Thu, Jul 23, 2020
Due to budget constraints, Florida has not extended one of its primary economic development incentives, the qualified target industry (QTI) tax refund, for the new fiscal year. This incentive, which expired on June 30, 2020, allowed certain targeted businesses creating quality jobs, up to $1.5 million (mn) in tax refunds each year. These refunds could be taken against corporate income, sales, ad valorem, intangible personal property, insurance premium, communications services and certain other taxes.
The QTI program required support from the county, in which the investment was to take place, so there has always been some local incentives support. With the expiration of the state QTI, counties are taking on a more active role in supporting new business investment. We have highlighted some examples in this article, but this is not an all-inclusive list.
This program closely mirrors the state’s QTI program, offering between $2,000 and $5,000 per new job created by businesses. The requirements include:
This program offers a grant of 100% of real and personal property taxes due on the level of new capital investment and new jobs created in Year 1, declining each subsequent year (see chart below).
The requirements include:
Sources
1.NassauFlorida.com
A business located in the city could apply for exemptions on both Hillsborough county and city of Tampa property taxes. The exemptions are provided for city-wide ad valorem taxes on the assessed value of improvements to real property and tangible personal property attributable to the expansion. Exemptions of 50%-75% of taxes are provided on a three-tier system for five to 10 years based on the number and types of jobs created, average annual wages and location of the business. The requirements include:
This incentive was created as a bonus to the state QTI program for larger projects. It allows incentives of $500 for each new job paying 150% of average county wages and $1000 for each job paying 200% of average county wages. The requirements include:
The targeted jobs incentive fund (TJIF) offers existing or relocating Miami-Dade companies in select industries, undertaking a business expansion, a tax refund of 80% of the amount of incremental county-wide ad valorem property taxes generated by the project for up to 10 years. Businesses that expand or relocate within the boundaries of the Enterprise Zone, Targeted Urban Areas, Brownfield areas and Community Development Block Grant eligible areas qualify for an additional incentive amount. The requirements include:
The Duff & Phelps Site Selection and Incentives Advisory team can help with identifying, securing and complying with the right incentives for your project.
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