The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Finance and Tax
BILL: CS/SB 1310
INTRODUCER: Finance and Tax Committee and Senator Rodriguez
SUBJECT: Florida Main Street Program and Historic Preservation Tax Credits
DATE: February 3, 2022 REVISED:
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Renner McKay CM Favorable
2. Covin Babin FT Fav/CS
3. AP
Please see Section IX. for Additional Information:
COMMITTEE SUBSTITUTE - Substantial Changes
I. Summary:
CS/SB 1310 creates the Main Street Historic Tourism and Revitalization Act, which provides a
tax credit against corporate income taxes and insurance premium taxes for qualified expenses
incurred in the rehabilitation of a certified historic structure.
The tax credit may not exceed 20 percent of qualified expenses incurred in the rehabilitation of a
certified historic structure that has been approved by the National Park Service to receive the
federal historic rehabilitation tax credit or 30 percent of the total qualified expenses incurred in
the rehabilitation of a certified historic structure that has been approved by the National Park
Service to receive the federal historic rehabilitation tax credit that is located within a local
program area of an Accredited Main Street Program.
Any unused amount may be carried forward for a period of up to 5 taxable years. Tax credits
may also be sold or transferred. There is no limit on the total number of transactions for the sale
or transfer of all or part of a tax credit. However, qualified expenses may only be counted once in
determining the amount of an available tax credit, and no more than one taxpayer may claim a
tax credit for the same qualified expenses.
The Revenue Estimating Conference has not yet determined the fiscal impact of the bill. Staff
estimates a significant reduction to General Revenue Fund receipts.
The bill takes effect on January 1, 2023.
BILL: CS/SB 1310 Page 2
II. Present Situation:
National Register of Historic Places
The National Register of Historic Places,1 under the National Park Service, is “part of a national
program to coordinate and support public and private efforts to identify, evaluate, and protect
America’s historic and archeological resources.”2 The program reviews property nominations
and lists eligible properties in the National Register; offers guidance on evaluating, documenting,
and listing historic places; and helps qualified historic properties receive preservation benefits
and incentives.3
Properties listed in the National Register are eligible for federal preservation tax credits.
A 20 percent income tax credit is available for the rehabilitation of historic, income-producing
buildings that are determined by the Secretary of the Interior, through the National Park Service,
to be certified historic structures.4
Main Street America
Main Street America, a program under the National Main Street Center,5 is a network of
grassroots organizations that “revitalizes older and historic commercial districts to build vibrant
neighborhoods and thriving economies.”6 The program offers community-based revitalization
initiatives to transform downtowns. In order to be designated as either an affiliate or accredited
member of Main Street America, a community must first become a member of the National Main
Street Center and meet certain requirements.7 Main Street America has coordinating programs
that are organized at the state, county, and city level which partner with the National Main Street
Center to provide support and training to Main Street America communities.
Florida has two coordinating programs: Florida Main Street America located in Tallahassee and
Orlando Main Street located in Orlando.8 Florida Main Street is administered by the Division of
Historical Resources (division) under the Florida Department of State.9 Forty-five Florida Main
1
54 U.S.C. § 3021.
2
U.S. Department of the Interior, National Park Service, National Register of Historic Places, What is the National Register
of Historic Places?, available at https://www.nps.gov/subjects/nationalregister/what-is-the-national-register.htm (last visited
Jan. 27, 2022).
3
Id.
4
U.S. Department of the Interior, National Park Service, Technical Preservation Services, available at
https://www.nps.gov/tps/tax-incentives.htm (last visited Jan. 26, 2022).
5
The National Main Street Center was established in 1980 as a program of the National Trust for Historic Preservation as a
way to address issues facing aging and historic downtowns. The Center launched the Main Street America program in 2015.
See Main Street America, About Us, available at https://www.mainstreet.org/about-us (last visited Jan. 27, 2022).
6
Main Street America, About Us, available at https://www.mainstreet.org/about-us (last visited Jan. 27, 2022).
7
Main Street America, Designation, available at https://higherlogicdownload.s3.amazonaws.com/NMSC/390e0055-2395-
4d3b-af60-81b53974430d/UploadedImages/Main_Street_America_Tier_System_Overview_-_2021_July_Update.pdf (last
visited Jan. 27, 2022).
8
Main Street America, Coordinating Programs, available at
https://higherlogicdownload.s3.amazonaws.com/NMSC/390e0055-2395-4d3b-af60-
81b53974430d/UploadedImages/The_Programs/2020_Coordinating_Program_List.pdf (last visited Jan. 27, 2022).
9
Section 267.031(5), F.S.
BILL: CS/SB 1310 Page 3
Streets and 10 Orlando Main Streets have received technical assistance toward the goal of
revitalizing historic downtowns and encouraging economic development.10
Corporate Income Tax
Florida levies a 5.5 percent tax on certain income of corporations and financial institutions doing
business in Florida.11 Florida utilizes the taxable income determined for federal income tax
purposes as a starting point to determine the total amount of Florida corporate income tax due.12
This means that a corporation paying taxes in Florida generally receives the same benefits from
deductions allowed when determining taxable income for federal tax purposes as it does when
determining taxable income for state taxation purposes.
Insurance Premium Tax
Florida imposes a 1.75 percent tax on most Florida insurance premiums.13 Insurance premium
taxes are paid by insurance companies under chapter 624, F.S., and are remitted to the
Department of Revenue (DOR). These revenues are distributed to General Revenue.
III. Effect of Proposed Changes:
The bill creates the Main Street Historic Tourism and Revitalization Act (Act) which provides a
tax credit against corporate income tax and insurance premium tax for qualified expenses14
incurred in the rehabilitation of a certified historic structure.
Eligibility and Application Process
A taxpayer must apply to the division for a tax credit before taking a credit on its return and must
document that:
 The rehabilitation is a certified rehabilitation;15
 The structure is a certified historic structure,16 is income-producing, is located within the
state, and is rehabilitated and placed into service on or after January 1, 2023;
10
Visit Florida, Florida Main Street Programs Have Stories to Tell, available at https://www.visitflorida.com/travel-
ideas/articles/florida-main-street/ (last visited Jan. 27, 2022).
11
Section 220.11(2), F.S.
12
Section 220.12, F.S.
13
Section 624.509, F.S.
14
The bill defines “qualified expenses” as qualified rehabilitation expenditures (defined in 26 U.S.C., §47(c)(2)) and
structural components (defined in 26 C.F.R., § 1.48-1(e)(2)) at the time of project certification by the U.S. Secretary of the
Interior and the U.S. Internal Revenue Service (IRS).
15
The bill defines “certified rehabilitation” as the rehabilitation of a certified historic structure that the U.S. Secretary of the
Interior has certified to the U.S. Secretary of the Treasury as being consistent with the historic character of the certified
historic structure and, if applicable, consistent with the registered historic district in which the structure is located. See 36
C.F.R., § 67.2
16
The bill defines a “certified historic structure” as a building and its structural components which is of a character subject to
the allowance for depreciation provided in s. 167 of the Internal Revenue Code and which is listed on the National Register
of Historic Places or located within a registered historic district and certified by the U.S. Secretary of the Interior as being of
historic significance to the registered historic district.
BILL: CS/SB 1310 Page 4
 The taxpayer had an ownership or long-term leasehold interest17 in the certified historic
structure in the year during which the certified historic structure was placed into service after
the certified rehabilitation was complete;
 The total amount of qualified expenses incurred in rehabilitating the certified historic
structure exceeded $5,000;
 The qualified expenses that were incurred in Florida; and
 The taxpayer received a tax credit for the qualified expenses under the federal historic
rehabilitation tax credit provision.18
In the application, the taxpayer must also provide the division with the following:
 An official certificate of eligibility from the division attesting that the project has been
approved by the National Park Service and confirming whether the project is or is not located
within a Main Street local program area;
 National Park Service Form 10-168c, signed by the National Park Service attesting that the
completed rehabilitation meets the U.S. Secretary of the Interior’s Standards for
Rehabilitation and is consistent with the historic character of the property and, if applicable,
the district in which the completed rehabilitation is located;
 Identification of the dates during which the structure was rehabilitated, the date the structure
was first placed into service after certified rehabilitation was completed, and evidence that
the structure was placed into service after the certified rehabilitation was completed;
 A list of total qualified expenses incurred by the taxpayer in rehabilitation the certified
historic structure. For certified rehabilitations with qualified expenses that exceeded
$750,000, the taxpayer must submit an audited cost report that itemizes the qualified
expenses incurred in rehabilitating the structure. The taxpayer may submit an audited cost
report that was created for purposes of applying for the federal historic rehabilitation tax
credit.
 An attestation of the total qualified expenses incurred by the taxpayer in rehabilitating the
certified historic structure; and
 The information required to be reported by the DOR to enable the DOR to compile its annual
report based on the tax credit applications submitted and approved.
Within 60 days after receipt of the information, the division shall evaluate the application and
recommend the applicant for certification or denial. Within 30 days after recommendation, the
division must approve or deny the application. If the taxpayer is approved, the division must
provide a letter to the applicant. If the taxpayer is denied, the division must inform the applicant
of the grounds for denial. The division must submit a copy of the certification and the
information provided by the taxpayer to the DOR within 10 days after the division’s approval.
Amount and Carryforward of Tax Credit
The tax credit may be used to offset the corporate income tax and the insurance premium tax.
The total tax credit claimed annually may not exceed the amount of tax due after any other
applicable tax credits and may not exceed:
17
The bill defines “long-term leasehold” to mean a leasehold in a nonresidential real property for a term of 39 years or more
or a leasehold in a residential real property for a term of 27.5 years or more.
18
26 U.S.C. s. 47
BILL: CS/SB 1310 Page 5
 Twenty percent of the total qualified expenses incurred in rehabilitating a certified historic
structure that has been approved by the National Park Service to receive the federal historic
rehabilitation tax credit; or
 Thirty percent of the total qualified expenses incurred in rehabilitating a certified historic
structure that has been approved by the National Park Service to receive the federal historic
rehabilitation tax credit and that is located within a local program area of an Accredited Main
Street Program.
If a taxpayer is eligible for a tax credit that exceeds taxes owed, the taxpayer may carry the
unused tax credit forward for a period of up to 5 taxable years.
Sale or Transfer of Tax Credit
The bill provides that there is no limit on the total number of transactions for the sale or transfer
of all or part of a tax credit. However, qualified expenses may only be counted once in
determining the amount of an available tax credit, and no more than one taxpayer may claim a
tax credit for the same qualified expenses.
A taxpayer that sells or transfers a tax credit and the purchaser or transferee must jointly submit
written notice of the sale or transfer to the DOR no later than the 30th day after the date of the
sale or transfer. The notice must include the following information:
 The date of the sale or transfer;
 The amount of the tax credit sold or transferred;
 The name and federal tax identification number of the taxpayer that sold or transferred the
tax credit and the purchaser or transferee; and
 The amount of the tax credit owed by the taxpayer before the sale or transfer and the amount
the selling or transferring taxpayer retained, if any, after the sale or transfer.
The sale or transfer of a tax credit does not extend the period for which a tax credit may be
carried forward and does not increase the total amount of the tax credit that may be claimed.
A tax credit earned, purchased, or transferred to a partnership, limited liability company,
S corporation, or other pass-through taxpayer may be allocated to the partners, members, or
shareholders of that taxpayer without regard to the ownership interest of the partners, members,
or shareholders in the rehabilitated certified historic structure.
If the tax credit is reduced due to a determination, examination, or audit by the DOR, the tax
deficiency must be recovered from the taxpayer that sold or transferred the tax credit or the
purchaser or transferee that claimed the tax credit up to the amount of the tax credit taken. Any
subsequent deficiencies must be assessed against the purchaser or transferee that claimed the tax
credit, or in the case of multiple succeeding entities, in the order of tax credit succession.
DOR and Division Audit Authority
The DOR, with assistance from the division, is authorized to perform additional financial and
technical audits and examinations, including examining the accounts, books, or records of the tax
credit applicant, to verify the legitimacy of the qualified expenses included in a tax credit return
BILL: CS/SB 1310 Page 6
and to ensure compliance. The division must provide technical assistance for any technical audits
or examinations if requested by the DOR.
It is grounds for forfeiture of previously claimed and received tax credits if the DOR determines
that a taxpayer received a tax credit to which the taxpayer was not entitled. The taxpayer must
return the forfeited tax credits to the DOR, which will then be paid into the General Revenue
Fund.
The taxpayer must file an amended tax return and pay any required tax within 60 days after the
taxpayer receives notification from the IRS that a previously approved tax credit has been
revoked or modified, if uncontested, or within 60 days after a final order is issued following
proceedings involving a contested revocation or modification order.
The DOR may issue a notice of deficiency at any time within 5 years after the date on which the
taxpayer receives notification from the IRS that a previously approved tax credit has been
revoked or modified.
The D