Division of Waste Management Florida’s VOLUNTARY CLEANUP TAX CREDIT PROGRAM Presented to: 18th Annual Florida Brownfields Conference Tampa, Florida

Overview Voluntary Cleanup Tax Credit Program –Eligibility, Process, and Requirements Common Mistakes & Techniques for Improvement Program FAQ’s Program Statistics

Voluntary Cleanup Tax Credits (VCTC) Florida Statute — Incentive to encourage voluntary cleanup by awarding corporate income tax credits to offset site rehabilitation or solid waste removal costs

Voluntary Cleanup Tax Credits Credits on Florida corporate income tax $5 million annual cap –If exhausted, application order priority in next year's allocation Credits are good for 5 years May be transferred once Credits awarded for eligible work –Site rehabilitation –Solid waste removal, transport and disposal Bonus credits awarded for site rehabilitation costs only –SRCO –Affordable housing –Health Care facility

Voluntary Cleanup Tax Credits Tax Credit Type Application Frequency Maximum Credit for Costs Incurred Site Rehabilitation Annually50%$500,000 No Further Action Bonus No Further Action Bonus (i.e., SRCO) (i.e., SRCO) Once25%$500,000 Affordable Housing Bonus Affordable Housing BonusOnce25%$500,000 Health Care Facility Bonus Once25%$500,000 Solid Waste Once50%$500,000

Eligibility Requirements Executed Cleanup Agreement –Voluntary Cleanup Agreement (VCA) Drycleaning Solvent Cleanup Program (DSCP) sites Drycleaning-solvent contaminated sites not eligible for the DSCP, with an eligible owner –Brownfield Site Rehabilitation Agreement (BSRA) Site Rehabilitation Solid Waste Removal –Not operated as a permitted solid waste disposal area or for monetary compensation

VCTC Application Requirements SUBMIT: A completed application with a $250 application review fee Supporting Documentation –Cover page of BSRA or VCA –Contractual Records, Payment Requests and Payment Records –CPA Report –P.E./P.G. Certification –SRCO Letter –Affordable Housing Documentation –Healthcare Facility/Provider Documentation

VCTC Application Submittal Site Rehabilitation –Annual; One application per site per year –Due by January 31 st (or next business day) of the year following when costs were incurred and paid 2015 Site rehabilitation VCTC Application’s are due February 1, 2016 SRCO –One application per site –Submit upon issuance of the SRCO

VCTC Application Submittal Continued Affordable Housing, Health Care –One application per site –Submit once requirements are satisfied Solid Waste –One application per site –Submit when solid waste removal is complete

Application Process Summary Application Submitted Step 1 Date/Time Stamp Step 2 Completeness Review Step 3 Complete Eligibility Review Eligibility Letter Step 5 Step 6 Issue Tax Certificate Step 7 VCTC Certificate Step 4 Diagram image

Eligible Costs “integral to site rehabilitation” –As required by Chapter – Brownfields and Drycleaning –Examples Include: Site Assessment Activities Remedial Actions Legal Assistance (directly related to the voluntary cleanup)

Eligible Costs “solid waste removal” –Only available for: Brownfield sites Never operated as a permitted solid waste disposal area Never operated for monetary compensation –Affidavit from local government official –Examples Include: Transportation of solid waste to disposal facility Sorting or screening of solid waste Clean backfill to natural grade

Common Mistakes and Techniques for Improvement

Common Mistakes Submittal of an Incomplete Application –Application form not appropriately completed –Not signed and appropriately notarized or sealed –Lacking supporting documentation !!! Contractual Records Payment Requests Payment Records Claiming Ineligible Costs –Redevelopment costs –Costs associated with Brownfield Area Designation

Common Mistakes Payment by an incorrect entity Failure to prorate costs when appropriate Submittal of invoices for site rehabilitation work performed outside of the application year

Improving Your Application Clear and Detailed records –Contractual Records –Payment Requests –Payment Records Make sure your application is Complete –Include the $250 Review Fee (Cashier’s check or Money Order) –Signed and Sealed when Appropriate –Include CPA Report Keep it Organized

Frequently Asked Questions

FAQs Yes, IF –BSRA or VCA executed by December 31 st of the calendar year for which the tax credit applicant is claiming costs. Can I claim costs for work performed prior to Brownfield Area designation and execution of the BSRA or VCA?

Site Rehabilitation claims: YES, IF –Site rehabilitation must be conducted between January 1 and December 31 of the calendar year that the application is submitted, and –Payments are made prior to submittal of the application, no later than January 31 Solid Waste: YES, IF. –Provided a BSRA is in place by December 31 of the first year that the applicant is claiming costs FAQs Can I claim costs for work that is performed in one year but paid in the next?

Yes One time transfer Can transfer to multiple entities, but the portion must be at least 25% Transferred credits are good for 5 years Can I transfer my tax credit? FAQs

Program Statistics

Calendar YearEligible ApplicationsTax Credits Issued 19981$30, $118, $213, $494, $1,068, $1,093, $1,190, $1,314, $2,486, $3,400, $5,414, $5,637, $5,326, $6,230, $6,130, $7,197, $9,229,751 TOTAL580$56,577,794

Contacts Chris Baker, VCTC Program Manager (850) Kim Walker, Brownfields Program Manager (850) Robert DuCasse, Department of Revenue (DOR) (850)

On the Web VCTC Brownfields

Division of Waste Management Florida’s VOLUNTARY CLEANUP TAX CREDIT PROGRAM Presented to: 18th Annual Florida Brownfields Conference Tampa, Florida