WHY FLORIDA SHOULD BE CONSIDERED FOR YOUR NEXT CORPORATE EXPANSION STATE & LOCAL INCENTIVE PROGRAMS The incentive programs include: Qualified Target Industry (QTI) Tax Refund (STATE) This incentive is available for companies that create high wage jobs in targeted high value-added industries and may provide the company with a tax refund of up to $3,000 per new job created. This program is funded by the State of Florida (80%) and Miami-Dade County (20%). The QTI program requires the creation of at least 10 new full-time jobs at salary levels equal to or exceeding 115% of the State annual average wage, or $45,834. For businesses paying 150% of the State average annual wage, add $1,000 per job; for 200% of the State average annual wage, add $2,000 per job. For companies that locate or expand within any of Miami-Dade County’s Enterprise Zones, this incentive is increased up to $6,000 per new job created, and the minimum salary requirement may be waived. Miami-Dade County Targeted Jobs Incentive Fund (TJIF) – The TJIF is an inducement program available only to companies from outside the County (with the exception of Palm Beach, Broward, and Monroe Counties) wishing to relocate here, and to MiamiDade companies which undertake a business expansion and that create jobs as a result of the local expansion. Nevertheless, a Palm Beach, Broward or Monroe County-located Company that is planning to relocate outside South Florida is eligible for this program. The Company must provide verifiable documentation supporting its consideration of other locales. Any business decisions, such as announcements, leasing of space or hiring of employees, made prior to the final TJIF approval, will likely be grounds for disapproval unless waived by the Miami-Dade County Manager after a showing of good cause. Projects that do not require inducement will not be approved. To qualify for consideration under the program, an applicant must: Be one of the targeted industries as per the State of Florida QTI Program (see QTI incentive information sheet for Industry List). In addition, Miami-Dade One Community One Goal (OCOG) target industries are also eligible, as are regional offices. Create at least 10 net new full-time equivalent Miami-Dade jobs; The capital investment by the company must exceed $3 million in taxable property value.
The company may receive an incentive spread out over a period of up to 6 years (or longer as may be determined by the County). The actual amount of the award/benefit will be determined by an Economic Impact Analysis and approval by the Miami-Dade Board of County Commissioners; The base amount of the incentive is calculated using the amount of capital investment in real property (new buildings or improvements of buildings used by the company) and the capital investment in tangible personal property (furniture and equipment used by the company). Additional bonus incentive amounts can be awarded when the company capital investment and activities include the following: Being a Green Certified business by Miami-Dade County (this is a self-evaluation process of the business’ green activities, such as recycling in the office and using energy-efficient products); Being located in a Designated Priority Area, such as targeted urban areas, Brownfield areas and enterprise zones); Being located in is Green Certified building (minimum LEED Silver level); Being classified as having is principal business in the manufacturing, installation, and repair of Solar Thermal and Photovoltaic Energy production or other clean projects. Quick Response Training (QRT) Program (STATE) This State of Florida incentive may be available to a company for the training needs of any new employees hired in Miami-Dade County. This is a customer-driven training program designed as an inducement to secure new value-added businesses. It has an average minimum wage requirement of 115% of the State annual wage, or $45,834 for the new jobs created. The training services can be provided through community colleges (Miami-Dade College), state universities (Florida International University), the Miami-Dade County Public School System or vocational-technical centers, consultants, or trainers from the business. Incumbent Worker Training (IWT) Program (STATE) This program is funded by the Federal Workforce Investment Act and is administered by Workforce Florida, Inc. This program provides a grant to train currently employed workers, with the goal of keeping the company’s employees competitive by providing them with new skills and retaining existing businesses. Training services can be provided through community colleges, state universities (Florida International University), the Miami-Dade County Public School System, vocational-technical centers, consultants, or trainers from the business. Enterprise Zone Program State tax benefits include a sales tax credit for job creation, a sales tax refund on business property and building materials, and a state corporate tax credit of 20% or 30% of wages paid to Enterprise Zone residents.
State of Florida Sales Tax Benefits Sales Tax Credit for Job Creation If your business collects and pays Florida Sales and Use Tax, your business may apply for a State sales tax credit equal to 20% or 30% of wages paid to new Enterprise Zone residents. If the percentage of employees residing in an Enterprise Zone is less than 20% the tax credit will be 20% of monthly wages paid to new employee. If this percentage is 20% or more the tax credit will be 30% of monthly wages paid to new employee. Sales Tax Refund on Business Equipment If your business locates or expands in an Enterprise Zone, 97% of the State sales tax on business property is exempted, up to $10,000. Sales Tax Refund on Building Materials If your business builds or renovates in an Enterprise Zone, 97% of the State sales tax on materials used in rehabilitation of real property is exempted, up to $10,000 per parcel of real property. Sales Tax Exemption for Electricity (Form DR-15JEZ) If your business builds or expands in an Enterprise Zone, 50% or 100% of the State sales tax on utilities and 50% of the municipal utility tax is exempted based on municipality participation. Corporate Income Tax Benefits Jobs Credit If your business pays Florida Corporate Income Tax, your business may apply for a State Corporate Income tax credit equal to 20% or 30% of wages paid to new Enterprise Zone residents. If the percentage of employees residing in an Enterprise Zone is less than 20% the tax credit will be 20% of monthly wages paid to new employee. If this percentage is 20% or more the tax credit will be 30% of monthly wages paid to new employee. Property Tax Credit If your business pays Florida Corporate Income Tax, a tax credit equal to 96% of all ad valorem taxes not abated by local government is applied against State corporate income taxes for a period of up to five (5) years. Maximum credit is up to $50,000 annually. Community Contribution Tax Incentive If your business pays Florida Corporate Income Tax, 50% of contributions made to approve community organizations is credited against State corporate income taxes. Florida Renewable Energy Technologies Sales Tax Refund The Florida Renewable Energy Technologies Sales Tax Refund program provides a refund of previously paid Florida sales tax on materials used in the distribution, including fueling infrastructure, transportation, and storage, of biodiesel (B10-B100), ethanol (E10-E100), and other renewable fuels. An eligible item is subject to a refund one time and must be purchased between July 1 2012, and June 30, 2016. This program is limited to $1 million in Florida sales tax each state fiscal year for all taxpayers. Applications will be reviewed on a first-come, first-served basis and the amount of sales tax to be refunded will be applied to the fiscal year in which the application is approved.
Florida Renewable Energy Technologies Investment Tax Credit The Renewable Energy Technologies Investment Tax Credit program provides an annual corporate tax credit equal to 75 percent of all capital costs, operation and maintenance costs, and research and development costs in connection with an investment in the production, storage, and distribution of biodiesel (B10-B100), ethanol (E10-E100), and other renewable fuel in the state. Eligible costs must be incurred between July 1, 2012, and June 30, 2016, and shall not exceed $1 million per state fiscal year for each taxpayer with a limit of $10 million per state fiscal year. Applications must be submitted on or before November 1st of each year and will be reviewed on a first-come, first-served basis. A taxpayer claiming a Renewable Energy Production Credit (below) is ineligible to claim a credit under this program. Florida Renewable Energy Production Credit The Florida Renewable Energy Production Credit program provides an annual corporate tax credit equal to $0.01/kWh of electricity produced and sold by the taxpayer to an unrelated party during a given tax year. For the purposes of this credit, renewable energy is defined as electrical, mechanical, or thermal energy produced from a method that uses one or more of the following fuels or energy sources: hydrogen, biomass, solar energy, geothermal energy, wind energy, ocean energy, waste heat, or hydroelectric power. The credit may be claimed for electricity produced and sold on or after January 1, 2013, through June 30, 2016. The combined total amount of tax credits which may be granted for all taxpayers under this section is limited to $5 million in state fiscal year 2012-2013 and $10 million per state fiscal year in state fiscal years 2013-2014 through 20162017. Applications for the first eligible production period, January 1, 2013 through December 31, 2013, are due by January 15, 2014. A taxpayer claiming a Renewable Energy Investment Tax Credit (above) is ineligible to claim a credit Renewable Energy Production Credit under this program
Developers - Low Income Housing Tax Credit Program The LIHTC Program, which is based on Section 42 of the Internal Revenue Code, was enacted by Congress in 1986 to provide the private market with an incentive to invest in affordable rental housing. Federal housing tax credits are awarded to developers of qualified projects. Developers then sell these credits to investors to raise capital (or equity) for their projects, which reduces the debt that the developer would otherwise have to borrow. Because the debt is lower, a tax credit property can in turn offer lower, more affordable rents. Provided the property maintains compliance with the program requirements, investors receive a dollar-for-dollar credit against their Federal tax liability each year over a period of 10 years. Eligible development types and corresponding credit rates include: new construction, nine percent (9%); substantial rehabilitation, nine percent (9%); acquisition, four percent (4%); and federally subsidized, four percent (4%). A Housing Credit allocation to a development can be used for 10 consecutive years once the development is placed in service.
Qualifying buildings include garden, high-rise, townhouses, duplexes/quads, single family or midrise with an elevator. Ineligible development types include hospitals, sanitariums, nursing homes, retirement homes, trailer parks, and life care facilities. This program can be used in conjunction with the HOME Investment Partnerships program, the State Apartment Incentive Loan program, the Predevelopment Loan program, or the Multifamily Mortgage Revenue Bonds program. Each development must set aside a minimum percentage of the total units for eligible low or very low income residents for the duration of the compliance period, which is a minimum of 30 years with the option to convert to market rates after the 14th year. At least 20 percent of the housing units must be set aside for households earning 50 percent or less of the area median income (AMI), or 40 percent of the units must be set aside for households earning 60 percent or less of the AMI. Housing need is assessed annually based on current statewide market studies and public input, and funds are distributed annually to meet the need and demand for targeted housing in large, medium, and small-sized counties throughout Florida.