June 03, 2020
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_h7109__
HB 7109

1
A bill to be entitled
2An act relating to the tax refund program for qualified
3target industry businesses; amending s. 288.106, F.S.;
4providing legislative findings and declarations; revising
5and providing definitions; establishing a schedule for the
6Office of Tourism, Trade, and Economic Development to
7review and revise the list of target industries and submit
8a report to the Governor and Legislature; revising the
9criteria for evaluating applications for the program;
10requiring consideration of the state's return on
11investment in evaluating applications for participation in
12the program; requiring the Office of Economic and
13Demographic Research to submit reports to the Legislature
14evaluating the calculation of the state's return on
15investment for the program; requiring that additional
16provisions be included in tax refund agreements;
17redesignating the economic-stimulus exemption as the
18"economic recovery extension"; revising the date by which
19qualified target industry businesses may request economic
20recovery extensions; authorizing waiver of a requirement
21that qualified target industry businesses annually provide
22proof of taxes paid under certain conditions; requiring
23the Office of Tourism, Trade, and Economic Development to
24submit reports to the Governor and Legislature concerning
25the failure of qualified target industry businesses to
26complete their tax refund agreements; deleting obsolete
27provisions; revising the date by which a target industry
28business may be certified as qualified for the program;
29conforming cross-references; amending ss. 288.1089 and
30290.00677, F.S.; conforming provisions to changes made by
31the act; amending ss. 159.803, 220.191, and 288.107, F.S.;
32conforming cross-references; providing an effective date.
33
34Be It Enacted by the Legislature of the State of Florida:
35
36     Section 1.  Section 288.106, Florida Statutes, is amended
37to read:
38     288.106  Tax refund program for qualified target industry
39businesses.-
40     (1)  LEGISLATIVE FINDINGS AND DECLARATIONS.-The Legislature
41finds that retaining and expanding existing businesses in the
42state, encouraging the creation of new businesses in the state,
43attracting new businesses from outside the state, and generally
44providing conditions favorable for the growth of target
45industries creates high-quality, high-wage employment
46opportunities for residents of the state and strengthens the
47state's economic foundation. The Legislature also finds that
48incentives narrowly focused in application and scope tend to be
49more effective in achieving the state's economic development
50goals. The Legislature further finds that higher-wage jobs
51reduce the state's share of hidden costs, such as public
52assistance and subsidized health care associated with low-wage
53jobs. Therefore, the Legislature declares that it is the policy
54of the state to encourage the growth of higher-wage jobs and a
55diverse economic base by providing state tax refunds to
56qualified target industry businesses that originate or expand in
57the state or that relocate to the state.
58     (2)(1)  DEFINITIONS.-As used in this section:
59     (a)  "Account" means the Economic Development Incentives
60Account within the Economic Development Trust Fund established
61under s. 288.095.
62     (b)(u)  "Authorized local economic development agency"
63means a any public or private entity, including an entity those
64defined in s. 288.075, authorized by a county or municipality to
65promote the general business or industrial interests of that
66county or municipality.
67     (c)(b)  "Average private sector wage in the area" means the
68statewide private sector average wage or the average of all
69private sector wages and salaries in the county or in the
70standard metropolitan area in which the business is located.
71     (d)(c)  "Business" means an employing unit, as defined in
72s. 443.036, that which is registered for unemployment
73compensation purposes with the state agency providing
74unemployment tax collection services under contract with the
75Agency for Workforce Innovation through an interagency agreement
76pursuant to s. 443.1316, or a subcategory or division of an
77employing unit that which is accepted by the state agency
78providing unemployment tax collection services as a reporting
79unit.
80     (e)(d)  "Corporate headquarters business" means an
81international, national, or regional headquarters office of a
82multinational or multistate business enterprise or national
83trade association, whether separate from or connected with other
84facilities used by such business.
85     (f)(n)  "Director" means the Director of the Office of
86Tourism, Trade, and Economic Development.
87     (g)(f)  "Enterprise zone" means an area designated as an
88enterprise zone pursuant to s. 290.0065.
89     (h)(g)  "Expansion of an existing business" means the
90expansion of an existing Florida business by or through
91additions to real and personal property, resulting in a net
92increase in employment of not less than 10 percent at such
93business.
94     (i)(h)  "Fiscal year" means the fiscal year of the state.
95     (j)(i)  "Jobs" means full-time equivalent positions,
96including, but not limited to, positions obtained from a
97temporary employment agency or employee leasing company or
98through a union agreement or coemployment under a professional
99employer organization agreement, that result as that term is
100consistent with terms used by the Agency for Workforce
101Innovation and the United States Department of Labor for
102purposes of unemployment compensation tax administration and
103employment estimation, resulting directly from a project in this
104state. The term does not include temporary construction jobs
105involved with the construction of facilities for the project or
106any jobs previously included in any application for tax refunds
107under s. 288.1045 or this section.
108     (k)(j)  "Local financial support" means funding from local
109sources, public or private, that which is paid to the Economic
110Development Trust Fund and that which is equal to 20 percent of
111the annual tax refund for a qualified target industry business.
112A qualified target industry business may not provide, directly
113or indirectly, more than 5 percent of such funding in any fiscal
114year. The sources of such funding may not include, directly or
115indirectly, state funds appropriated from the General Revenue
116Fund or any state trust fund, excluding tax revenues shared with
117local governments pursuant to law.
118     (l)(k)  "Local financial support exemption option" means
119the option to exercise an exemption from the local financial
120support requirement available to any applicant whose project is
121located in a brownfield area, a rural city, or a rural community
122county with a population of 75,000 or fewer or a county with a
123population of 125,000 or fewer which is contiguous to a county
124with a population of 75,000 or fewer. Any applicant that
125exercises this option is shall not be eligible for more than 80
126percent of the total tax refunds allowed such applicant under
127this section.
128     (m)(l)  "New business" means a business that applies for a
129tax refund under this section before beginning operations which
130heretofore did not exist in this state, first beginning
131operations on a site located in this state and that is a legal
132entity clearly separate from any other commercial or industrial
133operations owned by the same business.
134     (n)(e)  "Office" means the Office of Tourism, Trade, and
135Economic Development.
136     (o)(m)  "Project" means the creation of a new business or
137expansion of an existing business.
138     (p)(q)  "Qualified target industry business" means a target
139industry business that has been approved by the office director
140to be eligible for tax refunds under pursuant to this section.
141     (q)  "Return on investment" means the gain in state
142revenues as a percentage of the state's investment. The state's
143investment includes state grants, tax exemptions, tax refunds,
144tax credits, and other state incentives.
145     (r)  "Rural county" means a county with a population of
14675,000 or fewer or a county with a population of 100,000 or
147fewer which is contiguous to a county with a population of
14875,000 or fewer.
149     (r)(s)  "Rural city" means a city having with a population
150of 10,000 or fewer less, or a city having with a population of
151greater than 10,000 but fewer less than 20,000 that which has
152been determined by the office of Tourism, Trade, and Economic
153Development to have economic characteristics such as, but not
154limited to, a significant percentage of residents on public
155assistance, a significant percentage of residents with income
156below the poverty level, or a significant percentage of the
157city's employment base in agriculture-related industries.
158     (s)(t)  "Rural community" means:
159     1.  A county having with a population of 75,000 or fewer.
160     2.  A county having with a population of 125,000 or fewer
161that which is contiguous to a county having with a population of
16275,000 or fewer.
163     3.  A municipality within a county described in
164subparagraph 1. or subparagraph 2.
165
166For purposes of this paragraph, population shall be determined
167in accordance with the most recent official estimate pursuant to
168s. 186.901.
169     (t)(o)  "Target industry business" means a corporate
170headquarters business or any business that is engaged in one of
171the target industries identified pursuant to the following
172criteria developed by the office in consultation with Enterprise
173Florida, Inc.:
174     1.  Future growth.-Industry forecasts should indicate
175strong expectation for future growth in both employment and
176output, according to the most recent available data. Special
177consideration should be given to businesses that export goods
178Florida's growing access to, or provide services in,
179international markets and businesses that replace domestic and
180international or to replacing imports of goods or services.
181     2.  Stability.-The industry should not be subject to
182periodic layoffs, whether due to seasonality or sensitivity to
183volatile economic variables such as weather. The industry should
184also be relatively resistant to recession, so that the demand
185for products of this industry is not typically necessarily
186subject to decline during an economic downturn.
187     3.  High wage.-The industry should pay relatively high
188wages compared to statewide or area averages.
189     4.  Market and resource independent.-The location of
190industry businesses should not be dependent on Florida markets
191or resources as indicated by industry analysis, except for
192businesses in the renewable energy industry. Special
193consideration should be given to the development of strong
194industrial clusters which include defense and homeland security
195businesses.
196     5.  Industrial base diversification and strengthening.-The
197industry should contribute toward expanding or diversifying the
198state's or area's economic base, as indicated by analysis of
199employment and output shares compared to national and regional
200trends. Special consideration should be given to industries that
201strengthen regional economies by adding value to basic products
202or building regional industrial clusters as indicated by
203industry analysis. Special consideration should also be given to
204the development of strong industrial clusters that include
205defense and homeland security businesses.
206     6.  Economic benefits.-The industry is expected to should
207have strong positive impacts on or benefits to the state or and
208regional economies.
209
210The term does office, in consultation with Enterprise Florida,
211Inc., shall develop a list of such target industries annually
212and submit such list as part of the final agency legislative
213budget request submitted pursuant to s. 216.023(1). A target
214industry business may not include any business industry engaged
215in retail industry activities; any electrical utility company;
216any phosphate or other solid minerals severance, mining, or
217processing operation; any oil or gas exploration or production
218operation; or any business firm subject to regulation by the
219Division of Hotels and Restaurants of the Department of Business
220and Professional Regulation. By January 1 of every 3rd year,
221beginning January 1, 2011, the office, in consultation with
222Enterprise Florida, Inc., economic development organizations,
223the State University System, local governments, employee and
224employer organizations, market analysts, and economists, shall
225review and, as appropriate, revise the list of such target
226industries and submit the list to the Governor, the President of
227the Senate, and the Speaker of the House of Representatives.
228     (u)(p)  "Taxable year" means taxable year as defined in s.
229220.03(1)(y).
230     (3)(2)  TAX REFUND; ELIGIBLE AMOUNTS.-
231     (a)  There shall be allowed, from the account, a refund to
232a qualified target industry business for the amount of eligible
233taxes certified by the office that director which were paid by
234the such business. The total amount of refunds for all fiscal
235years for each qualified target industry business must be
236determined pursuant to subsection (4) (3). The annual amount of
237a refund to a qualified target industry business must be
238determined pursuant to subsection (6) (5).
239     (b)1.  Upon approval by the office director, a qualified
240target industry business shall be allowed tax refund payments
241equal to $3,000 multiplied by times the number of jobs specified
242in the tax refund agreement under subparagraph (5)(4)(a)1., or
243equal to $6,000 multiplied by times the number of jobs if the
244project is located in a rural community county or an enterprise
245zone.
246     2.  Further, A qualified target industry business shall be
247allowed additional tax refund payments equal to $1,000
248multiplied by times the number of jobs specified in the tax
249refund agreement under subparagraph (5)(4)(a)1., if such jobs
250pay an annual average wage of at least 150 percent of the
251average private sector wage in the area, or equal to $2,000
252multiplied by times the number of jobs if such jobs pay an
253annual average wage of at least 200 percent of the average
254private sector wage in the area.
255     (c)  A qualified target industry business may not receive
256refund payments of more than 25 percent of the total tax refunds
257specified in the tax refund agreement under subparagraph
258(5)(4)(a)1. in any fiscal year. Further, a qualified target
259industry business may not receive more than $1.5 million in
260refunds under this section in any single fiscal year, or more
261than $2.5 million in any single fiscal year if the project is
262located in an enterprise zone. A qualified target industry
263business may not receive more than $5 million in refund payments
264under this section in all fiscal years, or more than $7.5
265million if the project is located in an enterprise zone. Funds
266made available pursuant to this section may not be expended in
267connection with the relocation of a business from one community
268to another community in this state unless the Office of Tourism,
269Trade, and Economic Development determines that without such
270relocation the business will move outside this state or
271determines that the business has a compelling economic rationale
272for the relocation and that the relocation will create
273additional jobs.
274     (d)(c)  After entering into a tax refund agreement under
275subsection (5) (4), a qualified target industry business may:
276     1.  Receive refunds from the account for the following
277taxes due and paid by that business beginning with the first
278taxable year of the business that which begins after entering
279into the agreement:
280     a.  Corporate income taxes under chapter 220.
281     b.  Insurance premium tax under s. 624.509.
282     2.  Receive refunds from the account for the following
283taxes due and paid by that business after entering into the
284agreement:
285     a.  Taxes on sales, use, and other transactions under
286chapter 212.
287     b.  Intangible personal property taxes under chapter 199.
288     c.  Emergency excise taxes under chapter 221.
289     d.  Excise taxes on documents under chapter 201.
290     e.  Ad valorem taxes paid, as defined in s. 220.03(1).
291     f.  State communications services taxes administered under
292chapter 202. This provision does not apply to the gross receipts
293tax imposed under chapter 203 and administered under chapter 202
294or the local communications services tax authorized under s.
295202.19.
296
297The addition of state communications services taxes administered
298under chapter 202 is remedial in nature and retroactive to
299October 1, 2001. The office may make supplemental tax refund
300payments to allow for tax refunds for communications services
301taxes paid by an eligible qualified target industry business
302after October 1, 2001.
303     (e)(d)  However, a qualified target industry business may
304not receive a refund under this section for any amount of
305credit, refund, or exemption previously granted to that business
306for any of the such taxes listed in paragraph (d). If a refund
307for such taxes is provided by the office, which taxes are
308subsequently adjusted by the application of any credit, refund,
309or exemption granted to the qualified target industry business
310other than as provided in this section, the business shall
311reimburse the account for the amount of that credit, refund, or
312exemption. A qualified target industry business shall notify and
313tender payment to the office within 20 days after receiving any
314credit, refund, or exemption other than one provided in this
315section.
316     (f)  Refunds made available under this section may not be
317expended in connection with the relocation of a business from
318one community to another community in the state unless the
319office determines that, without such relocation, the business
320will move outside the state or determines that the business has
321a compelling economic rationale for relocation and that the
322relocation will create additional jobs.
323     (g)(e)  A qualified target industry business that
324fraudulently claims a refund under this section:
325     1.  Is liable for repayment of the amount of the refund to
326the account, plus a mandatory penalty in the amount of 200
327percent of the tax refund which shall be deposited into the
328General Revenue Fund.
329     2.  Commits Is guilty of a felony of the third degree,
330punishable as provided in s. 775.082, s. 775.083, or s. 775.084.
331     (4)(3)  APPLICATION AND APPROVAL PROCESS.-
332     (a)  To apply for certification as a qualified target
333industry business under this section, the business must file an
334application with the office before the business decides has made
335the decision to locate a new business in this state or before
336the business decides had made the decision to expand its an
337existing operations business in this state. The application must
338shall include, but need is not be limited to, the following
339information:
340     1.  The applicant's federal employer identification number
341and, if applicable, the applicant's state sales tax registration
342number.
343     2.  The proposed permanent location of the applicant's
344facility in this state at which the project is or is to be
345located.
346     3.  A description of the type of business activity or
347product covered by the project, including a minimum of a five-
348digit NAICS code for all activities included in the project. As
349used in this paragraph, "NAICS" means those classifications
350contained in the North American Industry Classification System,
351as published in 2007 by the Office of Management and Budget,
352Executive Office of the President, and updated periodically.
353     4.  The proposed number of net new full-time equivalent
354Florida jobs at the qualified target industry business as of
355December 31 of each year included in the project and the average
356wage of those jobs. If more than one type of business activity
357or product is included in the project, the number of jobs and
358average wage for those jobs must be separately stated for each
359type of business activity or product.
360     5.  The total number of full-time equivalent employees
361employed by the applicant in this state, if applicable.
362     6.  The anticipated commencement date of the project.
363     7.  A brief statement explaining concerning the role that
364the estimated tax refunds to be requested will play in the
365decision of the applicant to locate or expand in this state.
366     8.  An estimate of the proportion of the sales resulting
367from the project that will be made outside this state.
368     9.  A resolution adopted by the governing board of the
369county or municipality in which the project will be located,
370which resolution recommends that the project certain types of
371businesses be approved as a qualified target industry business
372and specifies states that the commitments of local financial
373support necessary for the target industry business exist. Before
374In advance of the passage of such resolution, the office may
375also accept an official letter from an authorized local economic
376development agency that endorses the proposed target industry
377project and pledges that sources of local financial support for
378such project exist. For the purposes of making pledges of local
379financial support under this subparagraph subsection, the
380authorized local economic development agency shall be officially
381designated by the passage of a one-time resolution by the local
382governing board authority.
383     10.  Any additional information requested by the office.
384     (b)  To qualify for review by the office, the application
385of a target industry business must, at a minimum, establish the
386following to the satisfaction of the office:
387     1.a.  The jobs proposed to be created provided under the
388application, pursuant to subparagraph (a)4., must pay an
389estimated annual average wage equaling at least 115 percent of
390the average private sector wage in the area where the business
391is to be located or the statewide private sector average wage.
392In determining the average annual wage, the office shall include
393only new proposed jobs, and wages for existing jobs shall be
394excluded from this calculation.
395     b.  The office may waive the average wage requirement at
396the request of the local governing body recommending the project
397and Enterprise Florida, Inc. The office may waive the wage
398requirement may only be waived for a project located in a
399brownfield area designated under s. 376.80 or in a rural city,
400rural community, or county or in an enterprise zone and only if
401when the merits of the individual project or the specific
402circumstances in the community in relationship to the project
403warrant such action. If the local governing body and Enterprise
404Florida, Inc., make such a recommendation, it must be
405transmitted in writing, and the specific justification for the
406waiver recommendation must be explained. If the office director
407elects to waive the wage requirement, the waiver must be stated
408in writing, and the reasons for granting the waiver must be
409explained.
410     2.  The target industry business's project must result in
411the creation of at least 10 jobs at the such project and, in the
412case of if an expansion of an existing business, must result in
413a net increase in employment of at least 10 percent at the
414business. Notwithstanding the definition of the term "expansion
415of an existing business" in paragraph (1)(g), At the request of
416the local governing body recommending the project and Enterprise
417Florida, Inc., the office may waive this requirement for a
418business define an "expansion of an existing business" in a
419rural community or an enterprise zone as the expansion of a
420business resulting in a net increase in employment of less than
42110 percent at such business if the merits of the individual
422project or the specific circumstances in the community in
423relationship to the project warrant such action. If the local
424governing body and Enterprise Florida, Inc., make such a
425request, the request must be transmitted in writing, and the
426specific justification for the request must be explained. If the
427office director elects to grant the request, the grant must be
428stated in writing, and the reason for granting the request must
429be explained.
430     3.  The business activity or product for the applicant's
431project must be is within an industry or industries that have
432been identified by the office as a target industry business to
433be high-value-added industries that contributes contribute to
434the area and to the economic growth of the state and the area in
435which the business is located, that produces produce a higher
436standard of living for residents of this state in the new global
437economy, or that can be shown to make an equivalent contribution
438to the area's area and state's economic progress. The director
439must approve requests to waive the wage requirement for
440brownfield areas designated under s. 376.80 unless it is
441demonstrated that such action is not in the public interest.
442     (c)  Each application meeting the requirements of paragraph
443(b) must be submitted to the office for determination of
444eligibility. The office shall review and evaluate each
445application based on, but not limited to, the following
446criteria:
447     1.  Expected contributions to the state's economy,
448consistent with the state strategic economic development plan
449adopted by Enterprise Florida, Inc., taking into account the
450long-term effects of the project and of the applicant on the
451state economy.
452     2.  The return on investment of the proposed award of tax
453refunds under this section and the return on investment for
454state incentives proposed for the project. The Office of
455Economic and Demographic Research shall review and evaluate the
456methodology and model used to calculate the return on investment
457and report its findings by September 1 of every 3rd year,
458beginning September 1, 2010, to the President of the Senate and
459the Speaker of the House of Representatives economic benefit of
460the jobs created by the project in this state, taking into
461account the cost and average wage of each job created.
462     3.  The amount of capital investment to be made by the
463applicant in this state.
464     4.  The local financial commitment and support for the
465project.
466     5.  The effect of the project on the local community,
467taking into account the unemployment rate in for the county
468where the project will be located.
469     6.  The effect of the award any tax refunds granted
470pursuant to this section on the viability of the project and the
471probability that the project would will be undertaken in this
472state if such tax refunds are granted to the applicant, taking
473into account the expected long-term commitment of the applicant
474to economic growth and employment in this state.
475     7.  The expected long-term commitment of the applicant to
476economic growth and employment in to this state resulting from
477the project.
478     8.  A review of the business's past activities in this
479state or other states, including whether such business has been
480subjected to criminal or civil fines and penalties. This
481subparagraph does not require the disclosure of confidential
482information.
483     (d)  Applications shall be reviewed and certified pursuant
484to s. 288.061. The office shall include in its review
485projections of the tax refunds the business would be eligible to
486receive in each fiscal year based on the creation and
487maintenance of the net new Florida jobs specified in
488subparagraph (a)4. as of December 31 of the preceding state
489fiscal year. If appropriate, the office director shall enter
490into a written agreement with the qualified target industry
491business pursuant to subsection (5) (4).
492     (e)  The office director may not certify any target
493industry business as a qualified target industry business if the
494value of tax refunds to be included in that letter of
495certification exceeds the available amount of authority to
496certify new businesses as determined in s. 288.095(3). However,
497if the commitments of local financial support represent less
498than 20 percent of the eligible tax refund payments, or to
499otherwise preserve the viability and fiscal integrity of the
500program, the office director may certify a qualified target
501industry business to receive tax refund payments of less than
502the allowable amounts specified in paragraph (3)(2)(b). A letter
503of certification that approves an application must specify the
504maximum amount of tax refund that will be available to the
505qualified industry business in each fiscal year and the total
506amount of tax refunds that will be available to the business for
507all fiscal years.
508     (f)  This section does not create a presumption that an
509applicant will shall receive any tax refunds under this section.
510However, the office may issue nonbinding opinion letters, upon
511the request of prospective applicants, as to the applicants'
512eligibility and the potential amount of refunds.
513     (5)(4)  TAX REFUND AGREEMENT.-
514     (a)  Each qualified target industry business must enter
515into a written agreement with the office that which specifies,
516at a minimum:
517     1.  The total number of full-time equivalent jobs in this
518state that will be dedicated to the project, the average wage of
519those jobs, the definitions that will apply for measuring the
520achievement of these terms during the pendency of the agreement,
521and a time schedule or plan for when such jobs will be in place
522and active in this state.
523     2.  The maximum amount of tax refunds that which the
524qualified target industry business is eligible to receive on the
525project and the maximum amount of a tax refund that the
526qualified target industry business is eligible to receive for
527each fiscal year, based on the job creation and maintenance
528schedule specified in subparagraph 1.
529     3.  That the office may review and verify the financial and
530personnel records of the qualified target industry business to
531ascertain whether that business is in compliance with this
532section.
533     4.  The date by which, in each fiscal year, the qualified
534target industry business may file a claim under subsection (6)
535(5) to be considered to receive a tax refund in the following
536fiscal year.
537     5.  That local financial support will be annually available
538and will be paid to the account. The office director may not
539enter into a written agreement with a qualified target industry
540business if the local financial support resolution is not passed
541by the local governing body authority within 90 days after the
542office he or she has issued the letter of certification under
543subsection (4) (3).
544     6.  That the office may conduct a review of the business to
545evaluate whether the business is continuing to contribute to the
546area's or state's economy.
547     7.  That in the event the business does not complete the
548agreement, the business will provide the office with the reasons
549the business was unable to complete the agreement.
550     (b)  Compliance with the terms and conditions of the
551agreement is a condition precedent for the receipt of a tax
552refund each year. The failure to comply with the terms and
553conditions of the tax refund agreement results in the loss of
554eligibility for receipt of all tax refunds previously authorized
555under this section and the revocation by the office director of
556the certification of the business entity as a qualified target
557industry business, unless the business is eligible to receive
558and elects to accept a prorated refund under paragraph (6)(e)
559(5)(d) or the office grants the business an economic recovery
560extension economic-stimulus exemption.
561     1.  A qualified target industry business may submit, in
562writing, a request to the office for an economic recovery
563extension economic-stimulus exemption. The request must provide
564quantitative evidence demonstrating how negative economic
565conditions in the business's industry, the effects of the impact
566of a named hurricane or tropical storm, or specific acts of
567terrorism affecting the qualified target industry business have
568prevented the business from complying with the terms and
569conditions of its tax refund agreement.
570     2.  Upon receipt of a request under subparagraph 1., the
571office has director shall have 45 days to notify the requesting
572business, in writing, whether if its extension exemption has
573been granted or denied. In determining whether if an extension
574exemption should be granted, the office director shall consider
575the extent to which negative economic conditions in the
576requesting business's industry have occurred in the state or the
577effects of the impact of a named hurricane or tropical storm or
578specific acts of terrorism affecting the qualified target
579industry business have prevented the business from complying
580with the terms and conditions of its tax refund agreement. The
581office shall consider current employment statistics for this
582state by industry, including whether the business's industry had
583substantial job loss during the prior year, when determining
584whether an extension exemption shall be granted.
585     3.  As a condition for receiving a prorated refund under
586paragraph (6)(e) (5)(d) or an economic recovery extension
587economic-stimulus exemption under this paragraph, a qualified
588target industry business must agree to renegotiate its tax
589refund agreement with the office to, at a minimum, ensure that
590the terms of the agreement comply with current law and office
591procedures governing application for and award of tax refunds.
592Upon approving the award of a prorated refund or granting an
593economic recovery extension economic-stimulus exemption, the
594office shall renegotiate the tax refund agreement with the
595business as required by this subparagraph. When amending the
596agreement of a business receiving an economic recovery extension
597economic-stimulus exemption, the office may extend the duration
598of the agreement for a period not to exceed 2 years.
599     4.  A qualified target industry business may submit a
600request for an economic recovery extension economic-stimulus
601exemption to the office in lieu of any tax refund claim
602scheduled to be submitted after January 1, 2009, but before July
6031, 2012 2011.
604     5.  A qualified target industry business that receives an
605economic recovery extension economic-stimulus exemption may not
606receive a tax refund for the period covered by the extension
607exemption.
608     (c)  The agreement must be signed by the director and by an
609authorized officer of the qualified target industry business
610within 120 days after the issuance of the letter of
611certification under subsection (4) (3), but not before passage
612and receipt of the resolution of local financial support. The
613office may grant an extension of this period at the written
614request of the qualified target industry business.
615     (d)  The agreement must contain the following legend,
616clearly printed on its face in bold type of not less than 10
617points in size: "This agreement is not neither a general
618obligation of the State of Florida, nor is it backed by the full
619faith and credit of the State of Florida. Payment of tax refunds
620is are conditioned on and subject to specific annual
621appropriations by the Florida Legislature of moneys sufficient
622to pay amounts authorized in section 288.106, Florida Statutes."
623     (6)(5)  ANNUAL CLAIM FOR REFUND.-
624     (a)  To be eligible to claim any scheduled tax refund, a
625qualified target industry business that has entered into a tax
626refund agreement with the office under subsection (5) (4) must
627apply by January 31 of each fiscal year to the office for the
628tax refund scheduled to be paid from the appropriation for the
629fiscal year that begins on July 1 following the January 31
630claims-submission date. The office may, upon written request,
631grant a 30-day extension of the filing date.
632     (b)  The claim for refund by the qualified target industry
633business must include a copy of all receipts pertaining to the
634payment of taxes for which the refund is sought and data related
635to achievement of each performance item specified in the tax
636refund agreement. The amount requested as a tax refund may not
637exceed the amount specified for the relevant fiscal year in that
638agreement.
639     (c)  The office may waive the requirement for proof of
640taxes paid in future years for a qualified target industry
641business that provides the office with proof that, in a single
642year, the business has paid an amount of state taxes from the
643categories in paragraph (3)(d) that is at least equal to the
644total amount of tax refunds that the business may receive
645through successful completion of its tax refund agreement.
646     (d)(c)  A tax refund may not be approved for a qualified
647target industry business unless the required local financial
648support has been paid into the account for that refund. If the
649local financial support provided is less than 20 percent of the
650approved tax refund, the tax refund must be reduced. In no event
651may the tax refund exceed an amount that is equal to 5 times the
652amount of the local financial support received. Further, funding
653from local sources includes any tax abatement granted to that
654business under s. 196.1995 or the appraised market value of
655municipal or county land conveyed or provided at a discount to
656that business. The amount of any tax refund for such business
657approved under this section must be reduced by the amount of any
658such tax abatement granted or the value of the land granted,;
659and the limitations in subsection (3) (2) and paragraph
660(4)(3)(e) must be reduced by the amount of any such tax
661abatement or the value of the land granted. A report listing all
662sources of the local financial support shall be provided to the
663office when such support is paid to the account.
664     (e)(d)  A prorated tax refund, less a 5-percent penalty,
665shall be approved for a qualified target industry business if
666provided all other applicable requirements have been satisfied
667and the business proves to the satisfaction of the office
668director that:
669     1.  It has achieved at least 80 percent of its projected
670employment; and that
671     2.  The average wage paid by the business is at least 90
672percent of the average wage specified in the tax refund
673agreement, but in no case less than 115 percent of the average
674private sector wage in the area available at the time of
675certification., or 150 percent or 200 percent of the average
676private sector wage If the business requested the additional
677per-job tax refund authorized in paragraph (3)(2)(b) for wages
678at or above the 150-percent or 200-percent level, the business
679may request to drop to the next lowest wage threshold and the
680corresponding tax refund amount those levels. The prorated tax
681refund shall be calculated by multiplying the tax refund amount
682for which the qualified target industry business would have been
683eligible, if all applicable requirements had been satisfied, by
684the percentage of the average employment specified in the tax
685refund agreement which was achieved, and by the percentage of
686the average wages specified in the tax refund agreement which
687was achieved.
688     (f)(e)  The office director, with such assistance as may be
689required from the office, the Department of Revenue, or the
690Agency for Workforce Innovation, shall, by June 30 following the
691scheduled date for submission of the tax refund claim, specify
692by written order the approval or disapproval of the tax refund
693claim and, if approved, the amount of the tax refund that is
694authorized to be paid to the qualified target industry business
695for the annual tax refund. The office may grant an extension of
696this date on the request of the qualified target industry
697business for the purpose of filing additional information in
698support of the claim.
699     (g)(f)  The total amount of tax refund claims approved by
700the office director under this section in any fiscal year must
701not exceed the amount authorized under s. 288.095(3).
702     (h)(g)  This section does not create a presumption that a
703tax refund claim will be approved and paid.
704     (i)(h)  Upon approval of the tax refund under paragraphs
705(c), (d), and (e), and (f), the Chief Financial Officer shall
706issue a warrant for the amount specified in the written order.
707If the written order is appealed, the Chief Financial Officer
708may not issue a warrant for a refund to the qualified target
709industry business until the conclusion of all appeals of that
710order.
711     (7)(6)  ADMINISTRATION.-
712     (a)  The office may is authorized to verify information
713provided in any claim submitted for tax credits under this
714section with regard to employment and wage levels or the payment
715of the taxes to the appropriate agency or authority, including
716the Department of Revenue, the Agency for Workforce Innovation,
717or any local government or authority.
718     (b)  To facilitate the process of monitoring and auditing
719applications made under this section program, the office may
720provide a list of qualified target industry businesses to the
721Department of Revenue, to the Agency for Workforce Innovation,
722or to any local government or authority. The office may request
723the assistance of those entities with respect to monitoring
724jobs, wages, and the payment of the taxes listed in subsection
725(3) (2).
726     (c)  Funds specifically appropriated for the tax refunds
727refund program for qualified target industry businesses under
728this section may not be used by the office for any purpose other
729than the payment of tax refunds authorized by this section.
730     (d)  Beginning with tax refund agreements signed after July
7311, 2010, the office shall attempt to ascertain the causes for
732any business's failure to complete its agreement and shall
733report its findings and recommendations to the Governor, the
734President of the Senate, and the Speaker of the House of
735Representatives. The report shall be submitted by December 1 of
736each year beginning in 2011.
737     (7)  Notwithstanding paragraphs (4)(a) and (5)(c), the
738office may approve a waiver of the local financial support
739requirement for a business located in any of the following
740counties in which businesses received emergency loans
741administered by the office in response to the named hurricanes
742of 2004: Bay, Brevard, Charlotte, DeSoto, Escambia, Flagler,
743Glades, Hardee, Hendry, Highlands, Indian River, Lake, Lee,
744Martin, Okaloosa, Okeechobee, Orange, Osceola, Palm Beach, Polk,
745Putnam, Santa Rosa, Seminole, St. Lucie, Volusia, and Walton. A
746waiver may be granted only if the office determines that the
747local financial support cannot be provided or that doing so
748would effect a demonstrable hardship on the unit of local
749government providing the local financial support. If the office
750grants a waiver of the local financial support requirement, the
751state shall pay 100 percent of the refund due to an eligible
752business. The waiver shall apply for tax refund applications
753made for fiscal years 2004-2005, 2005-2006, and 2006-2007.
754     (8)  EXPIRATION.-An applicant may not be certified as
755qualified under this section after June 30, 2020 2010. A tax
756refund agreement existing on that date shall continue in effect
757in accordance with its terms.
758     Section 2.  Subsection (11) of section 159.803, Florida
759Statutes, is amended to read:
760     159.803  Definitions.-As used in this part, the term:
761     (11)  "Florida First Business project" means any project
762which is certified by the Office of Tourism, Trade, and Economic
763Development as eligible to receive an allocation from the
764Florida First Business allocation pool established pursuant to
765s. 159.8083. The Office of Tourism, Trade, and Economic
766Development may certify those projects meeting the criteria set
767forth in s. 288.106(4)(3)(b) or any project providing a
768substantial economic benefit to this state.
769     Section 3.  Paragraph (h) of subsection (1) of section
770220.191, Florida Statutes, is amended to read:
771     220.191  Capital investment tax credit.-
772     (1)  DEFINITIONS.-For purposes of this section:
773     (h)  "Qualifying project" means:
774     1.  A new or expanding facility in this state which creates
775at least 100 new jobs in this state and is in one of the high-
776impact sectors identified by Enterprise Florida, Inc., and
777certified by the office pursuant to s. 288.108(6), including,
778but not limited to, aviation, aerospace, automotive, and silicon
779technology industries;
780     2.  A new or expanded facility in this state which is
781engaged in a target industry designated pursuant to the
782procedure specified in s. 288.106(2)(t)(1)(o) and which is
783induced by this credit to create or retain at least 1,000 jobs
784in this state, provided that at least 100 of those jobs are new,
785pay an annual average wage of at least 130 percent of the
786average private sector wage in the area as defined in s.
787288.106(2)(1), and make a cumulative capital investment of at
788least $100 million after July 1, 2005. Jobs may be considered
789retained only if there is significant evidence that the loss of
790jobs is imminent. Notwithstanding subsection (2), annual credits
791against the tax imposed by this chapter shall not exceed 50
792percent of the increased annual corporate income tax liability
793or the premium tax liability generated by or arising out of a
794project qualifying under this subparagraph. A facility that
795qualifies under this subparagraph for an annual credit against
796the tax imposed by this chapter may take the tax credit for a
797period not to exceed 5 years; or
798     3.  A new or expanded headquarters facility in this state
799which locates in an enterprise zone and brownfield area and is
800induced by this credit to create at least 1,500 jobs which on
801average pay at least 200 percent of the statewide average annual
802private sector wage, as published by the Agency for Workforce
803Innovation or its successor, and which new or expanded
804headquarters facility makes a cumulative capital investment in
805this state of at least $250 million.
806     Section 4.  Paragraph (e) of subsection (1), subsection
807(2), paragraphs (a) and (d) of subsection (4), and paragraph (b)
808of subsection (5) of section 288.107, Florida Statutes, are
809amended to read:
810     288.107  Brownfield redevelopment bonus refunds.-
811     (1)  DEFINITIONS.-As used in this section:
812     (e)  "Eligible business" means:
813     1.  A qualified target industry business as defined in s.
814288.106(2)(1)(o); or
815     2.  A business that can demonstrate a fixed capital
816investment of at least $2 million in mixed-use business
817activities, including multiunit housing, commercial, retail, and
818industrial in brownfield areas, or at least $500,000 in
819brownfield areas that do not require site cleanup, and that
820which provides benefits to its employees.
821     (2)  BROWNFIELD REDEVELOPMENT BONUS REFUND.-Bonus refunds
822shall be approved by the office as specified in the final order
823issued by the director and allowed from the account as follows:
824     (a)  A bonus refund of $2,500 shall be allowed to any
825qualified target industry business as defined in by s. 288.106
826for each new Florida job created in a brownfield area that which
827is claimed on the qualified target industry business's annual
828refund claim authorized in s. 288.106(6)(5).
829     (b)  A bonus refund of up to $2,500 shall be allowed to any
830other eligible business as defined in subparagraph (1)(e)2. for
831each new Florida job created in a brownfield area that which is
832claimed under an annual claim procedure similar to the annual
833refund claim authorized in s. 288.106(6)(5). The amount of the
834refund shall be equal to 20 percent of the average annual wage
835for the jobs created.
836     (4)  PAYMENT OF BROWNFIELD REDEVELOPMENT BONUS REFUNDS.-
837     (a)  To be eligible to receive a bonus refund for new
838Florida jobs created in a brownfield area, a business must have
839been certified as a qualified target industry business under s.
840288.106 or eligible business as defined in paragraph (1)(e) and
841must have indicated on the qualified target industry business
842tax refund application form submitted in accordance with s.
843288.106(4)(3) or other similar agreement for other eligible
844business as defined in paragraph (1)(e) that the project for
845which the application is submitted is or will be located in a
846brownfield area and that the business is applying for
847certification as a qualified brownfield business under this
848section, and must have signed a qualified target industry
849business tax refund agreement with the office that which
850indicates that the business has been certified as a qualified
851target industry business located in a brownfield area and
852specifies the schedule of brownfield redevelopment bonus refunds
853that the business may be eligible to receive in each fiscal
854year.
855     (d)  After entering into a tax refund agreement as provided
856in s. 288.106 or other similar agreement for other eligible
857businesses as defined in paragraph (1)(e), an eligible business
858may receive brownfield redevelopment bonus refunds from the
859account pursuant to s. 288.106(3)(d)(2)(c).
860     (5)  ADMINISTRATION.-
861     (b)  To facilitate the process of monitoring and auditing
862applications made under this program, the office may provide a
863list of qualified target industry businesses to the Department
864of Revenue, to the Agency for Workforce Innovation, to the
865Department of Environmental Protection, or to any local
866government authority. The office may request the assistance of
867those entities with respect to monitoring the payment of the
868taxes listed in s. 288.106(3)(2).
869     Section 5.  Paragraph (s) of subsection (2) of section
870288.1089, Florida Statutes, is amended to read:
871     288.1089  Innovation Incentive Program.-
872     (2)  As used in this section, the term:
873     (s)  "Rural area" means a rural city or, rural community,
874or rural county as defined in s. 288.106.
875     Section 6.  Section 290.00677, Florida Statutes, is amended
876to read:
877     290.00677  Rural enterprise zones; special qualifications.-
878     (1)  Notwithstanding the enterprise zone residency
879requirements set out in s. 212.096(1)(c), eligible businesses as
880defined in by s. 212.096(1)(a), located in rural enterprise
881zones as defined in by s. 290.004, may receive the basic minimum
882credit provided under s. 212.096 for creating a new job and
883hiring a person residing within the jurisdiction of a rural
884community county, as defined in by s. 288.106(2)(1)(r). All
885other provisions of s. 212.096, including, but not limited to,
886those relating to the award of enhanced credits, apply to such
887businesses.
888     (2)  Notwithstanding the enterprise zone residency
889requirements set out in s. 220.03(1)(q), businesses as defined
890in by s. 220.03(1)(c), located in rural enterprise zones as
891defined in s. 290.004, may receive the basic minimum credit
892provided under s. 220.181 for creating a new job and hiring a
893person residing within the jurisdiction of a rural community
894county, as defined in by s. 288.106(2)(1)(r). All other
895provisions of s. 220.181, including, but not limited to, those
896relating to the award of enhanced credits, apply to such
897businesses.
898     Section 7.  This act shall take effect July 1, 2010.


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