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       Florida Senate - 2010                             CS for SB 1188
       
       
       
       By the Committee on Commerce; and Senator Altman
       
       
       
       
       577-03658-10                                          20101188c1
    1                        A bill to be entitled                      
    2         An act relating to spaceflight; amending s. 14.2015,
    3         F.S.; providing for the Office of Tourism, Trade, and
    4         Economic Development to administer corporate income
    5         tax credits for commercial 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 commercial spaceflight projects
    9         with the Office of Tourism, Trade, and Economic
   10         Development; amending s. 220.02, F.S.; revising the
   11         order in which credits against the corporate income
   12         tax or franchise tax may be taken; amending s. 220.13,
   13         F.S.; providing that the amount taken as a credit for
   14         a commercial spaceflight project must be added to
   15         taxable income; prohibiting a deduction from taxable
   16         income for any net operating loss taken as a credit
   17         against corporate income taxes or transferred;
   18         amending s. 220.16, F.S.; authorizing the amount of
   19         payments received in exchange for transferring a
   20         certain net operating loss to be allocated to this
   21         state; creating s. 220.194, F.S.; providing
   22         legislative intent; defining terms; authorizing
   23         nontransferable corporate income tax credits,
   24         transferable net operating loss tax credits, and
   25         machinery and equipment tax credits for certified
   26         commercial spaceflight businesses engaged in
   27         commercial spaceflight projects; specifying tax credit
   28         amounts and eligibility criteria; requiring a business
   29         to demonstrate eligibility to claim a tax credit to
   30         the satisfaction of the Department of Revenue;
   31         requiring a business that claims a tax credit to
   32         submit a certification application to Space Florida
   33         for review; specifying the required contents of an
   34         application; requiring Space Florida to recommend
   35         approval or denial of an application within 60 days
   36         after receipt; requiring the executive director of the
   37         Office of Tourism, Trade, and Economic Development
   38         within 30 days after receiving a recommendation from
   39         Space Florida to issue a letter of certification to
   40         applicants having an approved application; authorizing
   41         the Department of Revenue to perform audits and
   42         investigations necessary to verify the accuracy of
   43         returns; authorizing the Office of Tourism, Trade, and
   44         Economic Development to revoke or modify a
   45         certification granting eligibility for tax credits
   46         under certain circumstances; requiring a certified
   47         commercial spaceflight business to pay any required
   48         tax within 60 days after receiving notice that
   49         previously approved tax credits have been revoked or
   50         modified; authorizing the Department of Revenue to
   51         assess additional taxes, interest, or penalties;
   52         authorizing the Office of Tourism, Trade, and Economic
   53         Development to adopt rules; requiring the Office of
   54         Tourism, Trade, and Economic Development to submit an
   55         annual report to the Governor, the President of the
   56         Senate, and the Speaker of the House of
   57         Representatives on the activities of the commercial
   58         launch zone incentive program; providing for
   59         application; providing an effective date.
   60  
   61  Be It Enacted by the Legislature of the State of Florida:
   62  
   63         Section 1. Paragraph (f) of subsection (2) of section
   64  14.2015, Florida Statutes, is amended to read:
   65         14.2015 Office of Tourism, Trade, and Economic Development;
   66  creation; powers and duties.—
   67         (2) The purpose of the Office of Tourism, Trade, and
   68  Economic Development is to assist the Governor in working with
   69  the Legislature, state agencies, business leaders, and economic
   70  development professionals to formulate and implement coherent
   71  and consistent policies and strategies designed to provide
   72  economic opportunities for all Floridians. To accomplish such
   73  purposes, the Office of Tourism, Trade, and Economic Development
   74  shall:
   75         (f)1. Administer the Florida Enterprise Zone Act under ss.
   76  290.001-290.016, the community contribution tax credit program
   77  under ss. 220.183 and 624.5105, the tax refund program for
   78  qualified target industry businesses under s. 288.106, the tax
   79  refund program for qualified defense contractors and space
   80  flight business contractors under s. 288.1045, contracts for
   81  transportation projects under s. 288.063, the sports franchise
   82  facility program under s. 288.1162, the professional golf hall
   83  of fame facility program under s. 288.1168, the expedited
   84  permitting process under s. 403.973, the Rural Community
   85  Development Revolving Loan Fund under s. 288.065, the Regional
   86  Rural Development Grants Program under s. 288.018, the Certified
   87  Capital Company Act under s. 288.99, the Florida State Rural
   88  Development Council, the Rural Economic Development Initiative,
   89  the corporate income tax credits for commercial spaceflight
   90  projects under s. 220.194, and other programs that are
   91  specifically assigned to the office by law, by the
   92  appropriations process, or by the Governor. Notwithstanding any
   93  other provisions of law, the office may expend interest earned
   94  from the investment of program funds deposited in the Grants and
   95  Donations Trust Fund to contract for the administration of the
   96  programs, or portions of the programs, enumerated in this
   97  paragraph or assigned to the office by law, by the
   98  appropriations process, or by the Governor. Such expenditures
   99  shall be subject to review under chapter 216.
  100         2. The office may enter into contracts in connection with
  101  the fulfillment of its duties concerning the Florida First
  102  Business Bond Pool under chapter 159, tax incentives under
  103  chapters 212 and 220, tax incentives under the Certified Capital
  104  Company Act in chapter 288, foreign offices under chapter 288,
  105  the Enterprise Zone program under chapter 290, the Seaport
  106  Employment Training program under chapter 311, the Florida
  107  Professional Sports Team License Plates under chapter 320,
  108  Spaceport Florida under chapter 331, Expedited Permitting under
  109  chapter 403, and in carrying out other functions that are
  110  specifically assigned to the office by law, by the
  111  appropriations process, or by the Governor.
  112         Section 2. Paragraph (z) is added to subsection (8) of
  113  section 213.053, Florida Statutes, to read:
  114         213.053 Confidentiality and information sharing.—
  115         (8) Notwithstanding any other provision of this section,
  116  the department may provide:
  117         (z)Information relative to tax credits taken under s.
  118  220.194 to the Office of Tourism, Trade, and Economic
  119  Development or to Space Florida.
  120  
  121  Disclosure of information under this subsection shall be
  122  pursuant to a written agreement between the executive director
  123  and the agency. Such agencies, governmental or nongovernmental,
  124  shall be bound by the same requirements of confidentiality as
  125  the Department of Revenue. Breach of confidentiality is a
  126  misdemeanor of the first degree, punishable as provided by s.
  127  775.082 or s. 775.083.
  128         Section 3. Subsection (8) of section 220.02, Florida
  129  Statutes, is amended to read:
  130         220.02 Legislative intent.—
  131         (8) It is the intent of the Legislature that credits
  132  against either the corporate income tax or the franchise tax be
  133  applied in the following order: those enumerated in s. 631.828,
  134  those enumerated in s. 220.191, those enumerated in s. 220.181,
  135  those enumerated in s. 220.183, those enumerated in s. 220.182,
  136  those enumerated in s. 220.1895, those enumerated in s. 221.02,
  137  those enumerated in s. 220.184, those enumerated in s. 220.186,
  138  those enumerated in s. 220.1845, those enumerated in s. 220.19,
  139  those enumerated in s. 220.185, those enumerated in s. 220.187,
  140  those enumerated in s. 220.192, those enumerated in s. 220.193,
  141  and those enumerated in s. 288.9916, and those enumerated in s.
  142  220.194.
  143         Section 4. Paragraphs (a) and (b) of subsection (1) of
  144  section 220.13, Florida Statutes, are amended to read:
  145         220.13 “Adjusted federal income” defined.—
  146         (1) The term “adjusted federal income” means an amount
  147  equal to the taxpayer’s taxable income as defined in subsection
  148  (2), or such taxable income of more than one taxpayer as
  149  provided in s. 220.131, for the taxable year, adjusted as
  150  follows:
  151         (a) Additions.—There shall be added to such taxable income:
  152         1. The amount of any tax upon or measured by income,
  153  excluding taxes based on gross receipts or revenues, paid or
  154  accrued as a liability to the District of Columbia or any state
  155  of the United States which is deductible from gross income in
  156  the computation of taxable income for the taxable year.
  157         2. The amount of interest which is excluded from taxable
  158  income under s. 103(a) of the Internal Revenue Code or any other
  159  federal law, less the associated expenses disallowed in the
  160  computation of taxable income under s. 265 of the Internal
  161  Revenue Code or any other law, excluding 60 percent of any
  162  amounts included in alternative minimum taxable income, as
  163  defined in s. 55(b)(2) of the Internal Revenue Code, if the
  164  taxpayer pays tax under s. 220.11(3).
  165         3. In the case of a regulated investment company or real
  166  estate investment trust, an amount equal to the excess of the
  167  net long-term capital gain for the taxable year over the amount
  168  of the capital gain dividends attributable to the taxable year.
  169         4. That portion of the wages or salaries paid or incurred
  170  for the taxable year which is equal to the amount of the credit
  171  allowable for the taxable year under s. 220.181. This
  172  subparagraph shall expire on the date specified in s. 290.016
  173  for the expiration of the Florida Enterprise Zone Act.
  174         5. That portion of the ad valorem school taxes paid or
  175  incurred for the taxable year which is equal to the amount of
  176  the credit allowable for the taxable year under s. 220.182. This
  177  subparagraph shall expire on the date specified in s. 290.016
  178  for the expiration of the Florida Enterprise Zone Act.
  179         6. The amount of emergency excise tax paid or accrued as a
  180  liability to this state under chapter 221 which tax is
  181  deductible from gross income in the computation of taxable
  182  income for the taxable year.
  183         7. That portion of assessments to fund a guaranty
  184  association incurred for the taxable year which is equal to the
  185  amount of the credit allowable for the taxable year.
  186         8. In the case of a nonprofit corporation which holds a
  187  pari-mutuel permit and which is exempt from federal income tax
  188  as a farmers’ cooperative, an amount equal to the excess of the
  189  gross income attributable to the pari-mutuel operations over the
  190  attributable expenses for the taxable year.
  191         9. The amount taken as a credit for the taxable year under
  192  s. 220.1895.
  193         10. Up to nine percent of the eligible basis of any
  194  designated project which is equal to the credit allowable for
  195  the taxable year under s. 220.185.
  196         11. The amount taken as a credit for the taxable year under
  197  s. 220.187.
  198         12. The amount taken as a credit for the taxable year under
  199  s. 220.192.
  200         13. The amount taken as a credit for the taxable year under
  201  s. 220.193.
  202         14. Any portion of a qualified investment, as defined in s.
  203  288.9913, which is claimed as a deduction by the taxpayer and
  204  taken as a credit against income tax pursuant to s. 288.9916.
  205         15.The amount taken as a credit for the taxable year under
  206  s. 220.194.
  207         (b) Subtractions.—
  208         1. There shall be subtracted from such taxable income:
  209         a. The net operating loss deduction allowable for federal
  210  income tax purposes under s. 172 of the Internal Revenue Code
  211  for the taxable year, except that any net operating loss taken
  212  as a credit to corporate income taxes owed or that is
  213  transferred, pursuant to s. 220.194(3)(b), may not be deducted
  214  by the seller,
  215         b. The net capital loss allowable for federal income tax
  216  purposes under s. 1212 of the Internal Revenue Code for the
  217  taxable year,
  218         c. The excess charitable contribution deduction allowable
  219  for federal income tax purposes under s. 170(d)(2) of the
  220  Internal Revenue Code for the taxable year, and
  221         d. The excess contributions deductions allowable for
  222  federal income tax purposes under s. 404 of the Internal Revenue
  223  Code for the taxable year.
  224  
  225  However, a net operating loss and a capital loss shall never be
  226  carried back as a deduction to a prior taxable year, but all
  227  deductions attributable to such losses shall be deemed net
  228  operating loss carryovers and capital loss carryovers,
  229  respectively, and treated in the same manner, to the same
  230  extent, and for the same time periods as are prescribed for such
  231  carryovers in ss. 172 and 1212, respectively, of the Internal
  232  Revenue Code.
  233         2. There shall be subtracted from such taxable income any
  234  amount to the extent included therein the following:
  235         a. Dividends treated as received from sources without the
  236  United States, as determined under s. 862 of the Internal
  237  Revenue Code.
  238         b. All amounts included in taxable income under s. 78 or s.
  239  951 of the Internal Revenue Code.
  240  
  241  However, as to any amount subtracted under this subparagraph,
  242  there shall be added to such taxable income all expenses
  243  deducted on the taxpayer’s return for the taxable year which are
  244  attributable, directly or indirectly, to such subtracted amount.
  245  Further, no amount shall be subtracted with respect to dividends
  246  paid or deemed paid by a Domestic International Sales
  247  Corporation.
  248         3. In computing “adjusted federal income” for taxable years
  249  beginning after December 31, 1976, there shall be allowed as a
  250  deduction the amount of wages and salaries paid or incurred
  251  within this state for the taxable year for which no deduction is
  252  allowed pursuant to s. 280C(a) of the Internal Revenue Code
  253  (relating to credit for employment of certain new employees).
  254         4. There shall be subtracted from such taxable income any
  255  amount of nonbusiness income included therein.
  256         5. There shall be subtracted any amount of taxes of foreign
  257  countries allowable as credits for taxable years beginning on or
  258  after September 1, 1985, under s. 901 of the Internal Revenue
  259  Code to any corporation which derived less than 20 percent of
  260  its gross income or loss for its taxable year ended in 1984 from
  261  sources within the United States, as described in s.
  262  861(a)(2)(A) of the Internal Revenue Code, not including credits
  263  allowed under ss. 902 and 960 of the Internal Revenue Code,
  264  withholding taxes on dividends within the meaning of sub
  265  subparagraph 2.a., and withholding taxes on royalties, interest,
  266  technical service fees, and capital gains.
  267         6. Notwithstanding any other provision of this code, except
  268  with respect to amounts subtracted pursuant to subparagraphs 1.
  269  and 3., any increment of any apportionment factor which is
  270  directly related to an increment of gross receipts or income
  271  which is deducted, subtracted, or otherwise excluded in
  272  determining adjusted federal income shall be excluded from both
  273  the numerator and denominator of such apportionment factor.
  274  Further, all valuations made for apportionment factor purposes
  275  shall be made on a basis consistent with the taxpayer’s method
  276  of accounting for federal income tax purposes.
  277         Section 5. Subsection (5) is added to section 220.16,
  278  Florida Statutes, to read:
  279         220.16 Allocation of nonbusiness income.—Nonbusiness income
  280  shall be allocated as follows:
  281         (5)The amount of payments received in exchange for
  282  transferring a net operating loss as authorized by s. 220.194 is
  283  allocable to this state.
  284         Section 6. Section 220.194, Florida Statutes, is created to
  285  read:
  286         220.194Corporate income tax credits for commercial
  287  spaceflight projects in Florida’s commercial launch zone.—
  288         (1)INTENT.—The intent of this section is to create
  289  incentives to attract commercial launch, payload, research and
  290  development, and other commercial space business to this state.
  291         (2)DEFINITIONS.—As used in this section, the term:
  292         (a)“Certified commercial spaceflight business” means a
  293  commercial spaceflight business that has been certified by the
  294  office as meeting all of the requirements to obtain at least one
  295  of the approved tax credits available under this section,
  296  including any approval to transfer a credit.
  297         (b)“Commercial launch zone” means an area within spaceport
  298  territory in this state.
  299         (c)“Commercial spaceflight business” means a business
  300  that:
  301         1.Is registered with the Secretary of State to do business
  302  in this state; and
  303         2.Is currently undertaking one or more of the following
  304  activities in this state which are intended to result in a
  305  launch from a commercial launch zone: designing, manufacturing,
  306  testing, or assembling a launch vehicle, reentry vehicle,
  307  satellite, station, or components thereof; providing a launch
  308  service or reentry service; or providing the payload for a
  309  launch vehicle or reentry vehicle.
  310  
  311  A commercial spaceflight business may participate in more than
  312  one spaceflight project at a time and may conduct work on a
  313  commercial, governmental, or United States defense-related
  314  project and remain certified or qualified for certification.
  315         (d)“Commercial spaceflight project” means activities
  316  performed in this state by a commercial spaceflight business
  317  that qualify it to be certified including activity related to
  318  the launch of a launch vehicle, reentry vehicle, satellite, or
  319  space station from a commercial launch zone in this state, or
  320  its return to a spaceport commercial launch zone in this state.
  321  The term includes a launch service, reentry service, or any
  322  process that validates hardware or components to meet design and
  323  workmanship criteria for space launch or reentry vehicles per
  324  United States Department of Defense and National Aeronautics and
  325  Space Administration guidelines.
  326         (e)“Launch” means to place or attempt to place a launch
  327  vehicle and any payload from a commercial launch zone in this
  328  state into a suborbital trajectory, into Earth orbit in outer
  329  space, or otherwise into outer space.
  330         (f)“Launch service” means an activity in this state
  331  related to the preparation of a launch vehicle and any payload
  332  for launch and the conduct of a launch.
  333         (g)“New job” means a full-time equivalent position that is
  334  created by a commercial spaceflight business on or after January
  335  1, 2011, to work on a commercial spaceflight project in this
  336  state filled by an employee who is a resident of Florida. The
  337  term does not include a job held by an owner, partner, or
  338  majority stockholder of the business or an administrative,
  339  clerical, or janitorial position. A new job may only be counted
  340  once for the purpose of certification and may not be counted
  341  more than once for the purposes of claiming multiple incentives
  342  offered by this section. The annual wage of each net new job
  343  must equal at least 115 percent of the statewide or countywide
  344  average annual private-sector wage.
  345         (h)“Office” means the Office of Tourism, Trade, and
  346  Economic Development within the Executive Office of the
  347  Governor.
  348         (i)“Outer space” means an altitude of at least 50 miles
  349  above the Earth’s surface.
  350         (j)“Payload” means an object built or assembled in this
  351  state that a commercial spaceflight business has prepared to
  352  place in outer space by means of a launch vehicle or reentry
  353  vehicle, including components, built or assembled in this state,
  354  of the vehicle specifically designed or adapted for the object.
  355         (k)“Reentry” means to return or attempt to return a
  356  reentry vehicle and any payload from Earth orbit, or from outer
  357  space, to a commercial launch zone in this state.
  358         (l)“Reentry service” means an activity conducted in this
  359  state related to the preparation of a reentry vehicle and any
  360  payload for reentry and conduct of the reentry.
  361         (m)“Spaceport territory” has the same meaning as defined
  362  in s. 331.303(18).
  363         (n)“Space vehicle” means any spacecraft, satellite, upper
  364  stage, or launch vehicle system.
  365         (o)“Successful launch” means a launch from a commercial
  366  launch zone in this state that successfully places a launch
  367  vehicle or reentry vehicle and payload from Earth into a
  368  suborbital trajectory, into Earth orbit in outer space, or
  369  otherwise into outer space.
  370         (p)“Taxpayer” has the same meaning as defined in s.
  371  220.03.
  372         (3)TAX CREDITS.—For any tax year beginning on or after
  373  January 1, 2014, a commercial spaceflight business engaged in a
  374  commercial spaceflight project and certified to obtain a credit
  375  may select from among the following tax credits and obtain
  376  approval to take the selected credit if available:
  377         (a)Nontransferable corporate income tax credit.—A
  378  commercial spaceflight business may be certified to claim an
  379  approved credit not exceeding 50 percent of the business’s tax
  380  liability imposed by this chapter in the tax year in which it is
  381  claimed. The maximum tax credit granted under this paragraph to
  382  any one certified commercial spaceflight business in a calendar
  383  year is $1 million. The office may not approve a total of more
  384  than $10 million in nontransferrable tax credits during a single
  385  state fiscal year.
  386         (b)Transferable net operating loss tax credit.—A
  387  commercial spaceflight business may be certified to transfer its
  388  Florida net operating loss that may otherwise be available to be
  389  claimed on a return filed pursuant to his chapter not to exceed
  390  $2.5 million in a single tax year, as provided below.
  391         1.In addition to meeting the requirements in paragraph
  392  (2)(a), the business must:
  393         a.Have incurred a net operating loss on activity in this
  394  state directly associated with one or more commercial space
  395  flight projects in any of its immediately preceding 3 tax years;
  396  and
  397         b.Not be 50 percent or more owned or controlled, directly
  398  or indirectly, by another corporation that has demonstrated
  399  positive net income in any of the 3 previous tax years of
  400  ongoing operations, or not be part of a consolidated group of
  401  affiliated corporations, as filed for federal income tax
  402  purposes, which in the aggregate demonstrated positive net
  403  income in any year which forms the basis for the commercial
  404  space flight business’s claim of qualification for a credit, or
  405  any of the 3 previous years.
  406         2.The amount of the transferable tax credit that may be
  407  certified is equal to:
  408         a.One hundred percent of the net operating losses incurred
  409  by a commercial spaceflight business during its first full year
  410  of operations in this state.
  411         b.One hundred percent of the net operating losses incurred
  412  by a commercial spaceflight business during its second full year
  413  of operations in this state.
  414         c.One hundred percent of the net operating losses incurred
  415  by a commercial spaceflight business during its third full year
  416  of operations in this state.
  417         3.A commercial spaceflight business allowed a tax credit
  418  under this paragraph may be certified to transfer all or part of
  419  a transferable tax credit to another taxpayer. The credit may be
  420  certified for transfer only once. The certified commercial
  421  spaceflight business has 5 years after the date of its original
  422  certification to transfer a net operating loss tax credit. The
  423  transfer must be by written agreement, approved by the office,
  424  for consideration of at least 75 percent of the credit’s face
  425  value. The transferee is entitled to apply the credit to the
  426  taxes owed under this chapter and may carry forward an unused
  427  credit for up to 5 years. A transferee may not claim a credit in
  428  an amount that exceeds the transferee’s corporate income tax
  429  liability in the year for which the credit is claimed.
  430         4.The office may not approve a cumulative amount of
  431  transferrable net operating loss tax credits exceeding $25
  432  million during a single state fiscal year. However, the
  433  potential for a taxpayer to carry forward an unused tax credit
  434  is not considered in calculating the annual limit.
  435         (c)Machinery and equipment credit.—A credit against the
  436  tax imposed by this chapter shall be certified by the office
  437  when a commercial spaceflight business invests at least $500,000
  438  in machinery and equipment over a period not to exceed three tax
  439  years that is purchased in this state and that is exclusively
  440  used for one or more commercial spaceflight projects in this
  441  state.
  442         1.An investment in machinery and equipment may be claimed
  443  only one time by a commercial spaceflight business for the
  444  corporate income tax credit authorized by this paragraph.
  445  However, the purchase of the machinery and equipment may also be
  446  exempt from the sales and use tax under the exemption in s.
  447  212.08(5)(b).
  448         2.The amount of the credit is equal to 7.5 percent of the
  449  purchase price of the machinery and equipment.
  450         3.The certified commercial spaceflight business may claim
  451  a credit for no more than 50 percent of its corporate income tax
  452  liability in the year in which it is claimed, up to a maximum of
  453  $5 million. If credit granted under this paragraph is not fully
  454  used in any one tax year because of insufficient tax liability,
  455  the unused amount may be carried forward for up to 5 years.
  456         4.The office may not approve more than $20 million in
  457  machinery and equipment tax credits during a single state fiscal
  458  year.
  459         (4)ADMINISTRATION.—
  460         (a)Unless transferred as provided in paragraph (3)(b),
  461  credits awarded under this section may be granted only against
  462  the corporate income tax liability generated by or arising out
  463  of a commercial spaceflight project in this state, as documented
  464  in the certified commercial spaceflight business’s annual audit
  465  prepared by a certified public accountant licensed to do
  466  business in this state and verified by the office.
  467         (b)A certified spaceflight business may not file a
  468  consolidated return for the purposes of claiming the tax
  469  incentives described in paragraphs (3)(a)-(c).
  470         (c)It is the responsibility of the certified commercial
  471  spaceflight business or transferee to demonstrate to the
  472  office’s and the department’s satisfaction that it is eligible
  473  for the credits under this section.
  474         (5)APPLICATION AND CERTIFICATION.—
  475         (a)To claim a tax credit pursuant to this section, a
  476  commercial spaceflight business must submit a certification
  477  application to Space Florida for review, be certified to obtain
  478  credits under this section, and select and be approved for a
  479  credit. Each business may only be approved for one credit for
  480  any calendar year and may not take any credit more than one
  481  time. The application must include the following information,
  482  along with a $250 nonrefundable fee:
  483         1.The name and physical Florida address of the taxpayer.
  484         2.Documentation demonstrating to the satisfaction of the
  485  office that:
  486         a. The taxpayer is a commercial spaceflight business.
  487         b.The business has engaged in a qualifying commercial
  488  spaceflight project or projects for 3 calendar years before
  489  claiming a credit under this section.
  490         3.The business has complied with all of the following:
  491         a.Created, filled, and retained for 3 calendar years
  492  before claiming a credit under this section at least 35 new
  493  full-time equivalent jobs primarily located in this state and
  494  directly associated with an individual commercial spaceflight
  495  project, or projects;
  496         b.Invested a total of at least $15 million in this state
  497  on an commercial spaceflight project or projects during the 3
  498  calendar years before claiming a credit under this section; and
  499         c.Participated in a commercial spaceflight project that
  500  resulted in a successful launch from a commercial launch zone in
  501  this state during the 3 calendar years before claiming a credit
  502  under this section.
  503         4.The total amount and types of credits sought.
  504         5.The amount of transferable tax credits to be
  505  transferred, if any; when the business expects to transfer the
  506  credits; and the name and address of the recipient taxpayer or
  507  taxpayers.
  508         6.A copy of an audit or audits of the pertinent years,
  509  prepared by a certified public accountant licensed to practice
  510  in this state, that identifies, if applicable, that portion of
  511  the business’s activities in this state related to commercial
  512  spaceflight projects in this state.
  513         7.An acknowledgement that the business must file an annual
  514  report on the project’s progress with Space Florida and the
  515  office.
  516         8.Any other information necessary to demonstrate that the
  517  applicant meets the job creation, investment, and other
  518  requirements of this section.
  519         (b)Within 60 days after receipt of the application, the
  520  executive staff of Space Florida shall evaluate the application
  521  and recommend it for certification or denial of certification by
  522  the office. The executive director of the office must approve or
  523  deny the application within 30 days after receiving the
  524  recommendation from Space Florida. The office must provide a
  525  letter of certification to the applicant, if approved and
  526  consistent with any restrictions on the credit being sought. If
  527  the office denies any part of the requested credit, the office
  528  must inform the applicant of the grounds for the denial. A copy
  529  of the certification shall be submitted to the department within
  530  10 days after the executive director’s decision.
  531         (6)ADMINISTRATION; AUDIT AUTHORITY; RECAPTURE OF CREDITS.—
  532         (a)In addition to its existing audit and investigative
  533  authority, the department may perform any additional financial
  534  and technical audits and investigations, including examining the
  535  accounts, books, and financial records of the tax credit
  536  applicant, which are necessary to verify the accuracy of the
  537  return and to ensure compliance with this section. The office
  538  and Space Florida shall provide technical assistance when
  539  requested by the department on any technical audits or
  540  examinations performed under this subsection.
  541         (b)It is grounds for forfeiture of previously claimed tax
  542  credits if the department determines, as a result of an audit or
  543  examination, or from information received from the office, that
  544  a certified commercial spaceflight business, or in the case of
  545  transferred tax credits, a taxpayer received tax credits under
  546  this section to which the certified commercial spaceflight
  547  business or taxpayer was not entitled. The certified commercial
  548  spaceflight business or transferee is responsible for filing an
  549  amended return reflecting the dissallowed credits and paying any
  550  tax due as a result of the amendment.
  551         (c)If the certified commercial spaceflight business’s
  552  Florida corporate income tax return is adjusted by amendment,
  553  recomputation, or redetermination such that any item entering
  554  into the computation of a claimed credit has been changed the
  555  taxpayer must notify the department by filing an amended return.
  556  The amount of any credit award not supported by the amended
  557  return shall be deemed a deficiency to be remitted with the
  558  amended return and otherwise subject to s. 220.23. The certified
  559  commercial spaceflight business also is liable for a penalty
  560  equal to the amount of the credit claimed or transferred,
  561  reduced in proportion to the amount of the net operating loss
  562  certified for transfer over the amount of the certified net
  563  operating loss disallowed. The applicant and its successors
  564  shall maintain all records necessary to support the reported net
  565  operating loss.
  566         (d)The office may revoke or modify any certification
  567  granting eligibility for tax credits under this section if it is
  568  discovered that the certified commercial spaceflight business
  569  made a false statement, or representation, in any application,
  570  record, report, plan, or other document filed in an attempt to
  571  receive tax credits under this section. The office shall
  572  immediately notify the department of any revoked or modified
  573  orders affecting previously granted tax credits. Additionally,
  574  the certified commercial spaceflight business must notify the
  575  department of any change in its tax credit claimed.
  576         (e)The certified commercial spaceflight business must file
  577  with the department an amended return or other report required
  578  by the department by rule and must pay any required tax and
  579  interest within 60 days after the certified commercial
  580  spaceflight business receives notification from the office that
  581  previously approved tax credits have been revoked or modified.
  582  If the revocation or modification order is contested, the
  583  certified commercial spaceflight business must file an amended
  584  return or other report as provided in this paragraph within 60
  585  days after a final order is issued following proceedings.
  586         (f)The department may assess an additional tax, penalty,
  587  or interest pursuant to s. 95.091.
  588         (7)RULES.—
  589         (a)The office, in consultation with Space Florida, shall
  590  adopt rules to administer this section, including rules relating
  591  to the certification forms for commercial spaceflight businesses
  592  to complete, and the application and certification procedures,
  593  guidelines, and requirements necessary to administer this
  594  section.
  595         (b)The department may adopt rules to administer this
  596  section, including rules relating to:
  597         1.The forms required to claim a tax credit under this
  598  section, the requirements and basis for establishing an
  599  entitlement to a credit, and the examination and audit
  600  procedures required to administer this section.
  601         2.The implementation and administration of the provisions
  602  allowing a transfer of a net operating loss as a tax credit,
  603  including rules prescribing forms, reporting requirements, and
  604  specific procedures, guidelines, and requirements necessary to
  605  perform the transfer.
  606         3.The minimum portion of the credit that is available for
  607  transfer.
  608         (8)ANNUAL REPORT.—The office, in cooperation with Space
  609  Florida and the department, shall submit an annual report of the
  610  commercial launch zone incentive program’s activities to the
  611  Governor, the President of the Senate, and the Speaker of the
  612  House of Representatives by November 30 of each year, beginning
  613  in 2014.
  614         Section 7. This act shall take effect upon becoming a law,
  615  except that the tax credits authorized by this act may not be
  616  applied to returns filed for any tax period before January 1,
  617  2014.

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