AGENDA REPORT
DATE: June 22, 2026
TO: Community Redevelopment Agency of the City of Plant City
FROM: Bill McDaniel, Executive Director
SUBJECT: Brownfield Voluntary Cleanup Tax Credits Certificate Sale
EXECUTIVE SUMMARY:
Section 376.30781, Florida Statutes, provides for tax credits in the amount of 50 percent of the costs of voluntary cleanup activity for rehabilitation of Brownfield sites in designated brownfield areas. The City submits eligible annual costs to the Florida Department of Environmental Protection (FDEP). FDEP issues a Voluntary Cleanup Tax Credit (VCTC) certificate which expires five years from the date of issuance and can only be used to offset Florida corporate income tax.
Local governments with no Florida corporate income tax liability can sell or transfer their VCTC certificates to an entity that has Florida corporate income tax liability. As the CRA does not pay corporate income tax, the tax credits have no value to the City unless transferred to another entity within the five-year period. The transferee can be any entity that the CRA chooses, but they must have the requisite income tax liability because the tax credits cannot be transferred a second time. FDEP will issue the transferee a new certificate with the date of transfer and they will have up to an additional five years from that date to use the certificate. The CRA uses a broker to find appropriate transferees for the VCTC certificates.
VCTC certificates are issued by FDEP in July of each year. The City advertised our certificates for brokerage services at this time as the earliest certificates were issued on April 4, 2025 and are due to expire April 2030.
|
Year Issued |
VCTC Application # |
Certificate # |
Project |
Amount |
|
2025-2026 |
2119 |
2242 |
Former Freddy's Automotive |
$ 3,064.13 |
|
2025-2026 |
2117 |
2241 |
Former Carlos Brake & Radiator |
$ 3,945.88 |
|
2024-2025 |
1947 |
2062 |
Former Stock Building Supply & Lumber Yard |
$ 35,470.03 |
|
2024-2025 |
1948 |
2063 |
Former Gro-Mor Fertilizer |
$ 67,240.92 |
|
Total |
|
|
Certificates for Sale 2026 |
$ 109,720.96 |
Invitation for Bid 26-022CS-IFB was published on March 9, 2026 seeking a broker for the VCTC tax certificates, and one bid was received at the submission deadline by Clocktower Tax Credits, LLC. Staff determined Clocktower Tax Credits, LLC was responsive and responsible to the IFB requirements. The total amount of VCTC certificates is $109,720.96. Clocktower has agreed guarantee $.802 per dollar of tax credit for a total amount of $87,996.21. Any amount received in excess of $.802 per dollar of tax credit is paid to Clocktower Tax Credits, LLC as its commission.
RECOMMENDATION:
That the Community Redevelopment Agency Board adopt a resolution accepting the bid of Clocktower Tax Credits, LLC to broker the sale of Voluntary Cleanup Tax Credits for a guaranteed amount of $.802 per dollar of tax credits sold, and authorize the Executive Director and City Attorney to execute the Agreement with Clocktower Tax Credits, LLC, and any future transfer documents necessary to effectuate the sale of the certificates.
FISCAL IMPACT:
The revenue from this sale will be posted to the CRA Fund, Org #37030000 Obj #369910 - Sale of Tax Credits - CRA. The credits were earned based on the cleanup costs paid by the CRA.
Prepared by: Denise McDaniel, Community Services Manager