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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
A bill to be entitled 1
An act relating to Florida Main Street Program and 2
historic preservation tax credits; creating s. 3
220.197, F.S.; providing a short title; defining 4
terms; specifying eligibility requirements for 5
receiving specified tax credits for taxpayers that 6
rehabilitate certified historic structures; specifying 7
the amount of tax credits; authorizing the 8
carryforward, sale, and transfer of tax credits; 9
providing the Department of Revenue audit and 10
examination powers for specified purposes related to 11
certified rehabilitation expenses; requiring the 12
return of forfeited tax credits under certain 13
circumstances; requiring the department to provide 14
specified annual reports to t he Legislature; providing 15
duties of the department; authorizing the department 16
to adopt rules; providing an effective date. 17
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WHEREAS, historic revitalization creates highly paid local 19
construction jobs, and 20
WHEREAS, historic rehabilitation increases the value of 21
buildings and results in a growing state and local tax base, and 22
WHEREAS, historic revitalization boosts heritage tourism 23
and creates thriving downtowns that are attractive to main 24
street businesses, and 25
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
WHEREAS, reusing historic buildings c reates affordable 26
spaces for small business incubation, and 27
WHEREAS, repurposing historic buildings saves resources and 28
activates vacant spaces, and 29
WHEREAS, historic rehabilitation projects leverage 30
significant private investment, and 31
WHEREAS, leveraging state tax incentives increases the 32
effectiveness of federal Historic Preservation Tax Incentives 33
and the Opportunity Zones Program to encourage the historic 34
preservation of existing buildings, and 35
WHEREAS, an increase in rehabilitation activity occurs when 36
a state incentive is combined with federal Historic Preservation 37
Tax Incentives, and 38
WHEREAS, many historic buildings in the state need safety 39
upgrades and other improvements that require both public and 40
private investment to return these buildings a s assets of their 41
local communities, NOW, THEREFORE, 42
43
Be It Enacted by the Legislature of the State of Florida: 44
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Section 1. Section 220.197, Florida Statutes, is created 46
to read: 47
220.197 The Main Street Historic Tourism and 48
Revitalization Act; tax credits; reports.— 49
(1) SHORT TITLE.-This act may be cited as the "Main Street 50
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Historic Tourism and Revitalization Act." 51
(2) DEFINITIONS.—As used in this section, the term: 52
(a) "Accredited Main Street Program" means an active 53
Florida Main Street Program that meets Main Street America 54
accreditation standards. An Accredited Main Street Program must: 55
1. Have broad-based community support for the commercial 56
district revitalization process with strong support from the 57
public and private sectors. 58
2. Have a developed vision and mission statement relevant 59
to community conditions and to Main Street America's 60
organizational stage. 61
3. Have a comprehensive Main Street America work plan. 62
4. Possess an historic preservation ethic. 63
5. Have an active boa rd of directors and committees. 64
6. Have an adequate operating budget. 65
7. Have a paid professional program manager. 66
8. Conduct a program of ongoing training for staff and 67
volunteers. 68
9. Report key statistics. 69
10. Be a current member of Main Street America. 70
(b) "Certified historic structure" means a building and 71
its structural components as defined in 36 C.F.R s. 67.2 that is 72
of a character subject to the allowance for depreciation 73
provided in s. 167 of the Internal Revenue Code of 1986, as 74
amended, and that is: 75
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1. Individually listed in the National Register of 76
Historic Places; or 77
2. Located within a registered historic district and 78
certified by the United States Secretary of the Interior as 79
being of historic significance to the registered his toric 80
district as set forth in 36 C.F.R. s. 67.2. 81
(c) "Certified rehabilitation" means the rehabilitation of 82
a certified historic structure that the United States Secretary 83
of the Interior has certified to the United States Secretary of 84
the Treasury as being consistent with the historic character of 85
the certified historic structure and, if applicable, consistent 86
with the registered historic district in which the certified 87
historic structure is located as set forth in 36 C.F.R. s. 67.2. 88
(d) "Division" means the Division of Historical Resources 89
of the Department of State. 90
(e) "Florida Main Street Program" means a statewide 91
historic preservation -based downtown revitalization assistance 92
program created, maintained, and administered by the division 93
under s. 267.031(5). 94
(f) "Local program area" means the specific geographic 95
area in which an Accredited Main Street Program is conducted as 96
approved and maintained by the division. 97
(g) "Main Street America" means a national network of 98
grassroots organizations revitalizing historic downtown areas 99
under the leadership of the National Main Street Center, Inc., a 100
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subsidiary of the National Trust for Historic Preservation. 101
(h) "National Register of Historic Places" means the list 102
of historic properties significant in American history, 103
architecture, archeology, engineering, and culture maintained by 104
the United States Secretary of the Interior as authorized in 54 105
U.S.C s. 3021. 106
(i) "Qualified expenses" means qualified rehabilitation 107
expenditures as defined in 26 U. S.C. s. 47(c)(2) and structural 108
components as defined in 26 C.F.R. s. 1.48 -1(e)(2) at the time 109
of project certification by the United States Secretary of the 110
Interior and the United States Internal Revenue Service. 111
(j) "Registered historic district" mean s a district listed 112
in the National Register of Historic Places or a district: 113
1. Designated under general law or local ordinance and 114
certified by the United States Secretary of the Interior as 115
containing criteria that will substantially achieve the purp oses 116
of preserving and rehabilitating buildings of historic 117
significance to the district; and 118
2. Certified by the United States Secretary of the 119
Interior as meeting substantially all of the requirements for 120
listing a district in the National Register of Historic Places. 121
(3) ELIGIBILITY FOR TAX CREDIT. —To claim and receive a tax 122
credit under this section, a taxpayer must first apply to the 123
department for a tax credit for qualified expenses in the amount 124
and under the conditions and limitations provided i n this 125
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section against the tax due for a taxable year under this 126
chapter and must document that: 127
(a) The rehabilitation is a certified rehabilitation. 128
(b) The structure is a certified historic structure, is 129
income-producing, is located within the state , and was 130
rehabilitated and placed into service on or after July 1, 2022. 131
(c) The taxpayer had an ownership interest in the 132
certified historic structure in the year during which the 133
certified historic structure was placed into service after the 134
certified rehabilitation was completed. 135
(d) The total amount of qualified expenses incurred in 136
rehabilitating the certified historic structure exceeded $5,000. 137
(4) TAX CREDIT FILING REQUIREMENTS. —Before claiming or 138
transferring a tax credit under this section, the taxpayer must 139
provide the department with the following information: 140
(a) An official certificate of eligibility from the 141
division signed by the State Historic Preservation Officer or 142
the Deputy State Historic Preservation Officer attesting that 143
the project has been approved by the National Park Service and 144
confirming whether the project is or is not located within a 145
Main Street local program area. 146
(b) National Park Service Form 10 -168e (Rev. 2019), titled 147
"Historic Preservation Certification Applica tion–Request for 148
Certification of Completed Work -Part 3," signed by the National 149
Park Service attesting that the completed rehabilitation meets 150
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the United States Secretary of the Interior's Standards for 151
Rehabilitation and is consistent with the historic c haracter of 152
the property and, if applicable, the district in which the 153
completed rehabilitation is located. The form may be obtained 154
through the National Park Service. 155
(c) An identification of the dates during which the 156
certified historic structure was r ehabilitated, the date the 157
certified historic structure was first placed into service after 158
the certified rehabilitation was completed, and evidence that 159
the certified historic structure was placed into service after 160
the certified rehabilitation was comple ted. 161
(d) A list of total qualified expenses incurred by the 162
taxpayer in rehabilitating the certified historic structure. For 163
certified rehabilitations with qualified expenses that exceeded 164
$750,000, the taxpayer must submit an audited cost report issued 165
by a certified public accountant that itemizes the qualified 166
expenses incurred in rehabilitating the certified historic 167
structure as provided in s. 215.97. 168
(e) An attestation of the total qualified expenses 169
incurred by the taxpayer in rehabilitating the certified 170
historic structure. 171
(f) A completed Form F -1120, titled "Florida Corporate 172
Income/Franchise Tax Return," or other appropriate tax form 173
issued by the department for insurance premium tax reporting. 174
(g) The information required to be reported b y the 175
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department in subsection (9) to enable the department to compile 176
its annual report. 177
(5) AMOUNT OF TAX CREDIT. —The total tax credit claimed 178
annually may not exceed the amount of tax due after any other 179
applicable tax credits and may not exceed the following: 180
(a) Twenty percent of the total qualified expenses 181
incurred in rehabilitating a certified historic structure that 182
has been approved by the National Park Service to receive the 183
federal historic rehabilitation tax credit; or 184
(b) Thirty percent of the total qualified expenses 185
incurred in rehabilitating a certified historic structure that 186
has been approved by the National Park Service to receive the 187
federal historic rehabilitation tax credit and that is located 188
within a local program area of an A ccredited Main Street 189
Program. 190
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The tax credit may be used to offset the corporate income tax 192
imposed in s. 220.11 and the insurance premium tax imposed in s. 193
624.509. 194
(6) CARRYFORWARD OF TAX CREDIT. — 195
(a) If a taxpayer is eligible for a tax credit that 196
exceeds taxes owed, the taxpayer may carry the unused tax credit 197
forward for a period of up to 10 years. 198
(b) A carryforward is considered the remaining portion of 199
a tax credit that cannot be claimed in the current tax year. 200
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
(7) SALE OR TRANSFER OF TAX CREDIT.— 201
(a) A taxpayer that incurs qualified expenses may sell or 202
transfer all or part of the tax credit that may otherwise be 203
claimed to another taxpayer. 204
(b) A taxpayer to which all or part of the tax credit is 205
sold or transferred may sell or trans fer all or part of the tax 206
credit that may otherwise be claimed to another taxpayer. 207
(c) A taxpayer that sells or transfers a tax credit to 208
another taxpayer must provide a copy of the certificate of 209
eligibility together with the audited cost report to th e 210
purchaser or transferee. 211
(d) Qualified expenses may only be counted once in 212
determining the amount of an available tax credit, and more than 213
one taxpayer may not claim a tax credit for the same qualified 214
expenses. 215
(e) There is no limit on the total n umber of transactions 216
for the sale or transfer of all or part of a tax credit. 217
(f)1. A taxpayer that sells or transfers a tax credit 218
under this subsection and the purchaser or transferee shall 219
jointly submit written notice of the sale or transfer to the 220
department on a form adopted by the department no later than the 221
30th day after the date of the sale or transfer. The notice must 222
include all of the following: 223
a. The date of the sale or transfer. 224
b. The amount of the tax credit sold or transferred. 225
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c. The name and federal tax identification number of the 226
taxpayer that sold or transferred the tax credit and the 227
purchaser or transferee. 228
d. The amount of the tax credit owed by the taxpayer 229
before the sale or transfer and the amount the selling or 230
transferring taxpayer retained, if any, after the sale or 231
transfer. 232
2. The sale or transfer of a tax credit under this 233
subsection does not extend the period for which a tax credit may 234
be carried forward and does not increase the total amount of the 235
tax credit that may be claimed. 236
3. If a taxpayer claims a tax credit for qualified 237
expenses, another taxpayer may not use the same expenses as the 238
basis for claiming a tax credit. 239
4. Notwithstanding the requirements of this subsection, a 240
tax credit earned, purchased by, or transferred to a 241
partnership, limited liability company, S corporation, or other 242
pass-through taxpayer may be allocated to the partners, members, 243
or shareholders of that taxpayer and claimed under this section 244
in accordance with any agree ment among the partners, members, or 245
shareholders and without regard to the ownership interest of the 246
partners, members, or shareholders in the rehabilitated 247
certified historic structure. 248
(g) If the tax credit is reduced due to a determination, 249
examination, or audit by the department, the tax deficiency shall 250
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be recovered from the taxpayer that sold or transferred the tax 251
credit or the purchaser or transferee that claimed the tax 252
credit up to the amount of the tax credit taken. 253
(h) Any subsequent deficien cies shall be assessed against 254
the purchaser or transferee that claimed the tax credit or, in 255
the case of multiple succeeding entities, in the order of tax 256
credit succession. 257
(8) AUDIT AUTHORITY; REVOCATION AND FORFEITURE OF TAX 258
CREDITS; FRAUDULENT CLAIM S.— 259
(a) The department may perform any additional financial and 260
technical audits and examinations, including examining the 261
accounts, books, or records of the tax credit applicant, to 262
verify the legitimacy of the qualified expenses included in a 263
tax credit return and to ensure compliance with this section. 264
(b) It is grounds for forfeiture of previously claimed and 265
received tax credits if the department determines, as a result 266
of an audit or information received from the division or the 267
United States Department of the Interior, that a taxpayer 268
received a tax credit pursuant to this section to which the 269
taxpayer was not entitled. In the case of fraud, the taxpayer 270
may not claim any future tax credits under this section. 271
(c) The taxpayer must return forfeit ed tax credits to the 272
department and such funds shall be paid into the General Revenue 273
Fund. 274
(d) The taxpayer shall file with the department an amended 275
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tax return or such other report as the department prescribes and 276
shall pay any required tax within 60 d ays after the taxpayer 277
receives notification from the United States Internal Revenue 278
Service that a previously approved tax credit has been revoked 279
or modified, if uncontested, or within 60 days after a final order 280
is issued following proceedings involving a contested revocation 281
or modification order. 282
(e) A notice of deficiency may be issued by the department 283
at any time within 5 years after the date on which the taxpayer 284
receives notification from the United States Internal Revenue 285
Service that a previously ap proved tax credit has been revoked 286
or modified. 287
(f) If a taxpayer fails to notify the department of any 288
change in its tax credit claimed, a notice of deficiency may be 289
issued at any time. In either case, the amount of any proposed 290
assessment set forth in s uch notice of deficiency is limited to 291
the amount of any deficiency resulting under this section from 292
the precomputation of the taxpayer's tax for the taxable year. 293
(g) A taxpayer that fails to report and timely pay any tax 294
due as a result of the forfeitur e of its tax credit violates 295
this section and is subject to applicable penalties and 296
interest. 297
(9) ANNUAL REPORTS. —Each year, based on the applications 298
submitted and approved, the department must issue a report to 299
the President of the Senate and the Spea ker of the House of 300
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Representatives that identifies, in the aggregate, all of the 301
following: 302
(a) The number of employees hired during construction 303
phases. 304
(b) The use of each newly rehabilitated building and the 305
expected number of employees hired. 306
(c) The number of affordable housing units created or 307
preserved. 308
(d) The property values before and after the certified 309
rehabilitations. 310
(10) DEPARTMENT DUTIES. -The department shall: 311
(a) Establish any necessary forms required to claim a tax 312
credit under this section. 313
(b) Provide administrative guidelines and procedures 314
required to administer this section, including rules 315
establishing an entitlement to and sale or transfer of a tax 316
credit under this section. 317
(c) Provide examination and audit procedur es required to 318
administer this section. 319
(11) RULES.—The department may adopt rules to administer 320
this section. 321
Section 2. This act shall take effect July 1, 2022. 322