288.9920 Recapture and penalties. - Florida Statutes

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288.9920 Recapture and penalties.

   (1) Notwithstanding s. 95.091, the office shall direct the department, at any time before December 31, 2022, to recapture all or a portion of a tax credit authorized pursuant to the New Markets Development Program Act if one or more of the following occur:

   (a) The Federal Government recaptures any portion of the federal new markets tax credit. The recapture by the department shall equal the recapture by the Federal Government.

   (b) The qualified community development entity redeems or makes a principal repayment on a qualified investment before the final allowance date. The recapture by the department shall equal the redemption or principal repayment divided by the purchase price and multiplied by the tax credit authorized to a taxpayer for the qualified investment.

   (c)

   1. The qualified community development entity fails to invest at least 85 percent of the purchase price in qualified low-income community investments within 12 months after the issuance of a qualified investment; or

   2. The qualified community development entity fails to maintain 85 percent of the purchase price in qualified low-income community investments until the last credit allowance date for a qualified investment.

For the purposes of this paragraph, an investment by a qualified community development entity includes principal recovered from an investment for 12 months after its recovery or principal recovered after the sixth credit allowance date. Principal held for longer than 12 months or recovered before the sixth credit allowance date is not an investment unless it is reinvested in a qualified low-income community investment.

   (d) The qualified community development entity fails to provide the office with information, reports, or documentation required by the New Markets Development Program Act.

   (e) The office determines that a taxpayer received tax credits to which the taxpayer was not entitled.

   (2) The office shall provide notice to the qualified community development entity and the department of a proposed recapture of a tax credit. The entity shall have 6 months following the receipt of the notice to cure a deficiency identified in the notice and avoid recapture. The office shall issue a final order of recapture if the entity fails to cure a deficiency within the 6-month period. The final order of recapture shall be provided to the entity, the department, and a taxpayer otherwise authorized to claim the tax credit. Only one correction is permitted for each qualified equity investment during the 7-year credit period. Recaptured funds shall be deposited into the General Revenue Fund.

   (3) An entity that submits fraudulent information to the office is liable for the costs associated with the investigation and prosecution of the fraudulent claim plus a penalty in an amount equal to double the tax credits claimed by investors in the entity’s qualified investments. This penalty is in addition to any other penalty that may be imposed by law.

History. ss. 13, 15, ch. 2009-50; s. 40, ch. 2010-147.

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Note. Expires December 31, 2022, pursuant to s. 15, ch. 2009-50.