use tax credit for 7 donations; defining a term; amending s. 220.03, F.S.; 8 revising the term “community contribution” to include 9 ownership interests in a real property holding 10 company; defining a term; amending s. 624.5105, F.S.; 11 specifying that ownership interests in a real property 12 holding company are an eligible form of community 13 contribution for the purpose of a certain tax credit 14 for donations by insurers; defining a term; providing 15 an effective date. 16 17 Be It Enacted by the Legislature of the State of Florida: 18 19 Section 1. Paragraph (p) of subsection (5) of section 20 212.08, Florida Statutes, is amended to read: 21 212.08 Sales, rental, use, consumption, distribution, and 22 storage tax; specified exemptions.—The sale at retail, the 23 rental, the use, the consumption, the distribution, and the 24 storage to be used or consumed in this state of the following 25 are hereby specifically exempt from the tax imposed by this 26 chapter. 27 (5) EXEMPTIONS; ACCOUNT OF USE.— 28 (p) Community contribution tax credit for donations.— 29 1. Authorization.—Persons who are registered with the 30 department under s. 212.18 to collect or remit sales or use tax 31 and who make donations to eligible sponsors are eligible for tax 32 credits against their state sales and use tax liabilities as 33 provided in this paragraph: 34 a. The credit shall be computed as 50 percent of the 35 person’s approved annual community contribution. 36 b. The credit shall be granted as a refund against state 37 sales and use taxes reported on returns and remitted in the 12 38 months preceding the date of application to the department for 39 the credit as required in sub-subparagraph 3.c. If the annual 40 credit is not fully used through such refund because of 41 insufficient tax payments during the applicable 12-month period, 42 the unused amount may be included in an application for a refund 43 made pursuant to sub-subparagraph 3.c. in subsequent years 44 against the total tax payments made for such year. Carryover 45 credits may be applied for a 3-year period without regard to any 46 time limitation that would otherwise apply under s. 215.26. 47 c. A person may not receive more than $200,000 in annual 48 tax credits for all approved community contributions made in any 49 one year. 50 d. All proposals for the granting of the tax credit require 51 the prior approval of the Department of Economic Opportunity. 52 e. The total amount of tax credits which may be granted for 53 all programs approved under this paragraph, s. 220.183, and s. 54 624.5105 is $18.4 million in the 2015-2016 fiscal year, $21.4 55 million in the 2016-2017 fiscal year, and $21.4 million in the 56 2017-2018 fiscal year for projects that provide housing 57 opportunities for persons with special needs or homeownership 58 opportunities for low-income households or very-low-income 59 households and $3.5 million annually for all other projects. As 60 used in this paragraph, the term “person with special needs” has 61 the same meaning as in s. 420.0004 and the terms “low-income 62 person,” “low-income household,” “very-low-income person,” and 63 “very-low-income household” have the same meanings as in s. 64 420.9071. 65 f. A person who is eligible to receive the credit provided 66 in this paragraph, s. 220.183, or s. 624.5105 may receive the 67 credit only under one section of the person’s choice. 68 2. Eligibility requirements.— 69 a. A community contribution by a person must be in any of 70 the following formsform: 71 (I) Cash or other liquid assets.;72 (II) Real property, including ownership interests in a real 73 property holding company. For purposes of this sub-sub 74 subparagraph, the term “real property holding company” means an 75 entity organized under the laws of this state which: 76 (A) Is wholly owned by the person; 77 (B) Is the sole owner of real property, as defined in s. 78 192.001(12), located in this state; 79 (C) Is disregarded as an entity separate from its owner for 80 federal income tax purposes pursuant to 26 C.F.R. s. 301.7701 81 3(b)(1)(ii); and 82 (D) At the time of contribution to an eligible sponsor, has 83 no material assets other than the real property and any other 84 property that qualifies as a community contribution.;85 (III) Goods or inventory.; or86 (IV) Other physical resources identified by the Department 87 of Economic Opportunity. 88 b. All community contributions must be reserved exclusively 89 for use in a project. As used in this sub-subparagraph, the term 90 “project” means activity undertaken by an eligible sponsor which 91 is designed to construct, improve, or substantially rehabilitate 92 housing that is affordable to low-income households or very-low 93 income households; designed to provide housing opportunities for 94 persons with special needs; designed to provide commercial, 95 industrial, or public resources and facilities; or designed to 96 improve entrepreneurial and job-development opportunities for 97 low-income persons. A project may be the investment necessary to 98 increase access to high-speed broadband capability in a rural 99 community that had an enterprise zone designated pursuant to 100 chapter 290 as of May 1, 2015, including projects that result in 101 improvements to communications assets that are owned by a 102 business. A project may include the provision of museum 103 educational programs and materials that are directly related to 104 a project approved between January 1, 1996, and December 31, 105 1999, and located in an area which was in an enterprise zone 106 designated pursuant to s. 290.0065 as of May 1, 2015. This 107 paragraph does not preclude projects that propose to construct 108 or rehabilitate housing for low-income households or very-low 109 income households on scattered sites or housing opportunities 110 for persons with special needs. With respect to housing, 111 contributions may be used to pay the following eligible special 112 needs, low-income, and very-low-income housing-related 113 activities: 114 (I) Project development impact and management fees for 115 special needs, low-income, or very-low-income housing projects; 116 (II) Down payment and closing costs for persons with 117 special needs, low-income persons, and very-low-income persons; 118 (III) Administrative costs, including housing counseling 119 and marketing fees, not to exceed 10 percent of the community 120 contribution, directly related to special needs, low-income, or 121 very-low-income projects; and 122 (IV) Removal of liens recorded against residential property 123 by municipal, county, or special district local governments if 124 satisfaction of the lien is a necessary precedent to the 125 transfer of the property to a low-income person or very-low 126 income person for the purpose of promoting home ownership. 127 Contributions for lien removal must be received from a 128 nonrelated third party. 129 c. The project must be undertaken by an “eligible sponsor,” 130 which includes: 131 (I) A community action program; 132 (II) A nonprofit community-based development organization 133 whose mission is the provision of housing for persons with 134 specials needs, low-income households, or very-low-income 135 households or increasing entrepreneurial and job-development 136 opportunities for low-income persons; 137 (III) A neighborhood housing services corporation; 138 (IV) A local housing authority created under chapter 421; 139 (V) A community redevelopment agency created under s. 140 163.356; 141 (VI) A historic preservation district agency or 142 organization; 143 (VII) A regional workforce board; 144 (VIII) A direct-support organization as provided in s. 145 1009.983; 146 (IX) An enterprise zone development agency created under s. 147 290.0056; 148 (X) A community-based organization incorporated under 149 chapter 617 which is recognized as educational, charitable, or 150 scientific pursuant to s. 501(c)(3) of the Internal Revenue Code 151 and whose bylaws and articles of incorporation include 152 affordable housing, economic development, or community 153 development as the primary mission of the corporation; 154 (XI) Units of local government; 155 (XII) Units of state government; or 156 (XIII) Any other agency that the Department of Economic 157 Opportunity designates by rule. 158 159 A contributing person may not have a financial interest in the 160 eligible sponsor. 161 d. The project must be located in an area which was in an 162 enterprise zone designated pursuant to chapter 290 as of May 1, 163 2015, or a Front Porch Florida Community, unless the project 164 increases access to high-speed broadband capability in a rural 165 community that had an enterprise zone designated pursuant to 166 chapter 290 as of May 1, 2015, but is physically located outside 167 the designated rural zone boundaries. Any project designed to 168 construct or rehabilitate housing for low-income households or 169 very-low-income households or housing opportunities for persons 170 with special needs is exempt from the area requirement of this 171 sub-subparagraph. 172 e.(I) If, during the first 10 business days of the state 173 fiscal year, eligible tax credit applications for projects that 174 provide housing opportunities for persons with special needs or 175 homeownership opportunities for low-income households or very 176 low-income households are received for less than the annual tax 177 credits available for those projects, the Department of Economic 178 Opportunity shall grant tax credits for those applications and 179 grant remaining tax credits on a first-come, first-served basis 180 for subsequent eligible applications received before the end of 181 the state fiscal year. If, during the first 10 business days of 182 the state fiscal year, eligible tax credit applications for 183 projects that provide housing opportunities for persons with 184 special needs or homeownership opportunities for low-income 185 households or very-low-income households are received for more 186 than the annual tax credits available for those projects, the 187 Department of Economic Opportunity shall grant the tax credits 188 for those applications as follows: 189 (A) If tax credit applications submitted for approved 190 projects of an eligible sponsor do not exceed $200,000 in total, 191 the credits shall be granted in full if the tax credit 192 applications are approved. 193 (B) If tax credit applications submitted for approved 194 projects of an eligible sponsor exceed $200,000 in total, the 195 amount of tax credits granted pursuant to sub-sub-sub 196 subparagraph (A) shall be subtracted from the amount of 197 available tax credits, and the remaining credits shall be 198 granted to each approved tax credit application on a pro rata 199 basis. 200 (II) If, during the first 10 business days of the state 201 fiscal year, eligible tax credit applications for projects other 202 than those that provide housing opportunities for persons with 203 special needs or homeownership opportunities for low-income 204 households or very-low-income households are received for less 205 than the annual tax credits available for those projects, the 206 Department of Economic Opportunity shall grant tax credits for 207 those applications and shall grant remaining tax credits on a 208 first-come, first-served basis for subsequent eligible 209 applications received before the end of the state fiscal year. 210 If, during the first 10 business days of the state fiscal year, 211 eligible tax credit applications for projects other than those 212 that provide housing opportunities for persons with special 213 needs or homeownership opportunities for low-income households 214 or very-low-income households are received for more than the 215 annual tax credits available for those projects, the Department 216 of Economic Opportunity shall grant the tax credits for those 217 applications on a pro rata basis. 218 3. Application requirements.— 219 a. An eligible sponsor seeking to participate in this 220 program must submit a proposal to the Department of Economic 221 Opportunity which sets forth the name of the sponsor, a 222 description of the project, and the area in which the project is 223 located, together with such supporting information as is 224 prescribed by rule. The proposal must also contain a resolution 225 from the local governmental unit in which the project is located 226 certifying that the project is consistent with local plans and 227 regulations. 228 b. A person seeking to participate in this program must 229 submit an application for tax credit to the Department of 230 Economic Opportunity which sets forth the name of the sponsor, a 231 description of the project, and the type, value, and purpose of 232 the contribution. The sponsor shall verify, in writing, the 233 terms of the application and indicate its receipt of the 234 contribution, and such verification must accompany the 235 application for tax credit. The person must submit a separate 236 tax credit application to the Department of Economic Opportunity 237 for each individual contribution that it makes to each 238 individual project. 239 c. A person who has received notification from the 240 Department of Economic Opportunity that a tax credit has been 241 approved must apply to the department to receive the refund. 242 Application must be made on the form prescribed for claiming 243 refunds of sales and use taxes and be accompanied by a copy of 244 the notification. A person may submit only one application for 245 refund to the department within a 12-month period. 246 4. Administration.— 247 a. The Department of Economic Opportunity may adopt rules 248 necessary to administer this paragraph, including rules for the 249 approval or disapproval of proposals by a person. 250 b. The decision of the Department of Economic Opportunity 251 must be in writing, and, if approved, the notification shall 252 state the maximum credit allowable to the person. Upon approval, 253 the Department of Economic Opportunity shall transmit a copy of 254 the decision to the department. 255 c. The Department of Economic Opportunity shall 256 periodically monitor all projects in a manner consistent with 257 available resources to ensure that resources are used in 258 accordance with this paragraph; however, each project must be 259 reviewed at least once every 2 years. 260 d. The Department of Economic Opportunity shall, in 261 consultation with the statewide and regional housing and 262 financial intermediaries, market the availability of the 263 community contribution tax credit program to community-based 264 organizations. 265 5. Expiration.—This paragraph expires June 30, 2018; 266 however, any accrued credit carryover that is unused on that 267 date may be used until the expiration of the 3-year carryover 268 period for such credit. 269 Section 2. Paragraph (d) of subsection (1) of section 270 220.03, Florida Statutes, is amended to read: 271 220.03 Definitions.— 272 (1) SPECIFIC TERMS.—When used in this code, and when not 273 otherwise distinctly expressed or manifestly incompatible with 274 the intent thereof, the following terms shall have the following 275 meanings: 276 (d) “Community contribution” means the grant by a business 277 firm of any of the following items: 278 1. Cash or other liquid assets. 279 2. Real property, including ownership interests in a real 280 property holding company. For purposes of this subparagraph, the 281 term “real property holding company” means an entity organized 282 under the laws of this state which: 283 a. Is wholly owned by the business firm. 284 b. Is the sole owner of real property, as defined in s. 285 192.001(12), located in this state. 286 c. Is disregarded as an entity separate from its owner for 287 federal income tax purposes pursuant to 26 C.F.R. s. 301.7701 288 3(b)(1)(ii). 289 d. At the time of contribution to an eligible sponsor, has 290 no material assets other than the real property and any other 291 property that qualifies as a community contribution. 292 3. Goods or inventory. 293 4. Other physical resources as identified by the 294 department. 295 296 This paragraph expires June 30, 2018. 297 Section 3. Paragraph (a) of subsection (5) of section 298 624.5105, Florida Statutes, is amended to read: 299 624.5105 Community contribution tax credit; authorization; 300 limitations; eligibility and application requirements; 301 administration; definitions; expiration.— 302 (5) DEFINITIONS.—As used in this section, the term: 303 (a) “Community contribution” means the grant by an insurer 304 of any of the following items: 305 1. Cash or other liquid assets. 306 2. Real property, including ownership interests in a real 307 property holding company. For purposes of this subparagraph, the 308 term “real property holding company” means an entity organized 309 under the laws of this state which: 310 a. Is wholly owned by the insurer; 311 b. Is the sole owner of real property, as defined in s. 312 192.001(12), located in the state; 313 c. Is disregarded as an entity separate from its owner for 314 federal income tax purposes pursuant to 26 C.F.R. s. 301.7701 315 3(b)(1)(ii); and 316 d. At the time of contribution to an eligible sponsor, has 317 no material assets other than the real property and any other 318 property that qualifies as a community contribution. 319 3. Goods or inventory. 320 4. Other physical resources which are identified by the 321 department. 322 Section 4. This act shall take effect July 1, 2016.