Financial Incentives

Offered by the State of Florida

Competitive Cost of Doing Business:

  • Florida offers a cost-efficient alternative to other competitive high-tech states.
  • Land/labor, and capital are more affordable in Florida than in California, New York or Texas.
  • Florida offers additional incentives to businesses in certain targeted industries, including: clean energy, biomedical technology, financial services, information technology, silicon technology, transportation equipment manufacturing.
  • Businesses looking for workforce training, road infrastructure or specialized locations may also qualify for specific incentive programs.
Pro-Business Tax Structure:
  • Limited corporate taxes and no personal income tax.
  • AAA bond rating – the highest available.
  • Businesses thrive in this low-tax environment and employees enjoy the benefit of no personal income tax.
Expedited Permitting:
  • Florida understands that businesses need certainty, predictability and efficiency in government regulations.
  • Florida regulatory agencies and local governments provide quicker, less costly and more predictable permitting processes without reducing environmental standards.
Available Resources:
  • Access to capital from private, federal and other sources and has implemented other initiatives, such as the Florida Opportunity Fund, to stimulate capital formation in the state.
  • Strategic business support is also available from the numerous entrepreneurship centers around the state.

State Tax Advantages

Florida companies benefit from a pro-business tax structure, including:

  • NO corporate income tax on limited partnerships.
  • NO corporate income tax on subchapter S-corporations.
  • NO state personal income tax guaranteed by constitutional provision.
  • NO corporate franchise tax on capital stock.
  • NO property tax on business inventories or on goods-in-transit for up to 180 days.
  • NO sales & use tax on goods manufactured/produced in Florida for export out of state.
  • NO sales & use tax on co-generation of electricity or certain boiler fuels.
  • Sales & use tax exemptions on electricity used in the manufacturing process.
  • Sales & use tax exemptions on machinery, equipment and labor used predominantly for research and development.
  • Sales & use tax exemptions on certain boiler fuels (including natural gas) used in the manufacturing process.
  • Sales & use tax exemptions on semiconductor, defense and space technology-based industry transactions involving manufacturing equipment.
  • Low corporate tax rate of 5.5 percent.

Tax Incentive Programs Include:

  • Qualified Target Industry Tax Refund (QTI) – The Qualified Target Industry Tax Refund incentive is available for companies that create high wage jobs in targeted high-value-added industries. Pre-approved applicants who create jobs in Florida receive tax refunds of $3,000 per net new Florida full-time equivalent job created; $6,000 in an Enterprise Zone or Rural Community (county). For businesses paying 150 percent of the average annual wage, add $1,000 per job; for businesses paying 200 percent of the average annual salary, add $2,000 per job; businesses falling within a designated high impact sector or increasing exports of its goods through a seaport or airport in the state by at least 10 percent in value or tonnage in each year of receiving a QTI refund, add $2,000 per job.  New or expanding businesses in selected targeted industries or corporate headquarters are eligible.  Companies locating at Innovation Square stand to receive at least $6000/new job created. 
  • Qualified Defense and Space Contractor Tax Refund (QDSC) - Florida is committed to preserving and growing its high technology employment base by giving Florida defense, homeland security, and space business contractors a competitive edge in consolidating contracts or subcontracts, acquiring new contracts, or converting contracts to commercial production.
  • Capital Investment Tax Credit (CITC) – Eligible projects in designated high-impact portions of the following sectors receive an annual credit against the corporate income tax: clean energy, biomedical technology, financial services, information technology, silicon technology, transportation equipment manufacturing, or a corporate headquarters facility.
  • Quick Response Training Program (QRT) – Funding for customized training for new or expanding businesses.
  • Incumbent Worker Training Program (IWT) – Funding for customized training for existing, for-profit businesses.
  • High Impact Performance Incentive Grant (HIPI) - This negotiated grant is used to attract and grow major high impact facilities in Florida. Grants are provided to pre-approved applicants in certain high-impact sectors designated by the Governor's Office of Tourism, Trade and Economic Development (OTTED). In order to participate in the program, the project must: operate within designated high-impact portions of the following sectors-- clean energy, corporate headquarters, financial services, life sciences, semiconductors, and transportation equipment manufacturing; create at least 50 new full-time equivalent jobs (if a R&D facility, create at least 25 new full-time equivalent jobs) in Florida in a three-year period; and make a cumulative investment in the state of at least $50 million (if a R&D facility, make a cumulative investment of at least $25 million) in a three-year period. Once recommended by Enterprise Florida, Inc. (EFI) and approved by OTTED, the high-impact business is awarded 50 percent of the eligible grant upon commencement of operations and the balance of the awarded grant once full employment and capital investment goals are met.
  • Sales Tax Exemption for Electrical Energy: Manufacturers in certain industry groups are eligible for an exemption on the sales tax normally paid on the purchase of electrical energy used to operate machinery and equipment used in certain manufacturing processes. To qualify for the exemption, eligible businesses must register with the State's new WAGES program. Once registered, businesses may apply with their electric utility provider for the exemption; however, electricity used for the exempt purposes has to be separately metered or the company may apply for exemption on 50 percent of the charge for the electricity used by the entire facility. To qualify, businesses must be from a Standard Industrial Classification Industry Group beginning with 10, 12-14, or 20-39.
  • Economic Development Transportation Fund - Commonly referred to as the "Road Fund," this incentive tool is designed to alleviate transportation problems that adversely impact a specific company's location or expansion decision. The award amount is based on the number of new and retained jobs and the eligible transportation project costs, up to $3 million. The award is made to the local government on behalf of a specific business for public transportation improvements.

Source: Enterprise Florida

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