FL Incentives | Finance, Loans, IRB, Workforce Development

A comprehensive list of Florida financial aid, loans, grants, abatements, workforce development, exemptions, funds & capital investment opportunities.


https://businessfacilities.com/2015/01/fl-incentives-and-workforce-development-guide/
A comprehensive list of Florida financial aid, loans, grants, abatements, workforce development, exemptions, funds & capital investment opportunities.
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Florida Incentives and Workforce Development Guide

FL Incentives | Finance, Loans, IRB, Workforce Development

For a list of Florida economic development agencies that can help with the site selection process, visit our Online Site Seekers’ Guide.

 

FINANCING

Brownfield Redevelopment Bonus Refund: Available to encourage redevelopment and job creation on sites with a Brownfield Site Rehabilitation Agreement (BSRA) within designated brownfield areas. A pre-approved applicant may receive a tax refund equal to 20% of the average annual wage of the new jobs created in a designated brownfield area up to a maximum of $2,500 per new job created. Refunds are based upon taxes paid by the business, including corporate income, sales, ad valorem, intangible personal property, insurance premium, and certain other taxes. No more than 25% of the total refund approved may be paid in any single fiscal year.

Economic Development Transportation Fund: Commonly referred to as the Road Fund, it is an incentive tool designed to alleviate transportation problems that adversely impact a specific company’s location or expansion decision. The award amount is based on the number of new and retained jobs and the eligible transportation project costs, up to $3 million. The award is made to the local government on behalf of a specific business for public transportation improvements.

High Impact Performance Incentive (HIPI): A negotiated incentive used to attract and grow major high impact facilities in Florida. Grants are provided to pre-approved applicants in certain high-impact sectors. In order to participate in the program, the project must:

  • Operate within designated high-impact portions of the following sectors—Clean Energy, Life Sciences, Financial Services, Corporate Headquarters, Transportation Equipment Manufacturing, Information Technology, Advanced Manufacturing, and Semiconductors
  • Create at least 50 new full-time equivalent jobs (if R&D facility, create at least 25 new full-time equivalent jobs) in Florida in a three-year period
  • Make a cumulative investment in the state of at least $50 million (if R&D facility, make a cumulative investment of at least $25 million) in a three-year period.

Rural Community Development Revolving Loan Fund: Program established within the Department of Economic Opportunity (DEO) to facilitate the use of existing federal, state and local financial resources to promote the economic viability of rural communities. The program provides long-term loans, loan guarantees and loan loss reserves. Generally, the interest rate will not exceed 5% per annum; and the commitment fee for a guaranty will not exceed 3%. The Director of DEO makes the final decisions on projects including all terms and conditions of the loan. Eligible Projects/Expenditures:

  • Any public purpose project may be acquired, constructed or improved with the assistance of the program.
  • Projects must result in the creation or retention of jobs, the maintenance of existing industry or economic activity or the expansion or diversification of the local economic base.
  • Eligible uses of loan proceeds include: the purchase of equipment; the acquisition, construction or improvement of buildings; and acquisition of land, water/sewer projects.

Rural Infrastructure Fund Grant: To facilitate the planning, preparing and financing of traditional economic development or nature-based tourism infrastructure projects that encourage job creation and capital investment in rural communities. The DEO may award up to 40% of total costs for catalyst site projects, and no more than 30% of total costs for projects in rural counties that are not located on designated catalyst sites. The three types of grants available under the Rural Infrastructure Fund are as follows:

  • Total Project Participation Grants – Up to 30% of the total infrastructure project costs related to specific job-creating opportunities and up to 40% of the total infrastructure project costs related to specific job-creating opportunities for projects located on a designated catalyst site.
  • Infrastructure Feasibility Grants – Funding for infrastructure feasibility studies, design and engineering or other planning and preparation activities that will help facilitate the location or expansion of specific job-creating opportunities. Grant awards are dependent on the number of jobs a business commits to create and project location.
    • $50,000 (max.) for projects creating at least 100 jobs
    • $150,000 (max.) for projects creating at least 300 jobs
    • $300,000 (max.) for projects in a Rural Area of Opportunity (RAO)
  • Preclearance Review Grants – This grant is used to help local governments access resources available pursuant to section 403.973(18), F.S. (Expedited permitting, comprehensive plan amendments). Grants may be used for surveys, feasibility studies and other activities related to the identification and preclearance review of land use modifications. Available funding and the required match are dependent on the location of the project, and the degree to which administrative and consultant expenses are minimized:
    • $75,000 (max.) with a 50% local match
    • $300,000 (max.) with a 33% local match for activities in a RAO

Urban Job Tax Credit: Offers an incentive for eligible businesses located within one of Florida’s designated urban areas to create new jobs. The credit ranges from $500 to $2,000 per qualified job and can be taken against either the Florida Corporate Income Tax or the Florida Sales and Use Tax. These tax credits are provided to encourage meaningful employment opportunities that will improve the quality of life of those employed and economic expansion of new and existing businesses in urban areas of Florida.

Rural Job Tax Credit: Offers an incentive for eligible businesses located within one of 36 designated Qualified Rural Areas to create new jobs. The tax credit ranges from $1,000 to $1,500 per qualified employee and can be taken against either the Florida Corporate Income Tax or the Florida Sales and Use Tax. The credit can only be taken against one of these two taxes. These tax credits are provided to encourage meaningful employment opportunities that will improve the quality of life of those employed and economic expansion of new and existing businesses in rural areas of Florida.

 

TAX INCENTIVES

Capital Investment Tax Credit (CITC): Used to attract and grow capital-intensive industries in Florida. It is an annual credit, provided for up to 20 years, against the corporate income tax. Eligible projects are those in designated high-impact portions of the following sectors: Clean Energy, Corporate Headquarters, Financial Services, Information Technology, Life Sciences, Semiconductors, Advanced Manufacturing, and Transportation Equipment Manufacturing. 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. The level of investment and the project’s Florida corporate income tax liability for the 20 years following commencement of operations determines the amount of the annual credit.

Qualified Target Industry Tax Refund Incentive (QTI): Provides an incentive for target industries to locate new facilities or expand existing facilities in Florida. The program provides tax refunds of $3,000 per new job created. The incentive is increased to $6,000 per job if the company locates in a rural county. Higher awards are available to companies paying very high wages, operating within a designated high impact sector, or meeting other criteria. To qualify for the QTI program, a company must create at least 10 new jobs (and a 10% increase for expanding Florida companies), pay an average of at least 115% of area wages, have a significant positive impact on the community, and have local financial support.

Research and Development Tax Credit: Available to a business enterprise that has qualified research expenses in Florida in the taxable year exceeding the base amount and, for the same taxable year, claims and is allowed a research credit for such qualified research expenses under 26 U.S.C. s. 41. The Florida credit is equal to 10% of the excess qualified research expenses over the company’s base amount. The base amount is equal to the qualified research expenses for the four prior taxable years. The credits may not exceed 50% of the business’ Florida Corporate Income Tax liability.

Sales and Use Tax Exemptions:

  • Machinery and equipment used by a new or expanding Florida business to manufacture, produce or process tangible personal property for sale
  • Labor, parts and materials used in repair of and incorporated into machinery and equipment
  • Electricity used in the manufacturing process
  • Certain boiler fuels (including natural gas) used in the manufacturing process
  • Semiconductor, defense and space technology-based industry transactions involving manufacturing equipment
  • Machinery and equipment used predominantly in research and development
  • Labor component of research and development expenditures
  • Commercial space activity — launch vehicles, payloads and fuel, machinery, and equipment for production
  • Aircraft parts, modification, maintenance and repair, sale or lease of qualified aircraft
  • Production companies engaged in Florida in the production of motion pictures, made for television motion pictures, television series, commercial advertisements, music videos, or sound recordings

 

WORKFORCE DEVELOPMENT

Quick Response Training (QRT): An employer-driven training program designed to assist new value-added businesses and provide existing Florida businesses the necessary training for expansion. A local fiscal agent—college, area technical center, or university—is selected and is available to assist in the application and reimbursement process. The business may use their customized training program with their own trainer, provide training from an outside vendor or utilize the college, technical center or university to provide customized training. Reimbursable training expenses include: instructors’/trainers’ salaries, curriculum development, textbooks/manuals, and materials/supplies.

Incumbent Worker Training Program (IWT): Provides training to currently employed workers to keep Florida’s workforce competitive in a global economy and to retain existing businesses. The program is available to all Florida businesses that have been in operation for at least one year prior to application and require skills upgrade training for existing employees.

Veterans Business Training Grant: Available to Florida businesses seeking to train and hire military veterans. The program helps businesses meet workforce demands in a competitive environment by facilitating access to training and education in high-demand fields for veterans through matching training grants up to $8,000 per veteran employee trained.

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