1. (1) The Department will recapture, from a taxpayer, the credit allowed under section 288.062, F.S., if:

   1. (a) The rural fund does not invest 60 percent of its investment authority in eligible businesses in the state of Florida before the rural fund’s second credit certification date;
   2. (b) The rural fund does not invest 100 percent of its investment authority in eligible businesses before its third credit certification date, with at least 70 percent of such eligible investments made in a rural community;

   3. (c) Should the rural fund fail to meet the conditions of paragraph (1)(b) in any year after the rural fund’s third credit certification date and until the rural fund exits the Program in accordance with section 288.062(10), F.S., the Department shall recapture credits based upon the following schedule:

      1. If the rural fund fails to invest or fails to maintain investment authority in eligible businesses at a percentage of at least 90 percent, all credits will be subject to recapture.

      2. If the rural fund fails to invest or fails to maintain investment authority in eligible businesses at a percentage above 90 percent, but below 100 percent, the percentage subject to recapture will be equal to the amount by which the rural fund failed to achieve 100 percent investment.

   4. (d) The rural fund, before exiting the Program in accordance with section 288.062(10), F.S., makes a distribution or payment that results in the rural fund having less than 100 percent of its investment authority invested in eligible businesses;
   5. (e) The rural fund invests in an eligible business that directly, or indirectly through an affiliate, owns, has the right to acquire an ownership interest in, makes a loan to, or makes an investment in the rural fund of an affiliate of the rural fund or an investor in the rural fund;
   6. (f) The rural fund submitted false or misleading, or materially incomplete information in its application or in subsequent reports; or
   7. (g) The rural fund does not submit a report required by section 288.062, F.S., these rules, or submits incomplete information in the reports.
2. (2) Enforcement of the recapture provisions of paragraphs (a), (b), (c), (d), (e), (f), and (g) of subsection (1) herein shall be subject to a six-month cure period. No recapture shall occur until the rural fund has received notice of noncompliance and has been afforded six months from the date of receipt of such notice to cure the noncompliance. The Department will also provide notice of noncompliance to the taxpayer(s) or transferee, as applicable, and the Department of Revenue. The Department’s notice of noncompliance will identify the statutory or rule provision at issue, the facts constituting the deficiency, the corrective action required, and the six-month cure deadline.
3. (3) The Department must issue a final order recapturing the tax credits if the rural fund fails to cure a deficiency by the 6-month cure deadline.
4. (4) A revoked tax credit shall not be claimed, transferred, or carried forward.

Rulemaking Authority 288.062(13) FS. Law Implemented 288.062 FS. History–New 4-22-26.