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 Children, Families, and Elder Affairs
BILL: CS/CS/SB 908
INTRODUCER: Finance and Tax Committee; Children, Families, and Elder Affairs; and Senator
Rodrigues
SUBJECT: Strong Families Tax Credit
DATE: March 31, 2021 REVISED:
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Moody Cox CF Fav/CS
2. Kim Babin FT Fav/CS
3. AP
Please see Section IX. for Additional Information:
COMMITTEE SUBSTITUTE - Substantial Changes
I. Summary:
CS/CS/SB 908 creates the Strong Families Tax Credit. The tax credit is available to businesses
that make monetary donations to certain eligible charitable organizations that provide services
focused on child welfare and well-being, specifically:
 Preventing child abuse, neglect, abandonment, or exploitation;
 Assisting fathers in learning and improving parenting skills or to engage absent fathers in
being more engaged in their children’s lives;
 Providing books to the homes of children eligible for a free or reduced-price meal program or
those testing below grade level in kindergarten through fifth grade;
 Assisting families who have children with a chronic illness or a physical, intellectual,
developmental, or emotional disability; or
 Providing workforce development services to families of children eligible for a free or
reduced-price meal program.
The tax credits are a dollar-for-dollar credit against severance taxes on oil and gas production;
the self-accrued sales tax liability of direct pay permit holders; corporate income taxes; alcoholic
beverage taxes; or the insurance premium tax. The total credits allowed are capped at $5 million
each state fiscal year, beginning in Fiscal Year 2021-2022.
The bill specifies requirements and procedures for, and limitations on, receiving the tax credits.
The bill also directs the Florida Institute for Child Welfare, an entity that performs research on
child welfare initiatives contributing to a more effective child welfare system, to perform an
BILL: CS/CS/SB 908 Page 2
analysis of the tax credit and the use of the funds and submit a report to the Governor, the
President of the Senate, and the Speaker of the House of Representatives by October 31, 2025.
The bill appropriates $208,000 in non-recurring general revenue funds to the Department of
Revenue to implement the bill.
The Revenue Estimating Conference has not yet reviewed the bill. Staff estimates that the bill
has a significant but indeterminate negative impact to state revenues; however, the impact to
state revenues is a maximum reduction of $5 million per fiscal year, beginning in Fiscal Year
2021-2022.
The bill has an effective date of July 1, 2021.
II. Present Situation:
Department of Children and Families
The Department of Children and Families’ (DCF) mission is to work in partnership with local
communities to protect the vulnerable, promote strong and economically self-sufficient families,
and advance personal and family recovery and resiliency.1 The DCF must develop a strategic
plan to fulfill its mission and establish measureable goals, objectives, performance standards, and
quality assurance requirements to ensure DCF is accountable to taxpayers.2
Under s. 20.19(4), F.S., the DCF is required to provide services relating to:
 Adult protection.
 Child care regulation.
 Child welfare.
 Domestic violence.
 Economic self-sufficiency.
 Homelessness.
 Mental health.
 Refugees.
 Substance abuse.
The DCF must develop a strategic plan for fulfilling its mission and establish a set of measurable
goals, objectives, performance standards, and quality assurance requirements to ensure it is
accountable. The DCF must also deliver services by contract through private providers to the
extent allowed by law and funding.3 These private providers include managing entities delivering
behavioral health services and community-based care lead agencies to deliver child welfare
services.
1
Section 20.19(1), F.S.
2
Id.
3
Id.
BILL: CS/CS/SB 908 Page 3
Florida’s Child Welfare System
Current law requires any person who knows or suspects that a child has been abused, abandoned,
or neglected to report such knowledge or suspicion to the Florida central abuse hotline (hotline).4
A child protective investigation begins if the hotline determines the allegations meet the statutory
definition of abuse,5 abandonment,6 or neglect.7 A child protective investigator investigates the
situation either immediately, or within 24 hours after the report is received, depending on the
nature of the allegation.8
After conducting an investigation, if the child protective investigator determines that the child is
in need of protection and supervision that necessitates removal, the investigator may initiate
formal proceedings to remove the child from his or her home.9 However, the DCF’s practice
model is based on the safety of the child within his or her home, using in-home services such as
parenting coaching and counseling to maintain and strengthen that child’s natural supports in his
or her environment. The DCF contracts for case management, out-of-home services, and related
services with community-based care lead agencies (CBCs).10
The DCF outsources foster care and related services to service agencies with an increased local
community ownership of providing services.11 CBCs contract with a number of subcontractors for
case management and direct care services to children and their families. There are 17 CBCs
statewide, which together serve the state’s 20 judicial circuits.12
4
Section 39.201(1)(a), F.S.
5
Section 39.01(2), F.S. The term “abuse” means any willful act or threatened act that results in any physical, mental, or
sexual abuse, injury, or harm that causes or is likely to cause the child’s physical, mental, or emotional health to be
significantly impaired. Abuse of a child includes the birth of a new child into a family during the course of an open
dependency case when the parent or caregiver has been determined to lack the protective capacity to safely care for the
children in the home and has not substantially complied with the case plan towards successful reunification or met the
conditions for return of the children into the home. Abuse of a child includes acts or omissions. Corporal discipline of a child
by a parent or legal custodian for disciplinary purposes does not in itself constitute abuse when it does not result in harm to
the child.
6
Section 39.01(1), F.S. The term “abandoned” or “abandonment” means a situation in which the parent or legal custodian of
a child or, in the absence of a parent or legal custodian, the caregiver, while being able, has made no significant contribution
to the child’s care and maintenance or has failed to establish or maintain a substantial and positive relationship with the child,
or both.
7
Sections 39.01(50) and 39.201(2)(a), F.S. “Neglect” occurs when a child is deprived of, or is allowed to be deprived of,
necessary food, clothing, shelter, or medical treatment or a child is permitted to live in an environment when such deprivation
or environment causes the child’s physical, mental, or emotional health to be significantly impaired or to be in danger of
being significantly impaired. The foregoing circumstances shall not be considered neglect if caused primarily by financial
inability unless actual services for relief have been offered to and rejected by such person. A parent or legal custodian
legitimately practicing religious beliefs in accordance with a recognized church or religious organization who thereby does
not provide specific medical treatment for a child may not, for that reason alone, be considered a negligent parent or legal
custodian; however, such an exception does not preclude a court from ordering necessary services.
8
Section 39.201(5), F.S.
9
Section 39.401, F.S.
10
Section 409.987, F.S.
11
The Florida Department of Children and Families (DCF), Community-Based Care, available at
https://www.myflfamilies.com/service-programs/community-based-care/overview.shtml (last visited March 28, 2021).
12
The DCF, Community-Based Care Lead Agency Map, available at https://www.myflfamilies.com/service-
programs/community-based-care/lead-agency-map.shtml (last visited March 28, 2021).
BILL: CS/CS/SB 908 Page 4
The DCF remains responsible for a number of child welfare functions, including operating the
hotline, performing child protective investigations, and providing children’s legal services.
Ultimately, the DCF is responsible for program oversight and the overall performance of the
child welfare system.13
Florida Institute for Child Welfare
In 2014, the Legislature established the Florida Institute for Child Welfare (FICW) at the Florida
State University College of Social Work.14 The Legislature created the FICW to provide research
and evaluation that contributes to a more sustainable, accountable, and effective child welfare
system. The purpose of the FICW is to advance the well-being of children and families by
improving the performance of child protection and child welfare services through research,
policy analysis, evaluation, and leadership development.15 Current law requires the FICW to
establish an affiliate network of public and private universities with accredited degrees in social
work. In 2017, the FICW expanded its affiliate network to include research affiliates, and there
are now over 50 research faculty affiliates.16
Select State Revenue Sources
The following describes select taxes imposed by Florida, which the bill provides credits against.
Severance Taxes on Oil and Gas Production
Oil and gas production severance taxes are imposed on persons who sever oil or gas in Florida
for sale, transport, storage, profit, or commercial use.17 The rates are based on the value of the oil
produced and saved or sold and the volume of gas produced and sold or used.18 These taxes are
collected by the Department of Revenue (DOR) and distributed to the Oil and Gas Tax Trust
Fund where, after paying refunds for overpayments, proceeds are distributed according to a
statutory formula.19 The majority of proceeds are distributed to the General Revenue Fund, with
a minority to the general revenue fund of the board of county commissioners of the county where
produced and the Minerals Trust Fund. Receipts from the severance taxes on oil and gas in Fiscal
Year 2019-2020 were $1.8 million.20
13
Office of Program Policy Analysis & Government Accountability, Child Welfare System Performance Mixed in First Year
of Statewide Community-Based Care, Report 06-50, p. 2, June 2006, available at
https://oppaga.fl.gov/Documents/Reports/06-50.pdf (last visited March 28, 2021).
14
Chapter 2014-224, Laws of Fla.
15
Section 1004.615, F.S.
16
See the Florida Institute for Child Welfare, available at https://ficw.fsu.edu/ (last visited March 28, 2021).
17
Sections 211.02(1) and 211.025, F.S.
18
Id.
19
Section 211.06, F.S.
20
Revenue Estimating Conference, General Revenue Consensus Estimating Conference Comparison Report (December 21,
2020), 38, available at http://www.edr.state.fl.us/Content/conferences/generalrevenue/grpackage.pdf (last visited March 28,
2021).
BILL: CS/CS/SB 908 Page 5
Sales Taxes Paid by Direct Pay Permit Holders
Florida levies a 6 percent sales and use tax (sales tax) on the sale or rental of most tangible
personal property, admissions,21 transient rentals,22 and a limited number of services, and a
5.5 percent sales and use tax on commercial real estate rentals.23 Chapter 212, F.S., authorizes
the levy and collection of Florida’s sales tax, and provides exemptions and credits applicable to
certain items or uses under specified circumstances, including a sale for resale.24 Florida requires
a dealer to add the tax to the sales price of the taxable good or service and collect it from the
purchaser at the time of sale.25 Total sales tax collections in Fiscal Year 2019-2020 were
estimated at $29.3 billion.26
States typically grant direct pay permits to large businesses with large numbers of transactions.27
Direct pay permits allow all purchases by the holder to be tax exempt, but require the holder to
file sales tax returns and pay tax on those purchases that were not for resale.28
Section 212.183, F.S., authorizes the DOR to establish a process for the self-accrual of sales
taxes and the issuance of a direct pay permit to a taxpayer, who then pays the taxes directly to the
DOR.29 The implementing DOR rule authorizes issuing direct pay permits for the following
purposes:30
 The apportionment of sales tax by eligible air carriers.
 Certain partial exemptions for railroad rolling stock and parts used to transport persons or
property for hire in interstate or foreign commerce and for fuel used in railroad locomotives.
 A certain partial exemption for motor vehicles and parts used to transport persons or property
for hire in interstate or foreign commerce.
 Certain partial exemptions for vessels and parts used to transport persons or property for hire
in interstate or foreign commerce or for commercial fishing purposes and for fuel used in
such vessels.
 The purchase of tangible personal property by dealers who annually purchase in excess of
$10 million of taxable tangible personal property in any county for the dealer’s own use.
 The purchase of tangible personal property by dealers who annually purchase at least
$100,000 of taxable tangible personal property, including maintenance and repairs for the
dealer’s own use, and the taxable status of the property will be known only when the dealer
uses the property.
 The purchase of certain promotional materials by dealers who are unable to determine at the
time of purchase whether the promotional materials used to promote subscriptions to
publications will be used in Florida or exported from Florida.
21
Section 212.04, F.S.
22
Section 212.03, F.S.
23
Section 212.031, F.S.
24
Section 212.02(14)(a), F.S.
25
See ss. 212.07(2) and 212.06(3)(a), F.S.
26
Office of Economic and Demographic Research, The Florida Legislature, Florida Tax Handbook, Including Fiscal Impact
of Potential Changes, 159 (2020), available at http://www.edr.state.fl.us/Content/revenues/reports/tax-
handbook/taxhandbook2020.pdf (last visited Mar. 28, 2021).
27
Charles W. Swenson, et al. State and Local Taxation, Third Edition., 130, J. Ross Publishing (2020).
28
Id.
29
Section 212.183, F.S.
30
Fla. Admin. Code R. 12A-1.0911(2) (2016).
BILL: CS/CS/SB 908 Page 6
 The lease or license to use real property subject to commercial rent tax from independent
owners or lessors of real property by dealers who are required to remit sales tax
electronically.
 The lease of or license to use real property subject to commercial rent tax by a dealer who
leases or obtains licenses to use real property from a number of independent property owners
who, except for the lease or license to the dealer, would not be required to register as dealers
engaged in the business of leasing real property.
 The lease or license to use real property subject to commercial rent tax by operators of
amusement machines or vending machines who lease or obtain licenses to use real property
from property owners or lessors for the purpose of placing and operating an amusement or
vending machine.
Corporate Income Tax and Alternative Minimum Tax
Florida imposes a tax on the taxable income of certain corporations and financial institutions
doing business in Florida.31 The current rate is 4.458 percent32 of a taxpayer’s net income for its
taxable year (the calendar or fiscal year or period upon which its net income is computed).33
The calculation of Florida corporate income tax starts with a corporation’s federal taxable
income.34 Taxable income earned by corpo