Florida Senate - 2025 SB 1594 By Senator McClain 9-00828A-25 20251594__ 1 A bill to be entitled 2 An act relating to housing; amending s. 196.1978, 3 F.S.; providing and revising definitions; revising 4 eligibility requirements for a specified affordable 5 housing tax exemption; authorizing certain adaptive 6 reuse projects to be eligible for a certain tax 7 exemption; revising the period of time to determine 8 eligibility for such exemption; providing that certain 9 property owners continue to be eligible for such 10 exemption if certain conditions are met; authorizing 11 subsequent property owners to continue receiving such 12 exemption; providing requirements for receiving a 13 certification notice; authorizing specified actions by 14 foreclosed property owners; requiring property 15 appraisers to issue certain letters; providing that 16 projects that have received such letters may continue 17 receiving a specified tax exemption and may begin 18 receiving such exemption on a specified date; revising 19 requirements for taxing authorities; prohibiting such 20 authorities from using specified emergency enactment 21 procedures for specified purposes; requiring certain 22 projects and developments to continue to be exempt 23 from specified ordinances; requiring a taxing 24 authority to conduct an assessment on the need for 25 certain affordable housing and present the assessment 26 at a specified meeting; requiring the taxing authority 27 to provide a certain notice to the Florida Housing 28 Finance Corporation; requiring the corporation to 29 submit a certain report each year to the Governor and 30 the Legislature before the legislative session; 31 authorizing a cause of action for certain project 32 owners to recover specified relief; providing for the 33 award of attorney fees and costs; defining the term 34 reasonable attorney fees and costs; revising 35 penalties that must be included in a certain land use 36 restriction; providing applicability; amending s. 37 196.1979, F.S.; defining the term adaptive reuse 38 project; revising eligibility requirements for a 39 specified tax exemption; authorizing certain 40 developments to abate certain future ad valorem 41 property taxes by paying a specified amount at the 42 time a building permit is issued; requiring the 43 Florida Housing Finance Corporation to adopt certain 44 rules; prohibiting a county or municipality from 45 imposing compliance monitoring requirements more 46 stringent than standards the corporation adopts; 47 amending s. 212.055, F.S.; revising the types of 48 expenditures for which the proceeds of a specified 49 surtax may be used; amending s. 213.053, F.S.; 50 authorizing the Department of Revenue to share certain 51 information with specified parties; amending s. 52 220.02, F.S.; revising the order in which credits 53 against specified taxes may be taken; amending s. 54 220.13, F.S.; revising adjustments for adjusted 55 federal income; amending s. 220.185, F.S.; revising 56 the definition of the term qualified project; 57 excluding from the definition any project that has 58 received specified financing or tax credits; amending 59 s. 220.197, F.S.; providing a short title; providing 60 definitions; authorizing a tax credit for qualified 61 expenses incurred for a specified purpose beginning on 62 a certain date; providing applicability; prohibiting a 63 taxpayer from receiving more than a specified amount 64 in tax credits for a single project; providing 65 eligibility requirements for such tax credit; 66 authorizing forfeiture of such tax credit under 67 certain circumstances; authorizing the carryforward of 68 such tax credit; authorizing the sale or transfer of 69 such tax credit under certain conditions; specifying 70 requirements for such sale or transfer; authorizing 71 the Department of Revenue to conduct audits; 72 authorizing the Division of Historical Resources of 73 the Department of State to assist in such audits; 74 authorizing forfeiture of certain tax credits under 75 certain circumstances; requiring repayment of certain 76 funds into a specified account; requiring the taxpayer 77 to file an amended tax return and pay any required tax 78 in specified circumstances; authorizing the department 79 to issue a notice of deficiency in certain 80 circumstances; providing applicability; requiring the 81 department to submit a certain annual report; 82 providing reporting requirements; providing department 83 duties in administering a specified tax credit 84 program; authorizing the Department of Revenue, the 85 Division of Historical Resources of the Department of 86 State, and the Florida Housing Finance Corporation to 87 adopt rules; amending s. 420.503, F.S.; revising the 88 definition of the term qualified contract; amending 89 s. 420.50871, F.S.; defining the term urban infill; 90 revising the types of affordable housing projects 91 funded by the Florida Housing Finance Corporation; 92 prohibiting the corporation from requiring certain 93 projects to use specified tax credits or financing; 94 amending s. 420.50872, F.S.; prohibiting projects 95 financed through the Live Local Program from being 96 required to use specified tax credits or financing; 97 amending s. 624.509, F.S.; revising the order of 98 credits and deductions taken against a specified tax; 99 providing applicability; providing an effective date. 100 101 Be It Enacted by the Legislature of the State of Florida: 102 103 Section 1.Subsections (1) through (4) of section 196.1978, 104 Florida Statutes, are renumbered as subsections (2) through (5), 105 respectively, paragraphs (n) and (o) of present subsection (3) 106 of that section are redesignated as paragraphs (o) and (p), 107 respectively, present subsection (1), paragraphs (b) and (d) of 108 present subsection (2), paragraphs (a), (b), (d), (e), and (f) 109 and present paragraph (o) of present subsection (3), and 110 paragraphs (b), (d), and (f) of present subsection (4) of that 111 section are amended, a new paragraph (n) is added to present 112 subsection (3) of that section, and a new subsection (1) and 113 subsection (6) are added to that section, to read: 114 196.1978Affordable housing property exemption. 115 (1)As used in this section, the term: 116 (a)Financial beneficiary means any principal of the 117 developer or applicant entity that receives or will receive any 118 direct or indirect financial benefit from a development. A 119 financial beneficiary does not include third-party lenders, 120 third-party management agents or companies, third-party service 121 providers, housing credit syndicators, or credit enhancers 122 regulated by a state or federal agency. 123 (b)Multifamily project includes multiple parcels or 124 properties with one or more of the same financial beneficiaries 125 if any of the following conditions are met: 126 1.Any part of any of the property site is contiguous with 127 any part of any of the other property sites; 128 2.Any of the property sites are divided only by a street 129 or easement; or 130 3.The properties are part of a common or related scheme of 131 development, as demonstrated by the applications, proximity, 132 chain of title, or other information made available to the 133 Florida Housing Finance Corporation or property appraiser. 134 (2)(a)(1)(a)Property used to provide affordable housing to 135 eligible persons as defined by s. 159.603 and natural persons or 136 families meeting the extremely-low-income, very-low-income, low 137 income, or moderate-income limits specified in s. 420.0004, 138 which is owned entirely by a governmental entity or nonprofit 139 entity that is a corporation not for profit, qualified as 140 charitable under s. 501(c)(3) of the Internal Revenue Code and 141 in compliance with Rev. Proc. 96-32, 1996-1 C.B. 717, is 142 considered property owned by an exempt entity and used for a 143 charitable purpose, and those portions of the affordable housing 144 property that provide housing to natural persons or families 145 classified as extremely low income, very low income, low income, 146 or moderate income under s. 420.0004 are exempt from ad valorem 147 taxation to the extent authorized under s. 196.196. All property 148 identified in this subsection must comply with the criteria 149 provided under s. 196.195 for determining exempt status and 150 applied by property appraisers on an annual basis. The 151 Legislature intends that any property owned by a limited 152 liability company which is disregarded as an entity for federal 153 income tax purposes pursuant to Treasury Regulation 301.7701 154 3(b)(1)(ii) be treated as owned by its sole member. If the sole 155 member of the limited liability company that owns the property 156 is also a limited liability company that is disregarded as an 157 entity for federal income tax purposes pursuant to Treasury 158 Regulation 301.7701-3(b)(1)(ii), the Legislature intends that 159 the property be treated as owned by the sole member of the 160 limited liability company that owns the limited liability 161 company that owns the property. Units that are vacant and units 162 that are occupied by natural persons or families whose income no 163 longer meets the income limits of this subsection, but whose 164 income met those income limits at the time they became tenants, 165 shall be treated as portions of the affordable housing property 166 exempt under this subsection if a recorded land use restriction 167 agreement in favor of the Florida Housing Finance Corporation, a 168 housing finance authority as defined in s. 159.603(3), or any 169 other governmental or quasi-governmental jurisdiction requires 170 that all residential units within the property be used in a 171 manner that qualifies for the exemption under this subsection 172 and if the units are being offered for rent. 173 (b)Land that is owned entirely by a governmental entity or 174 a nonprofit entity that is a corporation not for profit, 175 qualified as charitable under s. 501(c)(3) of the Internal 176 Revenue Code and in compliance with Rev. Proc. 96-32, 1996-1 177 C.B. 717, and is leased for a minimum of 90 99 years for the 178 purpose of, and is predominantly used for, providing housing to 179 natural persons or families meeting the extremely-low-income, 180 very-low-income, low-income, or moderate-income limits specified 181 in s. 420.0004 is exempt from ad valorem taxation. For purposes 182 of this paragraph, land is predominantly used for qualifying 183 purposes if the square footage of the improvements on the land 184 used to provide qualifying housing is greater than 50 percent of 185 the square footage of all improvements on the land. 186 Notwithstanding ss. 196.195 and 196.196, all improvements used 187 to provide qualifying housing on land that is exempt from ad 188 valorem taxation are also exempt from such taxation. This 189 paragraph first applies to the 2024 tax roll and is repealed 190 December 31, 2059. 191 (3)(2) 192 (b)The multifamily project must: 193 1.Contain at least one unit that is more than 70 units 194 that are used to, or, for an adaptive reuse project as defined 195 in s. 196.1979(1), at least 20 percent of the projects 196 residential units must be used to, provide affordable housing to 197 natural persons or families meeting the extremely-low-income, 198 very-low-income, or low-income limits specified in s. 420.0004; 199 and 200 2.Be subject to an agreement with the Florida Housing 201 Finance Corporation, or a housing finance authority as defined 202 in s. 159.603(3), recorded in the official records of the county 203 in which the property is located to provide affordable housing 204 to natural persons or families meeting the extremely-low-income, 205 very-low-income, or low-income limits specified in s. 420.0004. 206 207 This exemption terminates if the property no longer serves 208 extremely-low-income, very-low-income, or low-income persons 209 pursuant to the recorded agreement. 210 (d)The property appraiser shall apply the exemption to 211 those portions of the affordable housing property that are 212 dedicated to providing provide housing to natural persons or 213 families meeting the extremely-low-income, very-low-income, or 214 low-income limits specified in s. 420.0004 before certifying the 215 tax roll to the tax collector. 216 (4)(a)(3)(a)As used in this subsection, the term: 217 1.Corporation means the Florida Housing Finance 218 Corporation. 219 2.Improvement to real property includes new 220 construction, substantial rehabilitation of an existing 221 multifamily project, or conversion from another use to 222 multifamily. 223 3.2.Newly constructed means an improvement, or the 224 substantial rehabilitation of an existing improvement, to real 225 property which was substantially completed within 5 years before 226 the date of the property owners an applicants first submission 227 of a request for a certification notice pursuant to this 228 subsection. 229 4.Substantial rehabilitation means the meaningful repair 230 or restoration of a property when the total value of such 231 meaningful repair or restoration is equal to the greater of 232 $15,000 per unit or $750 per unit, per year of building age, 233 which is the difference between the year in which the property 234 received the certificate of occupancy and the year in which the 235 property first received the certification notice. Meaningful 236 repairs or restorations may be reasonably allocated among in 237 unit, common area, superstructure, substructure, mechanical, 238 electrical, plumbing, and other property repairs or restorations 239 that prolong the useful life of the building. Meaningful repairs 240 or restorations include onsite improvements, offsite 241 improvements, rehabilitation costs for physical improvements to 242 the property, and construction contingency but do not include 243 general contractor fees or overhead, general requirements, 244 architect and engineering fees, permit fees, financing or soft 245 costs, and developer fees. 246 5.3.Substantially completed means the date on which a 247 project receives its certificate of occupancy. If the project 248 has multiple buildings or phases, the property owner must submit 249 its first submission of a request for a certification notice 250 within 5 years after the date on which the last certificate of 251 occupancy was issued for the project has the same meaning as in 252 s. 192.042(1). 253 (b)Notwithstanding ss. 196.195 and 196.196, portions of 254 property in a multifamily project are considered property used 255 for a charitable purpose and are eligible to receive an ad 256 valorem property tax exemption if such portions meet all of the 257 following conditions: 258 1.Provide affordable housing to natural persons or 259 families meeting the income limitations provided in paragraph 260 (d). 261 1.a.2.a.Are within a newly constructed multifamily project 262 that contains at least one unit that is more than 70 units 263 dedicated to, or, for an adaptive reuse project as defined in s. 264 196.1979(1), at least 20 percent of the projects residential 265 units are dedicated to, housing natural persons or families 266 meeting the income limitations provided in paragraph (d); or 267 b.Are within a newly constructed multifamily project, or 268 an adaptive reuse project as defined in s. 196.1979(1), in an 269 area of critical state concern, as designated by s. 380.0552 or 270 chapter 28-36, Florida Administrative Code, which contains more 271 than 10 units dedicated to, or, for an adaptive reuse project, 272 at least 20 percent of the projects residential units are 273 dedicated to, housing natural persons or families meeting the 274 income limitations provided in paragraph (d). 275 2.3.Are rented or, if vacant, posted for rent for an 276 amount that does not exceed the amount as specified by the most 277 recent multifamily rental programs income and rent limit chart 278 posted by the corporation and derived from the Multifamily Tax 279 Subsidy Projects Income Limits published by the United States 280 Department of Housing and Urban Development or 90 percent of the 281 fair market value rent as determined by a rental market study 282 meeting the requirements of paragraph (l), whichever is less. 283 (d)1.The property appraiser shall exempt: 284 a.Seventy-five percent of the assessed value of the units 285 in multifamily projects that meet the requirements of this 286 subsection and are used to house natural persons or families 287 whose annual household income at the time the lease is executed 288 is greater than 80 percent but not more than 120 percent of the 289 median annual adjusted gross income for households within the 290 metropolitan statistical area or, if not within a metropolitan 291 statistical area, within the county in which the person or 292 family resides; and 293 b.From ad valorem property taxes the units in multifamily 294 projects that meet the requirements of this subsection and are 295 used to house natural persons or families whose annual household 296 income at the time the lease is executed does not exceed 80 297 percent of the median annual adjusted gross income for 298 households within the metropolitan statistical area or, if not 299 within a metropolitan statistical area, within the county in 300 which the person or family resides; and 301 c.At least 75 percent of the assessed value of all 302 affordable units within a qualified development authorized 303 pursuant to s. 125.01055 or s. 166.04151. 304 305 However, if the income of tenants residing in a unit that 306 received the exemption in the previous year increases above the 307 income thresholds prescribed in sub-subparagraphs a. and b., the 308 unit remains eligible for the exemption if the property owner 309 replaces the tenants with a natural person or family that 310 satisfies the income thresholds once the tenants voluntarily 311 vacate the unit. 312 2.When determining the value of a unit for purposes of 313 applying an exemption pursuant to this paragraph, the property 314 appraiser must include in such valuation the proportionate share 315 of the residential common areas, including the land, fairly 316 attributable to such unit. The property appraiser shall 317 calculate the value of the exemption based on the number of 318 units satisfying the income and rent requirements of this 319 subsection, which shall include the proportionate share of the 320 residential common areas attributable to each unit. 321 (e)To be eligible to receive an exemption under this 322 subsection, a property owner must submit an application on a 323 form prescribed by the department by March 1 for the exemption, 324 accompanied by a certification notice from the corporation to 325 the property appraiser. The property appraiser shall review the 326 application and determine whether the original applicant or 327 subsequent property owner meets all of the requirements of this 328 subsection and is entitled to an exemption. A property appraiser 329 may request and review additional information necessary to make 330 such determination. A property appraiser may grant an exemption 331 only for a property for which the corporation has issued a 332 certification notice and which the property appraiser determines 333 is entitled to an exemption. 334 (f)To receive a certification notice, a property owner 335 must submit a request to the corporation on a form provided by 336 the corporation which includes all of the following: 337 1.The most recently completed rental market study meeting 338 the requirements of paragraph (l). 339 2.A list of the units for which the property owner seeks 340 an exemption. The property owner of a multifamily project that 341 receives an exemption in any taxable year may: 342 a.Revise the list for an exemption sought in any 343 subsequent taxable year by adding units to the list or removing 344 units from the list or both; or 345 b.Increase or decrease the number of units for which an 346 exemption is sought in any subsequent taxable year, 347 348 so long as the multifamily project continues to meet any minimum 349 number or percentage of units dedicated to affordable housing, 350 which is required by law for the exemption. 351 3.The rent amount received by the property owner for each 352 occupied unit and the published rent amount for each vacant unit 353 for which the property owner seeks an exemption. If a unit is 354 vacant and qualifies for an exemption under paragraph (c), the 355 property owner must provide evidence of the published rent 356 amount for each vacant unit. 357 4.A sworn statement, under penalty of perjury, from the 358 applicant restricting the property for a period of not less than 359 3 years to housing persons or families who meet the income 360 limitations under this subsection. If the property is 361 foreclosed, the foreclosing party may elect to void the sworn 362 statement and remove the project from qualifying for the 363 exemption or, if the project remains in compliance with this 364 subsection, continue to apply for and receive the exemption. 365 (n)Upon the request of a property owner, the property 366 appraiser must issue a letter to verify that a multifamily 367 project, if constructed and leased as described in the site 368 plan, qualifies for the exemption under this section. Within 30 369 days after receipt of the request described in this paragraph, 370 the property appraiser must issue a verification letter or 371 explain why the project is ineligible for the exemption. A 372 project that has received a verification letter before the 373 adoption of the ordinance described in paragraph (p) is exempt 374 from such ordinance. The verification letter is prima facie 375 evidence that the project is eligible for the exemption if the 376 project is constructed and leased as described in the site plan 377 used to receive the verification letter. This letter shall 378 qualify the project, if constructed and leased as described in 379 the site plan, to obtain the exemption beginning with the 380 January 1 assessment immediately after the date on which the 381 property obtains a certificate of occupancy and is placed in 382 service allowing the property to be used as an affordable 383 housing property. 384 (p)1.(o)1.Beginning with the 2025 tax roll, a taxing 385 authority may elect, upon adoption of an ordinance or resolution 386 approved by a two-thirds vote of the governing body, not to 387 exempt property under sub-subparagraph (d)1.a. located in a 388 county specified pursuant to subparagraph 2., subject to the 389 conditions of this paragraph. 390 2.A taxing authority must make a finding in the ordinance 391 or resolution that annual housing reports the most recently 392 published by the Shimberg Center for Housing Studies Annual 393 Report, prepared pursuant to s. 420.6075 identify, identifies 394 that a county that is part of the jurisdiction of the taxing 395 authority is within a metropolitan statistical area or region 396 where, for each of the previous 3 years, the number of 397 affordable and available units in the metropolitan statistical 398 area or region is greater than the number of renter households 399 in the metropolitan statistical area or region for the category 400 entitled 0-120 percent AMI. 401 3.An election made pursuant to this paragraph may apply 402 only to the ad valorem property tax levies imposed within a 403 county specified pursuant to subparagraph 2. by the taxing 404 authority making the election. 405 4.The ordinance or resolution must take effect on the 406 January 1 immediately succeeding adoption and shall expire on 407 the following second January 1 after the January 1 in which the 408 ordinance or resolution takes effect. The ordinance or 409 resolution may be renewed before prior to its expiration 410 pursuant to this paragraph if the taxing authority makes the 411 same finding required in subparagraph 2. 412 5.The taxing authority proposing to make an election under 413 this paragraph must advertise the ordinance or resolution or 414 renewal thereof pursuant to the requirements of s. 50.011(1) 415 before prior to adoption. The taxing authority may not utilize 416 the emergency enactment procedures under s. 125.66. 417 6.The taxing authority must provide to the property 418 appraiser the adopted ordinance or resolution or renewal thereof 419 by the effective date of the ordinance or resolution or renewal 420 thereof. 421 7.Notwithstanding an ordinance or resolution or renewal 422 thereof adopted pursuant to this paragraph, a property owner of 423 a multifamily project that who was granted an exemption, at 424 least in part, pursuant to sub-subparagraph (d)1.a. before the 425 adoption or renewal of an such ordinance or resolution may 426 continue to receive an such exemption for each subsequent 427 consecutive year that the property owner, or a subsequent owner, 428 transferee, or assignee, applies for and is granted the 429 exemption. 430 8.Notwithstanding an ordinance or renewal thereof adopted 431 pursuant to this paragraph, a proposed development that has been 432 administratively approved before the adoption or renewal of such 433 ordinance must be eligible to receive the exemption for each 434 year it applies for and is granted the exemption. 435 9.Before adoption of an ordinance pursuant to this 436 paragraph, the taxing authority must conduct an assessment on 437 the taxing authoritys current need for affordable housing at 438 each of the extremely-low-income, very-low-income, and low 439 income limits specified in s. 420.0004, including supply and 440 demand projections of such need for at least the next 5 years. 441 The needs assessment must be presented at the same public 442 meeting at which the proposed ordinance imposing the building 443 moratorium is adopted by the taxing authoritys governing body. 444 10.A taxing authority adopting or renewing an ordinance 445 pursuant to this paragraph must provide notice of such ordinance 446 to the corporation in the format prescribed by the corporation. 447 Each year, within 60 days before the regular session of the 448 Legislature, the corporation shall submit an annual report to 449 the Governor, the President of the Senate, and the Speaker of 450 the House of Representatives on the adoption or renewal of such 451 ordinances. 452 11.The owner of a multifamily project that would otherwise 453 qualify for an affordable housing ad valorem tax exemption under 454 this subsection, which is adversely affected by an ordinance 455 adopted or renewed in violation of this paragraph, has a cause 456 of action against the taxing authority and may recover 457 injunctive relief and compensatory damages therefor before a 458 court of competent jurisdiction. The court may also award 459 reasonable attorney fees and costs, not to exceed $100,000, to a 460 prevailing plaintiff. For purposes of this subparagraph, the 461 term reasonable attorney fees and costs means the reasonable 462 and necessary attorney fees and costs incurred for all 463 preparations, motions, hearings, trials, and appeals in a 464 proceeding. The term does not include attorney fees or costs 465 directly incurred by or associated with litigation to determine 466 an award of reasonable attorney fees or costs. 467 (5)(4) 468 (b)The multifamily project must: 469 1.Be composed of an improvement to land where an 470 improvement did not previously exist or the construction of a 471 new improvement where an old improvement was removed, which was 472 substantially completed within 2 years before the first 473 submission of an application for exemption under this 474 subsection. For purposes of this subsection, the term 475 substantially completed has the same definition as in s. 476 192.042(1). 477 2.Contain at least one unit that is more than 70 units 478 that are used to, or, for an adaptive reuse project as defined 479 in s. 196.1979(1), at least 20 percent of the projects 480 residential units are used to, provide affordable housing to 481 natural persons or families meeting the extremely-low-income, 482 very-low-income, or low-income limits specified in s. 420.0004. 483 3.Be subject to a land use restriction agreement with the 484 Florida Housing Finance Corporation, or a housing finance 485 authority pursuant to part IV of chapter 159, recorded in the 486 official records of the county in which the property is located 487 that requires that the property be used for 99 years to provide 488 affordable housing to natural persons or families meeting the 489 extremely-low-income, very-low-income, low-income, or moderate 490 income limits specified in s. 420.0004. The agreement must 491 include a provision for a penalty for ceasing to provide 492 affordable housing under the agreement before the end of the 493 agreement term that is equal to 100 percent of the total value 494 of the ad valorem tax exemption received to date amount financed 495 by the corporation multiplied by each year remaining in the 496 agreement. The agreement may be terminated or modified without 497 penalty if the exemption under this subsection is repealed. 498 499 The property is no longer eligible for this exemption if the 500 property no longer serves extremely-low-income, very-low-income, 501 or low-income persons pursuant to the recorded agreement. 502 (d)1.The property appraiser shall apply the exemption to 503 those portions of the affordable housing property that are 504 dedicated to providing provide housing to natural persons or 505 families meeting the extremely-low-income, very-low-income, or 506 low-income limits specified in s. 420.0004 before certifying the 507 tax roll to the tax collector. 508 2.When determining the value of the portion of property 509 used to provide affordable housing for purposes of applying an 510 exemption pursuant to this subsection, the property appraiser 511 must include in such valuation the proportionate share of the 512 residential common areas, including the land, fairly 513 attributable to such portion of property. 514 (f)Property receiving an exemption pursuant to subsection 515 (4) (3) or s. 196.1979 is not eligible for this exemption. 516 (6)A person who purchases a property described in 517 subparagraph (3)(b)2. is eligible to continue to receive an 518 exemption under this section until December 31, 2059, as long as 519 the property complies with the requirements of this section. 520 Section 2.Subsections (1) through (8) and (9) of section 521 196.1979, Florida Statutes, are renumbered as subsections (2) 522 through (9) and (12), respectively, present subsection (1), 523 paragraphs (c), (e), (i), and (j) of present subsection (3), and 524 present subsection (4) of that section are amended, and a new 525 subsection (1) and subsections (10) and (11) are added to that 526 section, to read: 527 196.1979County and municipal affordable housing property 528 exemption. 529 (1)As used in this section, the term adaptive reuse 530 project means a conversion of an existing nonresidential 531 building or structure into multifamily or mixed-use residential 532 housing. 533 (2)(a)(1)(a)Notwithstanding ss. 196.195 and 196.196, the 534 board of county commissioners of a county or the governing body 535 of a municipality may adopt an ordinance to exempt those 536 portions of property used to provide affordable housing meeting 537 the requirements of this section. Such property is considered 538 property used for a charitable purpose. To be eligible for the 539 exemption, the portions of property: 540 1.Must be used to house natural persons or families whose 541 annual household income: 542 a.Is greater than 30 percent but not more than 60 percent 543 of the median annual adjusted gross income for households within 544 the metropolitan statistical area or, if not within a 545 metropolitan statistical area, within the county in which the 546 person or family resides; or 547 b.Does not exceed 30 percent of the median annual adjusted 548 gross income for households within the metropolitan statistical 549 area or, if not within a metropolitan statistical area, within 550 the county in which the person or family resides; 551 2.Must be within a multifamily project containing 50 or 552 more residential units, or less as provided in subparagraph 553 (c)2., or an adaptive reuse project of which at least 20 percent 554 of the projects residential units which are used to provide 555 affordable housing that meets the requirements of this section; 556 3.Must be rented for an amount no greater than the amount 557 as specified by the most recent multifamily rental programs 558 income and rent limit chart posted by the corporation and 559 derived from the Multifamily Tax Subsidy Projects Income Limits 560 published by the United States Department of Housing and Urban 561 Development or 90 percent of the fair market value rent as 562 determined by a rental market study meeting the requirements of 563 subsection (5) (4), whichever is less; 564 4.May not have been cited for code violations on three or 565 more occasions in the 24 months before the submission of a tax 566 exemption application; 567 5.May not have any cited code violations that have not 568 been properly remedied by the property owner before the 569 submission of a tax exemption application; and 570 6.May not have any unpaid fines or charges relating to the 571 cited code violations. Payment of unpaid fines or charges before 572 a final determination on a propertys qualification for an 573 exemption under this section will not exclude such property from 574 eligibility if the property otherwise complies with all other 575 requirements for the exemption. 576 (b)Qualified property may receive an ad valorem property 577 tax exemption of: 578 1.Up to 75 percent of the assessed value of each 579 residential unit used to provide affordable housing if fewer 580 than 100 percent of the multifamily projects or adaptive reuse 581 projects residential units are used to provide affordable 582 housing meeting the requirements of this section. 583 2.Up to 100 percent of the assessed value of each 584 residential unit used to provide affordable housing if 100 585 percent of the multifamily projects or adaptive reuse projects 586 residential units are used to provide affordable housing meeting 587 the requirements of this section. 588 (c)The board of county commissioners of the county or the 589 governing body of the municipality, as applicable, may choose to 590 adopt an ordinance that exempts property: 591 1.Used to provide affordable housing for natural persons 592 or families meeting the income limits of sub-subparagraph 593 (a)1.a., natural persons or families meeting the income limits 594 of sub-subparagraph (a)1.b., or both. 595 2.Within a multifamily project containing at least five 596 units. 597 (4)(3)An ordinance granting the exemption authorized by 598 this section must: 599 (c)Require the property owner to apply for certification 600 by the local entity in order to receive the exemption. The 601 application for certification must be on a form provided by the 602 local entity designated pursuant to paragraph (b) and include 603 all of the following: 604 1.The most recently completed rental market study meeting 605 the requirements of subsection (5) (4). 606 2.A list of the units for which the property owner seeks 607 an exemption. 608 3.The rent amount received by the property owner for each 609 unit for which the property owner seeks an exemption. If a unit 610 is vacant and qualifies for an exemption under subsection (3) 611 (2), the property owner must provide evidence of the published 612 rent amount for the vacant unit. 613 (e)Require the eligible unit to meet the eligibility 614 criteria of paragraph (2)(a) (1)(a). 615 (i)Identify the percentage of the assessed value which is 616 exempted, subject to the percentage limitations in paragraph 617 (2)(b) (1)(b). 618 (j)Identify whether the exemption applies to natural 619 persons or families meeting the income limits of sub 620 subparagraph (2)(a)1.a. (1)(a)1.a., natural persons or families 621 meeting the income limits of sub-subparagraph (2)(a)1.b. 622 (1)(a)1.b., or both. 623 (5)(4)A rental market study submitted as required by 624 paragraph (4)(c) (3)(c) must identify the fair market value rent 625 of each unit for which a property owner seeks an exemption. Only 626 a certified general appraiser, as defined in s. 475.611, may 627 issue a rental market study. The certified general appraiser 628 must be independent of the property owner who requests a rental 629 market study. In preparing the rental market study, a certified 630 general appraiser shall comply with the standards of 631 professional practice pursuant to part II of chapter 475 and use 632 comparable property within the same geographic area and of the 633 same type as the property for which the exemption is sought. A 634 rental market study must have been completed within 3 years 635 before submission of the application. 636 (10)A qualifying development authorized pursuant to s. 637 125.01055 or s. 166.04151 may abate up to 20 percent of the 638 developments ad valorem property tax for a period of 10 years 639 by paying an amount equal to 20 percent of the total amount of 640 the ad valorem property taxes to be abated at the time a 641 building permit is issued for the qualifying development. 642 (11)The Florida Housing Finance Corporation shall adopt 643 rules establishing standards for monitoring and compliance of a 644 property owner that receives an ad valorem property tax 645 exemption under this section, including a multifamily projects 646 or adaptive reuse projects minimum number or percentage of 647 residential units used to provide affordable housing that meets 648 the requirements of this section. A county or municipality may 649 not impose compliance monitoring requirements more stringent 650 than the standards adopted by the corporation. 651 Section 3.Paragraph (d) of subsection (2) of section 652 212.055, Florida Statutes, is amended to read: 653 212.055Discretionary sales surtaxes; legislative intent; 654 authorization and use of proceeds.It is the legislative intent 655 that any authorization for imposition of a discretionary sales 656 surtax shall be published in the Florida Statutes as a 657 subsection of this section, irrespective of the duration of the 658 levy. Each enactment shall specify the types of counties 659 authorized to levy; the rate or rates which may be imposed; the 660 maximum length of time the surtax may be imposed, if any; the 661 procedure which must be followed to secure voter approval, if 662 required; the purpose for which the proceeds may be expended; 663 and such other requirements as the Legislature may provide. 664 Taxable transactions and administrative procedures shall be as 665 provided in s. 212.054. 666 (2)LOCAL GOVERNMENT INFRASTRUCTURE SURTAX. 667 (d)The proceeds of the surtax authorized by this 668 subsection and any accrued interest shall be expended by the 669 school district, within the county and municipalities within the 670 county, or, in the case of a negotiated joint county agreement, 671 within another county, to finance, plan, and construct 672 infrastructure; to acquire any interest in land for public 673 recreation, conservation, or protection of natural resources or 674 to prevent or satisfy private property rights claims resulting 675 from limitations imposed by the designation of an area of 676 critical state concern; to provide loans, grants, or rebates to 677 residential or commercial property owners who make energy 678 efficiency improvements to their residential or commercial 679 property, if a local government ordinance authorizing such use 680 is approved by referendum; or to finance the closure of county 681 owned or municipally owned solid waste landfills that have been 682 closed or are required to be closed by order of the Department 683 of Environmental Protection. Any use of the proceeds or interest 684 for purposes of landfill closure before July 1, 1993, is 685 ratified. The proceeds and any interest may not be used for the 686 operational expenses of infrastructure, except that a county 687 that has a population of fewer than 75,000 and that is required 688 to close a landfill may use the proceeds or interest for long 689 term maintenance costs associated with landfill closure. 690 Counties, as defined in s. 125.011, and charter counties may, in 691 addition, use the proceeds or interest to retire or service 692 indebtedness incurred for bonds issued before July 1, 1987, for 693 infrastructure purposes, and for bonds subsequently issued to 694 refund such bonds. Any use of the proceeds or interest for 695 purposes of retiring or servicing indebtedness incurred for 696 refunding bonds before July 1, 1999, is ratified. 697 1.For the purposes of this paragraph, the term 698 infrastructure means: 699 a.Any fixed capital expenditure or fixed capital outlay 700 associated with the construction, reconstruction, or improvement 701 of public facilities that have a life expectancy of 5 or more 702 years, any related land acquisition, land improvement, design, 703 and engineering costs, and all other professional and related 704 costs required to bring the public facilities into service. For 705 purposes of this sub-subparagraph, the term public facilities 706 means facilities as defined in s. 163.3164(41), s. 163.3221(13), 707 or s. 189.012(5), and includes facilities that are necessary to 708 carry out governmental purposes, including, but not limited to, 709 fire stations, general governmental office buildings, and animal 710 shelters, regardless of whether the facilities are owned by the 711 local taxing authority or another governmental entity. 712 b.A fire department vehicle, an emergency medical service 713 vehicle, a sheriffs office vehicle, a police department 714 vehicle, or any other vehicle, and the equipment necessary to 715 outfit the vehicle for its official use or equipment that has a 716 life expectancy of at least 5 years. 717 c.Any expenditure for the construction, lease, or 718 maintenance of, or provision of utilities or security for, 719 facilities, as defined in s. 29.008. 720 d.Any fixed capital expenditure or fixed capital outlay 721 associated with the improvement of private facilities that have 722 a life expectancy of 5 or more years and that the owner agrees 723 to make available for use on a temporary basis as needed by a 724 local government as a public emergency shelter or a staging area 725 for emergency response equipment during an emergency officially 726 declared by the state or by the local government under s. 727 252.38. Such improvements are limited to those necessary to 728 comply with current standards for public emergency evacuation 729 shelters. The owner must enter into a written contract with the 730 local government providing the improvement funding to make the 731 private facility available to the public for purposes of 732 emergency shelter at no cost to the local government for a 733 minimum of 10 years after completion of the improvement, with 734 the provision that the obligation will transfer to any 735 subsequent owner until the end of the minimum period. 736 e.Any land acquisition expenditure for a residential 737 housing project in which at least 30 percent of the units are 738 affordable to individuals or families whose total annual 739 household income does not exceed 120 percent of the area median 740 income adjusted for household size, if the land is owned by a 741 local government or by a special district that enters into a 742 written agreement with the local government to provide such 743 housing. The local government or special district may enter into 744 a ground lease with a public or private person or entity for 745 nominal or other consideration for the construction of the 746 residential housing project on land acquired pursuant to this 747 sub-subparagraph. 748 f.Any expenditure to construct or rehabilitate housing 749 that, for a period of at least 30 years, is affordable as 750 defined in s. 420.0004. 751 g.f.Instructional technology used solely in a school 752 districts classrooms. As used in this sub-subparagraph, the 753 term instructional technology means an interactive device that 754 assists a teacher in instructing a class or a group of students 755 and includes the necessary hardware and software to operate the 756 interactive device. The term also includes support systems in 757 which an interactive device may mount and is not required to be 758 affixed to the facilities. 759 2.For the purposes of this paragraph, the term energy 760 efficiency improvement means any energy conservation and 761 efficiency improvement that reduces consumption through 762 conservation or a more efficient use of electricity, natural 763 gas, propane, or other forms of energy on the property, 764 including, but not limited to, air sealing; installation of 765 insulation; installation of energy-efficient heating, cooling, 766 or ventilation systems; installation of solar panels; building 767 modifications to increase the use of daylight or shade; 768 replacement of windows; installation of energy controls or 769 energy recovery systems; installation of electric vehicle 770 charging equipment; installation of systems for natural gas fuel 771 as defined in s. 206.9951; and installation of efficient 772 lighting equipment. 773 3.Notwithstanding any other provision of this subsection, 774 a local government infrastructure surtax imposed or extended 775 after July 1, 1998, may allocate up to 15 percent of the surtax 776 proceeds for deposit into a trust fund within the countys 777 accounts created for the purpose of funding economic development 778 projects having a general public purpose of improving local 779 economies, including the funding of operational costs and 780 incentives related to economic development. The ballot statement 781 must indicate the intention to make an allocation under the 782 authority of this subparagraph. 783 Section 4.Subsections (24) and (25) of section 213.053, 784 Florida Statutes, are renumbered as subsections (25) and (26), 785 respectively, and a new subsection (24) is added to that 786 section, to read: 787 213.053Confidentiality and information sharing. 788 (24)The department may make available to the Division of 789 Historical Resources of the Department of State and the 790 Secretary of the Interior or his or her delegate, exclusively 791 for official purposes, information for the purposes of 792 administering s. 220.197. 793 Section 5.Subsection (8) of section 220.02, Florida 794 Statutes, is amended to read: 795 220.02Legislative intent. 796 (8)It is the intent of the Legislature that credits 797 against either the corporate income tax or the franchise tax be 798 applied in the following order: those enumerated in s. 631.828, 799 those enumerated in s. 220.191, those enumerated in s. 220.181, 800 those enumerated in s. 220.183, those enumerated in s. 220.182, 801 those enumerated in s. 220.1895, those enumerated in s. 220.195, 802 those enumerated in s. 220.184, those enumerated in s. 220.186, 803 those enumerated in s. 220.1845, those enumerated in s. 220.19, 804 those enumerated in s. 220.185, those enumerated in s. 220.1875, 805 those enumerated in s. 220.1876, those enumerated in s. 806 220.1877, those enumerated in s. 220.1878, those enumerated in 807 s. 220.193, those enumerated in former s. 288.9916, those 808 enumerated in former s. 220.1899, those enumerated in former s. 809 220.194, those enumerated in s. 220.196, those enumerated in s. 810 220.198, those enumerated in s. 220.1915, those enumerated in s. 811 220.199, those enumerated in s. 220.1991, and those enumerated 812 in s. 220.1992, and those enumerated in s. 220.197. 813 Section 6.Paragraph (a) of subsection (1) of section 814 220.13, Florida Statutes, is amended to read: 815 220.13Adjusted federal income defined. 816 (1)The term adjusted federal income means an amount 817 equal to the taxpayers taxable income as defined in subsection 818 (2), or such taxable income of more than one taxpayer as 819 provided in s. 220.131, for the taxable year, adjusted as 820 follows: 821 (a)Additions.There shall be added to such taxable income: 822 1.a.The amount of any tax upon or measured by income, 823 excluding taxes based on gross receipts or revenues, paid or 824 accrued as a liability to the District of Columbia or any state 825 of the United States which is deductible from gross income in 826 the computation of taxable income for the taxable year. 827 b.Notwithstanding sub-subparagraph a., if a credit taken 828 under s. 220.1875, s. 220.1876, s. 220.1877, or s. 220.1878 is 829 added to taxable income in a previous taxable year under 830 subparagraph 11. and is taken as a deduction for federal tax 831 purposes in the current taxable year, the amount of the 832 deduction allowed shall not be added to taxable income in the 833 current year. The exception in this sub-subparagraph is intended 834 to ensure that the credit under s. 220.1875, s. 220.1876, s. 835 220.1877, or s. 220.1878 is added in the applicable taxable year 836 and does not result in a duplicate addition in a subsequent 837 year. 838 2.The amount of interest which is excluded from taxable 839 income under s. 103(a) of the Internal Revenue Code or any other 840 federal law, less the associated expenses disallowed in the 841 computation of taxable income under s. 265 of the Internal 842 Revenue Code or any other law, excluding 60 percent of any 843 amounts included in alternative minimum taxable income, as 844 defined in s. 55(b)(2) of the Internal Revenue Code, if the 845 taxpayer pays tax under s. 220.11(3). 846 3.In the case of a regulated investment company or real 847 estate investment trust, an amount equal to the excess of the 848 net long-term capital gain for the taxable year over the amount 849 of the capital gain dividends attributable to the taxable year. 850 4.That portion of the wages or salaries paid or incurred 851 for the taxable year which is equal to the amount of the credit 852 allowable for the taxable year under s. 220.181. This 853 subparagraph shall expire on the date specified in s. 290.016 854 for the expiration of the Florida Enterprise Zone Act. 855 5.That portion of the ad valorem school taxes paid or 856 incurred for the taxable year which is equal to the amount of 857 the credit allowable for the taxable year under s. 220.182. This 858 subparagraph shall expire on the date specified in s. 290.016 859 for the expiration of the Florida Enterprise Zone Act. 860 6.The amount taken as a credit under s. 220.195 which is 861 deductible from gross income in the computation of taxable 862 income for the taxable year. 863 7.That portion of assessments to fund a guaranty 864 association incurred for the taxable year which is equal to the 865 amount of the credit allowable for the taxable year. 866 8.In the case of a nonprofit corporation which holds a 867 pari-mutuel permit and which is exempt from federal income tax 868 as a farmers cooperative, an amount equal to the excess of the 869 gross income attributable to the pari-mutuel operations over the 870 attributable expenses for the taxable year. 871 9.The amount taken as a credit for the taxable year under 872 s. 220.1895. 873 10.Up to nine percent of the eligible basis of any 874 designated project which is equal to the credit allowable for 875 the taxable year under s. 220.185. 876 11.Any amount taken as a credit for the taxable year under 877 s. 220.1875, s. 220.1876, s. 220.1877, or s. 220.1878. The 878 addition in this subparagraph is intended to ensure that the 879 same amount is not allowed for the tax purposes of this state as 880 both a deduction from income and a credit against the tax. This 881 addition is not intended to result in adding the same expense 882 back to income more than once. 883 12.The amount taken as a credit for the taxable year under 884 s. 220.193. 885 13.The amount taken as a credit for the taxable year under 886 s. 220.196. The addition in this subparagraph is intended to 887 ensure that the same amount is not allowed for the tax purposes 888 of this state as both a deduction from income and a credit 889 against the tax. The addition is not intended to result in 890 adding the same expense back to income more than once. 891 14.The amount taken as a credit for the taxable year 892 pursuant to s. 220.198. 893 15.The amount taken as a credit for the taxable year 894 pursuant to s. 220.1915. 895 16.The amount taken as a credit for the taxable year 896 pursuant to s. 220.199. 897 17.The amount taken as a credit for the taxable year 898 pursuant to s. 220.1991. 899 18.The amount taken as a credit for the taxable year 900 pursuant to s. 220.197. 901 Section 7.Paragraph (e) of subsection (1) of section 902 220.185, Florida Statutes, is amended to read: 903 220.185State housing tax credit. 904 (1)DEFINITIONS.As used in this section, the term: 905 (e)Qualified project means: 906 1.A project located in an urban infill area, at least 50 907 percent of which, on a cost basis, consists of a qualified low 908 income project within the meaning of s. 42(g) of the Internal 909 Revenue Code, including such projects designed specifically for 910 the elderly but excluding any income restrictions imposed 911 pursuant to s. 42(g) of the Internal Revenue Code upon residents 912 of the project unless such restrictions are otherwise 913 established by the Florida Housing Finance Corporation pursuant 914 to s. 420.5093, and the remainder of which constitutes 915 commercial or single-family residential development consistent 916 with and serving to complement the qualified low-income project; 917 or 918 2.A qualified low-income project within the meaning of s. 919 42(g) of the Internal Revenue Code, of which 100 percent of the 920 units are restricted to serve low-income residents as defined in 921 s. 420.0004. 922 923 However, any project that has received financing from the State 924 Apartment Incentive Loan Program or State Housing Initiatives 925 Partnership Program, or that has received a low-income housing 926 tax credit from the Florida Housing Finance Corporation, may not 927 be considered a qualified project. 928 Section 8.Section 220.197, Florida Statutes, is created to 929 read: 930 220.197Florida Housing Revitalization Act; tax credits; 931 reports. 932 (1)SHORT TITLE.This section may be cited as the Florida 933 Housing Revitalization Act. 934 (2)DEFINITIONS.As used in this section, the term: 935 (a)Affordable has the same meaning as in s. 420.0004(3). 936 (b)Certified historic structure means a building, 937 including its structural components, as defined in 36 C.F.R. s. 938 67.2, which is of a character subject to the allowance for 939 depreciation provided in s. 167 of the Internal Revenue Code of 940 1986, as amended, and which is: 941 1.Individually listed in the National Register of Historic 942 Places; or 943 2.Located within a registered historic district and 944 certified by the Secretary of the Interior as being of historic 945 significance to the registered historic district as set forth in 946 36 C.F.R. s. 67.2. 947 (c)Certified rehabilitation means the rehabilitation of 948 a certified historic structure that the Secretary of the 949 Interior has certified to the Secretary of the Treasury as being 950 consistent with the historic character of the certified historic 951 structure and, if applicable, consistent with the registered 952 historic district in which the certified historic structure is 953 located as set forth in 36 C.F.R. s. 67.2. 954 (d)Corporation means the Florida Housing Finance 955 Corporation. 956 (e)Division means the Division of Historical Resources 957 of the Department of State. 958 (f)Long-term leasehold means a leasehold in a 959 nonresidential real property for a term of 39 years or more or a 960 leasehold in a residential real property for a term of 27.5 961 years or more. 962 (g)National Register of Historic Places means the list 963 of historic properties significant in American history, 964 architecture, archeology, engineering, and culture maintained by 965 the Secretary of the Interior as authorized in 54 U.S.C. s. 966 3021. 967 (h)Placed in service means when the property is first 968 placed by the taxpayer in a condition or state of readiness and 969 availability for a specifically assigned function, whether for 970 use in a trade or business, for the production of income, or in 971 a tax-exempt activity. 972 (i)Qualified expenses means rehabilitation expenditures 973 incurred in this state that qualify for the credit under 26 974 U.S.C. s. 47. 975 (j)Registered historic district means a district listed 976 in the National Register of Historic Places or a district: 977 1.Designated under general law or local ordinance and 978 certified by the Secretary of the Interior as meeting criteria 979 that will substantially achieve the purposes of preserving and 980 rehabilitating buildings of historic significance to the 981 district; and 982 2.Certified by the Secretary of the Interior as meeting 983 substantially all of the requirements for listing a district in 984 the National Register of Historic Places. 985 (k)Taxpayer includes an insurer subject to the insurance 986 premium tax under s. 624.509. 987 (l)Workforce housing has the same meaning as in s. 988 420.5095(3). 989 (3)ELIGIBILITY FOR TAX CREDIT.For taxable years beginning 990 on or after January 1, 2026, there is allowed a credit in an 991 amount equal to 20 percent of the total qualified expenses 992 incurred in rehabilitating a certified historic structure that 993 has been approved by the National Park Service to receive the 994 federal historic rehabilitation tax credit. The credit may be 995 used against any tax due for a taxable year under this chapter 996 and the insurance premium tax imposed in s. 624.509 after the 997 application of any other allowable credits. An insurer claiming 998 a credit against insurance premium liability tax under this 999 section may not be required to pay any additional retaliatory 1000 tax levied pursuant to s. 624.5091 as a result of claiming such 1001 credit. Section 624.5091 does not limit such credit in any 1002 manner. A taxpayer may not receive more than $2.5 million in tax 1003 credits for a single project, even if such credits are accrued 1004 over multiple tax years. 1005 (a)To receive a tax credit under this section, within 6 1006 months after the date a certified historical structure is placed 1007 into service, the taxpayer must apply to the division, and 1008 submit an application to the department, for a tax credit for 1009 qualified expenses in the amount and under the conditions and 1010 limitations provided in this section. The taxpayer must provide 1011 the division with all of the following: 1012 1.Documentation showing that: 1013 a.The rehabilitation is a certified rehabilitation. 1014 b.The structure is a certified historic structure, is 1015 income-producing, is located within the state, and was placed 1016 into service on or after January 1, 2026. 1017 c.The taxpayer had an ownership or a long-term leasehold 1018 interest in the certified historic structure during the year in 1019 which such structure was placed into service after the certified 1020 rehabilitation was complete. 1021 d.The total qualified expenses incurred in rehabilitating 1022 the certified historic structure exceeded $5,000. 1023 e.The applicant intends to exclusively utilize the 1024 historic structure to provide affordable or workforce housing. 1025 2.An official certificate of eligibility from the 1026 division, signed by the State Historic Preservation Officer or 1027 the Deputy State Historic Preservation Officer, attesting that 1028 the project has been approved by the National Park Service. 1029 3.National Park Service Form 10-168c (Rev. 2023), titled 1030 Historic Preservation Certification Application Part 3-Request 1031 for Certification of Completed Work, or a similar form, signed 1032 by an officer of the National Park Service, attesting that the 1033 completed rehabilitation meets the Secretary of the Interiors 1034 Standards for Rehabilitation and is consistent with the historic 1035 character of the property and, if applicable, the district in 1036 which the completed rehabilitation is located. The form may be 1037 obtained through the National Park Service. 1038 4.Evidence that the certified historic structure was 1039 placed into service after the certified rehabilitation was 1040 complete. Such evidence must identify the dates rehabilitation 1041 was started and completed and the date the structure was placed 1042 into service. 1043 5.A list of total qualified expenses incurred by the 1044 taxpayer in rehabilitating the certified historic structure. For 1045 certified rehabilitations with qualified expenses that exceeded 1046 $750,000, the taxpayer must submit an audited cost report issued 1047 by a certified public accountant which itemizes the qualified 1048 expenses incurred in rehabilitating the certified historic 1049 structure. A taxpayer may submit an audited cost report issued 1050 by a certified public accountant which was created for the 1051 purposes of applying for a federal historic rehabilitation tax 1052 credit and which includes all of the qualified expenses incurred 1053 in rehabilitating the certified historic structure. 1054 6.An attestation of the total qualified expenses incurred 1055 in rehabilitating the certified historic structure. 1056 7.A certification from the corporation stating that all 1057 housing provided by the project meets state requirements for 1058 affordable or workforce housing. 1059 8.The information required to be reported by the 1060 department in subsection (7) to enable the department to compile 1061 its annual report. 1062 1063 A taxpayer may begin the application process before the 1064 certified historic structure is placed into service; however, a 1065 final determination on eligibility may not be made until after 1066 the certified historic structure is placed into service. 1067 (b)The department shall only deem a project eligible for 1068 this tax credit if the applicant utilizes the funds exclusively 1069 to create affordable or workforce housing. 1070 (c)Affordable or workforce housing must be provided for at 1071 least 5 years or the applicant shall be subject to forfeiture of 1072 the tax credit as provided under paragraph (7)(g). 1073 (d)Within 90 days after receipt of the information 1074 required under paragraph (a) or the certified historic structure 1075 is placed into service, whichever is later, the division must 1076 approve or deny the application. If approved, the division must 1077 submit a copy of the certification and the information provided 1078 by the applicant to the department within 10 days after the 1079 divisions approval. 1080 (4)CARRYFORWARD OF TAX CREDIT. 1081 (a)If a taxpayer is eligible for a tax credit that exceeds 1082 taxes owed, the taxpayer may carry the unused tax credit forward 1083 for a period of up to 5 taxable years. 1084 (b)A carryforward is considered the remaining portion of a 1085 tax credit that cannot be claimed in the current tax year. 1086 (5)SALE OR TRANSFER OF TAX CREDIT. 1087 (a)A taxpayer that incurs qualified expenses may sell or 1088 transfer all or part of the tax credit that may otherwise be 1089 claimed to another taxpayer. 1090 (b)A taxpayer to which all or part of the tax credit is 1091 sold or transferred may sell or transfer all or part of the tax 1092 credit that may otherwise be claimed to another taxpayer. 1093 (c)A taxpayer that sells or transfers a tax credit to 1094 another taxpayer must provide a copy of the certificate of 1095 eligibility together with the audited cost report to the 1096 purchaser or transferee. 1097 (d)Qualified expenses may be counted only once in 1098 determining the amount of an available tax credit, and more than 1099 one taxpayer may not claim a tax credit for the same qualified 1100 expenses. 1101 (e)There is no limit on the total number of transactions 1102 for the sale or transfer of all or part of a tax credit. 1103 (f)1.A taxpayer that sells or transfers a tax credit under 1104 this subsection and the purchaser or transferee shall jointly 1105 submit written notice of the sale or transfer to the department 1106 on a form adopted by the department no later than 30 days after 1107 the date of the sale or transfer. The notice must include all of 1108 the following: 1109 a.The date of the sale or transfer. 1110 b.The amount of the tax credit sold or transferred. 1111 c.The name and federal tax identification number of the 1112 taxpayer that sold or transferred the tax credit and the 1113 purchaser or transferee. 1114 d.The amount of the tax credit owned by the taxpayer 1115 before the sale or transfer and the amount the selling or 1116 transferring taxpayer retained, if any, after the sale or 1117 transfer. 1118 2.The sale or transfer of a tax credit under this 1119 subsection does not extend the period for which a tax credit may 1120 be carried forward and does not increase the total amount of the 1121 tax credit that may be claimed. 1122 3.If a taxpayer claims a tax credit for qualified 1123 expenses, another taxpayer may not use the same expenses as the 1124 basis for claiming a tax credit. 1125 4.Notwithstanding the requirements of this subsection, a 1126 tax credit earned by, purchased by, or transferred to a 1127 partnership, limited liability company, S corporation, or other 1128 pass-through entity may be allocated to the partners, members, 1129 or shareholders of that entity and claimed under this section in 1130 accordance with any agreement among the partners, members, or 1131 shareholders and without regard to the ownership interest of the 1132 partners, members, or shareholders in the rehabilitated 1133 certified historic structure. 1134 (g)If the tax credit is reduced due to a determination, 1135 examination, or audit by the department, the tax deficiency must 1136 be recovered from the taxpayer that sold or transferred the tax 1137 credit or the purchaser or transferee that claimed the tax 1138 credit up to the amount of the tax credit claimed. 1139 (h)Any subsequent deficiencies shall be assessed against 1140 the purchaser or transferee that claimed the tax credit or, in 1141 the case of multiple succeeding entities, in the order of tax 1142 credit succession. 1143 (6)AUDIT AUTHORITY; REVOCATION AND FORFEITURE OF TAX 1144 CREDITS; FRAUDULENT CLAIMS. 1145 (a)The department, with the assistance of the division, 1146 may perform any additional financial and technical audits and 1147 examinations, including examining the accounts, books, or 1148 records of the taxpayer, to verify the legitimacy of the 1149 qualified expenses included in a tax credit return and to ensure 1150 compliance with this section. If requested by the department, 1151 the division must provide technical assistance for any technical 1152 audits or examinations performed under this subsection. 1153 (b)It is grounds for forfeiture of previously claimed and 1154 received tax credits if the department determines, as a result 1155 of an audit or information received from the division or the 1156 United States Department of the Interior or Internal Revenue 1157 Service, that a taxpayer received a tax credit pursuant to this 1158 section to which the taxpayer was not entitled. In the case of 1159 fraud, the taxpayer may not claim any future tax credits under 1160 this section. 1161 (c)The taxpayer must return forfeited tax credits to the 1162 department, and such funds shall be paid into the General 1163 Revenue Fund. 1164 (d)The taxpayer shall file with the department an amended 1165 tax return or such other report as the department prescribes and 1166 shall pay any required tax within 60 days after the taxpayer 1167 receives notification from the United States Internal Revenue 1168 Service that a previously approved tax credit has been revoked 1169 or modified, if uncontested, or within 60 days after a final 1170 order is issued following proceedings involving a contested 1171 revocation or modification order. 1172 (e)A notice of deficiency may be issued by the department 1173 at any time within 5 years after the date on which the taxpayer 1174 receives notification from the United States Internal Revenue 1175 Service that a previously approved tax credit has been revoked 1176 or modified. If a taxpayer fails to notify the department of any 1177 change in its tax credit claimed, a notice of deficiency may be 1178 issued at any time. In either case, the amount of any proposed 1179 assessment set forth in such notice of deficiency is limited to 1180 the amount of the tax credit claimed. 1181 (f)A taxpayer that fails to report and timely pay any tax 1182 due as a result of the forfeiture of its tax credit violates 1183 this section and is subject to applicable penalties and 1184 interest. 1185 (g)A taxpayer that fails to provide affordable or 1186 workforce housing for at least 5 years forfeits the tax credit. 1187 The taxpayer must return the forfeited credit to the department, 1188 and such funds shall be paid into the General Revenue Fund. The 1189 forfeiture of the credit shall be prorated at a rate of 4 1190 percent of the total credit for each year that housing was not 1191 provided. 1192 (7)ANNUAL REPORT.Based on the applications submitted and 1193 approved, the department must submit a report by December 1 of 1194 each year to the Governor, the President of the Senate, and the 1195 Speaker of the House of Representatives that identifies, in the 1196 aggregate, all of the following: 1197 (a)The number of employees hired during construction 1198 phases. 1199 (b)The use of each newly rehabilitated building and the 1200 expected number of employees hired. 1201 (c)The number of affordable housing or workforce housing 1202 units created or preserved. 1203 (d)The property values before and after the certified 1204 rehabilitations. 1205 (8)DEPARTMENT DUTIES.The department shall: 1206 (a)Establish a cooperative agreement with the division. 1207 (b)Adopt any necessary form required to claim a tax credit 1208 under this section. 1209 (c)Provide administrative guidelines and procedures 1210 required to administer this section, including rules 1211 establishing an entitlement to and sale or transfer of a tax 1212 credit under this section. 1213 (d)Provide examination and audit procedures required to 1214 administer this section. 1215 (9)RULES.The department, the division, and the 1216 corporation may adopt rules to administer this section, 1217 including the form of application and establishing 1218 qualifications for the tax credit. 1219 Section 9.Subsection (36) of section 420.503, Florida 1220 Statutes, is amended to read: 1221 420.503Definitions.As used in this part, the term: 1222 (36)Qualified contract has the same meaning as in 26 1223 U.S.C. s. 42(h)(6)(F) in effect on the date of the preliminary 1224 determination certificate for the low-income housing tax credits 1225 for the development that is the subject of the qualified 1226 contract request, unless the Internal Revenue Code requires a 1227 different statute or regulation to apply to the development. The 1228 corporation shall deem a bona fide contract to be a qualified 1229 contract at the time the second earnest money bona fide contract 1230 is presented to the owner and the initial deposit is deposited 1231 in escrow in accordance with the terms of the bona fide 1232 contract, and, in such event, the corporation is deemed to have 1233 fulfilled its responsibility to present the owner with a 1234 qualified contract. 1235 Section 10.Subsection (5) of section 420.50871, Florida 1236 Statutes, is renumbered as subsection (6), paragraph (b) of 1237 subsection (1) of that section is amended, and a new subsection 1238 (5) is added to that section, to read: 1239 420.50871Allocation of increased revenues derived from 1240 amendments to s. 201.15 made by ch. 2023-17.Funds that result 1241 from increased revenues to the State Housing Trust Fund derived 1242 from amendments made to s. 201.15 made by chapter 2023-17, Laws 1243 of Florida, must be used annually for projects under the State 1244 Apartment Incentive Loan Program under s. 420.5087 as set forth 1245 in this section, notwithstanding ss. 420.507(48) and (50) and 1246 420.5087(1) and (3). The Legislature intends for these funds to 1247 provide for innovative projects that provide affordable and 1248 attainable housing for persons and families working, going to 1249 school, or living in this state. Projects approved under this 1250 section are intended to provide housing that is affordable as 1251 defined in s. 420.0004, notwithstanding the income limitations 1252 in s. 420.5087(2). Beginning in the 2023-2024 fiscal year and 1253 annually for 10 years thereafter: 1254 (1)The corporation shall allocate 70 percent of the funds 1255 provided by this section to issue competitive requests for 1256 application for the affordable housing project purposes 1257 specified in this subsection. The corporation shall finance 1258 projects that: 1259 (b)Address urban infill, including conversions of vacant, 1260 dilapidated, or functionally obsolete buildings or the use of 1261 underused commercial property. As used in this paragraph, the 1262 term urban infill has the same meaning as in s. 163.3164(51). 1263 The term includes the development or redevelopment of mobile 1264 home parks and manufactured home communities that meet the urban 1265 infill criteria and the criteria for redevelopment of an 1266 existing affordable housing development as provided in paragraph 1267 (a). 1268 (5)The corporation may not require a project financed 1269 under this section to use low-income housing tax credits under 1270 s. 42 of the Internal Revenue Code or tax-exempt bond financing. 1271 Section 11.Paragraph (d) is added to subsection (5) of 1272 section 420.50872, Florida Statutes, to read: 1273 420.50872Live Local Program. 1274 (5)ADMINISTRATION; RULES. 1275 (d)The corporation may not require a project financed 1276 under this section to use low-income housing tax credits under 1277 s. 42 of the Internal Revenue Code or tax-exempt bond financing. 1278 Section 12.Subsection (7) of section 624.509, Florida 1279 Statutes, is amended to read: 1280 624.509Premium tax; rate and computation. 1281 (7)Credits and deductions against the tax imposed by this 1282 section shall be taken in the following order: deductions for 1283 assessments made pursuant to s. 440.51; credits for taxes paid 1284 under ss. 175.101 and 185.08; credits for income taxes paid 1285 under chapter 220 and the credit allowed under subsection (5), 1286 as these credits are limited by subsection (6); the credit 1287 allowed under s. 624.51057; the credit allowed under s. 1288 624.51058; the credit allowed under s. 624.5107; the credit 1289 allowed under s. 220.197; and all other available credits and 1290 deductions. 1291 Section 13.The changes made by this act first apply to the 1292 2026 tax roll. 1293 Section 14.This act shall take effect July 1, 2025.