Florida 2025 Regular Session

Florida House Bill H0837 Compare Versions

Only one version of the bill is available at this time.

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3	3	HB 837 2025
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10	10	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
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14	14	A bill to be entitled 1
15	15	An act relating to tax credits for investment in rural 2
16	16	communities; creating s. 288.062, F.S.; providing a 3
17	17	short title; providing definitions ; requiring the 4
18	18	Department of Commerce to accept applications for 5
19	19	approval as rural funds in a specified manner; 6
20	20	requiring certain information to be submitted in an 7
21	21	application; requiring the department to approve or 8
22	22	deny applications within a specified ti meframe; 9
23	23	prohibiting the department from approving more than a 10
24	24	certain amount of investment authority; requiring the 11
25	25	department to deny applications under certain 12
26	26	circumstances; authorizing an applicant whose 13
27	27	application was denied to provide additional 14
28	28	information within a certain timeframe to cure defects 15
29	29	in the application; requiring the department to review 16
30	30	and reconsider such applications within a certain 17
31	31	timeframe; prohibiting the department from reducing 18
32	32	the investment authority of an application or denying 19
33	33	an application unless certain circumstances are met; 20
34	34	requiring the department to certify approved 21
35	35	applications; providing requirements for certified 22
36	36	rural funds; requiring the department to provide a tax 23
37	37	credit certificate to certain taxpayers; req uiring the 24
38	38	department to revoke a rural fund's certification 25
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47	47	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
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51	51	under specified conditions; requiring the department 26
52	52	to distribute revoked investment authority among 27
53	53	certain rural funds; authorizing rural funds to 28
54	54	allocate associated investor contribution aut hority to 29
55	55	certain taxpayers; granting a credit against state tax 30
56	56	liability for specified investors; providing 31
57	57	restrictions on the credit; requiring that taxpayers 32
58	58	claiming a credit submit a copy of the tax credit 33
59	59	certificate with their tax return; requirin g the 34
60	60	department to revoke a tax credit certificate under 35
61	61	certain circumstances; authorizing rural funds to 36
62	62	request certain determinations from the department; 37
63	63	specifying a timeframe within which rural funds may 38
64	64	correct violations to avoid revocation of a tax credit 39
65	65	certificate; authorizing the department to distribute 40
66	66	reverted investment authority among certain rural 41
67	67	funds; authorizing rural funds to submit an exit 42
68	68	application; providing a timeframe and procedures for 43
69	69	use by the department in handling exit applications; 44
70	70	prohibiting the department from revoking a rural 45
71	71	fund's tax credit certificate after it exits the 46
72	72	program; requiring rural funds to submit an annual 47
73	73	report to the department beginning on a date certain ; 48
74	74	requiring that the annual report inclu de certain 49
75	75	information; prohibiting applications from being 50
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77	77	HB 837 2025
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84	84	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
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88	88	accepted after a date certain; providing an effective 51
89	89	date. 52
90	90	53
91	91	Be It Enacted by the Legislature of the State of Florida: 54
92	92	55
93	93	Section 1. Section 288.062, Florida Statutes, is created 56
94	94	to read: 57
95	95	288.062 Florida Rural Jobs Act. — 58
96	96	(1) This section may be cited as the "Florida Rural Jobs 59
97	97	Act." 60
98	98	(2) As used in this section the term: 61
99	99	(a) "Affiliate" means an entity that directly, or 62
100	100	indirectly through one or more intermediaries, controls, is 63
101	101	controlled by, or is under common control with another entity. 64
102	102	For the purposes of this paragraph, an entity is controlled by 65
103	103	another entity if the controlling entity holds, directly or 66
104	104	indirectly, the majority voting or ownership interest in the 67
105	105	controlled entity or has control over the day -to-day operations 68
106	106	of the controlled entity. 69
107	107	(b) "Credit allowance date" means the date on which the 70
108	108	department provides a tax credit certificate under paragraph 71
109	109	(8)(a). 72
110	110	(c) "Department" means the Department of Commerce. 73
111	111	(d) "Eligible business" means a business that, at the time 74
112	112	a rural fund initially invests in the business: 75
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121	121	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
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125	125	1. Has fewer than 2 50 employees; and 76
126	126	2. Has its principal business operations in this state . 77
127	127	(e) "Eligible investment" means any capital or equity 78
128	128	investment in an eligible business or any loan to a n eligible 79
129	129	business with a stated maturity at least 1 year after the date 80
130	130	of issuance. 81
131	131	(f) "Investment authority" means the amount certified by 82
132	132	the department under subsection (7). 83
133	133	(g) "Investor contribution" means a cash investment in a 84
134	134	rural fund. The cash investment shall purchase an equity 85
135	135	interest in the rural fund or purchase at par value or premium a 86
136	136	debt instrument that has a maturity date at least 7 years after 87
137	137	the credit allowance date and a repayment schedule that is no 88
138	138	greater than level principal amortization over 7 years. 89
139	139	(h) "Jobs retained" means the number of full -time high-90
140	140	wage employment positions that existed before the initial 91
141	141	eligible investment in an eligible business and for which the 92
142	142	eligible business' chief executive officer or similar officer 93
143	143	certifies that the employment positions would have been 94
144	144	eliminated but for the initial eligible investment. 95
145	145	(i) "Principal business operatio n" means the location or 96
146	146	locations at which at least 60 percent of a business' employees 97
147	147	work or at which the employees who are paid at least 60 percent 98
148	148	of the business' payroll are located. A business that agrees to 99
149	149	relocate or hire new employees using th e proceeds of an eligible 100
150	150
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158	158	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
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160	160
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162	162	investment to establish its principal business operation in this 101
163	163	state is deemed to have its principal business operations in the 102
164	164	new location, provided the business satisfies this definition 103
165	165	within 180 days after receiving the eligible investment. 104
166	166	(j) "Rural fund" means an entity certified by the 105
167	167	department under subsection (7). 106
168	168	(k) "State tax" means a tax identified in chapter 220, s. 107
169	169	624.509, or s. 624.5091. 108
170	170	(3) On or before November 1, 2025, the department shall 109
171	171	accept applications for approval as a rural fund on a form 110
172	172	adopted by the department. The application shall include the 111
173	173	following: 112
174	174	(a) The total investment authority sought by the 113
175	175	applicant. 114
176	176	(b) Evidence that the applicant or an affiliate of the 115
177	177	applicant is licensed as a rural business investment company 116
178	178	under 7 U.S.C. s. 2009cc or as a small business investment 117
179	179	company under 15 U.S.C. s. 681. The applicant or the affiliate 118
180	180	must include a certificate executed by an executive offi cer of 119
181	181	the applicant attesting that such license remains in effect and 120
182	182	has not been revoked . 121
183	183	(c) Evidence that, as of the date the application is 122
184	184	submitted, the applicant or affiliates of the applicant have 123
185	185	invested at least $100 million in nonpublic com panies located in 124
186	186	counties within the United States with a population of fewer 125
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195	195	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
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199	199	than 75,000 as of the United States Decennial Census of 2010. 126
200	200	(d) An estimate of the total number of new annual jobs 127
201	201	that will be created and jobs that will be retained over t he 128
202	202	life of the program in this state because of the applicant's 129
203	203	eligible investments. 130
204	204	(e) A business plan that includes a revenue impact 131
205	205	assessment projecting state and local tax revenues to be 132
206	206	generated, as well as state expenditures to be reduced, by t he 133
207	207	applicant's proposed eligible investments, prepared by a 134
208	208	nationally recognized third - party independent economic 135
209	209	forecasting firm using a dynamic economic forecasting model that 136
210	210	analyzes the applicant's business plan over the 10 years after 137
211	211	the date the application is submitted to the department. 138
212	212	(4)(a) Within 30 days after receipt of a completed 139
213	213	application the department shall approve or deny the 140
214	214	application. 141
215	215	(b) The department shall deem applications that are 142
216	216	received on the same day as having bee n received simultaneously. 143
217	217	If requests for investment authority exceed th e remaining tax 144
218	218	credit limitation under paragraph (c), the department shall 145
219	219	proportionally reduce the investment authority and the investor 146
220	220	contributions for each approved application that day to avoid 147
221	221	exceeding the limit. 148
222	222	(c) The department shall approve investment authority up 149
223	223	to an amount that would allow no more than $ 7.143 million in tax 150
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232	232	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
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234	234
235	235
236	236	credits to be taken in any one year, excluding any credits 151
237	237	carried forward pursuant to parag raph (10)(c). 152
238	238	(5) The department shall deny an application if: 153
239	239	(a) The application is incomplete . 154
240	240	(b) The applicant does not satisfy the criteria set forth 155
241	241	in subsection (3). 156
242	242	(c) The revenue impact assessment submitted under 157
243	243	paragraph (3)(e) does not demonstrate that the applicant's 158
244	244	business plan will result in a positive revenue impact on this 159
245	245	state over a 10-year period which exceeds the cumulative amount 160
246	246	of tax credits that would be issued to the applicant's 161
247	247	investors. 162
248	248	(d) The department has a lready approved the maximum amount 163
249	249	of investment authority and investor contributions allowed under 164
250	250	subsection (4). 165
251	251	(6) If the department denies an application, the 166
252	252	applicant, within 15 days after the denial, may provide 167
253	253	additional information to the dep artment to cure any defects in 168
254	254	the application identified by the department. The department 169
255	255	shall review and reconsider such applications within 15 days 170
256	256	after receipt and before approving any pending applications 171
257	257	submitted after the original submission dat e of the reconsidered 172
258	258	application. 173
259	259	(7) The department shall not reduce the requested 174
260	260	investment authority or deny a rural fund application for 175
261	261
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269	269	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
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273	273	reasons other than those described in subsection (4) or 176
274	274	subsection (5). After approving an application, the department 177
275	275	shall certify: 178
276	276	(a) The applicant as a rural fund. 179
277	277	(b) The amount of the applicant's investment authority . 180
278	278	(8)(a) Within 90 days after receiving the certification 181
279	279	issued under subsection (7), the rural fund shall collect all 182
280	280	investor contributions and collect additional investments of 183
281	281	cash which, when added to the investor contributions, at least 184
282	282	equal the rural fund's investment authority. Within 95 days 185
283	283	after receiving the certification issued under s ubsection (7), 186
284	284	the rural fund shall send to the department documentation that 187
285	285	the rural fund has collected the amounts described in this 188
286	286	subsection. At least 10 percent of the rural fund's investment 189
287	287	authority must consist of equity investments contributed by 190
288	288	affiliates of the rural fund. The rural fund shall report to the 191
289	289	department the date on which the investor contributions and 192
290	290	additional investments of cash were collected. 193
291	291	(b) Upon receipt of the documentation required by 194
292	292	paragraph (a), the departmen t shall provide to each taxpayer who 195
293	293	has made an investor contribution in the amount of the investor 196
294	294	contribution a tax credit certificate . 197
295	295	(9) If the rural fund fails to comply with subsection (8), 198
296	296	the department shall revoke the rural fund's certification and 199
297	297	the corresponding investment authority and investor 200
298	298
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306	306	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
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310	310	contributions will not count toward the limits on the program 201
311	311	size set forth in subsection (4). The department shall first 202
312	312	award revoked investment authority pro rata to each rural fund 203
313	313	that was awarded less than the investment authority for which it 204
314	314	applied, and a rural fund may allocate the associated investor 205
315	315	contribution authority to any taxpayer with state tax liability 206
316	316	in its discretion. Any remaining investment authority may be 207
317	317	awarded by the department to new applicants. 208
318	318	(10)(a) Any taxpayer that makes an investor contribution 209
319	319	is vested with an earned credit against state tax liability 210
320	320	equal to that investor's investor contribution. The credit may 211
321	321	be used over 7 years such that 7.14 percent of the credit is 212
322	322	applied in each of the taxable years that includes the year of 213
323	323	the credit allowance date through the fourth anniversary of the 214
324	324	credit allowance date, unless a specific request is made to 215
325	325	carry forward the credit allowance for a period not to exceed 10 216
326	326	years. 217
327	327	(b) The credit is nonrefundable and may not be sold, 218
328	328	transferred, or allocated to any other entity other than an 219
329	329	affiliate that was an affiliate at the time of the submission of 220
330	330	the investor's affidavit included in the rural fund's 221
331	331	application. 222
332	332	(c) The amount of the credit claimed by a taxpayer may not 223
333	333	exceed the amount of such taxpayer's state tax liability for the 224
334	334	tax year for which the credit is claimed. 225
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343	343	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
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347	347	(d) A taxpayer claiming a credit under this section shall 226
348	348	submit a copy of the tax credit certificate with the taxpayer's 227
349	349	return for each taxable year for which the credit is claimed. 228
350	350	(11) The department must revoke the tax credit 229
351	351	certificates issued under paragraph (8)(b) if any of the 230
352	352	following occurs with respect to a rural fund before the rural 231
353	353	fund exits the program in accordance with paragraph (1 5): 232
354	354	(a) The rural fund does not invest 60 percent of its 233
355	355	investment authority in eligible investments in this state 234
356	356	within 2 years after the credit allowance date. 235
357	357	(b) The rural fund does not invest 100 percent of its 236
358	358	investment authority in eligible investments in this state 237
359	359	within 3 years after the credit allowance date. 238
360	360	(c) The rural fund, after initially satisfying paragraph 239
361	361	(b), fails to maintain eligible investments equal to 100 percent 240
362	362	of its investment authority until the sixth anniversary of the 241
363	363	credit allowance date. For purposes of this paragraph, an 242
364	364	investment is maintained even if it is sold or repaid, so long 243
365	365	as the rural fund reinvests an amount equal to the capital 244
366	366	returned or recovered from the original investment, exclusive of 245
367	367	any profits realized, in other eligible investments in this 246
368	368	state within 12 months after the receipt of such capital. 247
369	369	Amounts received periodically by a rural fund shall be treated 248
370	370	as continuously invested in eligible investments if the amounts 249
371	371	are reinvested in one or more eligible investments by the end of 250
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380	380	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
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384	384	the following calendar year ; however, there is no requirement to 251
385	385	reinvest capital after the sixth anniversary for purposes of 252
386	386	eligibility under this paragraph. 253
387	387	(d) The rural fund, before exiting the program in 254
388	388	accordance with paragraph (1 5) or 30 days after the seventh 255
389	389	anniversary of the credit allowance date , makes a distribution 256
390	390	or payment that results in the rural fund having less than 100 257
391	391	percent of its investment authority invested in eligible 258
392	392	investments in this state or available for investment in 259
393	393	eligible investments and held in cash and other marketable 260
394	394	securities. 261
395	395	(e) The rural fund invests in an eligible business that 262
396	396	directly, or indirectly through an affiliate, owns, has the 263
397	397	right to acquire an ownership interest in, makes a loan to, or 264
398	398	makes an investment in the rural fund of an affiliate of the 265
399	399	rural fund or an investor in the rural fund. 266
400	400	267
401	401	The department in its sole discretion may, upon request, and if 268
402	402	the department believes that the investment aligns with the 269
403	403	purposes of this section, allow paragraphs (a), (b), and (c) be 270
404	404	satisfied by investments in businesses that are not eligible 271
405	405	businesses or located in nonrural areas. 272
406	406	(12) Before making a n eligible investment, a rural fund 273
407	407	may request a written opinion from the department as to whether 274
408	408	the business in which it proposes to invest satisfies the 275
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417	417	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
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421	421	definition of an eligible business. The department, not later 276
422	422	than the 15th business day after the date of receipt of the 277
423	423	request, shall provide the rural fund with a determination 278
424	424	letter providing its opinion. If the department fails to issue a 279
425	425	determination letter by the 15th business day, the business in 280
426	426	which the rural fund proposes to invest shall be considered a n 281
427	427	eligible business. 282
428	428	(13) Before revoking a tax credit certificate under 283
429	429	subsection (11), the department shall notify the rural fund of 284
430	430	the reasons for the pending revocation. The rural fund shall 285
431	431	have 180 days after the date the notice was received to correct 286
432	432	any violation outlined in the notice to the satisfaction of the 287
433	433	department and avoid revocation of the tax credit certificate. 288
434	434	(14) If the department revokes any tax credit certificates 289
435	435	under subsection (11), the associated investment authority and 290
436	436	investor contributions shall not count toward the limit on total 291
437	437	investment authority and investor contributions described in 292
438	438	subsection (4). The department must award any remaining 293
439	439	investment authority to restore any reduction under paragraph 294
440	440	(4)(b). 295
441	441	(15) On or after the seventh anniversary of the credit 296
442	442	allowance date, a rural fund may apply to the department to exit 297
443	443	the program and no longer be subject to regulation. The 298
444	444	department shall approve or den y the application within 15 days 299
445	445	after receipt. In evaluating the application, the fact that no 300
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454	454	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
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458	458	tax credit certificates have been revoked and that the rural 301
459	459	fund has not received a notice of revocation that has not been 302
460	460	cured pursuant to subsection (1 3) is sufficient evidence to 303
461	461	prove that the rural fund is eligible for exit. The department 304
462	462	shall not unreasonably deny an application submitted under this 305
463	463	subsection. If the application is denied, the notice shall 306
464	464	include the reasons for the determination. 307
465	465	(16) The department may not revoke a tax credit 308
466	466	certificate after a rural fund exits the program. 309
467	467	(17)(a) Each rural fund shall submit to the department a 310
468	468	report on or before the 15th business day after the second and 311
469	469	third anniversaries of the credit allowance date which provides 312
470	470	documentation has invested the amounts required in paragraphs 313
471	471	(11)(a) and (b). Such report shall also include: 314
472	472	1. The name and location of each eligible business 315
473	473	receiving an eligible investment, including either the 316
474	474	determination letter under subsection (12) or evidence that the 317
475	475	business qualified as a n eligible business at the time the 318
476	476	investment was made, if not previously reported . 319
477	477	2. A bank statement evidencing each eligible investment, 320
478	478	if not previously reported . 321
479	479	3. The number of jobs created and retained as a result of 322
480	480	each eligible investment, and the average salary of each 323
481	481	position. 324
482	482	4. Any other information required by the department. 325
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491	491	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
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495	495	(b) On or before March 1 of the subsequent calendar year 326
496	496	after the final report required in paragraph (a), and annually 327
497	497	until its exit from the program in accordance with paragraph 328
498	498	(15), the rural fund shall submit to the department a report 329
499	499	that identifies each eligible investment made by the rural fund 330
500	500	and shall include: 331
501	501	1. The number of jobs created and retained as a result of 332
502	502	the eligible investment, and the annual salary of each position. 333
503	503	2. Any other information required by the department. 334
504	504	(18) The department may not accept any new applications 335
505	505	after December 1, 2034. 336
506	506	Section 2. This act shall take effect July 1, 2025. 337