Florida Senate - 2010                                    SB 1430
       By Senator Haridopolos
       26-00333A-10                                          20101430__
    1                        A bill to be entitled                      
    2         An act relating to entertainment industry economic
    3         development; amending s. 288.1254, F.S.; revising the
    4         entertainment industry financial incentive program to
    5         provide corporate income tax and sales and use tax
    6         credits to qualified entertainment entities rather
    7         than reimbursements from appropriations; revising
    8         provisions relating to definitions, creation and
    9         scope, application procedures, approval process,
   10         eligibility, required documents, qualified and
   11         certified productions, and annual reports; providing
   12         duties and responsibilities of the Office of Film and
   13         Entertainment, the Office of Tourism, Trade, and
   14         Economic Development, and the Department of Revenue
   15         relating to the tax credits; providing criteria and
   16         limitations for awards of tax credits; providing for
   17         uses, allocations, election, distributions, and
   18         carryforward of the tax credits; providing for
   19         withdrawal of tax credit eligibility; providing for
   20         use of consolidated returns; providing for partnership
   21         and noncorporate distributions of tax credits;
   22         providing for succession of tax credits; providing
   23         requirements for transfer of tax credits; authorizing
   24         the Office of Tourism, Trade, and Economic Development
   25         to adopt rules, policies, and procedures; authorizing
   26         the Department of Revenue to adopt rules and conduct
   27         audits; providing for revocation and forfeiture of tax
   28         credits; providing liability for reimbursement of
   29         certain costs and fees associated with a fraudulent
   30         claim; requiring an annual report to the Governor and
   31         the Legislature; providing for future repeal; amending
   32         s. 220.02, F.S.; including tax credits enumerated in
   33         s. 288.1254, F.S., in the order of application of
   34         credits against certain taxes; amending s. 213.053,
   35         F.S.; authorizing the Department of Revenue to provide
   36         tax credit information to the Office of Film and
   37         Entertainment and the Office of Tourism, Trade, and
   38         Economic Development; amending s. 212.08, F.S.;
   39         limiting application of the entertainment industry tax
   40         credits; requiring electronic funds transfer for the
   41         tax credits; providing procedures; providing
   42         severability; providing an effective date.
   44  Be It Enacted by the Legislature of the State of Florida:
   46         Section 1. Section 288.1254, Florida Statutes, is amended
   47  to read:
   48         (Substantial rewording of section. See
   49         s. 288.1254, F.S., for present text.)
   50         288.1254 Entertainment industry financial incentive
   51  program.—
   52         (1) DEFINITIONS.—As used in this section, the term:
   53         (a) “Certified production” means a qualified production
   54  that has tax credits allocated to it by the Office of Tourism,
   55  Trade, and Economic Development based on the production’s
   56  estimated qualified expenditures, up to the production’s maximum
   57  certified amount of tax credits, by the Office of Tourism,
   58  Trade, and Economic Development. The term does not include a
   59  production if its first day of principal photography in this
   60  state occurs before the production is certified by the Office of
   61  Tourism, Trade, and Economic Development and does not include a
   62  digital media project if its first day of production in this
   63  state occurs before certification.
   64         (b) “Digital media project” means a production of
   65  interactive entertainment that is produced for distribution in
   66  commercial or educational markets. The term includes a video
   67  game or production intended for Internet or wireless
   68  distribution. The term does not include a production deemed by
   69  the Office of Film and Entertainment to contain obscene content
   70  as defined in s. 847.001(10).
   71         (c) “High-impact television series” means a production
   72  created to run multiple production seasons and having an
   73  estimated order of at least seven episodes per season and
   74  qualified expenditures of at least $625,000 per episode.
   75         (d) “Off-season certified production” means a production,
   76  other than a digital media project or an animated production,
   77  commercial, music video, or documentary, which films 75 percent
   78  or more of its principal photography days from June 1 through
   79  November 30.
   80         (e) “Principal photography” means the filming of major or
   81  significant components of the qualified production which involve
   82  lead actors.
   83         (f) “Production” means a theatrical or direct-to-video
   84  motion picture; a made-for-television motion picture; a
   85  commercial; a music video; an industrial or educational film; an
   86  infomercial; a documentary film; a television pilot program; a
   87  presentation for a television pilot program; a television
   88  series, including, but not limited to, a drama, a reality show,
   89  a comedy, a soap opera, a telenovela, a game show, or a
   90  miniseries production; or a digital media project by the
   91  entertainment industry. One season of a television series is
   92  considered one production. The term does not include a weather
   93  or market program; a sporting event; a sports show; a gala; a
   94  production that solicits funds; a home shopping program; a
   95  political program; a political documentary; political
   96  advertising; a gambling-related project or production; a concert
   97  production; or a local, regional, or Internet-distributed-only
   98  news show, current-events show, pornographic production, or
   99  current-affairs show. A production may be produced on or by
  100  film, tape, or otherwise by means of a motion picture camera;
  101  electronic camera or device; tape device; computer; any
  102  combination of the foregoing; or any other means, method, or
  103  device now used or later adopted.
  104         (g) “Production expenditures” means the costs of tangible
  105  and intangible property used for, and services performed
  106  primarily and customarily in, production, including
  107  preproduction and postproduction, but excluding costs for
  108  development, marketing, and distribution. The term includes, but
  109  is not limited to:
  110         1. Wages, salaries, or other compensation paid to legal
  111  residents of this state, including amounts paid through payroll
  112  service companies, for technical and production crews,
  113  directors, producers, and performers.
  114         2. Expenditures for sound stages, backlots, production
  115  editing, digital effects, sound recordings, sets, and set
  116  construction.
  117         3. Expenditures for rental equipment, including, but not
  118  limited to, cameras and grip or electrical equipment.
  119         4. Up to $300,000 of the costs of newly purchased computer
  120  software and hardware unique to the project, including servers,
  121  data processing, and visualization technologies, which are
  122  located in and used exclusively in the state for the production
  123  of digital media.
  124         5. Expenditures for meals, travel, and accommodations.
  125         (h) “Qualified expenditures” means production expenditures
  126  incurred in this state by a qualified production for:
  127         1. Goods purchased or leased from, or services, including,
  128  but not limited to, insurance costs and bonding, payroll
  129  services, and legal fees, which are provided by, a vendor or
  130  supplier in this state that is registered with the Department of
  131  State or the Department of Revenue and doing business in the
  132  state and whose primary employees that facilitated the
  133  transaction are legal residents of and employed in this state.
  134         2. Payments to legal residents of this state in the form of
  135  salary, wages, or other compensation up to a maximum of $650,000
  136  per resident unless otherwise specified in subsection (4).
  138  For a qualified production involving an event, such as an awards
  139  show, the term does not include expenditures solely associated
  140  with the event itself and not directly required by the
  141  production. The term does not include expenditures incurred
  142  before certification, with the exception of those incurred for
  143  the pickup of additional episodes of a high-impact television
  144  series within a single season.
  145         (i) “Qualified production” means a production in this state
  146  meeting the requirements of this section. The term does not
  147  include a production:
  148         1. In which, for the first 2 years, less than 50 percent,
  149  and thereafter, less than 60 percent, of the positions that make
  150  up its production cast and below-the-line production crew, or,
  151  in the case of digital media projects, less than 75 percent of
  152  such positions, are filled by legal residents of this state,
  153  whose residency is demonstrated by a valid Florida driver’s
  154  license or other state-issued identification confirming
  155  residency, or students enrolled full-time in a film-and
  156  entertainment-related course of study at an institution of
  157  higher education in this state; or
  158         2. That is deemed by the Office of Film and Entertainment
  159  to contain obscene content as defined in s. 847.001(10).
  160         (j) “Qualified production company” means a corporation,
  161  limited liability company, partnership, or other legal entity
  162  engaged in one or more productions in this state.
  163         (2) CREATION AND PURPOSE OF PROGRAM.—The entertainment
  164  industry financial incentive program is created within the
  165  Office of Film and Entertainment. The purpose of this program is
  166  to encourage the use of this state as a site for filming and to
  167  develop and sustain the workforce and infrastructure for film,
  168  digital media, and entertainment production.
  170         (a) Program application.—A qualified production company
  171  producing a qualified production in this state may submit a
  172  program application to the Office of Film and Entertainment for
  173  the purpose of determining qualification for an award of tax
  174  credits authorized by this section no earlier than 6 months
  175  before the stated principal photography or digital media project
  176  start date. The applicant shall provide the Office of Film and
  177  Entertainment with information required to determine whether the
  178  production is a qualified production and to determine the
  179  qualified expenditures and other information necessary for the
  180  office to determine eligibility for the tax credit.
  181         (b) Required documentation.—The Office of Film and
  182  Entertainment shall develop an application form for qualifying
  183  an applicant as a qualified production. The form must include,
  184  but need not be limited to, production-related information
  185  concerning employment of residents in this state, a detailed
  186  budget of planned qualified expenditures, and the applicant’s
  187  signed affirmation that the information on the form has been
  188  verified and is correct. The Office of Film and Entertainment
  189  and local film commissions shall distribute the form.
  190         (c) Application process.—The Office of Film and
  191  Entertainment shall establish a process by which an application
  192  is accepted and reviewed and by which tax credit eligibility and
  193  award amount are determined. The Office of Film and
  194  Entertainment may request assistance from a duly appointed local
  195  film commission in determining compliance with this section.
  196         (d) Certification.—The Office of Film and Entertainment
  197  shall review the application within 15 business days after
  198  receipt. Upon its determination that the application contains
  199  all the information required by this subsection and meets the
  200  criteria set out in this section, the Office of Film and
  201  Entertainment shall qualify the applicant and recommend to the
  202  Office of Tourism, Trade, and Economic Development that the
  203  applicant be certified for the maximum tax credit award amount.
  204  Within 5 business days after receipt of the recommendation, the
  205  Office of Tourism, Trade, and Economic Development shall reject
  206  the recommendation or certify the maximum recommended tax credit
  207  award, if any, to the applicant and to the executive director of
  208  the Department of Revenue.
  209         (e) Grounds for denial.—The Office of Film and
  210  Entertainment shall deny an application if it determines that
  211  the application is not complete or the production or application
  212  does not meet the requirements of this section.
  213         (f) Verification of actual qualified expenditures.
  214         1. The Office of Film and Entertainment shall develop a
  215  process to verify the actual qualified expenditures of a
  216  certified production. The process must require:
  217         a. A certified production to submit, in a timely manner
  218  after principal photography or the digital media project ends
  219  and after making all of its qualified expenditures, data
  220  substantiating each qualified expenditure to an independent
  221  certified public accountant licensed in this state;
  222         b. Such accountant to conduct a compliance audit, at the
  223  certified production’s expense, to substantiate each qualified
  224  expenditure and submit the results as a report, along with the
  225  required substantiating data, to the Office of Film and
  226  Entertainment; and
  227         c. The Office of Film and Entertainment to review the
  228  accountant’s submittal and report to the Office of Tourism,
  229  Trade, and Economic Development the final verified amount of
  230  actual qualified expenditures made by the certified production.
  231         2. The Office of Tourism, Trade, and Economic Development
  232  shall determine and approve the final tax credit award amount to
  233  each certified applicant based on the final verified amount of
  234  actual qualified expenditures and shall notify the executive
  235  director of the Department of Revenue in writing that the
  236  certified production has met the requirements of the incentive
  237  program and of the final amount of the tax credit award.
  238         (g) Promoting Florida.—The Office of Film and Entertainment
  239  shall ensure that, as a condition of receiving a tax credit
  240  under this section, marketing materials promoting this state as
  241  a tourist destination or film and entertainment production
  242  destination are included, when appropriate, at no cost to the
  243  state, which must, at a minimum, include placement of a “Filmed
  244  in Florida” or “Produced in Florida” logo in the opening credits
  245  and end credits and on all packaging material and hard media,
  246  unless prohibited by licensing or other contractual obligations.
  247  The size and placement of such logo shall be commensurate to
  248  other logos used. If no logos are used, the statement “Filmed in
  249  Florida using Florida’s Entertainment Industry Financial
  250  Incentive,” or a similar statement approved by the Office of
  251  Film and Entertainment, shall be used. The Office of Film and
  252  Entertainment shall provide a logo and supply it for the
  253  purposes specified in this paragraph.
  258         (a) Priority for tax credit award.—The priority of a
  259  qualified production for tax credit awards must be determined on
  260  a first-come, first-served basis within its appropriate queue.
  261  Each qualified production must be placed into the appropriate
  262  queue and is subject to the requirements of that queue.
  263         (b) Tax credit eligibility.
  264         1. General production queue.—Ninety-four percent of tax
  265  credits authorized in any state fiscal year must be dedicated to
  266  the general production queue. A qualified production, excluding
  267  a commercial, music video, or independent Florida film, that
  268  demonstrates a minimum of $625,000 in qualified expenditures is
  269  eligible for tax credits equal to 20 percent of its actual
  270  qualified expenditures.
  271         a. An off-season certified production that is a feature
  272  film, independent film, commercial, or television series or
  273  pilot is eligible for an additional 5-percent tax credit on
  274  actual qualified expenditures. An off-season certified
  275  production that does not complete 75 percent of principal
  276  photography due to a disruption caused by a hurricane or
  277  tropical storm may not be disqualified from eligibility for the
  278  additional 5-percent credit as a result of the disruption.
  279         b. A qualified high-impact television series shall be
  280  allowed first position in this queue for tax credit awards not
  281  yet certified.
  282         2. Commercial and music video queue.—Three percent of tax
  283  credits authorized in any state fiscal year must be dedicated to
  284  the commercial and music video queue. A qualified production
  285  company that produces national or regional commercials or music
  286  videos may be eligible for a tax credit award if it demonstrates
  287  a minimum of $100,000 in qualified expenditures per national or
  288  regional commercial or music video and exceeds a combined
  289  threshold of $500,000 after combining actual qualified
  290  expenditures from qualified commercials and music videos during
  291  a single state fiscal year. After a qualified production company
  292  that produces commercials, music videos, or both reaches the
  293  threshold of $500,000, it is eligible to apply for certification
  294  for a tax credit award. The maximum credit award shall be equal
  295  to 20 percent of its actual qualified expenditures up to a
  296  maximum of $500,000. If there is a surplus of such tax credits
  297  remaining after the Office of Film and Entertainment certifies
  298  and determines the tax credits for all qualified commercial and
  299  video projects for which applications are made within 270 days
  300  after the opening of the application process, such surplus tax
  301  credits shall be available to any eligible qualified productions
  302  under the general production queue.
  303         3. Independent production queue.—Three percent of tax
  304  credits authorized in any state fiscal year must be dedicated to
  305  the independent production queue. An independent Florida film or
  306  digital media project that meets the criteria of this
  307  subparagraph and demonstrates a minimum of $100,000, but not
  308  more than $625,000, in total qualified expenditures is eligible
  309  for tax credits equal to 20 percent of its actual qualified
  310  expenditures. To qualify for this tax credit, a qualified
  311  production must:
  312         a. Be planned as a feature film or documentary of at least
  313  70 minutes in length.
  314         b. Employ legal residents of this state in at least two of
  315  the following key positions: writer, director, producer, star,
  316  or composer.
  317         4. Family-friendly productions.—A certified production
  318  determined by the Commissioner of Film and Entertainment, with
  319  the advice of the Florida Film and Entertainment Advisory
  320  Council, to be family-friendly, based on the review of the
  321  script and the review of the final release version, is eligible
  322  for an additional tax credit equal to 5 percent of its actual
  323  qualified expenditures. Family-friendly productions are those
  324  that have cross-generational appeal; would be considered
  325  suitable for viewing by children age 5 or older; are appropriate
  326  in theme, content, and language for a broad family audience;
  327  embody a responsible resolution of issues; and do not exhibit or
  328  imply any act of smoking, sex, nudity, nontraditional family
  329  values, gratuitous violence, or vulgar or profane language.
  330         (c) Withdrawal of tax credit eligibility.—A qualified or
  331  certified production must continue on a reasonable schedule,
  332  which means beginning principal photography, or, in the case of
  333  a digital media project, the start date of the production, in
  334  this state no more than 45 calendar days before or after the
  335  date provided in the production’s program application. The
  336  Office of Tourism, Trade, and Economic Development shall
  337  withdraw the eligibility of a qualified or certified production
  338  that does not continue on a reasonable schedule.
  339         (d) Election and distribution of tax credits.—A certified
  340  production company receiving a tax credit award under this
  341  section shall, at the time the credit is awarded by the Office
  342  of Tourism, Trade, and Economic Development after production is
  343  completed and all requirements to receive a credit award have
  344  been met, make an irrevocable election to apply the credit
  345  against taxes due under chapter 220, against taxes collected or
  346  accrued under chapter 212, or against a stated combination of
  347  the two taxes. The election is binding upon any distributee,
  348  successor, transferee, or purchaser. The Office of Tourism,
  349  Trade, and Economic Development shall notify the Department of
  350  Revenue of any election made pursuant to this paragraph.
  351         (e) Tax credit carryforward.—If the certified production
  352  company cannot use the entire tax credit in the taxable year or
  353  reporting period in which the credit is awarded, any excess
  354  amount may be carried forward to a succeeding taxable year or
  355  reporting period. A tax credit applied against taxes imposed
  356  under chapter 212 may be carried forward for a maximum of 5
  357  years after the date the credit is awarded. A tax credit applied
  358  against taxes imposed under chapter 220 may be carried forward
  359  for a maximum of 5 years after the date the credit is awarded,
  360  after which the credit expires and may not be used.
  361         (f) Consolidated returns.—A certified production company
  362  that files a Florida consolidated return as a member of an
  363  affiliated group under s. 220.131(1) may be allowed the credit
  364  on a consolidated return basis up to the amount of the tax
  365  imposed upon the consolidated group under chapter 220.
  366         (g) Partnership and noncorporate distributions.—A qualified
  367  production company that is not a corporation as defined in s.
  368  220.03 may elect to distribute tax credits awarded under this
  369  section to its partners or members in proportion to their
  370  respective distributive income or loss in the taxable fiscal
  371  year in which the tax credits were awarded.
  372         (h) Mergers or acquisitions.—Tax credits available under
  373  this section to a certified production company may succeed to a
  374  surviving or acquiring entity subject to the same conditions and
  375  limitations as described in this section; however, they may not
  376  be transferred again by the surviving or acquiring entity.
  377         (5) TRANSFER OF TAX CREDITS.—
  378         (a) Authorization.—Upon application to the Office of Film
  379  and Entertainment and approval by the Office of Tourism, Trade,
  380  and Economic Development, a certified production company, or a
  381  partner or member that has received a distribution under
  382  paragraph (4)(g), may elect to transfer, in whole or in part,
  383  any unused credit amount granted under this section. An election
  384  to transfer any unused tax credit amount under chapter 212 or
  385  chapter 220 must be made no later than 5 years after the date
  386  the credit is awarded, after which period the credit expires and
  387  may not be used. The Office of Tourism, Trade, and Economic
  388  Development shall notify the Department of Revenue of the
  389  election and transfer.
  390         (b) Number of transfers permitted.—A certified production
  391  company that elects to apply a credit amount against taxes
  392  remitted under chapter 212 is permitted a one-time transfer of
  393  unused credits to one transferee. A certified production company
  394  that elects to apply a credit amount against taxes due under
  395  chapter 220 is permitted a one-time transfer of unused credits
  396  to no more than four transferees, and such transfers must occur
  397  in the same taxable year.
  398         (c) Transferee rights and limitations.—The transferee is
  399  subject to the same rights and limitations as the certified
  400  production company awarded the tax credit, except that the
  401  transferee may not sell or otherwise transfer the tax credit.
  402         (d) Rulemaking.—The Department of Revenue may adopt rules
  403  to administer this subsection, as provided in subsection (7).
  404         (6) ANNUAL ALLOCATION OF CREDITS.—The aggregate amount of
  405  tax credits authorized under this section is $75 million per
  406  year. Any unused tax credits at the end of a fiscal year shall
  407  be carried forward and made available for award during the
  408  following 2 fiscal years. If the total amount of allocated
  409  credits applied for in any particular fiscal year exceeds the
  410  aggregate amount of credits authorized annually under this
  411  section, such excess shall be treated as having been applied for
  412  on the first day of the next fiscal year in which credits remain
  413  available for allocation.
  415         (a) The Office of Tourism, Trade, and Economic Development
  416  may adopt rules pursuant to ss. 120.536(1) and 120.54 and
  417  develop policies and procedures to implement and administer this
  418  section, including, but not limited to, rules specifying
  419  requirements for the application and approval process, records
  420  required for substantiation for tax credits, procedures for
  421  making the election in paragraph (4)(d), the manner and form of
  422  documentation required to claim tax credits awarded or
  423  transferred under this section, and marketing requirements for
  424  tax credit recipients.
  425         (b) The Department of Revenue may adopt rules pursuant to
  426  ss. 120.536(1) and 120.54 to administer this section, including
  427  rules governing the examination and audit procedures required to
  428  administer this section and the manner and form of documentation
  429  required to claim tax credits awarded or transferred under this
  430  section.
  433         (a) Audit authority.—The Department of Revenue may conduct
  434  examinations and audits as provided in s. 213.34 to verify that
  435  tax credits under this section are received, transferred, and
  436  applied according to the requirements of this section. If the
  437  Department of Revenue determines that tax credits are not
  438  received, transferred, or applied as required by this section,
  439  it may, in addition to the remedies provided in this subsection,
  440  pursue recovery of such funds pursuant to the laws and rules
  441  governing the assessment of taxes.
  442         (b) Revocation of tax credits.—The Office of Tourism,
  443  Trade, and Economic Development may revoke or modify any written
  444  decision qualifying, certifying, or otherwise granting
  445  eligibility for tax credits under this section if it is
  446  discovered that the tax credit applicant submitted any false
  447  statement, representation, or certification in any application,
  448  record, report, plan, or other document filed in an attempt to
  449  receive tax credits under this section. The Office of Tourism,
  450  Trade, and Economic Development shall immediately notify the
  451  Department of Revenue of any revoked or modified orders
  452  affecting previously granted tax credits. Additionally, the
  453  applicant must notify the Department of Revenue of any change in
  454  its tax credit claimed.
  455         (c) Forfeiture of tax credits.—A determination by the
  456  Department of Revenue, as a result of an audit or examination by
  457  the Department of Revenue or from information received from the
  458  Office of Film and Entertainment, that an applicant received tax
  459  credits pursuant to this section to which the applicant was not
  460  entitled is grounds for forfeiture of previously claimed and
  461  received tax credits. The applicant is responsible for returning
  462  forfeited tax credits to the Department of Revenue, and such
  463  funds shall be paid into the General Revenue Fund of the state.
  464  Tax credits purchased in good faith are not subject to
  465  forfeiture unless the transferee submitted fraudulent
  466  information in the purchase or failed to meet the requirements
  467  in subsection (5).
  468         (d) Fraudulent claims.—Any applicant that submits
  469  fraudulent information under this section is liable for
  470  reimbursement of the reasonable costs and fees associated with
  471  the review, processing, investigation, and prosecution of the
  472  fraudulent claim. An applicant that obtains a credit payment
  473  under this section through a claim that is fraudulent is liable
  474  for reimbursement of the credit amount plus a penalty in an
  475  amount double the credit amount. The penalty is in addition to
  476  any criminal penalty to which the applicant is liable for the
  477  same acts. The applicant is also liable for costs and fees
  478  incurred by the state in investigating and prosecuting the
  479  fraudulent claim.
  480         (9) ANNUAL REPORT.—Each October 1, the Office of Film and
  481  Entertainment shall provide an annual report for the previous
  482  fiscal year to the Governor, the President of the Senate, and
  483  the Speaker of the House of Representatives which outlines the
  484  return on investment and economic benefits to the state.
  485         (10) REPEAL.—This section is repealed July 1, 2015, except
  486  that the tax credit carryforward provided in this section shall
  487  continue to be valid for the period specified.
  488         Section 2. Subsection (8) of section 220.02, Florida
  489  Statutes, is amended to read:
  490         220.02 Legislative intent.—
  491         (8) It is the intent of the Legislature that credits
  492  against either the corporate income tax or the franchise tax be
  493  applied in the following order: those enumerated in s. 631.828,
  494  those enumerated in s. 220.191, those enumerated in s. 220.181,
  495  those enumerated in s. 220.183, those enumerated in s. 220.182,
  496  those enumerated in s. 220.1895, those enumerated in s. 221.02,
  497  those enumerated in s. 220.184, those enumerated in s. 220.186,
  498  those enumerated in s. 220.1845, those enumerated in s. 220.19,
  499  those enumerated in s. 220.185, those enumerated in s. 220.187,
  500  those enumerated in s. 220.192, those enumerated in s. 220.193,
  501  and those enumerated in s. 288.9916, and those enumerated in s.
  502  288.1254.
  503         Section 3. Paragraph (z) is added to subsection (8) of
  504  section 213.053, Florida Statutes, to read:
  505         213.053 Confidentiality and information sharing.—
  506         (8) Notwithstanding any other provision of this section,
  507  the department may provide:
  508         (z) Information relative to tax credits taken under s.
  509  288.1254 to the Office of Film and Entertainment and the Office
  510  of Tourism, Trade, and Economic Development.
  512  Disclosure of information under this subsection shall be
  513  pursuant to a written agreement between the executive director
  514  and the agency. Such agencies, governmental or nongovernmental,
  515  shall be bound by the same requirements of confidentiality as
  516  the Department of Revenue. Breach of confidentiality is a
  517  misdemeanor of the first degree, punishable as provided by s.
  518  775.082 or s. 775.083.
  519         Section 4. Paragraph (q) is added to subsection (5) of
  520  section 212.08, Florida Statutes, to read:
  521         212.08 Sales, rental, use, consumption, distribution, and
  522  storage tax; specified exemptions.—The sale at retail, the
  523  rental, the use, the consumption, the distribution, and the
  524  storage to be used or consumed in this state of the following
  525  are hereby specifically exempt from the tax imposed by this
  526  chapter.
  527         (5) EXEMPTIONS; ACCOUNT OF USE.—
  528         (q) Entertainment industry tax credit; authorization;
  529  eligibility for credits.
  530         1. For the fiscal years beginning July 1, 2010, and ending
  531  June 30, 2015, a qualified production company, as defined in s.
  532  288.1254(1)(j), is eligible for tax credits against its sales
  533  and use tax liabilities as provided in s. 288.1254. However, tax
  534  credits may not be applied, regardless of when the credits are
  535  awarded, to returns filed for any tax period beginning before
  536  July 1, 2011.
  537         2. The credit shall be deducted from any sales and use tax
  538  remitted by the dealer to the department by electronic funds
  539  transfer and may only be deducted on a sales and use tax return
  540  initiated through electronic data interchange. The dealer shall
  541  separately state the credit on the electronic return. The net
  542  amount of tax due and payable must be remitted by electronic
  543  funds transfer. If the credit for the qualified expenditures is
  544  larger than the amount owed on the sales and use tax return, the
  545  amount of the credit may be carried forward to a succeeding
  546  reporting period. A dealer may only obtain a credit using the
  547  method described in this subparagraph. A dealer is not
  548  authorized to obtain a credit by applying for a refund.
  549         Section 5. If any provision of this act or the application
  550  thereof to any person or circumstance is held invalid, the
  551  invalidity shall not affect other provisions or applications of
  552  the act which can be given effect without the invalid provision
  553  or application, and to this end the provisions of this act are
  554  declared severable.
  555         Section 6. This act shall take effect July 1, 2010.

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