An expansive but expensive bill that would use tax credits to create jobs for the unemployed and stimulate job creation for the space flight, defense contractor and film industries passed the Senate Policy Steering Committee on Ways and Means Thursday.
The bill, SB 1752, authorizes $1,000 per-person tax credits for businesses hiring the unemployed and expands from $35 million to $100 million tax refunds for space flight and defense contractor sectors and certain industries. It also provides $20 million in incentives for the film and entertainment industries.
The bill, sponsored by Sen. Don Gaetz, R-Destin, would provide $187 million over three years. While that price tag gave some lawmakers pause -- given the number of programs the state wants to fund this year with the limited revenues available -- Gaetz said it was needed to stimulate growth and put tax dollars to good use.
I think this bill has a positive impact on businesses of all sizes, he said.
The bill would cost Florida $76 million in its first year, $72.9 million in its second and $38.2 million in its third.
The bill's proposals are myriad, among other things it would:
- Expand the tax refund cap for space flight, defense contract and high-paying, high-skilled qualified target industries from $35 million to $100 million
- Authorize $1,000 per-person tax credits for two years to businesses for hiring the unemployed. The tax credit is to be capped at $5 million each year
- Provide $20 million in tax credits to the film and entertainment industry annually, although businesses wont see the money for the first year until 2011
- Appropriate $20 million to fund space flight programs and retrain Space Coast employees
- Add flexibility to $14.5 million in earmarked funds given to Space Florida
- Increase matching state grants for federal research grants
- Authorize sales tax refunds for manufacturing equipment for space flight programs, manufacturing businesses and entertainment industries
- Waive the requirement for professional engineers to wait for 30 days after applying for a permit from the Department of Environmental Protection or Water Management District on certain projects.
- Extend the Florida Homebuyer Opportunity Program for a year
- Cap sales and use taxes on boats in the state at $18,000
The bill passed with many legislators praising the intent but mourning the cost. Gaetz admitted the price tag was high, but noted the bill is necessary to make Florida a competitor when seeking new businesses and putting people to work.
Sen. Thad Altman, R-Melbourne, said it would be of great value to the Space Coast, which faces the loss of at least 7,000 workers due to President Barack Obamas proposed NASA budget. He said it will attract development of new space flight vehicles to the state and encourage the development of joint-use ventures that will encourage sub-orbital flights.
The bill allocates $3.9 million to Space Floridas operating budget, $10 million for space infrastructure projects, $3 million in encouraging support for related businesses and business development and $3.2 million for job-retraining and workforce development.
It will have a significant impact, he said. Its just what we need to be doing.
Democrats said the cost and several proposals that would affect the environment, such as the 30-day waiting period waiver, were discouraging. Sen. Nan Rich, incoming minority leader, opposed the bill. Dan Gelber, D-Miami Beach, said he supported it at this stage but had qualms about the high cost and the possibility that it supports big businesses over smaller ones.
Im terribly conflicted because its got so much in it, he said.
Doubts were not restricted to the Democrats. Evelyn Lynn, R-Daytona Beach, said she could not support the bill because of the cost and a lack of focus. She felt it was a rush job.
I wish that it dealt with jobs creation, because I would love to get behind it, she said.
Extending Florida Homebuyers Opportunity Program, lowering the sales tax on boats and giving tax credits for equipment purposes does not directly create jobs, she said.
Sen. Joe Negron, R-Palm City, responded that the bill was not cluttered, but comprehensive at a time when Florida needs a broad solution to economic turmoil.
This is a distillation of the best ideas, he said.
