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       Florida Senate - 2010                      CS for CS for SB 1430
       By the Committees on Finance and Tax; and Commerce; and Senators
       Haridopolos, Justice, Gaetz, and Crist
       593-04950-10                                          20101430c2
    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. 212.08, F.S.; limiting application of the
   33         entertainment industry tax credits; requiring
   34         electronic funds transfer for the tax credits;
   35         providing procedures; amending s. 213.053, F.S.;
   36         authorizing the Department of Revenue to provide tax
   37         credit information to the Office of Film and
   38         Entertainment and the Office of Tourism, Trade, and
   39         Economic Development; amending s. 220.02, F.S.;
   40         including tax credits enumerated in s. 220.1899, F.S.,
   41         in the order of application of credits against certain
   42         taxes; creating s. 220.1899, F.S.; providing for
   43         credits against the corporate income tax in the
   44         amounts awarded under the entertainment industry
   45         financial incentive program; providing for
   46         carryforward of the tax credits under certain
   47         circumstances; providing an appropriation and
   48         authorizing an additional position; providing for
   49         severability; providing an effective date.
   51  Be It Enacted by the Legislature of the State of Florida:
   53         Section 1. Section 288.1254, Florida Statutes, is amended
   54  to read:
   55         (Substantial rewording of section. See
   56         s. 288.1254, F.S., for present text.)
   57         288.1254 Entertainment industry financial incentive
   58  program.—
   59         (1) DEFINITIONS.—As used in this section, the term:
   60         (a) “Certified production” means a qualified production
   61  that has tax credits allocated to it by the Office of Tourism,
   62  Trade, and Economic Development based on the production’s
   63  estimated qualified expenditures, up to the production’s maximum
   64  certified amount of tax credits, by the Office of Tourism,
   65  Trade, and Economic Development. The term does not include a
   66  production if its first day of principal photography or project
   67  start date in this state occurs before the production is
   68  certified by the Office of Tourism, Trade, and Economic
   69  Development, unless the production spans more than one fiscal
   70  year, was a certified production on its first day of principal
   71  photography or project start date in this state, and submits an
   72  application for continuing the same production for the
   73  subsequent fiscal year.
   74         (b) “Digital media project” means a production of
   75  interactive entertainment that is produced for distribution in
   76  commercial or educational markets. The term includes a video
   77  game or production intended for Internet or wireless
   78  distribution. The term does not include a production deemed by
   79  the Office of Film and Entertainment to contain obscene content
   80  as defined in s. 847.001(10).
   81         (c) “High-impact television series” means a production
   82  created to run multiple production seasons and having an
   83  estimated order of at least seven episodes per season and
   84  qualified expenditures of at least $625,000 per episode.
   85         (d) “Off-season certified production” means a feature film,
   86  independent film, or television series or pilot which films 75
   87  percent or more of its principal photography days from June 1
   88  through November 30.
   89         (e) “Principal photography” means the filming of major or
   90  significant components of the qualified production which involve
   91  lead actors.
   92         (f) “Production” means a theatrical or direct-to-video
   93  motion picture; a made-for-television motion picture; visual
   94  effects or digital animation sequences produced in conjunction
   95  with a motion picture; a commercial; a music video; an
   96  industrial or educational film; an infomercial; a documentary
   97  film; a television pilot program; a presentation for a
   98  television pilot program; a television series, including, but
   99  not limited to, a drama, a reality show, a comedy, a soap opera,
  100  a telenovela, a game show, an awards show, or a miniseries
  101  production; or a digital media project by the entertainment
  102  industry. One season of a television series is considered one
  103  production. The term does not include a weather or market
  104  program; a sporting event; a sports show; a gala; a production
  105  that solicits funds; a home shopping program; a political
  106  program; a political documentary; political advertising; a
  107  gambling-related project or production; a concert production; or
  108  a local, regional, or Internet-distributed-only news show,
  109  current-events show, pornographic production, or current-affairs
  110  show. A production may be produced on or by film, tape, or
  111  otherwise by means of a motion picture camera; electronic camera
  112  or device; tape device; computer; any combination of the
  113  foregoing; or any other means, method, or device now used or
  114  later adopted.
  115         (g) “Production expenditures” means the costs of tangible
  116  and intangible property used for, and services performed
  117  primarily and customarily in, production, including
  118  preproduction and postproduction, but excluding costs for
  119  development, marketing, and distribution. The term includes, but
  120  is not limited to:
  121         1. Wages, salaries, or other compensation paid to legal
  122  residents of this state, including amounts paid through payroll
  123  service companies, for technical and production crews,
  124  directors, producers, and performers.
  125         2. Expenditures for sound stages, backlots, production
  126  editing, digital effects, sound recordings, sets, and set
  127  construction.
  128         3. Expenditures for rental equipment, including, but not
  129  limited to, cameras and grip or electrical equipment.
  130         4. Up to $300,000 of the costs of newly purchased computer
  131  software and hardware unique to the project, including servers,
  132  data processing, and visualization technologies, which are
  133  located in and used exclusively in the state for the production
  134  of digital media.
  135         5. Expenditures for meals, travel, and accommodations.
  136         (h) “Qualified expenditures” means production expenditures
  137  incurred in this state by a qualified production for:
  138         1. Goods purchased or leased from, or services, including,
  139  but not limited to, insurance costs and bonding, payroll
  140  services, and legal fees, which are provided by, a vendor or
  141  supplier in this state that is registered with the Department of
  142  State or the Department of Revenue and has a physical location
  143  in this state at which one or more legal Florida residents are
  144  employed.
  145         2. Payments to legal residents of this state in the form of
  146  salary, wages, or other compensation up to a maximum of $650,000
  147  per resident unless otherwise specified in subsection (4).
  149  For a qualified production involving an event, such as an awards
  150  show, the term does not include expenditures solely associated
  151  with the event itself and not directly required by the
  152  production. The term does not include expenditures incurred
  153  before certification, with the exception of those incurred for a
  154  commercial, a music video, or the pickup of additional episodes
  155  of a high-impact television series within a single season.
  156         (i) “Qualified production” means a production in this state
  157  meeting the requirements of this section. The term does not
  158  include a production:
  159         1. In which, for the first 2 years of the incentive
  160  program, less than 50 percent, and thereafter, less than 60
  161  percent, of the positions that make up its production cast and
  162  below-the-line production crew, or, in the case of digital media
  163  projects, less than 75 percent of such positions, are filled by
  164  legal residents of this state, whose residency is demonstrated
  165  by a valid Florida driver’s license or other state-issued
  166  identification confirming residency, or students enrolled full
  167  time in a film-and-entertainment-related course of study at an
  168  institution of higher education in this state; or
  169         2. That is deemed by the Office of Film and Entertainment
  170  to contain obscene content as defined in s. 847.001(10).
  171         (j) “Qualified production company” means a corporation,
  172  limited liability company, partnership, or other legal entity
  173  engaged in one or more productions in this state.
  174         (2) CREATION AND PURPOSE OF PROGRAM.—The entertainment
  175  industry financial incentive program is created within the
  176  Office of Film and Entertainment. The purpose of this program is
  177  to encourage the use of this state as a site for filming, for
  178  the digital production of films, and to develop and sustain the
  179  workforce and infrastructure for film, digital media, and
  180  entertainment production.
  182         (a) Program application.—A qualified production company
  183  producing a qualified production in this state may submit a
  184  program application to the Office of Film and Entertainment for
  185  the purpose of determining qualification for an award of tax
  186  credits authorized by this section no earlier than 180 days
  187  before the first day of principal photography or project start
  188  date in this state. The applicant shall provide the Office of
  189  Film and Entertainment with information required to determine
  190  whether the production is a qualified production and to
  191  determine the qualified expenditures and other information
  192  necessary for the office to determine eligibility for the tax
  193  credit.
  194         (b) Required documentation.—The Office of Film and
  195  Entertainment shall develop an application form for qualifying
  196  an applicant as a qualified production. The form must include,
  197  but need not be limited to, production-related information
  198  concerning employment of residents in this state, a detailed
  199  budget of planned qualified expenditures, and the applicant’s
  200  signed affirmation that the information on the form has been
  201  verified and is correct. The Office of Film and Entertainment
  202  and local film commissions shall distribute the form.
  203         (c) Application process.—The Office of Film and
  204  Entertainment shall establish a process by which an application
  205  is accepted and reviewed and by which tax credit eligibility and
  206  award amount are determined. The Office of Film and
  207  Entertainment may request assistance from a duly appointed local
  208  film commission in determining compliance with this section.
  209         (d) Certification.—The Office of Film and Entertainment
  210  shall review the application within 15 business days after
  211  receipt. Upon its determination that the application contains
  212  all the information required by this subsection and meets the
  213  criteria set out in this section, the Office of Film and
  214  Entertainment shall qualify the applicant and recommend to the
  215  Office of Tourism, Trade, and Economic Development that the
  216  applicant be certified for the maximum tax credit award amount.
  217  Within 5 business days after receipt of the recommendation, the
  218  Office of Tourism, Trade, and Economic Development shall reject
  219  the recommendation or certify the maximum recommended tax credit
  220  award, if any, to the applicant and to the executive director of
  221  the Department of Revenue.
  222         (e) Grounds for denial.—The Office of Film and
  223  Entertainment shall deny an application if it determines that
  224  the application is not complete or the production or application
  225  does not meet the requirements of this section.
  226         (f) Verification of actual qualified expenditures.
  227         1. The Office of Film and Entertainment shall develop a
  228  process to verify the actual qualified expenditures of a
  229  certified production. The process must require:
  230         a. A certified production to submit, in a timely manner
  231  after production ends in this state and after making all of its
  232  qualified expenditures in this state, data substantiating each
  233  qualified expenditure to an independent certified public
  234  accountant licensed in this state;
  235         b. Such accountant to conduct a compliance audit, at the
  236  certified production’s expense, to substantiate each qualified
  237  expenditure and submit the results as a report, along with the
  238  required substantiating data, to the Office of Film and
  239  Entertainment; and
  240         c. The Office of Film and Entertainment to review the
  241  accountant’s submittal and report to the Office of Tourism,
  242  Trade, and Economic Development the final verified amount of
  243  actual qualified expenditures made by the certified production.
  244         2. The Office of Tourism, Trade, and Economic Development
  245  shall determine and approve the final tax credit award amount to
  246  each certified applicant based on the final verified amount of
  247  actual qualified expenditures and shall notify the executive
  248  director of the Department of Revenue in writing that the
  249  certified production has met the requirements of the incentive
  250  program and of the final amount of the tax credit award. The
  251  final tax credit award amount may not exceed the maximum tax
  252  credit award amount certified under paragraph (d).
  253         (g) Promoting Florida.—The Office of Film and Entertainment
  254  shall ensure that, as a condition of receiving a tax credit
  255  under this section, marketing materials promoting this state as
  256  a tourist destination or film and entertainment production
  257  destination are included, when appropriate, at no cost to the
  258  state, which must, at a minimum, include placement of a “Filmed
  259  in Florida” or “Produced in Florida” logo in the end credits.
  260  The placement of a “Filmed in Florida” or “Produced in Florida”
  261  logo on all packaging material and hard media is also required,
  262  unless such placement is prohibited by licensing or other
  263  contractual obligations. The size and placement of such logo
  264  shall be commensurate to other logos used. If no logos are used,
  265  the statement “Filmed in Florida using Florida’s Entertainment
  266  Industry Financial Incentive,” or a similar statement approved
  267  by the Office of Film and Entertainment, shall be used. The
  268  Office of Film and Entertainment shall provide a logo and supply
  269  it for the purposes specified in this paragraph. A 30-second
  270  “Visit Florida” promotional video must also be included on all
  271  optical disc formats of a film, unless such placement is
  272  prohibited by licensing or other contractual obligations. The
  273  30-second promotional video shall be approved and provided by
  274  the Florida Tourism Industry Marketing Corporation in
  275  consultation with the Commissioner of Film and Entertainment.
  280         (a) Priority for tax credit award.—The priority of a
  281  qualified production for tax credit awards must be determined on
  282  a first-come, first-served basis within its appropriate queue.
  283  Each qualified production must be placed into the appropriate
  284  queue and is subject to the requirements of that queue.
  285         (b) Tax credit eligibility.
  286         1. General production queue.—Ninety-four percent of tax
  287  credits authorized in any state fiscal year must be dedicated to
  288  the general production queue. The general production queue
  289  consists of all qualified productions other than those eligible
  290  for the commercial and music video queue or the independent and
  291  emerging media production queue. A qualified production that
  292  demonstrates a minimum of $625,000 in qualified expenditures is
  293  eligible for tax credits equal to 20 percent of its actual
  294  qualified expenditures, up to a maximum of $8 million. A
  295  qualified production that incurs qualified expenditures during
  296  multiple state fiscal years may combine those expenditures to
  297  satisfy the $625,000 minimum threshold.
  298         a. An off-season certified production that is a feature
  299  film, independent film, or television series or pilot is
  300  eligible for an additional 5 percent tax credit on actual
  301  qualified expenditures. An off-season certified production that
  302  does not complete 75 percent of principal photography due to a
  303  disruption caused by a hurricane or tropical storm may not be
  304  disqualified from eligibility for the additional 5-percent
  305  credit as a result of the disruption.
  306         b. A qualified high-impact television series shall be
  307  allowed first position in this queue for tax credit awards not
  308  yet certified.
  309         2. Commercial and music video queue.—Three percent of tax
  310  credits authorized in any state fiscal year must be dedicated to
  311  the commercial and music video queue. A qualified production
  312  company that produces national or regional commercials or music
  313  videos may be eligible for a tax credit award if it demonstrates
  314  a minimum of $100,000 in qualified expenditures per national or
  315  regional commercial or music video and exceeds a combined
  316  threshold of $500,000 after combining actual qualified
  317  expenditures from qualified commercials and music videos during
  318  a single state fiscal year. After a qualified production company
  319  that produces commercials, music videos, or both reaches the
  320  threshold of $500,000, it is eligible to apply for certification
  321  for a tax credit award. The maximum credit award shall be equal
  322  to 20 percent of its actual qualified expenditures up to a
  323  maximum of $500,000. If there is a surplus at the end of a
  324  fiscal year after the Office of Film and Entertainment certifies
  325  and determines the tax credits for all qualified commercial and
  326  video projects, such surplus tax credits shall be carried
  327  forward to the following fiscal year and be available to any
  328  eligible qualified productions under the general production
  329  queue.
  330         3. Independent and emerging media production queue.—Three
  331  percent of tax credits authorized in any state fiscal year must
  332  be dedicated to the independent and emerging media production
  333  queue. This queue is intended to encourage Florida independent
  334  film and emerging media production as described in paragraph
  335  (1)(f). Any qualified production, excluding commercials,
  336  infomercials, or music videos, which demonstrates at least
  337  $100,000, but not more than $625,000, in total qualified
  338  expenditures is eligible for tax credits equal to 20 percent of
  339  its actual qualified expenditures. If a surplus exists at the
  340  end of a fiscal year after the Office of Film and Entertainment
  341  certifies and determines the tax credits for all qualified
  342  independent and emerging media production projects, such surplus
  343  tax credits shall be carried forward to the following fiscal
  344  year and be available to any eligible qualified productions
  345  under the general production queue.
  346         4. Family friendly productions.—A certified production
  347  determined by the Commissioner of Film and Entertainment, with
  348  the advice of the Florida Film and Entertainment Advisory
  349  Council, to be family friendly based on the review of the script
  350  and an interview with the director is eligible for an additional
  351  reimbursement equal to 5 percent of its actual qualified
  352  expenditures. Family friendly productions are those that have
  353  cross-generational appeal; would be considered suitable for
  354  viewing by children age 5 and older; are appropriate in theme,
  355  content, and language for a broad family audience; embody a
  356  responsible resolution of issues; and do not exhibit any act of
  357  smoking, sex, nudity, or vulgar or profane language.
  358         (c) Withdrawal of tax credit eligibility.—A qualified or
  359  certified production must continue on a reasonable schedule,
  360  which includes beginning principal photography or the production
  361  project in this state no more than 45 calendar days before or
  362  after the principal photography or project start date provided
  363  in the production’s program application. The Office of Tourism,
  364  Trade, and Economic Development shall withdraw the eligibility
  365  of a qualified or certified production that does not continue on
  366  a reasonable schedule.
  367         (d) Election and distribution of tax credits.
  368         1. A certified production company receiving a tax credit
  369  award under this section shall, at the time the credit is
  370  awarded by the Office of Tourism, Trade, and Economic
  371  Development after production is completed and all requirements
  372  to receive a credit award have been met, make an irrevocable
  373  election to apply the credit against taxes due under chapter
  374  220, against state taxes collected or accrued under chapter 212,
  375  or against a stated combination of the two taxes. The election
  376  is binding upon any distributee, successor, transferee, or
  377  purchaser. The Office of Tourism, Trade, and Economic
  378  Development shall notify the Department of Revenue of any
  379  election made pursuant to this paragraph.
  380         2. For the fiscal years beginning July 1, 2010, and ending
  381  June 30, 2015, a qualified production company is eligible for
  382  tax credits against its sales and use tax liabilities and
  383  corporate income tax liabilities as provided in this section.
  384  However, tax credits awarded under this section may not be
  385  claimed against sales and use tax liabilities or corporate
  386  income tax liabilities for any tax period beginning before July
  387  1, 2011, regardless of when the credits are applied for or
  388  awarded.
  389         (e) Tax credit carryforward.—If the certified production
  390  company cannot use the entire tax credit in the taxable year or
  391  reporting period in which the credit is awarded, any excess
  392  amount may be carried forward to a succeeding taxable year or
  393  reporting period. A tax credit applied against taxes imposed
  394  under chapter 212 may be carried forward for a maximum of 5
  395  years after the date the credit is awarded. A tax credit applied
  396  against taxes imposed under chapter 220 may be carried forward
  397  for a maximum of 5 years after the date the credit is awarded,
  398  after which the credit expires and may not be used.
  399         (f) Consolidated returns.—A certified production company
  400  that files a Florida consolidated return as a member of an
  401  affiliated group under s. 220.131(1) may be allowed the credit
  402  on a consolidated return basis up to the amount of the tax
  403  imposed upon the consolidated group under chapter 220.
  404         (g) Partnership and noncorporate distributions.—A qualified
  405  production company that is not a corporation as defined in s.
  406  220.03 may elect to distribute tax credits awarded under this
  407  section to its partners or members in proportion to their
  408  respective distributive income or loss in the taxable fiscal
  409  year in which the tax credits were awarded.
  410         (h) Mergers or acquisitions.—Tax credits available under
  411  this section to a certified production company may succeed to a
  412  surviving or acquiring entity subject to the same conditions and
  413  limitations as described in this section; however, they may not
  414  be transferred again by the surviving or acquiring entity.
  415         (5) TRANSFER OF TAX CREDITS.—
  416         (a) Authorization.—Upon application to the Office of Film
  417  and Entertainment and approval by the Office of Tourism, Trade,
  418  and Economic Development, a certified production company, or a
  419  partner or member that has received a distribution under
  420  paragraph (4)(g), may elect to transfer, in whole or in part,
  421  any unused credit amount granted under this section. An election
  422  to transfer any unused tax credit amount under chapter 212 or
  423  chapter 220 must be made no later than 5 years after the date
  424  the credit is awarded, after which period the credit expires and
  425  may not be used. The Office of Tourism, Trade, and Economic
  426  Development shall notify the Department of Revenue of the
  427  election and transfer.
  428         (b) Number of transfers permitted.—A certified production
  429  company that elects to apply a credit amount against taxes
  430  remitted under chapter 212 is permitted a one-time transfer of
  431  unused credits to one transferee. A certified production company
  432  that elects to apply a credit amount against taxes due under
  433  chapter 220 is permitted a one-time transfer of unused credits
  434  to no more than four transferees, and such transfers must occur
  435  in the same taxable year.
  436         (c) Transferee rights and limitations.—The transferee is
  437  subject to the same rights and limitations as the certified
  438  production company awarded the tax credit, except that the
  439  transferee may not sell or otherwise transfer the tax credit.
  440         (d) Rulemaking.—The Department of Revenue may adopt rules
  441  to administer this subsection, as provided in subsection (7).
  443         (a) The aggregate amount of the tax credits that may be
  444  certified pursuant to paragraph (3)(d) may not exceed $75
  445  million per fiscal year.
  446         (b) Any portion of the maximum amount of tax credits
  447  established per fiscal year in paragraph (a) that is not
  448  certified as of the end of a fiscal year shall be carried
  449  forward and made available for certification during the
  450  following two fiscal years in addition to the amounts available
  451  for certification under paragraph (a) for those fiscal years.
  452         (c) Upon approval of the final tax credit award amount
  453  pursuant to subparagraph (3)(f)2., an amount equal to the
  454  difference between the maximum tax credit award amount
  455  previously certified under paragraph (3)(d) and the approved
  456  final tax credit award amount shall immediately be available for
  457  recertification during the current and following fiscal years in
  458  addition to the amounts available for certification under
  459  paragraph (a) for those fiscal years.
  460         (d) Notwithstanding paragraph (a), if, during a fiscal
  461  year, the total amount of credits applied for, pursuant to
  462  paragraph (3)(a), exceeds the amount of credits available for
  463  certification in that fiscal year, such excess shall be treated
  464  as having been applied for on the first day of the next fiscal
  465  year in which credits remain available for certification.
  467         (a) The Office of Tourism, Trade, and Economic Development
  468  may adopt rules pursuant to ss. 120.536(1) and 120.54 and
  469  develop policies and procedures to implement and administer this
  470  section, including, but not limited to, rules specifying
  471  requirements for the application and approval process, records
  472  required for substantiation for tax credits, procedures for
  473  making the election in paragraph (4)(d), the manner and form of
  474  documentation required to claim tax credits awarded or
  475  transferred under this section, and marketing requirements for
  476  tax credit recipients.
  477         (b) The Department of Revenue may adopt rules pursuant to
  478  ss. 120.536(1) and 120.54 to administer this section, including
  479  rules governing the examination and audit procedures required to
  480  administer this section and the manner and form of documentation
  481  required to claim tax credits awarded or transferred under this
  482  section.
  485         (a) Audit authority.—The Department of Revenue may conduct
  486  examinations and audits as provided in s. 213.34 to verify that
  487  tax credits under this section are received, transferred, and
  488  applied according to the requirements of this section. If the
  489  Department of Revenue determines that tax credits are not
  490  received, transferred, or applied as required by this section,
  491  it may, in addition to the remedies provided in this subsection,
  492  pursue recovery of such funds pursuant to the laws and rules
  493  governing the assessment of taxes.
  494         (b) Revocation of tax credits.—The Office of Tourism,
  495  Trade, and Economic Development may revoke or modify any written
  496  decision qualifying, certifying, or otherwise granting
  497  eligibility for tax credits under this section if it is
  498  discovered that the tax credit applicant submitted any false
  499  statement, representation, or certification in any application,
  500  record, report, plan, or other document filed in an attempt to
  501  receive tax credits under this section. The Office of Tourism,
  502  Trade, and Economic Development shall immediately notify the
  503  Department of Revenue of any revoked or modified orders
  504  affecting previously granted tax credits. Additionally, the
  505  applicant must notify the Department of Revenue of any change in
  506  its tax credit claimed.
  507         (c) Forfeiture of tax credits.—A determination by the
  508  Department of Revenue, as a result of an audit pursuant to
  509  paragraph (a) or from information received from the Office of
  510  Film and Entertainment, that an applicant received tax credits
  511  pursuant to this section to which the applicant was not entitled
  512  is grounds for forfeiture of previously claimed and received tax
  513  credits. The applicant is responsible for returning forfeited
  514  tax credits to the Department of Revenue, and such funds shall
  515  be paid into the General Revenue Fund of the state. Tax credits
  516  purchased in good faith are not subject to forfeiture unless the
  517  transferee submitted fraudulent information in the purchase or
  518  failed to meet the requirements in subsection (5).
  519         (d) Fraudulent claims.—Any applicant that submits
  520  fraudulent information under this section is liable for
  521  reimbursement of the reasonable costs and fees associated with
  522  the review, processing, investigation, and prosecution of the
  523  fraudulent claim. An applicant that obtains a credit payment
  524  under this section through a claim that is fraudulent is liable
  525  for reimbursement of the credit amount plus a penalty in an
  526  amount double the credit amount. The penalty is in addition to
  527  any criminal penalty to which the applicant is liable for the
  528  same acts. The applicant is also liable for costs and fees
  529  incurred by the state in investigating and prosecuting the
  530  fraudulent claim.
  531         (9) ANNUAL REPORT.—Each October 1, the Office of Film and
  532  Entertainment shall provide an annual report for the previous
  533  fiscal year to the Governor, the President of the Senate, and
  534  the Speaker of the House of Representatives which outlines the
  535  return on investment and economic benefits to the state.
  536         (10) REPEAL.—This section is repealed July 1, 2015, except
  537  that:
  538         (a) Tax credits certified under paragraph (3)(d) before
  539  July 1, 2015, may be awarded under paragraph (3)(f) on or after
  540  July 1, 2015, if the other requirements of this section are met.
  541         (b) Tax credits carried forward under paragraph (4)(e)
  542  remain valid for the period specified.
  543         Section 2. Paragraph (q) is added to subsection (5) of
  544  section 212.08, Florida Statutes, to read:
  545         212.08 Sales, rental, use, consumption, distribution, and
  546  storage tax; specified exemptions.—The sale at retail, the
  547  rental, the use, the consumption, the distribution, and the
  548  storage to be used or consumed in this state of the following
  549  are hereby specifically exempt from the tax imposed by this
  550  chapter.
  551         (5) EXEMPTIONS; ACCOUNT OF USE.—
  552         (q) Entertainment industry tax credit; authorization;
  553  eligibility for credits.—The credits against sales tax
  554  authorized under s. 288.1254 shall be deducted from any sales
  555  and use tax remitted by the dealer to the department by
  556  electronic funds transfer and may only be deducted on a sales
  557  and use tax return initiated through electronic data
  558  interchange. The dealer shall separately state the credit on the
  559  electronic return. The net amount of tax due and payable must be
  560  remitted by electronic funds transfer. If the credit for the
  561  qualified expenditures is larger than the amount owed on the
  562  sales and use tax return that is eligible for the credit, the
  563  unused amount of the credit may be carried forward to a
  564  succeeding reporting period as provided in s. 288.1254(4)(e). A
  565  dealer may only obtain a credit using the method described in
  566  this subparagraph. A dealer is not authorized to obtain a credit
  567  by applying for a refund.
  568         Section 3. Paragraph (z) is added to subsection (8) of
  569  section 213.053, Florida Statutes, to read:
  570         213.053 Confidentiality and information sharing.—
  571         (8) Notwithstanding any other provision of this section,
  572  the department may provide:
  573         (z) Information relative to tax credits taken under s.
  574  288.1254 to the Office of Film and Entertainment and the Office
  575  of Tourism, Trade, and Economic Development.
  577  Disclosure of information under this subsection shall be
  578  pursuant to a written agreement between the executive director
  579  and the agency. Such agencies, governmental or nongovernmental,
  580  shall be bound by the same requirements of confidentiality as
  581  the Department of Revenue. Breach of confidentiality is a
  582  misdemeanor of the first degree, punishable as provided by s.
  583  775.082 or s. 775.083.
  584         Section 4. Subsection (8) of section 220.02, Florida
  585  Statutes, is amended to read:
  586         220.02 Legislative intent.—
  587         (8) It is the intent of the Legislature that credits
  588  against either the corporate income tax or the franchise tax be
  589  applied in the following order: those enumerated in s. 631.828,
  590  those enumerated in s. 220.191, those enumerated in s. 220.181,
  591  those enumerated in s. 220.183, those enumerated in s. 220.182,
  592  those enumerated in s. 220.1895, those enumerated in s. 221.02,
  593  those enumerated in s. 220.184, those enumerated in s. 220.186,
  594  those enumerated in s. 220.1845, those enumerated in s. 220.19,
  595  those enumerated in s. 220.185, those enumerated in s. 220.187,
  596  those enumerated in s. 220.192, those enumerated in s. 220.193,
  597  and those enumerated in s. 288.9916, and those enumerated in s.
  598  220.1899.
  599         Section 5. Section 220.1899, Florida Statutes, is created
  600  to read:
  601         220.1899 Entertainment industry tax credit.—
  602         (1) There shall be a credit allowed against the tax imposed
  603  by this chapter in the amounts awarded by the Office of Tourism,
  604  Trade, and Economic Development under the entertainment industry
  605  financial incentive program in s. 288.1254.
  606         (2) A qualified production company as defined in s.
  607  288.1254 that is awarded a tax credit under s. 288.1254 may not
  608  claim the credit before July 1, 2011, regardless of when the
  609  credit is awarded.
  610         (3) To the extent that the amount of a tax credit exceeds
  611  the amount due on a return, the balance of the credit may be
  612  carried forward to a succeeding reporting period pursuant to s.
  613  288.1254(4)(e).
  614         Section 6. The sums of $94,250 in recurring funds and
  615  $3,877 in nonrecurring funds are appropriated from the General
  616  Revenue Fund to the Office of Tourism, Trade, and Economic
  617  Development, and one additional full-time equivalent position
  618  and the associated salary rate of $67,001 is authorized, for the
  619  purpose of administering the entertainment industry financial
  620  incentive program pursuant to s. 288.1254, Florida Statutes,
  621  during the 2010-2011 fiscal year.
  622         Section 7. If any provision of this act or the application
  623  thereof to any person or circumstance is held invalid, the
  624  invalidity shall not affect other provisions or applications of
  625  the act which can be given effect without the invalid provision
  626  or application, and to this end the provisions of this act are
  627  severable.
  628         Section 8. This act shall take effect July 1, 2010.

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