August 24, 2019
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CS/CS/HB 697

1
A bill to be entitled
2An act relating to entertainment industry economic
3development; amending s. 288.1254, F.S.; revising the
4entertainment industry financial incentive program to
5provide corporate income tax and sales and use tax credits
6to qualified entertainment entities rather than
7reimbursements from appropriations; revising provisions
8relating to definitions, creation and scope, application
9procedures, approval process, eligibility, required
10documents, qualified and certified productions, and annual
11reports; providing duties and responsibilities of the
12Office of Film and Entertainment, the Office of Tourism,
13Trade, and Economic Development, and the Department of
14Revenue relating to the tax credits; providing criteria
15and limitations for awards of tax credits; providing for
16uses, allocations, election, distributions, and
17carryforward of the tax credits; providing for withdrawal
18of tax credit eligibility; providing for use of
19consolidated returns; providing for partnership and
20noncorporate distributions of tax credits; providing for
21succession of tax credits; providing requirements for
22transfer of tax credits; authorizing the Office of
23Tourism, Trade, and Economic Development to adopt rules,
24policies, and procedures; authorizing the Department of
25Revenue to adopt rules and conduct audits; providing for
26revocation and forfeiture of tax credits; providing
27liability for reimbursement of certain costs and fees
28associated with a fraudulent claim; requiring an annual
29report to the Governor and the Legislature; providing for
30future repeal; amending s. 212.08, F.S.; limiting
31application of the entertainment industry tax credits;
32requiring electronic funds transfer for the tax credits;
33providing procedures; amending s. 213.053, F.S.;
34authorizing the Department of Revenue to provide tax
35credit information to the Office of Film and Entertainment
36and the Office of Tourism, Trade, and Economic
37Development; amending s. 220.02, F.S.; including tax
38credits enumerated in s. 220.1899, F.S., in the order of
39application of credits against certain taxes; creating s.
40220.1899, F.S.; providing for credits against the
41corporate income tax in the amounts awarded under the
42entertainment industry financial incentive program;
43providing for carryforward of the tax credits under
44certain circumstances; providing an appropriation and
45authorizing an additional position; providing
46severability; providing an effective date.
47
48Be It Enacted by the Legislature of the State of Florida:
49
50     Section 1.  Section 288.1254, Florida Statutes, is amended
51to read:
52(Substantial rewording of section. See
53s. 288.1254, F.S., for present text.)
54     288.1254  Entertainment industry financial incentive
55program.-
56     (1)  DEFINITIONS.-As used in this section, the term:
57     (a)  "Certified production" means a qualified production
58that has tax credits allocated to it by the Office of Tourism,
59Trade, and Economic Development based on the production's
60estimated qualified expenditures, up to the production's maximum
61certified amount of tax credits, by the Office of Tourism,
62Trade, and Economic Development. The term does not include a
63production if its first day of principal photography or project
64start date in this state occurs before the production is
65certified by the Office of Tourism, Trade, and Economic
66Development, unless the production spans more than one fiscal
67year, was a certified production on its first day of principal
68photography or project start date in this state, and submits an
69application for continuing the same production for the
70subsequent fiscal year.
71     (b)  "Digital media project" means a production of
72interactive entertainment that is produced for distribution in
73commercial or educational markets. The term includes a video
74game or production intended for Internet or wireless
75distribution. The term does not include a production deemed by
76the Office of Film and Entertainment to contain obscene content
77as defined in s. 847.001(10).
78     (c)  "High-impact television series" means a production
79created to run multiple production seasons and having an
80estimated order of at least seven episodes per season and
81qualified expenditures of at least $625,000 per episode.
82     (d)  "Off-season certified production" means a feature
83film, independent film, or television series or pilot which
84films 75 percent or more of its principal photography days from
85June 1 through November 30.
86     (e)  "Principal photography" means the filming of major or
87significant components of the qualified production which involve
88lead actors.
89     (f)  "Production" means a theatrical or direct-to-video
90motion picture; a made-for-television motion picture; visual
91effects or digital animation sequences produced in conjunction
92with a motion picture; a commercial; a music video; an
93industrial or educational film; an infomercial; a documentary
94film; a television pilot program; a presentation for a
95television pilot program; a television series, including, but
96not limited to, a drama, a reality show, a comedy, a soap opera,
97a telenovela, a game show, an awards show, or a miniseries
98production; or a digital media project by the entertainment
99industry. One season of a television series is considered one
100production. The term does not include a weather or market
101program; a sporting event; a sports show; a gala; a production
102that solicits funds; a home shopping program; a political
103program; a political documentary; political advertising; a
104gambling-related project or production; a concert production; or
105a local, regional, or Internet-distributed-only news show,
106current-events show, pornographic production, or current-affairs
107show. A production may be produced on or by film, tape, or
108otherwise by means of a motion picture camera; electronic camera
109or device; tape device; computer; any combination of the
110foregoing; or any other means, method, or device now used or
111later adopted.
112     (g)  "Production expenditures" means the costs of tangible
113and intangible property used for, and services performed
114primarily and customarily in, production, including
115preproduction and postproduction, but excluding costs for
116development, marketing, and distribution. The term includes, but
117is not limited to:
118     1.  Wages, salaries, or other compensation paid to legal
119residents of this state, including amounts paid through payroll
120service companies, for technical and production crews,
121directors, producers, and performers.
122     2.  Expenditures for sound stages, backlots, production
123editing, digital effects, sound recordings, sets, and set
124construction.
125     3.  Expenditures for rental equipment, including, but not
126limited to, cameras and grip or electrical equipment.
127     4.  Up to $300,000 of the costs of newly purchased computer
128software and hardware unique to the project, including servers,
129data processing, and visualization technologies, which are
130located in and used exclusively in the state for the production
131of digital media.
132     5.  Expenditures for meals, travel, and accommodations.
133     (h)  "Qualified expenditures" means production expenditures
134incurred in this state by a qualified production for:
135     1.  Goods purchased or leased from, or services, including,
136but not limited to, insurance costs and bonding, payroll
137services, and legal fees, which are provided by, a vendor or
138supplier in this state that is registered with the Department of
139State or the Department of Revenue and has a physical location
140in this state at which one or more legal Florida residents are
141employed.
142     2.  Payments to legal residents of this state in the form
143of salary, wages, or other compensation up to a maximum of
144$650,000 per resident unless otherwise specified in subsection
145(4).
146
147For a qualified production involving an event, such as an awards
148show, the term does not include expenditures solely associated
149with the event itself and not directly required by the
150production. The term does not include expenditures incurred
151before certification, with the exception of those incurred for a
152commercial, a music video, or the pickup of additional episodes
153of a high-impact television series within a single season.
154     (i)  "Qualified production" means a production in this
155state meeting the requirements of this section. The term does
156not include a production:
157     1.  In which, for the first 2 years of the incentive
158program, less than 50 percent, and thereafter, less than 60
159percent, of the positions that make up its production cast and
160below-the-line production crew, or, in the case of digital media
161projects, less than 75 percent of such positions, are filled by
162legal residents of this state, whose residency is demonstrated
163by a valid Florida driver's license or other state-issued
164identification confirming residency, or students enrolled full-
165time in a film-and-entertainment-related course of study at an
166institution of higher education in this state; or
167     2.  That is deemed by the Office of Film and Entertainment
168to contain obscene content as defined in s. 847.001(10).
169     (j)  "Qualified production company" means a corporation,
170limited liability company, partnership, or other legal entity
171engaged in one or more productions in this state.
172     (2)  CREATION AND PURPOSE OF PROGRAM.-The entertainment
173industry financial incentive program is created within the
174Office of Film and Entertainment. The purpose of this program is
175to encourage the use of this state as a site for filming, for
176the digital production of films, and to develop and sustain the
177workforce and infrastructure for film, digital media, and
178entertainment production.
179     (3)  APPLICATION PROCEDURE; APPROVAL PROCESS.-
180     (a)  Program application.-A qualified production company
181producing a qualified production in this state may submit a
182program application to the Office of Film and Entertainment for
183the purpose of determining qualification for an award of tax
184credits authorized by this section no earlier than 180 days
185before the first day of principal photography or project start
186date in this state. The applicant shall provide the Office of
187Film and Entertainment with information required to determine
188whether the production is a qualified production and to
189determine the qualified expenditures and other information
190necessary for the office to determine eligibility for the tax
191credit.
192     (b)  Required documentation.-The Office of Film and
193Entertainment shall develop an application form for qualifying
194an applicant as a qualified production. The form must include,
195but need not be limited to, production-related information
196concerning employment of residents in this state, a detailed
197budget of planned qualified expenditures, and the applicant's
198signed affirmation that the information on the form has been
199verified and is correct. The Office of Film and Entertainment
200and local film commissions shall distribute the form.
201     (c)  Application process.-The Office of Film and
202Entertainment shall establish a process by which an application
203is accepted and reviewed and by which tax credit eligibility and
204award amount are determined. The Office of Film and
205Entertainment may request assistance from a duly appointed local
206film commission in determining compliance with this section.
207     (d)  Certification.-The Office of Film and Entertainment
208shall review the application within 15 business days after
209receipt. Upon its determination that the application contains
210all the information required by this subsection and meets the
211criteria set out in this section, the Office of Film and
212Entertainment shall qualify the applicant and recommend to the
213Office of Tourism, Trade, and Economic Development that the
214applicant be certified for the maximum tax credit award amount.
215Within 5 business days after receipt of the recommendation, the
216Office of Tourism, Trade, and Economic Development shall reject
217the recommendation or certify the maximum recommended tax credit
218award, if any, to the applicant and to the executive director of
219the Department of Revenue.
220     (e)  Grounds for denial.-The Office of Film and
221Entertainment shall deny an application if it determines that
222the application is not complete or the production or application
223does not meet the requirements of this section.
224     (f)  Verification of actual qualified expenditures.-
225     1.  The Office of Film and Entertainment shall develop a
226process to verify the actual qualified expenditures of a
227certified production. The process must require:
228     a.  A certified production to submit, in a timely manner
229after production ends in this state and after making all of its
230qualified expenditures in this state, data substantiating each
231qualified expenditure to an independent certified public
232accountant licensed in this state;
233     b.  Such accountant to conduct a compliance audit, at the
234certified production's expense, to substantiate each qualified
235expenditure and submit the results as a report, along with the
236required substantiating data, to the Office of Film and
237Entertainment; and
238     c.  The Office of Film and Entertainment to review the
239accountant's submittal and report to the Office of Tourism,
240Trade, and Economic Development the final verified amount of
241actual qualified expenditures made by the certified production.
242     2.  The Office of Tourism, Trade, and Economic Development
243shall determine and approve the final tax credit award amount to
244each certified applicant based on the final verified amount of
245actual qualified expenditures and shall notify the executive
246director of the Department of Revenue in writing that the
247certified production has met the requirements of the incentive
248program and of the final amount of the tax credit award. The
249final tax credit award amount may not exceed the maximum tax
250credit award amount certified under paragraph (d).
251     (g)  Promoting Florida.-The Office of Film and
252Entertainment shall ensure that, as a condition of receiving a
253tax credit under this section, marketing materials promoting
254this state as a tourist destination or film and entertainment
255production destination are included, when appropriate, at no
256cost to the state, which must, at a minimum, include placement
257of a "Filmed in Florida" or "Produced in Florida" logo in the
258end credits. The placement of a "Filmed in Florida" or "Produced
259in Florida" logo on all packaging material and hard media is
260also required, unless such placement is prohibited by licensing
261or other contractual obligations. The size and placement of such
262logo shall be commensurate to other logos used. If no logos are
263used, the statement "Filmed in Florida using Florida's
264Entertainment Industry Financial Incentive," or a similar
265statement approved by the Office of Film and Entertainment,
266shall be used. The Office of Film and Entertainment shall
267provide a logo and supply it for the purposes specified in this
268paragraph. A 30-second "Visit Florida" promotional video must
269also be included on all optical disc formats of a film, unless
270such placement is prohibited by licensing or other contractual
271obligations. The 30-second promotional video shall be approved
272and provided by the Florida Tourism Industry Marketing
273Corporation in consultation with the Commissioner of Film and
274Entertainment.
275     (4)  TAX CREDIT ELIGIBILITY; TAX CREDIT AWARDS; QUEUES;
276ELECTION AND DISTRIBUTION; CARRYFORWARD; CONSOLIDATED RETURNS;
277PARTNERSHIP AND NONCORPORATE DISTRIBUTIONS; MERGERS AND
278ACQUISITIONS.-
279     (a)  Priority for tax credit award.-The priority of a
280qualified production for tax credit awards must be determined on
281a first-come, first-served basis within its appropriate queue.
282Each qualified production must be placed into the appropriate
283queue and is subject to the requirements of that queue.
284     (b)  Tax credit eligibility.-
285     1.  General production queue.-Ninety-four percent of tax
286credits authorized in any state fiscal year must be dedicated to
287the general production queue. The general production queue
288consists of all qualified productions other than those eligible
289for the commercial and music video queue or the independent and
290emerging media production queue. A qualified production that
291demonstrates a minimum of $625,000 in qualified expenditures is
292eligible for tax credits equal to 20 percent of its actual
293qualified expenditures, up to a maximum of $8 million. A
294qualified production that incurs qualified expenditures during
295multiple state fiscal years may combine those expenditures to
296satisfy the $625,000 minimum threshold.
297     a.  An off-season certified production that is a feature
298film, independent film, or television series or pilot is
299eligible for an additional 5-percent tax credit on actual
300qualified expenditures. An off-season certified production that
301does not complete 75 percent of principal photography due to a
302disruption caused by a hurricane or tropical storm may not be
303disqualified from eligibility for the additional 5-percent
304credit as a result of the disruption.
305     b.  A qualified high-impact television series shall be
306allowed first position in this queue for tax credit awards not
307yet certified.
308     2.  Commercial and music video queue.-Three percent of tax
309credits authorized in any state fiscal year must be dedicated to
310the commercial and music video queue. A qualified production
311company that produces national or regional commercials or music
312videos may be eligible for a tax credit award if it demonstrates
313a minimum of $100,000 in qualified expenditures per national or
314regional commercial or music video and exceeds a combined
315threshold of $500,000 after combining actual qualified
316expenditures from qualified commercials and music videos during
317a single state fiscal year. After a qualified production company
318that produces commercials, music videos, or both reaches the
319threshold of $500,000, it is eligible to apply for certification
320for a tax credit award. The maximum credit award shall be equal
321to 20 percent of its actual qualified expenditures up to a
322maximum of $500,000. If there is a surplus at the end of a
323fiscal year after the Office of Film and Entertainment certifies
324and determines the tax credits for all qualified commercial and
325video projects, such surplus tax credits shall be carried
326forward to the following fiscal year and be available to any
327eligible qualified productions under the general production
328queue.
329     3.  Independent and emerging media production queue.-Three
330percent of tax credits authorized in any state fiscal year must
331be dedicated to the independent and emerging media production
332queue. This queue is intended to encourage Florida independent
333film and emerging media production as described in paragraph
334(1)(f). Any qualified production, excluding commercials,
335infomercials, or music videos, that demonstrates at least
336$100,000, but not more than $625,000, in total qualified
337expenditures is eligible for tax credits equal to 20 percent of
338its actual qualified expenditures. If a surplus exists at the
339end of a fiscal year after the Office of Film and Entertainment
340certifies and determines the tax credits for all qualified
341independent and emerging media production projects, such surplus
342tax credits shall be carried forward to the following fiscal
343year and be available to any eligible qualified productions
344under the general production queue.
345     4.  Family-friendly productions.-A certified theatrical or
346direct-to-video motion picture production or video game
347determined by the Commissioner of Film and Entertainment, with
348the advice of the Florida Film and Entertainment Advisory
349Council, to be family-friendly, based on the review of the
350script and the review of the final release version, is eligible
351for an additional tax credit equal to 5 percent of its actual
352qualified expenditures. Family-friendly productions are those
353that have cross-generational appeal; would be considered
354suitable for viewing by children age 5 or older; do not contain
355any theme, language, nudity, sex, violence, or other matter that
356would offend the parent of a 5-year-old child that views the
357motion picture or game; are appropriate in theme, content, and
358language for a broad family audience; embody a responsible
359resolution of issues; and do not exhibit or imply any act of
360smoking, sex, nudity, gratuitous violence, or vulgar or profane
361language.
362     (c)  Withdrawal of tax credit eligibility.-A qualified or
363certified production must continue on a reasonable schedule,
364which includes beginning principal photography or the production
365project in this state no more than 45 calendar days before or
366after the principal photography or project start date provided
367in the production's program application. The Office of Tourism,
368Trade, and Economic Development shall withdraw the eligibility
369of a qualified or certified production that does not continue on
370a reasonable schedule.
371     (d)  Election and distribution of tax credits.-
372     1.  A certified production company receiving a tax credit
373award under this section shall, at the time the credit is
374awarded by the Office of Tourism, Trade, and Economic
375Development after production is completed and all requirements
376to receive a credit award have been met, make an irrevocable
377election to apply the credit against taxes due under chapter
378220, against state taxes collected or accrued under chapter 212,
379or against a stated combination of the two taxes. The election
380is binding upon any distributee, successor, transferee, or
381purchaser. The Office of Tourism, Trade, and Economic
382Development shall notify the Department of Revenue of any
383election made pursuant to this paragraph.
384     2.  For the fiscal years beginning July 1, 2010, and ending
385June 30, 2015, a qualified production company is eligible for
386tax credits against its sales and use tax liabilities and
387corporate income tax liabilities as provided in this section.
388However, tax credits awarded under this section may not be
389claimed against sales and use tax liabilities or corporate
390income tax liabilities for any tax period beginning before July
3911, 2011, regardless of when the credits are applied for or
392awarded.
393     (e)  Tax credit carryforward.-If the certified production
394company cannot use the entire tax credit in the taxable year or
395reporting period in which the credit is awarded, any excess
396amount may be carried forward to a succeeding taxable year or
397reporting period. A tax credit applied against taxes imposed
398under chapter 212 may be carried forward for a maximum of 5
399years after the date the credit is awarded. A tax credit applied
400against taxes imposed under chapter 220 may be carried forward
401for a maximum of 5 years after the date the credit is awarded,
402after which the credit expires and may not be used.
403     (f)  Consolidated returns.-A certified production company
404that files a Florida consolidated return as a member of an
405affiliated group under s. 220.131(1) may be allowed the credit
406on a consolidated return basis up to the amount of the tax
407imposed upon the consolidated group under chapter 220.
408     (g)  Partnership and noncorporate distributions.-A
409qualified production company that is not a corporation as
410defined in s. 220.03 may elect to distribute tax credits awarded
411under this section to its partners or members in proportion to
412their respective distributive income or loss in the taxable
413fiscal year in which the tax credits were awarded.
414     (h)  Mergers or acquisitions.-Tax credits available under
415this section to a certified production company may succeed to a
416surviving or acquiring entity subject to the same conditions and
417limitations as described in this section; however, they may not
418be transferred again by the surviving or acquiring entity.
419     (5)  TRANSFER OF TAX CREDITS.-
420     (a)  Authorization.-Upon application to the Office of Film
421and Entertainment and approval by the Office of Tourism, Trade,
422and Economic Development, a certified production company, or a
423partner or member that has received a distribution under
424paragraph (4)(g), may elect to transfer, in whole or in part,
425any unused credit amount granted under this section. An election
426to transfer any unused tax credit amount under chapter 212 or
427chapter 220 must be made no later than 5 years after the date
428the credit is awarded, after which period the credit expires and
429may not be used. The Office of Tourism, Trade, and Economic
430Development shall notify the Department of Revenue of the
431election and transfer.
432     (b)  Number of transfers permitted.-A certified production
433company that elects to apply a credit amount against taxes
434remitted under chapter 212 is permitted a one-time transfer of
435unused credits to one transferee. A certified production company
436that elects to apply a credit amount against taxes due under
437chapter 220 is permitted a one-time transfer of unused credits
438to no more than four transferees, and such transfers must occur
439in the same taxable year.
440     (c)  Transferee rights and limitations.-The transferee is
441subject to the same rights and limitations as the certified
442production company awarded the tax credit, except that the
443transferee may not sell or otherwise transfer the tax credit.
444     (d)  Rulemaking.-The Department of Revenue may adopt rules
445to administer this subsection, as provided in subsection (7).
446     (6)  ANNUAL ALLOCATION OF TAX CREDITS.-
447     (a)  The aggregate amount of the tax credits that may be
448certified pursuant to paragraph (3)(d) may not exceed:
449     1.  For fiscal year 2010-2011, $55 million.
450     2.  For fiscal year 2011-2012, $50 million.
451     3.  For fiscal years 2012-2013, 2013-2014, and 2014-2015,
452$27 million per fiscal year.
453     (b)  Any portion of the maximum amount of tax credits
454established per fiscal year in paragraph (a) that is not
455certified as of the end of a fiscal year shall be carried
456forward and made available for certification during the
457following two fiscal years in addition to the amounts available
458for certification under paragraph (a) for those fiscal years.
459     (c)  Upon approval of the final tax credit award amount
460pursuant to subparagraph (3)(f)2., an amount equal to the
461difference between the maximum tax credit award amount
462previously certified under paragraph (3)(d) and the approved
463final tax credit award amount shall immediately be available for
464recertification during the current and following fiscal years in
465addition to the amounts available for certification under
466paragraph (a) for those fiscal years.
467     (d)  Notwithstanding paragraph (a), if, during a fiscal
468year, the total amount of credits applied for, pursuant to
469paragraph (3)(a), exceeds the amount of credits available for
470certification in that fiscal year, such excess shall be treated
471as having been applied for on the first day of the next fiscal
472year in which credits remain available for certification.
473     (7)  RULES, POLICIES, AND PROCEDURES.-
474     (a)  The Office of Tourism, Trade, and Economic Development
475may adopt rules pursuant to ss. 120.536(1) and 120.54 and
476develop policies and procedures to implement and administer this
477section, including, but not limited to, rules specifying
478requirements for the application and approval process, records
479required for substantiation for tax credits, procedures for
480making the election in paragraph (4)(d), the manner and form of
481documentation required to claim tax credits awarded or
482transferred under this section, and marketing requirements for
483tax credit recipients.
484     (b)  The Department of Revenue may adopt rules pursuant to
485ss. 120.536(1) and 120.54 to administer this section, including
486rules governing the examination and audit procedures required to
487administer this section and the manner and form of documentation
488required to claim tax credits awarded or transferred under this
489section.
490     (8)  AUDIT AUTHORITY; REVOCATION AND FORFEITURE OF TAX
491CREDITS; FRAUDULENT CLAIMS.-
492     (a)  Audit authority.-The Department of Revenue may conduct
493examinations and audits as provided in s. 213.34 to verify that
494tax credits under this section are received, transferred, and
495applied according to the requirements of this section. If the
496Department of Revenue determines that tax credits are not
497received, transferred, or applied as required by this section,
498it may, in addition to the remedies provided in this subsection,
499pursue recovery of such funds pursuant to the laws and rules
500governing the assessment of taxes.
501     (b)  Revocation of tax credits.-The Office of Tourism,
502Trade, and Economic Development may revoke or modify any written
503decision qualifying, certifying, or otherwise granting
504eligibility for tax credits under this section if it is
505discovered that the tax credit applicant submitted any false
506statement, representation, or certification in any application,
507record, report, plan, or other document filed in an attempt to
508receive tax credits under this section. The Office of Tourism,
509Trade, and Economic Development shall immediately notify the
510Department of Revenue of any revoked or modified orders
511affecting previously granted tax credits. Additionally, the
512applicant must notify the Department of Revenue of any change in
513its tax credit claimed.
514     (c)  Forfeiture of tax credits.-A determination by the
515Department of Revenue, as a result of an audit pursuant to
516paragraph (a) or from information received from the Office of
517Film and Entertainment, that an applicant received tax credits
518pursuant to this section to which the applicant was not entitled
519is grounds for forfeiture of previously claimed and received tax
520credits. The applicant is responsible for returning forfeited
521tax credits to the Department of Revenue, and such funds shall
522be paid into the General Revenue Fund of the state. Tax credits
523purchased in good faith are not subject to forfeiture unless the
524transferee submitted fraudulent information in the purchase or
525failed to meet the requirements in subsection (5).
526     (d)  Fraudulent claims.-Any applicant that submits
527fraudulent information under this section is liable for
528reimbursement of the reasonable costs and fees associated with
529the review, processing, investigation, and prosecution of the
530fraudulent claim. An applicant that obtains a credit payment
531under this section through a claim that is fraudulent is liable
532for reimbursement of the credit amount plus a penalty in an
533amount double the credit amount. The penalty is in addition to
534any criminal penalty to which the applicant is liable for the
535same acts. The applicant is also liable for costs and fees
536incurred by the state in investigating and prosecuting the
537fraudulent claim.
538     (9)  ANNUAL REPORT.-Each October 1, the Office of Film and
539Entertainment shall provide an annual report for the previous
540fiscal year to the Governor, the President of the Senate, and
541the Speaker of the House of Representatives which outlines the
542return on investment and economic benefits to the state.
543     (10)  REPEAL.-This section is repealed July 1, 2015, except
544that:
545     (a)  Tax credits certified under paragraph (3)(d) before
546July 1, 2015, may be awarded under paragraph (3)(f) on or after
547July 1, 2015, if the other requirements of this section are met.
548     (b)  Tax credits carried forward under paragraph (4)(e)
549remain valid for the period specified.
550     Section 2.  Paragraph (q) is added to subsection (5) of
551section 212.08, Florida Statutes, to read:
552     212.08  Sales, rental, use, consumption, distribution, and
553storage tax; specified exemptions.-The sale at retail, the
554rental, the use, the consumption, the distribution, and the
555storage to be used or consumed in this state of the following
556are hereby specifically exempt from the tax imposed by this
557chapter.
558     (5)  EXEMPTIONS; ACCOUNT OF USE.-
559     (q)  Entertainment industry tax credit; authorization;
560eligibility for credits.-The credits against sales tax
561authorized under s. 288.1254 shall be deducted from any sales
562and use tax remitted by the dealer to the department by
563electronic funds transfer and may only be deducted on a sales
564and use tax return initiated through electronic data
565interchange. The dealer shall separately state the credit on the
566electronic return. The net amount of tax due and payable must be
567remitted by electronic funds transfer. If the credit for the
568qualified expenditures is larger than the amount owed on the
569sales and use tax return that is eligible for the credit, the
570unused amount of the credit may be carried forward to a
571succeeding reporting period as provided in s. 288.1254(4)(e). A
572dealer may only obtain a credit using the method described in
573this subparagraph. A dealer is not authorized to obtain a credit
574by applying for a refund.
575     Section 3.  Paragraph (z) is added to subsection (8) of
576section 213.053, Florida Statutes, to read:
577     213.053  Confidentiality and information sharing.-
578     (8)  Notwithstanding any other provision of this section,
579the department may provide:
580     (z)  Information relative to tax credits taken under s.
581288.1254 to the Office of Film and Entertainment and the Office
582of Tourism, Trade, and Economic Development.
583
584Disclosure of information under this subsection shall be
585pursuant to a written agreement between the executive director
586and the agency. Such agencies, governmental or nongovernmental,
587shall be bound by the same requirements of confidentiality as
588the Department of Revenue. Breach of confidentiality is a
589misdemeanor of the first degree, punishable as provided by s.
590775.082 or s. 775.083.
591     Section 4.  Subsection (8) of section 220.02, Florida
592Statutes, is amended to read:
593     220.02  Legislative intent.-
594     (8)  It is the intent of the Legislature that credits
595against either the corporate income tax or the franchise tax be
596applied in the following order: those enumerated in s. 631.828,
597those enumerated in s. 220.191, those enumerated in s. 220.181,
598those enumerated in s. 220.183, those enumerated in s. 220.182,
599those enumerated in s. 220.1895, those enumerated in s. 221.02,
600those enumerated in s. 220.184, those enumerated in s. 220.186,
601those enumerated in s. 220.1845, those enumerated in s. 220.19,
602those enumerated in s. 220.185, those enumerated in s. 220.187,
603those enumerated in s. 220.192, those enumerated in s. 220.193,
604and those enumerated in s. 288.9916, and those enumerated in s.
605220.1899.
606     Section 5.  Section 220.1899, Florida Statutes, is created
607to read:
608     220.1899  Entertainment industry tax credit.-
609     (1)  There shall be a credit allowed against the tax
610imposed by this chapter in the amounts awarded by the Office of
611Tourism, Trade, and Economic Development under the entertainment
612industry financial incentive program in s. 288.1254.
613     (2)  A qualified production company as defined in s.
614288.1254 that is awarded a tax credit under s. 288.1254 may not
615claim the credit before July 1, 2011, regardless of when the
616credit is awarded.
617     (3)  To the extent that the amount of a tax credit exceeds
618the amount due on a return, the balance of the credit may be
619carried forward to a succeeding reporting period pursuant to s.
620288.1254(4)(e).
621     Section 6.  The sums of $94,250 in recurring funds and
622$3,877 in nonrecurring funds are appropriated from the General
623Revenue Fund to the Office of Tourism, Trade, and Economic
624Development, and one additional full-time equivalent position
625and the associated salary rate of $67,001 is authorized, for the
626purpose of administering the entertainment industry financial
627incentive program pursuant to s. 288.1254, Florida Statutes,
628during the 2010-2011 fiscal year.
629     Section 7.  If any provision of this act or the application
630thereof to any person or circumstance is held invalid, the
631invalidity shall not affect other provisions or applications of
632the act which can be given effect without the invalid provision
633or application, and to this end the provisions of this act are
634declared severable.
635     Section 8.  This act shall take effect July 1, 2010.


CODING: Words stricken are deletions; words underlined are additions.
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