As we mentioned last month, our Georgia clients frequently ask us to investigate potential credits and incentives in other states where they have operations, potential acquisitions or strong relationships with customers or vendors. In addition, private equity groups ask us about potential $$ for their portfolio companies.
We were recently asked about credits and incentives in Florida. I spoke with Tim Johns of Enterprise Florida and learned some of their details (eflorida site click here).
Florida’s main tax credits and incentives focus on creating new high wage jobs in targeted high value-added industries. The Qualified Target Industry Tax Refund (QTI) includes refunds on corporate income, sales, ad valorem, intangible personal property, insurance premium, and other taxes. Pre-approval is required for all of Florida’s primary incentives. Florida’s credits and incentives are not as complicated as many states and are generally straightforward.
Other incentives and grants for capital investments and new jobs are available for large projects ($25 million+). Local incentives can include property tax exemptions and local sales tax exemptions. Florida targeted industries include manufacturing, R&D, infotech, cleantech, life sciences, aviation/aerospace, defense, financial & professional services, headquarters facilities, and others.
The main difference between Florida and most other states is that for pass-through entities such as S-corporations, LLPs and LLCs, there is no state income tax!
Compared to Georgia, Florida has:
- Different corporate taxes: Slightly lower corporate income tax rates for C-corporations. No corporate income tax for pass-through entities. No taxes on capital stock, business inventories, or manufacturing equipment. No personal state income taxes. High property taxes!
- A broader range of industries eligible for C-corp credits, a far narrower range for training incentives, and a much broader range of companies not needing income tax credits.
- A similar straightforward approach when planning company qualifying activities.
- Almost no opportunities for incentives unless pre-approved.
To summarize, Florida is very competitive for new and expanding businesses. Representatives at the state and local level are eager to help – the state economic developers respond to inquiries almost immediately!
Do any of your clients have Florida connections? Make sure you review their potential qualifying activities early to maximize their $$ benefits!!