Florida’s Business-Friendly Tax Advantages

• NO state personal income tax
• NO corporate franchise tax levied on capital stock
• NO state-level ad valorem taxes
• NO tax on goods-in-transit
• NO sales and use tax on goods manufactured or produced in Florida for export
  outside the state

Financial Incentives
Qualified Target Industry (QTI) Tax Refund
The Qualified Target Industry Tax Refund on previously paid taxes is available to companies that create high-wage jobs in targeted high value-added industries. The state pays 80% and the local community pays 20% of the total tax refund of up to $5,000 per job created (the refunds could be higher in certain designated distressed areas). Each QTI business must comply with contracted job creation schedules and wage levels before any refunds are paid, or risk dismissal from the program; exemptions are permitted in exceptional circumstances, such as when a business is negatively affected by a named hurricane or tropical storm.

Qualified Defense Contractor Tax Refund
(QDC) Program
The Qualified Defense Contractor Tax Refund follows the same general guidelines as QTI, but is focused on bringing defense-related businesses to Florida. QDC allows Florida businesses to offer more competitive bids in order to secure highly lucrative defense contracts.

Economic Development Transportation Fund
Typically referred to as the “Road Fund,” the Economic Development Transportation Fund is used to improve transportation systems to help companies commit to growing in Florida. Under this program, local governments may receive up to $2 million for the construction or improvement of transportation infrastructure needed to accommodate a new or expanding industry.

Rural Incentives
Florida provides resources to specifically attract new development and foster business expansion within its designated 33 rural counties. Rural incentives include job tax credits, the Rural Infrastructure Fund to help underwrite the cost of infrastructure upgrades and loan programs for projects that will lead to new jobs and economic diversification in rural areas. In addition, companies located within designated Rural Enterprise Zones (REZ) may tap into several enhanced incentives, such as tax credits and tax refunds, in exchange for job creation.

Urban Incentives
Businesses located in one of Florida’s 28 urban Enterprise Zones may be eligible, under certain circumstances, for credits on sales and use or corporate income taxes. Tax credits may also be available for donations made to local community development programs and to businesses that elect to locate or expand in designated brownfields areas.

Capital Investment Tax Credit (CITC)
The Capital Investment Tax Credit (CITC), an annual credit against the corporate income tax provided for up to 20 years, is used to attract and grow capital-intensive industries in Florida. Eligible projects are those in designated highimpact segments of the biomedical technology, financial services, information technology, silicon technology and transportation equipment manufacturing sectors. Projects must also create a minimum of 100 jobs and invest at least $25 million in eligible capital costs.
High Impact Performance Incentive Grant (HIPI) The High Impact Performance Incentive (HIPI) is a negotiated grant used to attract and grow major high-impact facilities in Florida. To qualify, the project must be in designated high-impact portions of the biomedical technology, financial services, silicon technology and transportation equipment manufacturing sectors. The project must create at least 100 new full-time equivalent jobs (75 if an R&D facility) and make an investment of at least $100 million ($75 million if an R&D facility) within three years.

Innovation Incentive Program
Created by the Florida Legislature in 2006, the Innovation Incentive Program provides $200 million to assist in the creation of hubs of innovation that will yield high-wage jobs (at least 130% of average wage) and yield a significant return for taxpayers in the long term.

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