Molly Wendland, Specialist in CBIZ’s Tax Incentives Practice, gives insight into Florida’s many tax incentive programs in Part 2 guest post.
In the previous post, trigger considerations and eligible industries were covered. Today’s post will review the specific programs and benefits available in Florida.
Florida’s many programs help companies offset the costs of making investment, adding jobs, and training employees. Specific programs and benefits vary but can include the following:
Programs and Benefits
- Withholding tax refund of $3,000 - $8,500 per new job created
- Investment tax credit
o Minimum capital investment: $25 million
o Can apply 5% of investment toward up to 75% of corporate tax liability
- High impact project grants available to companies in designated high-impact portions of the following sectors – clean energy, corporate headquarters, financial services, life sciences, semiconductors, and transportation equipment manufacturing. Funding is discretionary. Both of the following additional parameters apply:
o Available to companies creating at least 50 new jobs within a three year period (or 25 for R&D facility)
o Cumulative capital investment requirement of $50 million within a three year period (or $25 million for R&D facility)
- Incentives for businesses that choose to locate within a special zone:
o Enterprise Zone:
o Business machinery & equipment sales tax refund
o Jobs tax credit (sales tax)
o Jobs tax credit (corporate income tax)
o Building materials sales tax refund
o Property tax credit
o Sales tax exemption for electrical energy
o Tax refunds up to $2,500 per job created on a Brownfield site
o Other restrictions apply
Additional incentives with lower wage qualifications available to meet the special needs associated with businesses located in rural counties or urban core areas
The often overlooked incentive is the training grant, which is available as a unique means of offsetting the cost of job specific training for new employees or for training existing staff on new technology, processes or equipment. Funds are provided to the company on a cash reimbursement basis and can be used for expenses related to on-the-job and/or classroom training. Expenses can include instructor salaries, vendor training costs, training materials, and curriculum development costs to prepare the training materials.
Each program is different, and sifting through the requirements and compliance can be confusing at best and frustrating at the worst. Utilizing an expert in this area will produce the results beneficial to your company.
If your business is expanding, please contact Molly at MWendland@CBIZ.com or 816.945.5264 to see if your company may be eligible for these incentives.