Florida Senate - 2010 CS for SB 1856
By the Committees on Commerce; and Commerce
1 A bill to be entitled
2 An act relating to the qualified target industry tax
3 refund program; amending s. 288.106, F.S.; providing
4 legislative findings and declarations for the tax
5 refund program for qualified target industry
6 businesses; revising the definitions of terms
7 applicable to the program; establishing a schedule for
8 the Office of Tourism, Trade, and Economic Development
9 to review and revise the list of target industries and
10 submit a report to the Governor and Legislature;
11 revising the criteria for the Office of Tourism,
12 Trade, and Economic Development and Enterprise
13 Florida, Inc., to use in identifying target industry
14 businesses; conforming cross-references to changes
15 made by the act; requiring an application for
16 certification as a qualified target industry business
17 to include an estimate of the proportion of the
18 machinery, equipment, and other resources that will be
19 used in the applicant’s proposed operation in Florida
20 and purchased by the applicant outside the state;
21 requiring the Office of Tourism, Trade, and Economic
22 Development to consider the state’s return on
23 investment in evaluating applicants for the tax refund
24 program; requiring the Office of Economic and
25 Demographic Research to submit reports to the
26 Legislature evaluating the calculation of the state’s
27 return on investment for the program; requiring that
28 additional provisions be included in tax refund
29 agreements; redesignating the economic-stimulus
30 exemption as the “economic recovery extension”;
31 extending the date by which a qualified target
32 industry business may request an economic recovery
33 extension; authorizing the Office of Tourism, Trade,
34 and Economic Development to waive the requirement for
35 a business to annually provide proof of taxes paid if
36 the business provides proof that it has paid certain
37 taxes in amounts at least equal to the total amount of
38 refunds for which the business is eligible; requiring
39 the Office of Tourism, Trade, and Economic Development
40 to conduct a review of certain qualified target
41 industry businesses that have failed to complete their
42 tax refund agreements and submit a report of its
43 findings and recommendations to the Governor, the
44 President of the Senate, and the Speaker of the House
45 of Representatives; extending the date by which
46 businesses may apply to participate in the tax refund
47 program for qualified target industry businesses;
48 amending ss. 288.107 and 290.00677, F.S.; conforming
49 cross-references to changes made by the act; providing
50 an effective date.
52 Be It Enacted by the Legislature of the State of Florida:
54 Section 1. Section 288.106, Florida Statutes, is amended,
55 and subsection (2) of that section is reordered, to read:
56 288.106 Tax refund program for qualified target industry
58 (1) LEGISLATIVE FINDINGS AND DECLARATIONS.—The Legislature
59 finds that retaining and expanding existing businesses in
60 Florida, encouraging the creation of new businesses in Florida,
61 attracting new businesses from out of state, and generally
62 providing conditions favorable for the growth of target
63 industries creates high-quality, high-wage employment
64 opportunities for the residents of this state and strengthens
65 Florida’s economic foundation. The Legislature also finds that
66 incentives that are narrowly focused in application and scope
67 tend to be more effective at achieving the state’s economic
68 development goals. Further, the Legislature finds that higher
69 wage jobs reduce the state’s share of hidden costs such as
70 public assistance and subsidized health care associated with
71 low-wage jobs. Therefore, the Legislature declares that it is
72 the policy of this state to encourage the growth of higher-wage
73 jobs and a diverse economic base by providing state tax refunds
74 to qualified target industry businesses that originate or expand
75 in this state or that relocate to this state.
(1) DEFINITIONS.—As used in this section:
77 (a) “Account” means the Economic Development Incentives
78 Account within the Economic Development Trust Fund established
79 under s. 288.095.
80 (c) (b) “Average private sector wage in the area” means the
81 statewide private sector average wage or the average of all
82 private sector wages and salaries in the county or in the
83 standard metropolitan area in which the business is located.
84 (d) (c) “Business” means an employing unit, as defined in s.
85 443.036, which is registered for unemployment compensation
86 purposes with the state agency providing unemployment tax
87 collection services under contract with the Agency for Workforce
88 Innovation through an interagency agreement pursuant to s.
89 443.1316, or a subcategory or division of an employing unit
90 which is accepted by the state agency providing unemployment tax
91 collection services as a reporting unit.
92 (e) (d) “Corporate headquarters business” means an
93 international, national, or regional headquarters office of a
94 multinational or multistate business enterprise or national
95 trade association, whether separate from or connected with other
96 facilities used by such business.
97 (n) (e) “Office” means the Office of Tourism, Trade, and
98 Economic Development.
99 (g) (f) “Enterprise zone” means an area designated as an
100 enterprise zone pursuant to s. 290.0065.
101 (h) (g) “Expansion of an existing business” means the
102 expansion of an existing Florida business by or through
103 additions to real and personal property, resulting in a net
104 increase in employment of not less than 10 percent at such
106 (i) (h) “Fiscal year” means the fiscal year of the state.
107 (j) (i) “Jobs” means full-time equivalent positions,
108 including, not limited to, positions obtained from a temporary
109 employment agency or employee leasing company or through a union
110 agreement or co-employment under a professional employer
111 organization agreement, which result as that term is consistent
112 with terms used by the Agency for Workforce Innovation and the
113 United States Department of Labor for purposes of unemployment
114 compensation tax administration and employment estimation,
115 resulting directly from a project in this state. The term does
116 not include temporary construction jobs involved with the
117 construction of facilities for the project or any jobs
118 previously included in any application for tax refunds under s.
119 288.1045 or this section.
120 (k) (j) “Local financial support” means funding from local
121 sources, public or private, which is paid to the Economic
122 Development Trust Fund and which is equal to 20 percent of the
123 annual tax refund for a qualified target industry business. A
124 qualified target industry business may not provide, directly or
125 indirectly, more than 5 percent of such funding in any fiscal
126 year. The sources of such funding may not include, directly or
127 indirectly, state funds appropriated from the General Revenue
128 Fund or any state trust fund, excluding tax revenues shared with
129 local governments pursuant to law.
130 (l) (k) “Local financial support exemption option” means the
131 option to exercise an exemption from the local financial support
132 requirement available to any applicant whose project is located
133 in a brownfield area or a rural community county with a
134 population of 75,000 or fewer or a county with a population of
135 125,000 or fewer which is contiguous to a county with a
136 population of 75,000 or fewer. Any applicant that exercises this
137 option is shall not be eligible for more than 80 percent of the
138 total tax refunds allowed such applicant under this section.
139 (m) (l) “New business” means a business that applies for the
140 qualified target industry refund program before beginning
141 operations which heretofore did not exist in this state , first
142 beginning operations on a site located in this state and is a
143 clearly separate legal entity from any other commercial or
144 industrial operations owned by the same business.
145 (o) (m) “Project” means the creation of a new business or
146 expansion of an existing business.
147 (f) (n) “Director” means the Director of the Office of
148 Tourism, Trade, and Economic Development.
149 (t) (o) “Target industry business” means a corporate
150 headquarters business or any business that is engaged in one of
151 the target industries identified pursuant to the following
152 criteria developed by the office in consultation with Enterprise
153 Florida, Inc.:
154 1. Future growth.—Industry forecasts should indicate strong
155 expectation for future growth in both employment and output,
156 according to the most recent available data. Preference Special
157 consideration should be given to businesses that export goods or
158 services Florida’s growing access to international markets or to
159 businesses that replace domestic and international replacing
160 imports of goods or services.
161 2. Stability.—The industry should not be subject to
162 periodic layoffs, whether due to seasonality or sensitivity to
163 volatile economic variables such as weather. The industry should
164 also be relatively resistant to recession, so that the demand
165 for products of this industry is not typically necessarily
166 subject to decline during an economic downturn.
167 3. High wage.—The industry should pay relatively high wages
168 compared to statewide or area averages.
169 4. Market and resource independent.—The location of
170 industry businesses should not be dependent on Florida markets
171 or resources as indicated by industry analysis, with the
172 exception of businesses in the renewable-energy industry.
173 Special consideration should be given to the development of
174 strong industrial clusters which include defense and homeland
175 security businesses.
176 5. Industrial base diversification and strengthening.—The
177 industry should contribute toward expanding or diversifying the
178 state’s or area’s economic base, as indicated by analysis of
179 employment and output shares compared to national and regional
180 trends. Preference Special consideration should be given to
181 industries that strengthen regional economies by adding value to
182 basic products or building regional industrial clusters as
183 indicated by industry analysis. Additionally, preference should
184 be given to the development of strong industrial clusters that
185 include defense and homeland security businesses.
186 6. Economic benefits.—The industry is expected to should
187 have strong positive impacts on or benefits to the state or and
188 regional economies.
190 The term does office, in consultation with Enterprise Florida,
191 Inc., shall develop a list of such target industries annually
192 and submit such list as part of the final agency legislative
193 budget request submitted pursuant to s. 216.023 (1). A target
194 industry business may not include any business industry engaged
195 in retail industry activities; any electrical utility company;
196 any phosphate or other solid minerals severance, mining, or
197 processing operation; any oil or gas exploration or production
198 operation; or any business firm subject to regulation by the
199 Division of Hotels and Restaurants of the Department of Business
200 and Professional Regulation. By January 1 of every third year,
201 beginning January 1, 2011, the office, in consultation with
202 Enterprise Florida, Inc., economic development organizations,
203 the State University System, local governments, employee and
204 employer organizations, market analysts, and economists, shall
205 review and, as appropriate, revise the list of such target
206 industries and submit the list to the Governor, the President of
207 the Senate, and the Speaker of the House of Representatives.
208 (u) (p) “Taxable year” means taxable year as defined in s.
210 (p) (q) “Qualified target industry business” means a target
211 industry business that has been approved by the director to be
212 eligible for tax refunds pursuant to this section.
213 (q) “Return on investment” means the gain in state revenues
214 as a percentage of the state’s investment. The state’s
215 investment includes state grants, tax exemptions, tax refunds,
216 tax credits, and other state incentives. Return on investment is
217 expressed mathematically as follows:
219 Return on investment = (gain in state revenues - state’s
220 investment)/state’s investment
222 (r) “Rural county” means a county with a population of
223 75,000 or fewer or a county with a population of 100,000 or
224 fewer which is contiguous to a county with a population of
225 75,000 or fewer.
226 (r) (s) “Rural city” means a city having with a population
227 of 10,000 or fewer less, or a city having with a population of
228 greater than 10,000 but fewer less than 20,000 which has been
229 determined by the office of Tourism, Trade, and Economic
230 Development to have economic characteristics such as, but not
231 limited to, a significant percentage of residents on public
232 assistance, a significant percentage of residents with income
233 below the poverty level, or a significant percentage of the
234 city’s employment base in agriculture-related industries.
235 (s) (t) “Rural community” means:
236 1. A county having with a population of 75,000 or fewer.
237 2. A county having with a population of 125,000 or fewer
238 which is contiguous to a county having with a population of
239 75,000 or fewer.
240 3. A municipality within a county described in subparagraph
241 1. or subparagraph 2.
243 For purposes of this paragraph, population shall be determined
244 in accordance with the most recent official estimate pursuant to
245 s. 186.901.
246 (b) (u) “Authorized local economic development agency” means
247 a any public or private entity, including those defined in s.
248 288.075, authorized by a county or municipality to promote the
249 general business or industrial interests of that county or
251 (3) (2) TAX REFUND; ELIGIBLE AMOUNTS.—
252 (a) There shall be allowed, from the account, a refund to a
253 qualified target industry business for the amount of eligible
254 taxes certified by the director which were paid by the such
255 business. The total amount of refunds for all fiscal years for
256 each qualified target industry business must be determined
257 pursuant to subsection (4) (3). The annual amount of a refund to
258 a qualified target industry business must be determined pursuant
259 to subsection (6) (5).
260 (b)1. Upon approval by the director, a qualified target
261 industry business shall be allowed tax refund payments equal to
262 $3,000 times the number of jobs specified in the tax refund
263 agreement under subparagraph (5)(a)1. (4)(a)1., or equal to
264 $6,000 times the number of jobs if the project is located in a
265 rural county or an enterprise zone.
266 2. Further, A qualified target industry business shall be
267 allowed additional tax refund payments equal to $1,000 times the
268 number of jobs specified in the tax refund agreement under
269 subparagraph (5)(a)1. (4)(a)1. , if such jobs pay an annual
270 average wage of at least 150 percent of the average area private
271 sector wage in the area, or equal to $2,000 times the number of
272 jobs if such jobs pay an annual average area wage of at least
273 200 percent of the average area private sector wage in the area.
274 (c) A qualified target industry business may not receive
275 refund payments of more than 25 percent of the total tax refunds
276 specified in the tax refund agreement under subparagraph
277 (5)(a)1. (4)(a)1. in any fiscal year. Further, a qualified
278 target industry business may not receive more than $1.5 million
279 in refunds under this section in any single fiscal year, or more
280 than $2.5 million in any single fiscal year if the project is
281 located in an enterprise zone. A qualified target industry
282 business may not receive more than $5 million in refund payments
283 under this section in all fiscal years, or more than $7.5
284 million if the project is located in an enterprise zone. Funds
285 made available pursuant to this section may not be expended in
286 connection with the relocation of a business from one community
287 to another community in this state unless the Office of Tourism,
288 Trade, and Economic Development determines that without such
289 relocation the business will move outside this state or
290 determines that the business has a compelling economic rationale
291 for the relocation and that the relocation will create
292 additional jobs.
293 (d) (c) After entering into a tax refund agreement under
294 subsection (5) (4), a qualified target industry business may:
295 1. Receive refunds from the account for the following taxes
296 due and paid by that business beginning with the first taxable
297 year of the business which begins after entering into the
299 a. Corporate income taxes under chapter 220.
300 b. Insurance premium tax under s. 624.509.
301 2. Receive refunds from the account for the following taxes
302 due and paid by that business after entering into the agreement:
303 a. Taxes on sales, use, and other transactions under
304 chapter 212.
305 b. Intangible personal property taxes under chapter 199.
306 c. Emergency excise taxes under chapter 221.
307 d. Excise taxes on documents under chapter 201.
308 e. Ad valorem taxes paid, as defined in s. 220.03(1).
309 f. State communications services taxes administered under
310 chapter 202. This provision does not apply to the gross receipts
311 tax imposed under chapter 203 and administered under chapter 202
312 or the local communications services tax authorized under s.
315 The addition of state communications services taxes administered
316 under chapter 202 is remedial in nature and retroactive to
317 October 1, 2001. The office may make supplemental tax refund
318 payments to allow for tax refunds for communications services
319 taxes paid by an eligible qualified target industry business
320 after October 1, 2001.
321 (e) (d) However, a qualified target industry business may
322 not receive a refund under this section for any amount of
323 credit, refund, or exemption granted to that business for any of
324 the such taxes listed in paragraph (d). If a refund for such
325 taxes is provided by the office, which taxes are subsequently
326 adjusted by the application of any credit, refund, or exemption
327 granted to the qualified target industry business other than as
328 provided in this section, the business shall reimburse the
329 account for the amount of that credit, refund, or exemption. A
330 qualified target industry business shall notify and tender
331 payment to the office within 20 days after receiving any credit,
332 refund, or exemption other than one provided in this section.
333 (f) Refunds made available pursuant to this section may not
334 be expended in connection with the relocation of a business from
335 one community to another community in this state unless the
336 office determines that without such relocation the business will
337 move outside this state, or determines that the business has a
338 compelling economic rationale for the relocation and that the
339 relocation will create additional jobs.
340 (g) (e) A qualified target industry business that
341 fraudulently claims a refund under this section:
342 1. Is liable for repayment of the amount of the refund to
343 the account, plus a mandatory penalty in the amount of 200
344 percent of the tax refund which shall be deposited into the
345 General Revenue Fund.
346 2. Commits Is guilty of a felony of the third degree,
347 punishable as provided in s. 775.082, s. 775.083, or s. 775.084.
348 (4) (3) APPLICATION AND APPROVAL PROCESS.—
349 (a) To apply for certification as a qualified target
350 industry business under this section, the business must file an
351 application with the office before the business decides has made
352 the decision to locate a new business in this state or before
353 the business decides had made the decision to expand its an
354 existing operations business in this state. The application must
355 shall include, but need is not be limited to , the following
357 1. The applicant’s federal employer identification number
358 and, if applicable, the applicant’s state sales tax registration
360 2. The proposed permanent location of the applicant’s
361 facility in this state at which the project is or is to be
363 3. A description of the type of business activity or
364 product covered by the project, including a minimum of a five
365 digit NAICS code for all activities included in the project. As
366 used in this paragraph, “NAICS” means those classifications
367 contained in the North American Industry Classification System,
368 as published in 2007 by the Office of Management and Budget,
369 Executive Office of the President, and updated periodically.
370 4. The proposed number of net new full-time equivalent
371 Florida jobs at the qualified target industry business as of
372 December 31 of each year included in the project and the average
373 wage of those jobs. If more than one type of business activity
374 or product is included in the project, the number of jobs and
375 average wage for those jobs must be separately stated for each
376 type of business activity or product.
377 5. The total number of full-time equivalent employees
378 employed by the applicant in this state, if applicable.
379 6. The anticipated commencement date of the project.
380 7. A brief statement explaining concerning the role that
381 the estimated tax refunds to be requested will play in the
382 decision of the applicant to locate or expand in this state.
383 8. An estimate of the proportion of the sales resulting
384 from the project that will be made outside this state.
385 9. An estimate of the proportion of the cost of the
386 machinery and equipment, and any other resources necessary in
387 the development of its product or service, which is to be used
388 by the business in its Florida operations and which will be
389 purchased outside this state.
390 10. 9. A resolution adopted by the governing board of the
391 county or municipality in which the project will be located,
392 which resolution recommends that the project certain types of
393 businesses be approved as a qualified target industry business
394 and specifies states that the commitments of local financial
395 support necessary for the target industry business exist. In
396 advance of the passage of such resolution, the office may also
397 accept an official letter from an authorized local economic
398 development agency that endorses the proposed target industry
399 project and pledges that sources of local financial support for
400 such project exist. For the purposes of making pledges of local
401 financial support under this subsection, the authorized local
402 economic development agency shall be officially designated by
403 the passage of a one-time resolution by the local governing
405 11. 10 . Any additional information requested by the office.
406 (b) To qualify for review by the office, the application of
407 a target industry business must, at a minimum, establish the
408 following to the satisfaction of the office:
409 1.a. The jobs proposed to be created provided under the
410 application, pursuant to subparagraph (a)4., must pay an
411 estimated annual average wage equaling at least 115 percent of
412 the average private sector wage in the area where the business
413 is to be located or the statewide private sector average wage.
414 In determining the average annual wage, the office shall include
415 only new proposed jobs, and wages for existing jobs shall be
416 excluded from this calculation.
417 b. The office may waive the average wage requirement at the
418 request of the local governing body recommending the project and
419 Enterprise Florida, Inc. The director may waive the wage
420 requirement may only be waived for a project located in a
421 brownfield area designated under s. 376.80 or in a rural city,
422 rural community, or county, or in an enterprise zone and only if
423 when the merits of the individual project or the specific
424 circumstances in the community in relationship to the project
425 warrant such action. If the local governing body and Enterprise
426 Florida, Inc., make such a recommendation, it must be
427 transmitted in writing and the specific justification for the
428 waiver recommendation must be explained. If the director elects
429 to waive the wage requirement, the waiver must be stated in
430 writing and the reasons for granting the waiver must be
432 2. The target industry business’s project must result in
433 the creation of at least 10 jobs at the such project and, if an
434 expansion of an existing business, must result in an a net
435 increase in employment of at least 10 percent at the business.
436 Notwithstanding the definition of the term “expansion of an
437 existing business” in paragraph (1)(g), At the request of the
438 local governing body recommending the project and Enterprise
439 Florida, Inc., the office may waive this requirement for a
440 business in a rural community or enterprise zone define an
441 “expansion of an existing business” in a rural community or an
442 enterprise zone as the expansion of a business resulting in a
443 net increase in employment of less than 10 percent at such
444 business if the merits of the individual project or the specific
445 circumstances in the community in relationship to the project
446 warrant such action. If the local governing body and Enterprise
447 Florida, Inc., make such a request, the request must be
448 transmitted in writing and the specific justification for the
449 request must be explained. If the director elects to grant the
450 request, the grant must be stated in writing and the reason for
451 granting the request must be explained.
452 3. The business activity or product for the applicant’s
453 project is within an industry or industries that have been
454 identified by the office as a target industry business to be
455 high-value-added industries that contributes contribute to the
456 area and to the economic growth of the state and the region in
457 which it is located, that produces produce a higher standard of
458 living for residents of this state in the new global economy, or
459 that can be shown to make an equivalent contribution to the area
460 and state’s economic progress. The director must approve
461 requests to waive the wage requirement for brownfield areas
462 designated under s. 376.80 unless it is demonstrated that such
463 action is not in the public interest.
464 (c) Each application meeting the requirements of paragraph
465 (b) must be submitted to the office for determination of
466 eligibility. The office shall review and evaluate each
467 application based on, but not limited to, the following
469 1. Expected contributions to the state economy, consistent
470 with the state strategic economic development plan adopted by
471 Enterprise Florida, Inc. , taking into account the long-term
472 effects of the project and of the applicant on the state
474 2. The return on investment of the proposed award of tax
475 refunds under this section and the return on investment for
476 state incentives proposed for the project. The Office of
477 Economic and Demographic Research shall review and evaluate the
478 methodology and model used to calculate the return on investment
479 and report its findings by September 1 of every third year,
480 beginning September 1, 2010, to the President of the Senate and
481 the Speaker of the House of Representatives economic benefit of
482 the jobs created by the project in this state, taking into
483 account the cost and average wage of each job created.
484 3. The amount of capital investment to be made by the
485 applicant in this state.
486 4. The local financial commitment and support for the
488 5. The effect of the project on the unemployment rate in
489 local community, taking into account the unemployment rate for
490 the county where the project will be located.
491 6. The effect of the award any tax refunds granted pursuant
492 to this section on the viability of the project and the
493 probability that the project would will be undertaken in this
494 state if such tax refunds are granted to the applicant , taking
495 into account the expected long-term commitment of the applicant
496 to economic growth and employment in this state.
497 7. The expected long-term commitment of the applicant to
498 economic growth and employment to this state resulting from the
500 8. A review of the business’s past activities in this state
501 or other states, including whether such business has been
502 subjected to criminal or civil fines and penalties. This
503 subparagraph does not require the disclosure of confidential
505 (d) Applications shall be reviewed and certified pursuant
506 to s. 288.061. The office shall include in its review
507 projections of the tax refunds the business would be eligible to
508 receive in each fiscal year based on the creation and
509 maintenance of the net new Florida jobs specified in
510 subparagraph (a)4. as of December 31 of the preceding state
511 fiscal year. If appropriate, the director shall enter into a
512 written agreement with the qualified target industry business
513 pursuant to subsection (5) (4).
514 (e) The director may not certify any target industry
515 business as a qualified target industry business if the value of
516 tax refunds to be included in that letter of certification
517 exceeds the available amount of authority to certify new
518 businesses as determined in s. 288.095(3). However, if the
519 commitments of local financial support represent less than 20
520 percent of the eligible tax refund payments, or to otherwise
521 preserve the viability and fiscal integrity of the program, the
522 director may certify a qualified target industry business to
523 receive tax refund payments of less than the allowable amounts
524 specified in paragraph (3)(b) (2)(b). A letter of certification
525 that approves an application must specify the maximum amount of
526 tax refund that will be available to the qualified industry
527 business in each fiscal year and the total amount of tax refunds
528 that will be available to the business for all fiscal years.
529 (f) This section does not create a presumption that an
530 applicant shall receive any tax refunds under this section.
531 However, the office may issue nonbinding opinion letters, upon
532 the request of prospective applicants, as to the applicants’
533 eligibility and the potential amount of refunds.
534 (5) (4) TAX REFUND AGREEMENT.—
535 (a) Each qualified target industry business must enter into
536 a written agreement with the office which specifies, at a
538 1. The total number of full-time equivalent jobs in this
539 state that will be dedicated to the project, the average wage of
540 those jobs, the definitions that will apply for measuring the
541 achievement of these terms during the pendency of the agreement,
542 and a time schedule or plan for when such jobs will be in place
543 and active in this state.
544 2. The maximum amount of tax refunds which the qualified
545 target industry business is eligible to receive on the project
546 and the maximum amount of a tax refund that the qualified target
547 industry business is eligible to receive for each fiscal year,
548 based on the job creation and maintenance schedule specified in
549 subparagraph 1.
550 3. That the office may review and verify the financial and
551 personnel records of the qualified target industry business to
552 ascertain whether that business is in compliance with this
554 4. The date by which, in each fiscal year, the qualified
555 target industry business may file a claim under subsection (6)
556 (5) to be considered to receive a tax refund in the following
557 fiscal year.
558 5. That local financial support will be annually available
559 and will be paid to the account. The office director may not
560 enter into a written agreement with a qualified target industry
561 business if the local financial support resolution is not passed
562 by the local governing body authority within 90 days after the
563 office he or she has issued the letter of certification under
564 subsection (4) (3).
565 6. That the office may conduct a review of the business to
566 evaluate whether the business is continuing to contribute to the
567 area’s or state’s economy.
568 7. That in the event the business does not complete the
569 agreement, the business shall provide the office with the
570 reasons the business was unable to complete the agreement.
571 (b) Compliance with the terms and conditions of the
572 agreement is a condition precedent for the receipt of a tax
573 refund each year. The failure to comply with the terms and
574 conditions of the tax refund agreement results in the loss of
575 eligibility for receipt of all tax refunds previously authorized
576 under this section and the revocation by the director of the
577 certification of the business entity as a qualified target
578 industry business, unless the business is eligible to receive
579 and elects to accept a prorated refund under paragraph (6)(e)
580 (5)(d) or the office grants the business an economic recovery
581 extension economic-stimulus exemption.
582 1. A qualified target industry business may submit , in
583 writing, a request to the office for an economic recovery
584 extension economic-stimulus exemption. The request must provide
585 quantitative evidence demonstrating how negative economic
586 conditions in the business’s industry, the effects of the impact
587 of a named hurricane or tropical storm, or specific acts of
588 terrorism affecting the qualified target industry business have
589 prevented the business from complying with the terms and
590 conditions of its tax refund agreement.
591 2. Upon receipt of a request under subparagraph 1., the
592 director has shall have 45 days to notify the requesting
593 business, in writing, if its extension exemption has been
594 granted or denied. In determining if an extension exemption
595 should be granted, the director shall consider the extent to
596 which negative economic conditions in the requesting business’s
597 industry have occurred in the state or the effects of the impact
598 of a named hurricane or tropical storm or specific acts of
599 terrorism affecting the qualified target industry business have
600 prevented the business from complying with the terms and
601 conditions of its tax refund agreement. The office shall
602 consider current employment statistics for this state by
603 industry, including whether the business’s industry had
604 substantial job loss during the prior year, when determining
605 whether an extension exemption shall be granted.
606 3. As a condition for receiving a prorated refund under
607 paragraph (6)(e) (5)(d) or an economic recovery extension
608 economic-stimulus exemption under this paragraph, a qualified
609 target industry business must agree to renegotiate its tax
610 refund agreement with the office to, at a minimum, ensure that
611 the terms of the agreement comply with current law and office
612 procedures governing application for and award of tax refunds.
613 Upon approving the award of a prorated refund or granting an
614 economic recovery extension economic-stimulus exemption, the
615 office shall renegotiate the tax refund agreement with the
616 business as required by this subparagraph. When amending the
617 agreement of a business receiving an economic recovery extension
618 economic-stimulus exemption, the office may extend the duration
619 of the agreement for a period not to exceed 2 years.
620 4. A qualified target industry business may submit a
621 request for an economic recovery extension economic-stimulus
622 exemption to the office in lieu of any tax refund claim
623 scheduled to be submitted after January 1, 2009, but before July
624 1, 2012 2011.
625 5. A qualified target industry business that receives an
626 economic recovery extension economic-stimulus exemption may not
627 receive a tax refund for the period covered by the exemption.
628 (c) The agreement must be signed by the director and by an
629 authorized officer of the qualified target industry business
630 within 120 days after the issuance of the letter of
631 certification under subsection (4) (3), but not before passage
632 and receipt of the resolution of local financial support. The
633 office may grant an extension of this period at the written
634 request of the qualified target industry business.
635 (d) The agreement must contain the following legend,
636 clearly printed on its face in bold type of not less than 10
637 points in size: “This agreement is neither a general obligation
638 of the State of Florida, nor is it backed by the full faith and
639 credit of the State of Florida. Payment of tax refunds is are
640 conditioned on and subject to specific annual appropriations by
641 the Florida Legislature of moneys sufficient to pay amounts
642 authorized in section 288.106, Florida Statutes.”
643 (6) (5) ANNUAL CLAIM FOR REFUND.—
644 (a) To be eligible to claim any scheduled tax refund, a
645 qualified target industry business that has entered into a tax
646 refund agreement with the office under subsection (5) (4) must
647 apply by January 31 of each fiscal year to the office for the
648 tax refund scheduled to be paid from the appropriation for the
649 fiscal year that begins on July 1 following the January 31
650 claims-submission date. The office may, upon written request,
651 grant a 30-day extension of the filing date.
652 (b) The claim for refund by the qualified target industry
653 business must include a copy of all receipts pertaining to the
654 payment of taxes for which the refund is sought and data related
655 to achievement of each performance item specified in the tax
656 refund agreement. The amount requested as a tax refund may not
657 exceed the amount specified for the relevant fiscal year in that
659 (c) If the qualified target industry business provides the
660 office with proof that in a single year it has paid an amount of
661 state taxes, from the categories in paragraph (3)(d), which is
662 at least equal to the total amount of tax refunds it may receive
663 through successful completion of its qualified target industry
664 agreement, the office may waive the requirement for proof of
665 taxes paid in future years.
666 (d) (c) A tax refund may not be approved for a qualified
667 target industry business unless the required local financial
668 support has been paid into the account for that refund. If the
669 local financial support provided is less than 20 percent of the
670 approved tax refund, the tax refund must be reduced. In no event
671 may the tax refund exceed an amount that is equal to 5 times the
672 amount of the local financial support received. Further, funding
673 from local sources includes any tax abatement granted to that
674 business under s. 196.1995 or the appraised market value of
675 municipal or county land conveyed or provided at a discount to
676 that business. The amount of any tax refund for such business
677 approved under this section must be reduced by the amount of any
678 such tax abatement granted or the value of the land granted; and
679 the limitations in subsection (3) (2) and paragraph (4)(e)
680 (3)(e) must be reduced by the amount of any such tax abatement
681 or the value of the land granted. A report listing all sources
682 of the local financial support shall be provided to the office
683 when such support is paid to the account.
684 (e) (d) A prorated tax refund, less a 5 percent 5-percent
685 penalty, shall be approved for a qualified target industry
686 business if provided all other applicable requirements have been
687 satisfied and the business proves to the satisfaction of the
688 director that:
689 1. It has achieved at least 80 percent of its projected
690 employment; and that
691 2. The average wage paid by the business is at least 90
692 percent of the average wage specified in the tax refund
693 agreement, but in no case less than 115 percent of the average
694 private sector wage in the area available at the time of
695 certification, or 150 percent or 200 percent of the average
696 private sector wage if the business requested the additional
697 per-job tax refund authorized in paragraph (3)(b) (2)(b) for
698 wages above those levels.
700 The prorated tax refund shall be calculated by multiplying the
701 tax refund amount for which the qualified target industry
702 business would have been eligible, if all applicable
703 requirements had been satisfied, by the percentage of the
704 average employment specified in the tax refund agreement which
705 was achieved, and by the percentage of the average wages
706 specified in the tax refund agreement which was achieved.
707 (f) (e) The director, with such assistance as may be
708 required from the office, the Department of Revenue, or the
709 Agency for Workforce Innovation, shall, by June 30 following the
710 scheduled date for submission of the tax refund claim, specify
711 by written order the approval or disapproval of the tax refund
712 claim and, if approved, the amount of the tax refund that is
713 authorized to be paid to the qualified target industry business
714 for the annual tax refund. The office may grant an extension of
715 this date on the request of the qualified target industry
716 business for the purpose of filing additional information in
717 support of the claim.
718 (g) (f) The total amount of tax refund claims approved by
719 the director under this section in any fiscal year must not
720 exceed the amount authorized under s. 288.095(3).
721 (h) (g) This section does not create a presumption that a
722 tax refund claim will be approved and paid.
723 (i) (h) Upon approval of the tax refund under paragraphs
724 (c), (d), and (e), and (f), the Chief Financial Officer shall
725 issue a warrant for the amount specified in the written order.
726 If the written order is appealed, the Chief Financial Officer
727 may not issue a warrant for a refund to the qualified target
728 industry business until the conclusion of all appeals of that
730 (7) (6) ADMINISTRATION.—
731 (a) The office may is authorized to verify information
732 provided in any claim submitted for tax credits under this
733 section with regard to employment and wage levels or the payment
734 of the taxes to the appropriate agency or authority, including
735 the Department of Revenue, the Agency for Workforce Innovation,
736 or any local government or authority.
737 (b) To facilitate the process of monitoring and auditing
738 applications made under this program, the office may provide a
739 list of qualified target industry businesses to the Department
740 of Revenue, to the Agency for Workforce Innovation, or to any
741 local government or authority. The office may request the
742 assistance of those entities with respect to monitoring jobs,
743 wages, and the payment of the taxes listed in subsection (3)
745 (c) Funds specifically appropriated for the tax refund
746 program for qualified target industry businesses may not be used
747 by the office for any purpose other than the payment of tax
748 refunds authorized by this section.
749 (d) Beginning with tax refund agreements signed after July
750 1, 2010, the office shall attempt to ascertain the causes for
751 any business’s failure to complete its agreement and shall
752 report its findings and recommendations to the Governor, the
753 President of the Senate, and the Speaker of the House of
754 Representatives. The report shall be submitted by December 1 of
755 each year beginning in 2011.
756 (7) Notwithstanding paragraphs (4)(a) and (5)(c), the
757 office may approve a waiver of the local financial support
758 requirement for a business located in any of the following
759 counties in which businesses received emergency loans
760 administered by the office in response to the named hurricanes
761 of 2004: Bay, Brevard, Charlotte, DeSoto, Escambia, Flagler,
762 Glades, Hardee, Hendry, Highlands, Indian River, Lake, Lee,
763 Martin, Okaloosa, Okeechobee, Orange, Osceola, Palm Beach, Polk,
764 Putnam, Santa Rosa, Seminole, St. Lucie, Volusia, and Walton. A
765 waiver may be granted only if the office determines that the
766 local financial support cannot be provided or that doing so
767 would effect a demonstrable hardship on the unit of local
768 government providing the local financial support. If the office
769 grants a waiver of the local financial support requirement, the
770 state shall pay 100 percent of the refund due to an eligible
771 business. The waiver shall apply for tax refund applications
772 made for fiscal years 2004-2005, 2005-2006, and 2006-2007.
773 (8) EXPIRATION.—An applicant may not be certified as
774 qualified under this section after June 30, 2015 2010. A tax
775 refund agreement existing on that date shall continue in effect
776 in accordance with its terms.
777 Section 2. Paragraph (e) of subsection (1), subsection (2),
778 paragraphs (a) and (d) of subsection (4), and paragraph (b) of
779 subsection (5) of section 288.107, Florida Statutes, are amended
780 to read:
781 288.107 Brownfield redevelopment bonus refunds.—
782 (1) DEFINITIONS.—As used in this section:
783 (e) “Eligible business” means:
784 1. A qualified target industry business as defined in s.
785 288.106(2) s. 288.106 (1)(o); or
786 2. A business that can demonstrate a fixed capital
787 investment of at least $2 million in mixed-use business
788 activities, including multiunit housing, commercial, retail, and
789 industrial in brownfield areas, or at least $500,000 in
790 brownfield areas that do not require site cleanup, and which
791 provides benefits to its employees.
792 (2) BROWNFIELD REDEVELOPMENT BONUS REFUND.—Bonus refunds
793 shall be approved by the office as specified in the final order
794 issued by the director and allowed from the account as follows:
795 (a) A bonus refund of $2,500 shall be allowed to any
796 qualified target industry business as defined by s. 288.106 for
797 each new Florida job created in a brownfield area which is
798 claimed on the qualified target industry business’s annual
799 refund claim authorized in s. 288.106(6) s. 288.106 (5).
800 (b) A bonus refund of up to $2,500 shall be allowed to any
801 other eligible business as defined in subparagraph (1)(e)2. for
802 each new Florida job created in a brownfield which is claimed
803 under an annual claim procedure similar to the annual refund
804 claim authorized in s. 288.106(6) s. 288.106 (5). The amount of
805 the refund shall be equal to 20 percent of the average annual
806 wage for the jobs created.
807 (4) PAYMENT OF BROWNFIELD REDEVELOPMENT BONUS REFUNDS.—
808 (a) To be eligible to receive a bonus refund for new
809 Florida jobs created in a brownfield, a business must have been
810 certified as a qualified target industry business under s.
811 288.106 or eligible business as defined in paragraph (1)(e) and
812 must have indicated on the qualified target industry tax refund
813 application form submitted in accordance with s. 288.106(4) s.
814 288.106 (3) or other similar agreement for other eligible
815 business as defined in paragraph (1)(e) that the project for
816 which the application is submitted is or will be located in a
817 brownfield and that the business is applying for certification
818 as a qualified brownfield business under this section, and must
819 have signed a qualified target industry tax refund agreement
820 with the office which indicates that the business has been
821 certified as a qualified target industry business located in a
822 brownfield and specifies the schedule of brownfield
823 redevelopment bonus refunds that the business may be eligible to
824 receive in each fiscal year.
825 (d) After entering into a tax refund agreement as provided
826 in s. 288.106 or other similar agreement for other eligible
827 businesses as defined in paragraph (1)(e), an eligible business
828 may receive brownfield redevelopment bonus refunds from the
829 account pursuant to s. 288.106(3)(d) s. 288.106 (2)(c).
830 (5) ADMINISTRATION.—
831 (b) To facilitate the process of monitoring and auditing
832 applications made under this program, the office may provide a
833 list of qualified target industry businesses to the Department
834 of Revenue, to the Agency for Workforce Innovation, to the
835 Department of Environmental Protection, or to any local
836 government authority. The office may request the assistance of
837 those entities with respect to monitoring the payment of the
838 taxes listed in s. 288.106(3) s. 288.106 (2).
839 Section 3. Section 290.00677, Florida Statutes, is amended
840 to read:
841 290.00677 Rural enterprise zones; special qualifications.—
842 (1) Notwithstanding the enterprise zone residency
843 requirements set out in s. 212.096(1)(c), eligible businesses as
844 defined by s. 212.096(1)(a), located in rural enterprise zones
845 as defined by s. 290.004, may receive the basic minimum credit
846 provided under s. 212.096 for creating a new job and hiring a
847 person residing within the jurisdiction of a rural community
848 county, as defined by s. 288.106(2) s. 288.106 (1)(r). All other
849 provisions of s. 212.096, including, but not limited to, those
850 relating to the award of enhanced credits, apply to such
852 (2) Notwithstanding the enterprise zone residency
853 requirements set out in s. 220.03(1)(q), businesses as defined
854 by s. 220.03(1)(c), located in rural enterprise zones as defined
855 in s. 290.004, may receive the basic minimum credit provided
856 under s. 220.181 for creating a new job and hiring a person
857 residing within the jurisdiction of a rural community county, as
858 defined by s. 288.106(2) s. 288.106 (1)(r). All other provisions
859 of s. 220.181, including, but not limited to, those relating to
860 the award of enhanced credits apply to such businesses.
861 Section 4. This act shall take effect July 1, 2010.