Bill Text: FL S1224 | 2011 | Regular Session | Comm Sub


Bill Title: Corporate Tax Credits and Refunds

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2011-05-07 - Indefinitely postponed and withdrawn from consideration [S1224 Detail]

Download: Florida-2011-S1224-Comm_Sub.html
       Florida Senate - 2011                             CS for SB 1224
       
       
       
       By the Committee on Military Affairs, Space, and Domestic
       Security; and Senator Altman
       
       
       
       583-02654-11                                          20111224c1
    1                        A bill to be entitled                      
    2         An act relating to corporate tax credits and refunds;
    3         amending s. 14.2015, F.S.; authorizing the Office of
    4         Tourism, Trade, and Economic Development to administer
    5         corporate income tax credits for spaceflight projects;
    6         amending s. 213.053, F.S.; authorizing the Department
    7         of Revenue to share information relating to corporate
    8         income tax credits for spaceflight projects with the
    9         Office of Tourism, Trade, and Economic Development;
   10         amending s. 220.02, F.S.; revising the order in which
   11         credits against the corporate income tax or franchise
   12         tax may be taken to include credits for spaceflight
   13         projects; amending s. 220.13, F.S.; requiring that the
   14         amount taken as a credit for a spaceflight project be
   15         added to taxable income; prohibiting a deduction from
   16         taxable income for any net operating loss taken as a
   17         credit against corporate income taxes or transferred;
   18         amending s. 220.16, F.S.; requiring that the amount of
   19         payments received in exchange for transferring a net
   20         operating loss for spaceflight projects be allocated
   21         to the state; creating s. 220.194, F.S.; providing a
   22         short title; providing legislative purpose; defining
   23         terms; authorizing a certified spaceflight business to
   24         take or transfer corporate income tax credits related
   25         to spaceflight projects carried out in this state;
   26         specifying tax credit amounts and business eligibility
   27         criteria; providing limitations; requiring a business
   28         to demonstrate to the satisfaction of the office and
   29         the department its eligibility to claim a tax credit;
   30         requiring a business to submit an application to the
   31         office for approval to earn credits; specifying the
   32         required contents of the application; requiring the
   33         office to approve or deny an application within 60
   34         days after receipt; specifying the approval process;
   35         requiring a spaceflight business to submit an
   36         application for certification to the office;
   37         specifying the required contents of an application for
   38         certification; specifying the approval process;
   39         requiring the office to submit a copy of an approved
   40         certification to the department; providing procedures
   41         for transferring a tax credit to a taxpayer;
   42         authorizing the department to perform audits and
   43         investigations necessary to verify the accuracy of
   44         returns relating to the tax credit; specifying
   45         circumstances under which the office may revoke or
   46         modify a certification that grants eligibility for tax
   47         credits; requiring a certified spaceflight business to
   48         file an amended return and pay any required tax within
   49         60 days after receiving notice that previously
   50         approved tax credits have been revoked or modified;
   51         authorizing the department to assess additional taxes,
   52         interest, or penalties; authorizing the office and the
   53         department to adopt rules; requiring the office to
   54         submit an annual report to the Governor and
   55         Legislature regarding the Florida Space Business
   56         Incentives Act; repealing s. 288.1045(2)(c), F.S.,
   57         relating to a limitation on the maximum amount of tax
   58         refund a defense or space flight contractor may
   59         receive; amending s. 288.106, F.S.; deleting a
   60         provision that limits the maximum amount of tax
   61         refunds a qualified target industry may receive;
   62         providing for application; providing an effective
   63         date.
   64  
   65  Be It Enacted by the Legislature of the State of Florida:
   66  
   67         Section 1. Paragraph (f) of subsection (2) of section
   68  14.2015, Florida Statutes, is amended to read:
   69         14.2015 Office of Tourism, Trade, and Economic Development;
   70  creation; powers and duties.—
   71         (2) The purpose of the Office of Tourism, Trade, and
   72  Economic Development is to assist the Governor in working with
   73  the Legislature, state agencies, business leaders, and economic
   74  development professionals to formulate and implement coherent
   75  and consistent policies and strategies designed to provide
   76  economic opportunities for all Floridians. To accomplish such
   77  purposes, the Office of Tourism, Trade, and Economic Development
   78  shall:
   79         (f)1. Administer the Florida Enterprise Zone Act under ss.
   80  290.001-290.016, the community contribution tax credit program
   81  under ss. 220.183 and 624.5105, the tax refund program for
   82  qualified target industry businesses under s. 288.106, the tax
   83  refund program for qualified defense contractors and space
   84  flight business contractors under s. 288.1045, contracts for
   85  transportation projects under s. 288.063, the sports franchise
   86  facility programs under ss. 288.1162 and 288.11621, the
   87  professional golf hall of fame facility program under s.
   88  288.1168, the expedited permitting process under s. 403.973, the
   89  Rural Community Development Revolving Loan Fund under s.
   90  288.065, the Regional Rural Development Grants Program under s.
   91  288.018, the Certified Capital Company Act under s. 288.99, the
   92  Florida State Rural Development Council, the Rural Economic
   93  Development Initiative, the corporate income tax credits for
   94  spaceflight projects under s. 220.194, and other programs that
   95  are specifically assigned to the office by law, by the
   96  appropriations process, or by the Governor.
   97         1. Notwithstanding any other provisions of law, the office
   98  may expend interest earned from the investment of program funds
   99  deposited in the Grants and Donations Trust Fund to contract for
  100  the administration of the programs, or portions of the programs,
  101  enumerated in this paragraph or assigned to the office by law,
  102  by the appropriations process, or by the Governor. Such
  103  expenditures are shall be subject to review under chapter 216.
  104         2. The office may enter into contracts in connection with
  105  the fulfillment of its duties concerning the Florida First
  106  Business Bond Pool under chapter 159, tax incentives under
  107  chapters 212 and 220, tax incentives under the Certified Capital
  108  Company Act in chapter 288, foreign offices under chapter 288,
  109  the Enterprise Zone program under chapter 290, the Seaport
  110  Employment Training program under chapter 311, the Florida
  111  Professional Sports Team License Plates under chapter 320,
  112  Spaceport Florida under chapter 331, Expedited Permitting under
  113  chapter 403, and in carrying out other functions that are
  114  specifically assigned to the office by law, by the
  115  appropriations process, or by the Governor.
  116         Section 2. Paragraph (cc) is added to subsection (8) of
  117  section 213.053, Florida Statutes, to read:
  118         213.053 Confidentiality and information sharing.—
  119         (8) Notwithstanding any other provision of this section,
  120  the department may provide:
  121         (cc) Information relating to tax credits taken under s.
  122  220.194 to the Office of Tourism, Trade, and Economic
  123  Development or to Space Florida.
  124  
  125  Disclosure of information under this subsection shall be
  126  pursuant to a written agreement between the executive director
  127  and the agency. Such agencies, governmental or nongovernmental,
  128  shall be bound by the same requirements of confidentiality as
  129  the Department of Revenue. Breach of confidentiality is a
  130  misdemeanor of the first degree, punishable as provided by s.
  131  775.082 or s. 775.083.
  132         Section 3. Subsection (8) of section 220.02, Florida
  133  Statutes, is amended to read:
  134         220.02 Legislative intent.—
  135         (8) It is the intent of the Legislature that credits
  136  against either the corporate income tax or the franchise tax be
  137  applied in the following order: those enumerated in s. 631.828,
  138  those enumerated in s. 220.191, those enumerated in s. 220.181,
  139  those enumerated in s. 220.183, those enumerated in s. 220.182,
  140  those enumerated in s. 220.1895, those enumerated in s. 221.02,
  141  those enumerated in s. 220.184, those enumerated in s. 220.186,
  142  those enumerated in s. 220.1845, those enumerated in s. 220.19,
  143  those enumerated in s. 220.185, those enumerated in s. 220.1875,
  144  those enumerated in s. 220.192, those enumerated in s. 220.193,
  145  those enumerated in s. 288.9916, those enumerated in s.
  146  220.1899, and those enumerated in s. 220.1896, and those
  147  enumerated in s. 220.194.
  148         Section 4. Paragraphs (a) and (b) of subsection (1) of
  149  section 220.13, Florida Statutes, are amended to read:
  150         220.13 “Adjusted federal income” defined.—
  151         (1) The term “adjusted federal income” means an amount
  152  equal to the taxpayer’s taxable income as defined in subsection
  153  (2), or such taxable income of more than one taxpayer as
  154  provided in s. 220.131, for the taxable year, adjusted as
  155  follows:
  156         (a) Additions.The following There shall be added to such
  157  taxable income:
  158         1. The amount of any tax upon or measured by income,
  159  excluding taxes based on gross receipts or revenues, paid or
  160  accrued as a liability to the District of Columbia or any state
  161  of the United States which is deductible from gross income in
  162  the computation of taxable income for the taxable year.
  163         2. The amount of interest which is excluded from taxable
  164  income under s. 103(a) of the Internal Revenue Code or any other
  165  federal law, less the associated expenses disallowed in the
  166  computation of taxable income under s. 265 of the Internal
  167  Revenue Code or any other law, excluding 60 percent of any
  168  amounts included in alternative minimum taxable income, as
  169  defined in s. 55(b)(2) of the Internal Revenue Code, if the
  170  taxpayer pays tax under s. 220.11(3).
  171         3. In the case of a regulated investment company or real
  172  estate investment trust, an amount equal to the excess of the
  173  net long-term capital gain for the taxable year over the amount
  174  of the capital gain dividends attributable to the taxable year.
  175         4. That portion of the wages or salaries paid or incurred
  176  for the taxable year which is equal to the amount of the credit
  177  allowable for the taxable year under s. 220.181. This
  178  subparagraph expires shall expire on the date specified in s.
  179  290.016 for the expiration of the Florida Enterprise Zone Act.
  180         5. That portion of the ad valorem school taxes paid or
  181  incurred for the taxable year which is equal to the amount of
  182  the credit allowable for the taxable year under s. 220.182. This
  183  subparagraph expires shall expire on the date specified in s.
  184  290.016 for the expiration of the Florida Enterprise Zone Act.
  185         6. The amount of emergency excise tax paid or accrued as a
  186  liability to this state under chapter 221 which tax is
  187  deductible from gross income in the computation of taxable
  188  income for the taxable year.
  189         7. That portion of assessments to fund a guaranty
  190  association incurred for the taxable year which is equal to the
  191  amount of the credit allowable for the taxable year.
  192         8. In the case of a nonprofit corporation that which holds
  193  a pari-mutuel permit and which is exempt from federal income tax
  194  as a farmers’ cooperative, an amount equal to the excess of the
  195  gross income attributable to the pari-mutuel operations over the
  196  attributable expenses for the taxable year.
  197         9. The amount taken as a credit for the taxable year under
  198  s. 220.1895.
  199         10. Up to nine percent of the eligible basis of any
  200  designated project which is equal to the credit allowable for
  201  the taxable year under s. 220.185.
  202         11. The amount taken as a credit for the taxable year under
  203  s. 220.1875. The addition in this subparagraph is intended to
  204  ensure that the same amount is not allowed for the tax purposes
  205  of this state as both a deduction from income and a credit
  206  against the tax. This addition is not intended to result in
  207  adding the same expense back to income more than once.
  208         12. The amount taken as a credit for the taxable year under
  209  s. 220.192.
  210         13. The amount taken as a credit for the taxable year under
  211  s. 220.193.
  212         14. Any portion of a qualified investment, as defined in s.
  213  288.9913, which is claimed as a deduction by the taxpayer and
  214  taken as a credit against income tax pursuant to s. 288.9916.
  215         15. The costs to acquire a tax credit pursuant to s.
  216  288.1254(5) which that are deducted from or otherwise reduce
  217  federal taxable income for the taxable year.
  218         16. The amount taken as a credit for the taxable year
  219  pursuant to s. 220.194.
  220         (b) Subtractions.—
  221         1. The following There shall be subtracted from such
  222  taxable income:
  223         a. The net operating loss deduction allowable for federal
  224  income tax purposes under s. 172 of the Internal Revenue Code
  225  for the taxable year, except that any net operating loss that is
  226  taken as a credit to corporate income taxes owed or that is
  227  transferred pursuant to s. 220.194(6) may not be deducted by the
  228  seller;
  229         b. The net capital loss allowable for federal income tax
  230  purposes under s. 1212 of the Internal Revenue Code for the
  231  taxable year;,
  232         c. The excess charitable contribution deduction allowable
  233  for federal income tax purposes under s. 170(d)(2) of the
  234  Internal Revenue Code for the taxable year;, and
  235         d. The excess contributions deductions allowable for
  236  federal income tax purposes under s. 404 of the Internal Revenue
  237  Code for the taxable year.
  238  
  239  However, a net operating loss and a capital loss may not shall
  240  never be carried back as a deduction to a prior taxable year,
  241  but all deductions attributable to such losses shall be deemed
  242  net operating loss carryovers and capital loss carryovers,
  243  respectively, and treated in the same manner, to the same
  244  extent, and for the same time periods as are prescribed for such
  245  carryovers in ss. 172 and 1212, respectively, of the Internal
  246  Revenue Code.
  247         2. The following There shall be subtracted from such
  248  taxable income any amount to the extent included therein the
  249  following:
  250         a. Dividends treated as received from sources without the
  251  United States, as determined under s. 862 of the Internal
  252  Revenue Code.
  253         b. All amounts included in taxable income under s. 78 or s.
  254  951 of the Internal Revenue Code.
  255  
  256  However, as to any amount subtracted under this subparagraph,
  257  there shall be added to such taxable income all expenses
  258  deducted on the taxpayer’s return for the taxable year which are
  259  attributable, directly or indirectly, to such subtracted amount.
  260  Further, no amount may shall be subtracted with respect to
  261  dividends paid or deemed paid by a Domestic International Sales
  262  Corporation.
  263         3. In computing “adjusted federal income” for taxable years
  264  beginning after December 31, 1976, there shall be allowed as a
  265  deduction the amount of wages and salaries paid or incurred
  266  within this state for the taxable year for which no deduction is
  267  allowed pursuant to s. 280C(a) of the Internal Revenue Code,
  268  (relating to credit for employment of certain new employees,
  269  shall be allowed as a deduction).
  270         4. There shall be subtracted from such taxable income Any
  271  amount of nonbusiness income included therein shall be
  272  subtracted from such taxable income.
  273         5. There shall be subtracted Any amount of taxes of foreign
  274  countries allowable as credits for taxable years beginning on or
  275  after September 1, 1985, under s. 901 of the Internal Revenue
  276  Code to any corporation that which derived less than 20 percent
  277  of its gross income or loss for its taxable year ended in 1984
  278  shall be subtracted from sources within the United States, as
  279  described in s. 861(a)(2)(A) of the Internal Revenue Code, not
  280  including credits allowed under ss. 902 and 960 of the Internal
  281  Revenue Code, withholding taxes on dividends within the meaning
  282  of sub-subparagraph 2.a., and withholding taxes on royalties,
  283  interest, technical service fees, and capital gains.
  284         6. Notwithstanding any other provision of this code, except
  285  with respect to amounts subtracted pursuant to subparagraphs 1.
  286  and 3., any increment of any apportionment factor which is
  287  directly related to an increment of gross receipts or income
  288  which is deducted, subtracted, or otherwise excluded in
  289  determining adjusted federal income shall be excluded from both
  290  the numerator and denominator of such apportionment factor.
  291  Further, all valuations made for apportionment factor purposes
  292  shall be made on a basis consistent with the taxpayer’s method
  293  of accounting for federal income tax purposes.
  294         Section 5. Subsection (5) is added to section 220.16,
  295  Florida Statutes, to read:
  296         220.16 Allocation of nonbusiness income.—Nonbusiness income
  297  shall be allocated as follows:
  298         (5) The amount of payments received in exchange for
  299  transferring a net operating loss authorized by s. 220.194 is
  300  allocable to the state.
  301         Section 6. Section 220.194, Florida Statutes, is created to
  302  read:
  303         220.194 Corporate income tax credits for spaceflight
  304  projects.—
  305         (1) SHORT TITLE.This section may be cited as the Florida
  306  Space Business Incentives Act.
  307         (2) PURPOSE.—The purpose of this section is to create
  308  incentives to attract launch, payload, research and development,
  309  and other space business to this state.
  310         (3) DEFINITIONS.—As used in this section, the term:
  311         (a) “Administrative support” means that 51 percent or more
  312  of an activity supports a certified spaceflight business.
  313         (b) “Certified” means that a spaceflight business has been
  314  certified by the office as meeting all of the requirements
  315  necessary to obtain at least one of the approved tax credits
  316  available under this section, including approval to transfer a
  317  credit.
  318         (c) “Department” means the Department of Revenue.
  319         (d) “New employee” means a state resident who begins or
  320  maintains full-time employment in this state with a spaceflight
  321  business on or after October 1, 2011. The term does not include
  322  a person who is a partner, majority stockholder, or owner of the
  323  business or a person who is employed in a temporary construction
  324  job or primarily involved with the construction of real
  325  property.
  326         (e) “New job” means the full-time employment of an employee
  327  in a manner that is consistent with terms used by the Agency for
  328  Workforce Innovation and the United States Department of Labor
  329  for purposes of unemployment compensation tax administration and
  330  employment estimation. In order to meet the requirement for
  331  certification specified in paragraph (5)(b), a new job must:
  332         1. Pay new employees at least 115 percent of the statewide
  333  or countywide average annual private-sector wage for the 3
  334  taxable years immediately preceding filing an application for
  335  certification;
  336         2. Require a new employee to perform duties on a regular
  337  full-time basis in this state for an average of at least 36
  338  hours per week each month for the 3 taxable years immediately
  339  preceding filing an application for certification; and
  340         3. Not be held by a person who has previously been included
  341  as a new employee on an application for any credit authorized
  342  under this section.
  343         (f) “Office” means the Office of Tourism, Trade, and
  344  Economic Development.
  345         (g) “Payload” means an object built or assembled in this
  346  state to be placed into earth’s upper atmospheres or space.
  347         (h) “Reentry” means to return or attempt to return an
  348  object from earth’s upper atmospheres or space.
  349         (i) “Reentry service” means an activity conducted in this
  350  state related to preparing a reentry vehicle and any payload for
  351  reentry and the reentry.
  352         (j) “Space vehicle” means any spacecraft, satellite, space
  353  station, upper-stage, launch vehicle, reentry vehicle, and
  354  related ground-support systems and equipment.
  355         (k) “Spaceflight business” means a business that:
  356         1. Is registered with the Secretary of State to do business
  357  in this state; and
  358         2. Is currently engaged in a spaceflight project. A
  359  spaceflight business may participate in more than one
  360  spaceflight project at a time and may conduct work on a
  361  commercial, governmental, or United States defense-related
  362  spaceflight project.
  363         (l) “Spaceflight project” means any of the following
  364  activities performed in this state:
  365         1. Designing, manufacturing, testing, or assembling a space
  366  vehicle or components thereof;
  367         2. Providing a launch service, payload processing service,
  368  or reentry service; or
  369         3. Providing the payload for a launch vehicle or reentry
  370  space vehicle, administrative support, and tourism activities
  371  related to these activities.
  372         (m) “Taxpayer” has the same meaning as provided in s.
  373  220.03.
  374         (n) “Total tax credits” means, for any state fiscal year,
  375  the sum of the tax credits approved for taxpayers whose taxable
  376  year begins on or after January 1 of the calendar year preceding
  377  the start of the applicable state fiscal year.
  378         (4) TAX CREDITS.—
  379         (a) If approved and certified pursuant to subsection (5),
  380  the following tax credits may be taken on a final return for a
  381  taxable year beginning on or after October 1, 2015:
  382         1. A certified spaceflight business may take a
  383  nontransferable corporate income tax credit for up to 50 percent
  384  of the business’s tax liability under this chapter for the
  385  taxable year in which the credit is taken. The maximum
  386  nontransferable tax credit amount that may be approved per
  387  taxpayer for a taxable year is $1 million, and the total tax
  388  credits that may be approved for any state fiscal year pursuant
  389  to this subparagraph may not exceed $10 million.
  390         2. A certified spaceflight business may transfer, in whole
  391  or in part, its Florida net operating loss that would otherwise
  392  be available to be taken on a return filed under this chapter.
  393  The maximum transferable tax credit amount that may be approved
  394  per taxpayer for a taxable year is $2.5 million; the total tax
  395  credits that may be approved for any state fiscal year pursuant
  396  to this subparagraph may not exceed $25 million. However, any
  397  outstanding credit that is carried forward by a transferee may
  398  not be used to calculate the annual limit.
  399         a. In order to transfer the credit, the business must:
  400         (I) Have been approved to transfer the tax credit for the
  401  taxable year in which it is transferred;
  402         (II) Have incurred a qualifying net operating loss on
  403  activity in this state directly associated with one or more
  404  space flight projects in any of its 3 previous taxable years;
  405         (III) Not be 50 percent or more owned or controlled,
  406  directly or indirectly, by another corporation that has
  407  demonstrated positive net income in any of the 3 previous
  408  taxable years of ongoing operations; and
  409         (IV) Not be part of a consolidated group of affiliated
  410  corporations, as filed for federal income tax purposes, which in
  411  the aggregate demonstrated positive net income in any of the 3
  412  previous taxable years.
  413         b. The amount that may be claimed and transferred by a
  414  business is equal to:
  415         (I) One hundred percent of the net operating loss that
  416  could otherwise be claimed on a return filed under this chapter
  417  during its first full year of operations in this state.
  418         (II) One hundred percent of the net operating loss that
  419  could otherwise be claimed on a return filed under this chapter
  420  during its second full year of operations in this state.
  421         (III) One hundred percent of the net operating loss that
  422  could otherwise be claimed on a return filed under this chapter
  423  during its third full year of operations in this state.
  424         (b) Each business may be approved for only one credit per
  425  state fiscal year and may not claim any credit more than once.
  426         (c) Unless transferred pursuant to this section, credits
  427  may be granted only against the corporate income tax liability
  428  generated by or arising out of a spaceflight project in this
  429  state, as documented in the certified spaceflight business’s
  430  annual audit prepared by a certified public accountant licensed
  431  to do business in this state and as verified by the office.
  432         (d) A certified spaceflight business may not file a
  433  consolidated return in order to claim the tax incentives
  434  described in this subsection.
  435         (e) The certified spaceflight business or transferee must
  436  demonstrate to the satisfaction of the office and the department
  437  that it is eligible to take the credits approved under this
  438  section.
  439         (5) APPLICATION AND CERTIFICATION.—
  440         (a) In order to claim a tax credit under this section, a
  441  spaceflight business must first submit an application to the
  442  office for approval to earn credits. The application must be
  443  filed by the date established by the office. In addition to any
  444  information that the office may require, the applicant must
  445  provide a complete description of the activity in this state
  446  which demonstrates to the office the applicant’s likelihood to
  447  be certified to take or transfer a credit. The applicant must
  448  also provide a description of the total amount and type of
  449  credits for which approval is sought. The office may consult
  450  with Space Florida regarding the qualifications of an applicant.
  451  The applicant shall provide an affidavit certifying that all
  452  information contained in the application is true and correct.
  453         1. Approval of the credits shall be provided on a first
  454  come, first-served basis, based on the date the completed
  455  applications are received by the office. A taxpayer may not
  456  submit more than one completed application per state fiscal
  457  year. The office may not accept an incomplete placeholder
  458  application, and the submission of such an application will not
  459  secure a place in the first-come, first-served application line.
  460         2. The office has 60 days after the receipt of a completed
  461  application within which to issue a notice of intent to deny or
  462  approve an application for credits. If a business does not
  463  receive approval for a tax credit due to the exhaustion of the
  464  annual total tax credit authorizations, the business may reapply
  465  the following year and shall have priority over other applicants
  466  notwithstanding the first-come, first-served policy. The office
  467  shall determine the eligibility of an applicant and approve the
  468  credits that the applicant may later be certified to take. The
  469  office must ensure that the corporate income tax credits
  470  approved each fiscal year for all applicants does not exceed the
  471  limits provided in this section.
  472         (b) In order to take, and thereafter, if applicable, to
  473  transfer an approved credit, a spaceflight business must submit
  474  an application for certification to the office along with a
  475  nonrefundable $250 fee.
  476         1. The application must include:
  477         a. The name and physical in-state address of the taxpayer.
  478         b. Documentation demonstrating to the satisfaction of the
  479  office that:
  480         (I) The taxpayer is a spaceflight business.
  481         (II) The business has engaged in a qualifying spaceflight
  482  project before taking a credit under this section.
  483         c. In addition to any requirement specific to a credit,
  484  documentation that the business has:
  485         (I) Created 35 new jobs in this state directly associated
  486  with spaceflight projects during its immediately preceding 3
  487  taxable years. The business shall be deemed to have created new
  488  jobs if the number of jobs on the application for certification
  489  is greater than the total number of full-time jobs located in
  490  this state as stated on an application for approval to earn
  491  credits;
  492         (II) Invested a total of at least $15 million in this state
  493  on a spaceflight project during its immediately preceding 3
  494  taxable years; and
  495         d. The total amount and types of credits sought.
  496         e. An acknowledgment that a transfer of a tax credit is to
  497  be accomplished pursuant to subsection (5).
  498         f. A copy of an audit or audits of the preceding 3 taxable
  499  years, prepared by a certified public accountant licensed to
  500  practice in this state, which identifies that portion of the
  501  business’s activities in this state related to spaceflight
  502  projects in this state.
  503         g. An acknowledgement that the business must file an annual
  504  report on the spaceflight project’s progress with the office.
  505         h. Any other information necessary to demonstrate that the
  506  applicant meets the job creation, investment, and other
  507  requirements of this section.
  508         2. Within 60 days after receipt of the application for
  509  certification, the office shall evaluate the application and
  510  recommend the business for certification or denial. The
  511  executive director of the office must approve or deny the
  512  application within 30 days after receiving the recommendation.
  513  If approved, the office must provide a letter of certification
  514  to the applicant consistent with any restrictions imposed. If
  515  the office denies any part of the requested credit, the office
  516  must inform the applicant of the grounds for the denial. A copy
  517  of the certification shall be submitted to the department within
  518  10 days after the executive director’s approval.
  519         (6) TRANSFERABILITY OF CREDIT.—
  520         (a) A certified spaceflight business allowed to transfer an
  521  approved credit, in whole or in part, to a taxpayer by written
  522  agreement may do so without transferring any ownership interest
  523  in the property generating the credit or any interest in the
  524  entity owning such property. The transferee may apply the
  525  credits against the tax with the same effect as if the
  526  transferee had incurred the eligible costs.
  527         (b) In order to perfect the transfer, the transferor shall
  528  provide the department with a written transfer statement that
  529  has been approved by the office notifying the department of the
  530  transferor’s intent to transfer the tax credits to the
  531  transferee; the date that the transfer is effective; the
  532  transferee’s name, address, and federal taxpayer identification
  533  number; the tax period; and the amount of tax credits to be
  534  transferred. Upon receipt of the approved transfer statement,
  535  the department shall provide the transferee and the office with
  536  a certificate reflecting the tax credit amounts transferred. A
  537  copy of the certificate must be attached to each tax return for
  538  which the transferee seeks to apply the credits.
  539         (7) AUDIT AUTHORITY; RECAPTURE OF CREDITS.—
  540         (a) In addition to its existing audit and investigative
  541  authority, the department may perform any additional financial
  542  and technical audits and investigations, including examining the
  543  accounts, books, and financial records of the tax credit
  544  applicant, which are necessary for verifying the accuracy of the
  545  return and to ensure compliance with this section. If requested
  546  by the department, the office and Space Florida must provide
  547  technical assistance for any technical audits or examinations
  548  performed under this subsection.
  549         (b) Grounds for forfeiture of previously claimed tax
  550  credits approved under this section exist if the department
  551  determines, as a result of an audit or examination, or from
  552  information received from the office, that a certified
  553  spaceflight business, or in the case of transferred tax credits,
  554  a taxpayer received tax credits for which the certified
  555  spaceflight business or taxpayer was not entitled. The
  556  spaceflight business or transferee must file an amended return
  557  reflecting the disallowed credits and paying any tax due as a
  558  result of the amendment.
  559         (c) If an amendment to, recomputation of, or
  560  redetermination of a certified spaceflight business’s Florida
  561  corporate income tax return changes an item entered into the
  562  computation of a claimed credit, the taxpayer must notify the
  563  department by filing an amended return. The amount of any credit
  564  award not supported by the amended return shall be deemed a
  565  deficiency that must be remitted with the amended return and is
  566  subject to s. 220.23. The spaceflight business is also liable
  567  for a penalty equal to the credit claimed or transferred,
  568  reduced in proportion to the amount of the net operating loss
  569  certified for transfer which is disallowed over the amount of
  570  the net operating loss certified for the credit. The certified
  571  business and its successors must maintain all records necessary
  572  to support the reported net operating loss.
  573         (d) The office may revoke or modify a certification
  574  granting eligibility for tax credits if it finds that the
  575  certified spaceflight business made a false statement or
  576  representation in any application, record, report, plan, or
  577  other document filed in an attempt to receive tax credits under
  578  this section. The office shall immediately notify the department
  579  of any revoked or modified orders affecting previously granted
  580  tax credits. The certified spaceflight business must also notify
  581  the department of any change in its claimed tax credit.
  582         (e) The certified spaceflight business must file with the
  583  department an amended return or other report required by the
  584  department by rule and pay any required tax and interest within
  585  60 days after the certified business receives notification from
  586  the office that previously approved tax credits have been
  587  revoked or modified. If the revocation or modification order is
  588  contested, the spaceflight business must file the amended return
  589  or other report within 60 days after a final order is issued.
  590         (f) The department may assess an additional tax, penalty,
  591  or interest pursuant to s. 95.091.
  592         (8) RULES.—
  593         (a) The office, in consultation with Space Florida, shall
  594  adopt rules to administer this section, including rules relating
  595  to application forms for credit approval and certification, and
  596  the application and certification procedures, guidelines, and
  597  requirements necessary to administer this section.
  598         (b) The department may adopt rules to administer this
  599  section, including rules relating to:
  600         1. The forms required to claim a tax credit under this
  601  section, the requirements and basis for establishing an
  602  entitlement to a credit, and the examination and audit
  603  procedures required to administer this section.
  604         2. The implementation and administration of provisions
  605  allowing the transfer of a net operating loss as a tax credit,
  606  including rules that prescribe forms, reporting requirements,
  607  and specific procedures, guidelines, and requirements necessary
  608  to perform the transfer.
  609         3. The minimum portion of the credit which is available for
  610  transfer.
  611         (9) ANNUAL REPORT.—Beginning in 2014, the office, in
  612  cooperation with Space Florida and the department, shall submit
  613  an annual report summarizing activities relating to the Florida
  614  Space Business Incentives Act established under this section to
  615  the Governor, the President of the Senate, and the Speaker of
  616  the House of Representatives by each November 30.
  617         Section 7. Paragraph (c) of subsection (2) of section
  618  288.1045, Florida Statutes, is repealed.
  619         Section 8. Paragraph (c) of subsection (3) of section
  620  288.106, Florida Statutes, is amended to read:
  621         288.106 Tax refund program for qualified target industry
  622  businesses.—
  623         (3) TAX REFUND; ELIGIBLE AMOUNTS.—
  624         (c) A qualified target industry business may not receive
  625  refund payments of more than 25 percent of the total tax refunds
  626  specified in the tax refund agreement under subparagraph
  627  (5)(a)1. in any fiscal year. Further, a qualified target
  628  industry business may not receive more than $1.5 million in
  629  refunds under this section in any single fiscal year, or more
  630  than $2.5 million in any single fiscal year if the project is
  631  located in an enterprise zone. A qualified target industry
  632  business may not receive more than $5 million in refund payments
  633  under this section in all fiscal years, or more than $7.5
  634  million if the project is located in an enterprise zone.
  635         Section 9. This act shall take effect upon becoming a law,
  636  except that the tax credits authorized by this act may not be
  637  applied to returns filed for any tax period before October 1,
  638  2015.

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