Tax exemptions, state funding, and employee screening services for qualified businesses help to defray costs and maximize business growth. Gainesville provides the perfect pro-business climate for new and relocating businesses.
Enterprise Zone Tax Savings
Tax savings are offered to businesses that are located in the Enterprise Zone if they are employing zone residents, building or rehabilitating real property, or purchasing new business equipment. Companies can receive credits on their state sales tax, corporate income tax and property tax. In addition, local incentives include a 50 percent discount on building permits, development fees and occupational licenses. In addition, enterprise zone companies are exempt from the job creation requirements of some of the following programs.
Qualified Targeted Industry Tax Refund Program
This program provides a tax refund of up to $5,000 per new job created in Florida through the location of a new business or expansion of an existing business. To qualify, a company must create 100 new jobs (10 percent increase for expanding companies), pay an average of at least 115 percent of area wages, have significant impact on the community, show its necessity and have local support.
Quick Response Training
This Enterprise Florida initiated program provides quick, effective training, which is specifically tailored and designed to meet the requirements of qualifying companies. Training is provided to the company employees by quality institutions such as school districts, universities, community colleges and technical centers. This incentive is available to new or expanding companies that produce exportable goods or services, create new jobs, pay 115% of area wages and employ Florida workers who require customized, entry-level training. Grants normally range from $500 to $800 per person trained.
Economic Development Transportation Fund
This grant program provides up to $2,000,000 for the construction or improvement of transportation infrastructure, such as roads and traffic signals, required to accommodate a new or expanding manufacturing company, corporate headquarters, or recycling facility. The alleviation of the problem must serve as an inducement for a specific company's location, retention, or expansion project and create or retain jobs for Floridians.
Sales Tax Exemption for Electrical Energy
Manufacturers in certain industry groups are eligible for an exemption on the sales tax normally paid on the purchase of electrical energy used to operate machinery and equipment used in certain manufacturing processes. To qualify for the exemption, eligible businesses must register with the State's new WAGES program.
Once registered, businesses may apply with their electric utility provider for the exemption; however, electricity used for the exempt purposes has to be separately metered or the company may apply for exemption on 50% of the charge for the electricity used by the entire facility. To qualify, businesses must be from a Standard Industrial Classification Industry Group beginning with 10, 12-14, or 20-39.
Employee Recruitment Services
At no cost to a qualifying company, the state employment agency can assist employers by recruiting, screening, testing and referring quality applicants for hiring consideration.
Florida Job-Siting Act
Provides an expedited permitting by consolidating and accelerating environmental permits and land use planning approvals to within 90 days of receipt of a completed application for major economic development projects.
International Exemptions and Trade Assistance
Assistance is available to Florida companies to penetrate or maintain their position in foreign markets. Assistance includes export finance information, seminars, trade missions and shows, catalog shows and in-plant consultations. Also, certain international transactions are exempt from the documentary stamp tax. International banking transactions are not subject to the intangible personal property tax. Foreign source dividends are deleted from the corporate income tax base.
Industrial Revenue Bonds
Provides bond issues for manufacturers (up to $10,000,000) for property acquisition, construction, machinery and equipment costs, and certain soft costs.
- Corporate income tax rate for C-corporations is 5.5 percent. The first $5,000 of taxable income apportioned to Florida is exempt.
- No corporate income tax on sub-chapter S corporations
- No state personal income tax
- No corporate franchise tax on capital stock
- No state-level property tax; property taxes are only assessed at the local level
- No property tax on business inventories
- No property tax on goods-in-transit for up to 180 days
- Certain businesses are eligible for sales tax exemption on electric energy used in manufacturing
- No sales and use tax on goods manufactured or produced in the state for export
- Certain new businesses are eligible for a sales tax exemption for manufacturing or processing equipment
- No sales tax on purchases of raw materials used in a final product for resale, including non-reusable containers or packaging
- No sales tax on the labor component of research and development expenditures
- Pollution control equipment is assessed at salvage value rather than fair market value for property taxes
- No sales tax on aircraft modification, maintenance and repair
- The entertainment industry is exempt from sales and use tax (motion picture, television and recording production.)
- Sale of farm equipment is taxed at 3 percent
- No sales or use tax on boiler fuels
- No sales or use tax on co-generation of electricity
Need More Information?
In order to qualify for some of these benefits, companies must apply prior to relocating or expanding their facilities. Therefore, if you are interested in any of these programs, contact any of the following organizations for more details as early as possible in your development plans:
|Economic Development Dept.
City of Gainesville
200 E. Univ. Ave., St. 7
Gainesville, FL 32601
Ph: (352) 334-5010
Fax: (352) 334-3119
|Council for Economic Outreach
300 East University Ave, Suite 100
Gainesville, Florida 32601
Ph: (352) 378-7300
Fax: (352) 378-7703
|Gainesville Area Chamber of Commerce
P. O. Box 1187
Gainesville, FL 32602
Ph: (352) 334-7100
Fax: (352) 334-7141