For more information on these incentives and resources, contact Kara Palmer Smith.
SAMPLING OF INCENTIVE
Targeted Business Program (TBP)
A joint City/County program that provides a rebate for a portion of property taxes, development fees and permit fees for businesses that fall into one of eleven targeted industries. The level of rebate is based on a number of factors, including the number of jobs created, the percentage of higher paying jobs, the level of capital investment, location within a targeted area, and environmental sensitivity in the design. Businesses located in the Central City and Southern Strategy Areas are eligible to receive extra points toward the rebate score.
Qualified Targeted Industry Tax Refund (QTI)
Available for companies that create high wage jobs in targeted high value-added industries. This incentive includes refunds on corporate income, sales, ad valorem, intangible personal property, insurance premium, and certain other taxes. 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. 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; projects locating in a designated Brownfield area (Brownfield Bonus) can add $2,500 per job. The local community where the company locates contributes 20 percent of the total tax refund. There is a cap of $5 million per single qualified applicant in all years, and no more than 25 percent of the total refund approved may be taken in any single fiscal year. New or expanding businesses in selected targeted industries or corporate headquarters are eligible.
Qualified Defense and Space Contractor Tax Refund (QDSC)
Florida is committed to preserving and growing its high technology employment base by giving defense, homeland security, and space business contractors a competitive edge in consolidating contracts or subcontracts, acquiring new contracts, or converting contracts to commercial production. Pre- approved applicants creating or retaining jobs may receive tax refunds of $3,000 per net new full-time equivalent job created or retained; $6,000 in an Enterprise Zone. 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.
Capital Investment Tax Credit (CITC)
Used to attract and grow capital-intensive industries. It is an annual credit, provided for up to twenty years, against the state’s corporate income tax. Eligible projects are those in designated high- impact portions of the following sectors: clean energy, biomedical technology, financial services, information technology, silicon technology, transportation equipment manufacturing, or be a corporate headquarters facility. Projects must also create a minimum of 100 jobs and invest at least $25 million in eligible capital costs. Eligible capital costs include all expenses incurred in the acquisition, construction, installation, and equipping of a project from the beginning of construction to the commencement of operations. The level of investment and the project’s corporate income tax liability for the 20 years following commencement of operations determines the amount of the annual credit.
High Impact Performance Incentive Grant (HIPI)
A negotiated grant used to attract and grow major high impact facilities. 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 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.
Quick Response Training Program (QRT)
An employer-driven training program designed to assist new value-added businesses and provide existing Florida businesses the necessary training for expansion. A state educational facility – community college, area technical center, school district or university – is available to assist with application and program development or delivery. The educational facility will also serve as fiscal agent for the project. The company may use in-house training, outside vendor training programs or the local educational entity to provide training. Reimbursable training expenses include: instructors’/trainers’ wages, curriculum development, and textbooks/manuals. This program is customized, flexible, and responsive to individual company needs. To learn more about the QRT program, visit Workforce Florida.
Incumbent Worker Training Program (IWT)
A program that provides training to currently employed workers to keep Florida’s workforce competitive in a global economy and to retain existing businesses. The program is available to all Florida businesses that have been in operation for at least one year prior to application and require skills upgrade training for existing employees. Priority is given to businesses in targeted industries, Enterprise Zones, HUB Zones, Inner City Distressed areas, Rural Counties and areas, and Brownfield areas. For additional information on the IWT program, visit Workforce Florida.
Employed Worker Training Program Funding Assistance Program (EWT)
Businesses and organizations can benefit from this program, which helps employers fund training for existing employees to keep their firms and workers competitive.
On-The-Job Training Funding Assistance Program (OJT)
This program assists businesses and organizations in imparting skills and credentials to a new employee. Once the employee completes training per the terms of the Training Contract, the employer may be reimbursed 50 percent of the employee’s wages for the approved training period.
Historically Underutilized Business Zones (HUBZones)
Helps small businesses gain preferential access to federal procurement opportunities. These preferences go to small businesses that obtain HUBZone certification in part by employing staff who live in a HUBZone. The company must also maintain a “principal office” in one of these specially designated areas.
Economic Development Transportation Fund
Commonly referred to as the “Road Fund,” is an incentive tool 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.
Sales & Use Tax Exemptions
The purchase of equipment and machinery used in the manufacturing process is exempt from the payment of Florida State sales tax. This applies to other supporting equipment as well, such as computers that are used 50% or more to control the production process. The exemption is 100% of all sales tax for new industries, and the new equipment purchased by existing industries where the purchase increases production by 10% or more. There is no exemption for sales tax paid for replacement equipment not increasing production by at least 10%.