Incentives & Exemptions

FINANCIAL INCENTIVES:

  • Industrial Development Revenue Bonds: 
    Administered through the Industrial Development Authority, Industrial Development Revenue Bonds finance business and industrial expansions for firms with strong credit. IDBs can provide low-interest loans for large projects by permitting the borrower to take advantage of long-term financing with lower than prime interest rates. Additionally, for certain types of manufacturing facilities, interest rates can be lowered further due to the tax-exempt status of the bond issue.
     
  • 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. 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 or rural 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. 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): 
    Pre-approved applicants in the defense, homeland security, and space business sectors 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 or rural 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.
     
  • Capital Investment Tax Credit (CITC): 
    The Capital Investment Tax Credit is used to attract and grow capital-intensive industries. It is an annual credit, provided for up to twenty years, against the 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.
     
  • High Impact Performance Incentive Grant (HIPI): 
    The High Impact Performance Incentive is a negotiated grant used to attract and grow major high impact facilities. 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, biomedical technology, financial services, silicon technology, and transportation equipment manufacturing or be a corporate headquarters facility supporting international, national or regional operations; create at least 100 new full-time equivalent jobs (if a R&D facility, create at least 75 new full-time equivalent jobs) in a three-year period; and make a cumulative investment in the state of at least $100 million (if a R&D facility, make a cumulative investment of at least $75 million) in a three-year period.

  

EXEMPTIONS:

  • Sales and Use Tax Exemption for Purchases of Industrial Machinery and Equipment
    Effective April 30, 2014, an exemption from sales and use tax is available for purchases of industrial machinery and equipment used at a fixed location in Florida by an eligible manufacturing business that will manufacture, process, compound, or produce for sale items of tangible personal property. The exemption also includes parts and accessories for the industrial machinery and equipment if they are purchased before the date the machinery and equipment are placed in service.

An "eligible manufacturing business" means any business whose primary business activity at the location where the industrial machinery and equipment are located is within the industries classified under manufacturing NAICS (North American Industry Classification System) codes 31, 32, and 33 published in 2007 by the Office of Management and Budget, Executive Office of the President. The primary business activity of an eligible business is that activity which represents more than 50  percent of the activities conducted at the location where the industrial machinery and equipment are located.

Examples of types of manufacturing establishments represented by the applicable NAICS codes  include, but are not limited to, food, apparel, wood, paper, printing, chemical, pharmaceutical, plastic, rubber, metal, transportation, and furniture. The selling dealer (vendor) should obtain a signed certificate from the purchaser certifying thepurchaser's entitlement to tax exemption under the exemption statute. The signed certificate will   relieve the selling dealer of any potential tax liability on non-qualifying purchases.

For your convenience, we have attached a listing of the eligible NAICS codes, along with a suggested certificate for you to complete to document the exempt nature of the sales transaction.

 

WORKFORCE TRAINING and RECRUITMENT INCENTIVES:

  •  Quick Response Training Program (QRT): 
    Quick Response Training (QRT) - an employer-driven training program designed to assist new value-added businesses and provide existing businesses the necessary training for expansion. A Workforce Florida grant, administered by Indian River State College is available to assist with application and program development or delivery. 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.
     
  • Incumbent Worker Training Program (IWT): 
    Incumbent Worker Training (IWT) - a program that provides training to currently employed workers to keep Martin County's workforce competitive in a global economy and to retain existing businesses. The program is available to all Martin County 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.
     
  • On-the-Job Training: 
    OJT teaches primary and secondary skills required by a job and essential to the full and adequate performance of the job while working at the employer's worksite.  Under this program, the employer is usually reimbursed a portion of the wages paid to the trainee for the extraordinary costs associated with training a new employee who did not originally meet skill expectations. 
     
  • Recruitment Assistance: 
    Simplifying the time-consuming and costly employee recruitment process, this program locates and screens qualified applicants, conducts skill assessments specified by the employer, and may even provide facilities for interviewing. 
     

 

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