Marcum LLP
Home | Offices | (855) MARCUM1

Accounting Services
Bankruptcy & Insolvency
Business Advisory
Corporate Taxation
EB-5 Investor Services
Family Wealth Services
Financial Statements
High-Net-Worth Individuals
International Taxation
LGBT & Non-Traditional Family
Marcum Family Office
State & Local Taxation
Transaction Advisory
Transfer Pricing Services
Tax Controversy
Tax Credits & Incentives
Tax-Exempt Business
Tax Return Compliance
Trusts & Estates
Checklist for New Business: Before Startup
Checklist for New Business: Startup
High-Net-Worth Individuals
Marcum Family Office
Philanthropy Planning & Private Foundations
Private Client Tax Services
Trusts & Estates
Federal
California
Connecticut
Florida
Massachusetts
New Jersey
New York
Pennsylvania
Solar Panels
SEC / Publicly Traded Companies
Private Clients
SEC & Large Corporations
Small Businesses & Start Ups

Overview
Tax & Business
Assurance
Advisory
Alternative Investments
Real Estate

Tax Credits & Incentives - Florida



The following listing provides information on a variety of select business incentives, some of which are tax credits or exemptions while others are non-tax incentives.

 

Enterprise Zone Credits and Exemptions

Enterprise Zone Jobs Tax Credit

A corporate income tax credit or a sales tax credit may be taken by any business located in an enterprise zone that has increased jobs from the number of jobs 12 months prior to the application date. The credit applies only to wages that are subject to the unemployment tax and does not apply to any new employee who is employed for fewer than three full months or to any employee who is an owner, partner or majority stockholder of an eligible business.

The credit is equal to:

  • 20% of the monthly wages paid to each new employee hired when a new job has been created;
  • 30% of monthly wages if the business is located in a rural enterprise zone;
  • 30% of the monthly wages if more than 20% of the business’s employees are residents of an enterprise zone;
  • 45% of the monthly wages if the business is located in a rural enterprise zone and more than 20% of employees are residents of a Florida enterprise zone.

If the new employee is a participant in the welfare transition program, the credit is:

  • 40% for $4 above the hourly federal minimum wage rate;
  • 41% for $5 above the hourly federal minimum wage rate;
  • 42% for $6 above the hourly federal minimum wage rate;
  • 43% for $7 above the hourly federal minimum wage rate; and
  • 44% for $8 above the hourly federal minimum wage rate.

These credits may be carried forward for up to five years. A business that claims the corporate income tax credit may not claim the similar sales and use tax credit for any new employee.

A business must first obtain certification from the enterprise zone coordinator for the zone in which the business is located. To claim the corporate income tax credit, Form F-1156Z, Florida Enterprise Zone Jobs Credit Certificate of Eligibility for Corporate Income Tax, must be attached to Form F-1120, Florida Corporate Income/Franchise and Emergency Excise Tax Return. To claim the sales and use tax credit, Form DR-15ZC, Application for Florida Enterprise Zone Jobs Credit for Sales Tax, must be filed. Generally, the sales tax credit form must be submitted within six months of the date a new employee is hired.

This credit is set to sunset on December 31, 2015.

Enterprise Zone Property Tax Credit

A corporate income tax credit is allowed for a portion of the property tax paid by any business that establishes a new business or expands or rebuilds an existing business located in an enterprise zone. A business is eligible for the credit the year the taxes are first levied and the four years immediately following. When filing each year for the credit as an expanding or a new business, a business must have at least five more employees every year than it had in the year preceding the initial granting of the credit.

The credit may not be claimed for more than five consecutive years, excluding any carryovers (allowed for five years). The maximum credit in any one year may not exceed $25,000, unless 20% or more of the permanent employees of a business are residents of an enterprise zone, and then the maximum yearly credit is $50,000.

To qualify for the credit, a business must file a notice with the property appraiser of the county in which the business property is located or will be located by April 1st of the year the property is first subject to assessment. To claim the credit, Form F-1158, Enterprise Zone Property Tax Credit, must be attached to Form F-1120, Florida Corporate Income/Franchise and Emergency Excise Tax Return.

This credit is set to sunset on December 31, 2015.

Sales and Use Tax Refund for Building Materials Used in Enterprise Zone Property Rehabilitation

The purchase of building materials that are used in the rehabilitation of real property located in enterprise zones qualifies for a refund of previously paid sales and use taxes. Generally only one refund is permitted for each parcel of real property. No refund will be granted unless the amount to be refunded exceeds $500.

When at least 20% of the employees (excluding temporary and part-time employees) of the business are residents of an enterprise zone, the maximum refund will be the lesser of 97% of the tax paid on the building materials used to rehabilitate the real property or $10,000. Otherwise the maximum refund will be the lesser of 97% of the tax paid on the building materials or $5,000. Unless the actual amount of the building materials used for which a refund is being sought and the payment of sales and use tax due on such materials are documented by the general contractor, the cost of the materials is considered to be an amount equal to 40% of the increase in assessed value.

To claim a refund, the applicant must first obtain certification from the enterprise zone coordinator for the zone in which the property is located. The business must then file Forms DR-26S, Application for Refund - Sales and Use Tax, and EZ-M, Florida Enterprise Zone Program - Building Materials Sales Tax Refund Application for Eligibility. Refund applications must be submitted within six months after the date the local building inspector certifies the rehabilitation project to be substantially complete or by September 1st of the year the improvement is first subject to assessment.

These refund provisions are scheduled to expire on December 31, 2015.

Refund for Business Property Used in an Enterprise Zone

Purchases of business property by a business located in an enterprise zone are exempt from sales tax if the property is subsequently used in an enterprise zone. The exemption is claimed through a refund of previously paid taxes. No refund is allowed unless the amount to be refunded exceeds $100 in sales tax paid on purchases made within a 60-day time period.

Business property is defined as tangible personal property, of a character subject to depreciation as recovery property under Internal Revenue Code Section 168(c) that is used in a trade or business or held for the production of income with certain limited exceptions.

The sales tax refund amount is the lesser of 97% of the state sales tax paid on the business property purchases or $5,000. However, if at least 20% of the employees of the business are residents of an enterprise zone, the refund is the lesser of 97% of the state sales tax paid on the business property purchases or $10,000.

To claim a refund, the business must first obtain certification from the enterprise zone coordinator for the zone in which the property is located. The business must then complete Forms DR-26S, Application for Refund - Sales and Use Tax, and EZ-E, Florida Enterprise Zone Program - Business Equipment Sales Tax Refund Application for Eligibility, and attach all required documentation. Refund applications must be submitted to the Department within six months after the tax is due on the purchase of the property.

This credit is set to expire on December 31, 2015.

Exemption for Electricity Used in an Enterprise Zone

Charges for electrical energy used by a qualified business at a fixed location in an enterprise zone in a municipality that has enacted an ordinance that provides for exemption of municipal utility taxes on such businesses or in an enterprise zone jointly authorized by a county and a municipality that has enacted such an ordinance will receive a 50% exemption. A full exemption for sales and use taxes imposed on electrical energy charges is available when at least 20% of the full-time employees of the business are residents of an enterprise zone.

A qualified business is a business that is:

  1. First occupying a new structure to which electrical service, other than that used for construction purposes, has not been previously provided or furnished;
  2. Newly occupying an existing, remodeled, renovated, or rehabilitated structure to which electrical service, other than that used for remodeling, renovation, or rehabilitation of the structure, has not been provided or furnished in the three preceding billing periods; or
  3. Occupying a new, remodeled, rebuilt, renovated, or rehabilitated structure for which an enterprise zone refund has been granted.

To claim this exemption, the business must first obtain certification from the enterprise zone coordinator for the zone in which the business is located. The business must then file Form DR-15JEZ, Application for the Exemption of Electrical Energy Used in an Enterprise Zone. The application must be submitted within six months after the business occupies the property in question.

The exemption will expire on December 31, 2015. However, any business that is granted the exemption prior to December 31, 2015, is allowed the full benefit for the unused duration of the five-year period after December 31, 2015 for which it may claim the exemption.

Local Property Tax Exemption

Subject to voter approval, any county or municipality can exempt up to 100% of property taxes for new businesses and expansions of businesses that are located in an enterprise zone or a Brownfield area. However, the exemption applies only to the taxes levied by the unit of government granting the exemption. The authority to grant exemptions will expire ten years after the election authorizing the grant, but the authority can be renewed.

Urban High Crime Area Job Tax Credit Program

Qualified businesses may claim a credit against Florida corporate income tax for each qualified job created in designated and ranked urban high-crime areas. New businesses can apply for the credit once within the first year of operation. Existing businesses may claim the credit after they hire a minimum number of qualified new employees within a year of applying for the credit.

The program is administered by the Florida Office of Tourism, Trade, and Economic Development. The Office designates fifteen areas to participate in the program every three years. The fifteen areas, in turn, are ranked and divided into three tiers. In each program, credit requirements will be differentiated between qualified new businesses and qualified existing businesses. A qualified high-crime area includes a federal empowerment zone.

Businesses eligible for the credit include those that are located in a qualified county and that are predominantly engaged in, or are headquarters for a business predominantly engaged in, activities usually provided for consideration by firms classified within the following standard industrial classifications:

  • Agriculture, forestry, and fishing (SIC 01-SIC 09);
  • Manufacturing (SIC 20-SIC 39);
  • Retail (SIC 52-SIC 57 and SIC 59);
  • Public warehousing and storage (SIC 422);
  • Hotels and other lodging places (SIC 70);
  • Research and development (SIC 7391);
  • Motion picture production and allied services (SIC 781);
  • Public golf courses (SIC 7992); and
  • Amusement parks (SIC 7996).

A call center or similar customer service operation that services a multistate market or international market also is an eligible business.

The credit ranges from $500 to $1,500 per employee, depending on the location of the business and the number of qualifying employees. An additional $500 credit will be provided for any qualified employee who is a welfare transition program participant. Excess credits may be carried forward for five years.

Annual credits for all taxpayers may not exceed a sum of $5 million, with at least $1 million of the credit reserved for tier one areas. Applications are considered in the order in which they are received.

A business that claims the credit against corporate income tax may not claim the jobs tax credit.

To claim the credit, an eligible business must file a statement with the Office of Tourism, Trade, and Economic Development.

Capital Investment Credit

Qualifying businesses that create jobs in connection with a qualifying project in Florida are entitled to a capital investment credit against corporate income tax. Eligibility for the capital investment credit as a qualifying business requires certification from Enterprise Florida, Inc. and the Florida Office of Tourism, Trade and Economic Development (“OTTED”) that the firm is engaged in a qualifying project that involves aviation, aerospace, automotive, silicon technology or other high-impact industry activity. Qualifying businesses are required to achieve and maintain a minimum employment standard in order to remain eligible each year the credits are available.

A qualifying project is a new or expanding facility that creates at least 100 new jobs and is in one of the high-impact sectors identified by Enterprise Florida, Inc., and is certified by the OTTED, including, but not limited to, aviation, aerospace, automotive, and silicon technology industries. A qualifying project also includes a new or expanded headquarters facility in an enterprise zone or Brownfield area. A qualifying project which results in a cumulative capital investment of less than $25 million is not eligible for the capital investment tax credit.

The annual credit is equal to 5% of eligible capital costs of a qualifying project, for a period not exceeding 20 years from the beginning of project operations. The credits can be carried forward for 20 years.

The annual tax credit granted under this section cannot exceed the following percentages of the annual corporate income tax liability or the premium tax liability generated by or arising out of a qualifying project:

  1. 100% for a qualifying project which results in a cumulative capital investment of at least $100 million;
  2. 75% for a qualifying project which results in a cumulative capital investment of at least $50 million but less than $100 million; and
  3. 50% for a qualifying project which results in a cumulative capital investment of at least $25 million but less than $50 million.

Schedule V of Form F-1120, Florida Corporate Income/Franchise and Emergency Excise Tax Return, must be filed to capture this credit. The certification letter must be attached to the return.

There is no expiration date for this credit.

Renewable Energy Technologies Credit

Corporate income tax credits are allowed for investments in renewable energy technologies. Eligible costs are all capital costs, operation, and maintenance costs in connection with:

  1. An investment in hydrogen-powered vehicles and hydrogen vehicle fueling stations;
  2. An investment in commercial stationary hydrogen fuel cells; and
  3. An investment in the production, storage, and distribution of biodiesel and ethanol in the state, including the costs of constructing, installing and equipping such technologies. Gasoline fueling station pump retrofits for ethanol distribution qualify as an eligible cost.

Credits are equal to 75% of eligible costs. Eligible costs are limited to:

  1. Research and development costs up to $3 million per state fiscal year for all taxpayers, in connection with an investment in hydrogen-powered vehicles and hydrogen vehicle fueling stations in the state;
  2. Capital costs, operation and maintenance costs, and research and development up to $1.5 million per state fiscal year for all taxpayers, and limited to a maximum of $12,000 per fuel cell, in connection with an investment in commercial stationary hydrogen fuel cells in the state; and
  3. Capital costs, operation and maintenance costs, and research and development costs up to $6.5 million per state fiscal year for all taxpayers, in connection with an investment in the production, storage, and distribution of biodiesel and ethanol.

For tax years beginning after 2008, any corporation or subsequent transferee that is allowed a renewable energy technologies tax credit may transfer the credit, in whole or in part, to any taxpayer by written agreement without transferring any ownership interest in the property generating the credit or any interest in the entity owning such property. The transferee is entitled to apply the credits against the corporate income tax in the same manner as if the transferee had incurred the eligible costs. A tax credit held by a corporation that is not transferred may be passed through to partners, members, or owners in the manner agreed to regardless of whether such partners, members, or owners are allocated or allowed any portion of the federal energy tax credit for the eligible costs.

Unused credits may be carried over and used in tax years beginning January 1, 2007, and ending December 31, 2012.

Applications for these credits must be submitted to the Department of Environmental Protection, which will issue a certification to the applicant and to the Department of Revenue. Schedule V of Form F-1120, Florida Corporate Income/Franchise and Emergency Excise Tax Return, must be completed to claim the credit.

The sunset date for this credit is December 31, 2010.

Hazardous Waste Facility Credit

A corporate income tax credit is allowed for the cost of stationary facility equipment used for the recycling of hazardous wastes at any commercial hazardous waste recycling facility, and for expenses for hydrologic, geologic, or soil site evaluations and permit fees required by the Florida Department of Environmental Protection at any hazardous waste facility. The credit is equal to 5% of the cost of the stationary facility equipment placed in service during the taxable year and used for the recycling of hazardous wastes and 100% of the expenses for the evaluations and permit fees for hazardous waste facilities. There is a five-year carry forward for unused credits.

The credit is captured on Schedule V of Form F-1120, Florida Corporate Income/Franchise and Emergency Excise Tax Return.

There is no set expiration date for this credit.

Brownfield Clean-Up Credit

A corporate income tax credit is allowed for voluntary cleanup of Brownfield sites located in designated Brownfield areas. The credit amount is equal to 50% of the costs of voluntary cleanup. In the final year of the cleanup, taxpayers may claim a credit for an additional 25% of the total cleanup costs, up to $500,000.

Schedule V of Form F-1120, Florida Corporate Income/Franchise and Emergency Excise Tax Return, must be completed to claim this credit. To receive the credit, a corporation must submit a tax credit certificate issued by the Florida Department of Environmental Protection along with the aforementioned tax return. Credits may be carried forward for five years.

This credit does not have an expiration date.

Pollution Control/Clean-Up Exemption and Property Tax Benefits

Certain facilities, equipment, and machinery used for pollution control or abatement are fully exempt from Florida sales and use tax. The exemption applies to any facility, device, fixture, equipment, machinery, specialty chemical, or bio-augmentation product used primarily for the control or abatement of pollution or contaminants in manufacturing, processing, compounding, or producing for sale items of tangible personal property at a fixed location, or any structure, machinery, or equipment installed in the reconstruction or replacement of such items.

The exemption also applies to equipment, machinery or materials that are purchased for the monitoring, prevention, abatement or control of pollution or contaminants at privately owned or operated landfills or construction and demolition debris disposal facilities. The purchaser of the item must certify that it was installed or constructed to meet a requirement of the Department of Environmental Protection. The exemption does not apply to solid waste collection vehicles, compactors, graders or other earthmoving equipment.

For property tax purposes, if the owner of a manufacturing plant or an industrial plant installs or constructs a facility to reduce or eliminate industrial air or water pollution, the pollution control facility may be valued at its salvage value for up to ten years. The taxing municipality should be contacted for application information.

Neither the sales tax exemption nor the property tax benefit has an expiration date.

Solar Energy Equipment Exemption

A full sales and use exemption is provided for solar energy systems and any component of solar energy systems. The Florida Solar Energy Center has certified to the Department of Revenue a list of equipment and requisite hardware considered to be a solar energy system or component. The list of components includes collectors, pumps and controls, photovoltaic power conditioning equipment, photovoltaic-powered attic fan ventilation systems, storage units, and accessories.

An exemption certificate may be required upon purchase of solar energy equipment.

This exemption does not have an expiration date.

Renewable Energy Source Device Exemption

Improved real property where a renewable energy source device is installed and operated is entitled to an exemption from property tax in the amount of the original cost of the device. “Renewable energy source device” means any of the following equipment which, when installed in connection with a dwelling unit or other structure, collects, transmits, stores, or uses solar energy, wind energy, or energy derived from geothermal deposits:

  • Solar energy collectors;
  • Storage tanks and other storage systems, excluding swimming pools used as storage tanks;
  • Rockbeds;
  • Thermostats and other control devices;
  • Heat exchange devices;
  • Pumps and fans;
  • Roof ponds;
  • Freestanding thermal containers;
  • Pipes, ducts, refrigerant handling systems, and other equipment used to interconnect such systems;
  • Windmills;
  • Wind-driven generators;
  • Power conditioning and storage devices that use wind energy to generate electricity or mechanical forms of energy; and
  • Pipes and other equipment used to transmit hot geothermal water to a dwelling or structure from a geothermal deposit.

The exemption is in the amount of the original cost of the device, including the installation cost, but excluding the cost of replacing previously existing property removed or improved in the course of such installation. The exemption is not available to renewable source devices installed before January 1, 2009, and no exemption may be granted for more than ten years.

There is no expiration date for this exemption.

Exemption for Machinery and Equipment Used in Research and Development

This sales and use tax exemption includes tangible personal property purchased, rented, or repaired in connection with research and development. A person claiming the exemption for machinery and equipment used for research and development must furnish to the vendor an affidavit stating that the items for which the exemption is claimed are machinery and equipment that will be used predominantly for research and development.

This exemption has no expiration date.

Exemptions for the Agriculture Industry Exemptions

Electricity used directly or indirectly for the production or processing of agricultural products on a farm is fully exempt from sales and use tax. Qualifying purchases of power farm equipment are also exempt from tax. These purchases must be power farm equipment used exclusively on a farm or in a forest in the agricultural production of crops or products, or for fire prevention and suppression work with respect to the crops or products. Motor fuel, including butane gas, propane gas, natural gas, and all other forms of liquefied petroleum gas used for agricultural, aquacultural, or commercial fishing purposes is also exempt.

To qualify for any of these exemptions, the purchasing farmer must furnish an exemption certificate stating that the purchase will be used directly and exclusively for the production or processing of agricultural farm products on a farm.

There are no expiration dates for these exemptions.

Film/Television/Sound Recording Exemption

Entertainment industry production companies may apply to the Department of Revenue for approval by the Governor's Office of Film and Entertainment as a qualified production company for the purpose of receiving sales tax exemptions. A qualified production company is any company engaged in Florida in the production of motion pictures, made-for-television motion pictures, television series, commercial advertising, music videos or sound recordings that have been approved by the Office and have obtained a Certificate of Exemption for Entertainment Industry Qualified Production Company from the Department.

Applications, instructions, extensions, and renewals are available without cost by:

  1. Calling the Governor's Office of Film and Entertainment at (877) 352-3456;
  2. Downloading selected forms from the Office's website at www.filminflorida.com;
  3. Using a fax machine telephone handset to call the Department's FAX on Demand System at (850) 922-3676;
  4. Visiting any local Department of Revenue Service Center to personally obtain a copy;
  5. Calling the Forms Request Line at (800) 352-3671 (for Florida callers) or (850) 488-6800; or
  6. Downloading forms from the Department's website at http://dor.myflorida.com/dor/.

There is no expiration date for this exemption.

Small Business Innovation Research/Small Business Technology Transfer Grant Program

This is a grant program which provides qualified small businesses with opportunities to propose innovation ideas that meet specific research and development needs of certain federal agencies.

To be eligible, a business must be:

  1. American-owned, independently operated, and for-profit;
  2. Have no more than 500 employees; and
  3. Employ its principal researcher.

In addition to these criteria, in order to participate in the program a company must:

  1. Be a client of a participating Florida Technology Incubator, University Technology Transfer Office, Economic Development Organization, or Small Business Development Center, or is recommended by a partner serving as the point of contact for a Florida county;
  2. Intends to submit a proposal for a specific Small Business Innovation Research (“SBIR”) or Small Business Technology Transfer (“SBTT”) solicitation; and
  3. Has not submitted more than one other application for this program in the last 12 months.

The grant amounts are based on phases as set forth below:

Phase 0: Up to $3,000, dependent upon initial award amount and documentation of eligible expenses.
Phase 1: Up to $100,000, for approximately six months, to support exploration of the technical merit or feasibility of an idea or technology.
Phase 2: Up to $750,000, for up to two years, to perform R&D work and evaluate commercialization potential.
Phase 3: In bringing innovation to the marketplace, no SBIR funds are available. The business must find private sector funding or other non-SBIR federal agency funding.

To obtain a grant, a company must submit an application, accompanied by a participation fee. The participating partner organization must submit a recommendation at least five weeks prior to the solicitation's closing date. An approved company submits a budget, budget narrative, and timetable, and executes a grant contract with Enterprise Florida, Inc. Upon execution of the contract, Enterprise Florida will issue a check for the first grant installment. The company submits documentation of proposal submission and allowable expenses to Enterprise Florida to receive its final grant installment.

There is no sunset date for this program.

On-the-Job Training Grants

Employers can recoup up to half of wages paid to workers for on-the-job training. South Florida Workforce will determine the exact length of the training and the reimbursement rate based on the individual's needs.

The business must legally operate in Miami-Dade or Monroe County and remain current with all tax obligations and licenses. South Florida Workforce must confirm that the participant requires at least eight weeks of training and minimum skill increases, as determined by the US Department of Labor, for the specified occupation. The business must train participants in occupations that meet established hourly pay rates. The business also must provide the participant with the same wage rate, benefits, and working environment as non-participating employees in the same occupation or with the same responsibilities.

The employer may recoup up to 50% of a trainee's wages, as compensation for the extraordinary cost of training.

There is no sunset date for this program.

Quick Response Training Grant Program

Quick Response Training Program provides grant funding for customized training for new or expanding businesses. A local training provider, community college, area technical center or university, may be available to assist with application and program development or delivery. If the company has a training program, a state training provider will manage the training program and serve as the fiscal agent for the grant funds. Reimbursable training expenses include:

  • Instructors/trainers salaries,
  • Curriculum development, and
  • Textbooks/manuals.

The program is intended to be customized, flexible and responsive to individual company needs.

Businesses applying for funding must:

  • Be for-profit;
  • Create new, permanent, full-time (35 or more hours per week), high quality jobs for Florida workers requiring customized entry-level skills training of 24 months or less that is not available at the local level;
  • Must produce an exportable (beyond regional markets) good or service.

Funding priority is given to businesses:

  1. Creating high skill/high wage jobs;
  2. In qualified targeted industries;
  3. Offering jobs located in a distressed, urban inner city, rural area, Enterprise Zone, or Brownfield area; and
  4. Whose grant proposals have the greatest potential for economic impact that contribute in-kind and/or cash matches.

There is no sunset date for this program.

Incumbent Worker Training Grant Program

The Incumbent Worker Training Program provides grant funding for customized training for existing for-profit businesses. A business may use public, private, or its own in-house trainer based on the nature of the training. Reimbursable training expenses include instructors'/trainers' salaries, tuition, curriculum development, and textbooks/manuals.

Businesses applying for funding must:

  1. Be a “for-profit” business;
  2. Have been in operation in Florida for a minimum of one year prior to application date;
  3. Demonstrate financial viability; and
  4. Have at least one full-time employee.

Priority will be given to:

  1. Businesses with 25 employees or less;
  2. Businesses in rural counties and areas;
  3. Businesses in distressed inner-city areas, enterprise zone, Brownfield, and HUB Zones;
  4. Businesses in a qualified targeted industry;
  5. Businesses whose grant proposals represent a significant upgrade in employee skills; and
  6. Businesses whose grant proposals represent a significant layoff avoidance strategy.

Awards are made subject to availability of funding. The maximum award is $50,000.

An application must be submitted at least 45 days prior to the desired start date.

There is no expiration date for this grant program.

High Impact Performance Incentive Grant

The High Impact Performance Incentive is a negotiated grant used to attract and grow major high impact facilities in Florida. Grants are provided to pre-approved applicants in certain high-impact sectors designated by the Governor's Office of Tourism, Trade and Economic Development. In order to participate in the program, the project must operate within designated high-impact portions of the following sectors:

  1. Clean energy,
  2. Biomedical technology,
  3. Financial services,
  4. Silicon technology, or
  5. Transportation equipment manufacturing.

In addition, a corporate headquarters facility supporting international, national or regional operations that creates at least 100 new full-time equivalent jobs in Florida and makes a cumulative investment in the state of at least $100 million in a three-year period may participate. An R&D facility that creates at least 75 new full-time equivalent jobs and makes a cumulative investment of at least $75 million may also participate.

The amount of the available grants is not specified. Once recommended by Enterprise Florida, Inc. and approved by the Office of Tourism, Trade and Economic Development, the high impact business is awarded 50% of the eligible grant upon commencement of operations and the balance of the awarded grant once full employment and capital investment goals are met.

An application can be obtained Enterprise Florida, Inc.

There is no sunset date for this grant program.

Entertainment Industry Financial Incentive Program

Under Florida's Entertainment Industry Financial Incentive Program, a qualified production company in Florida producing a qualified production may apply to the Office of Film and Entertainment (“OFE”) for certification to obtain cash reimbursement of qualified expenditures.

Under the program, each qualified production must be placed in the appropriate queue and is subject to the requirements of that queue. The priority of a qualified production for incentive funding is determined on a first-come, first-served basis within the appropriate queue. To qualify, at least 50% of the positions that make up the cast and crew must be filled by Florida residents. Certified productions must start principal photography within 45 calendar days before or after the production's principal photography start date as listed in the application.

Qualified expenditures are production expenditures incurred in Florida by a qualified production for goods purchased or leased from, or services provided by, a registered Florida vendor/supplier, and compensation paid to Florida residents generally up to $400,000 per resident for the general production queue. Costs associated with development, marketing, or distribution are excluded. For a qualified production involving an event, such as an awards show, expenditures associated solely with the event and not directly required by the production are excluded. Expenditures made prior to certification are not considered qualified expenditures, with the exception of those incurred for a commercial, a music video, or the pickup of additional episodes of a television series within a single season.

Queue A is for films, television, commercials, and music videos with qualified expenditures of $625,000 or more. Taxpayers falling in this queue are eligible for a standard cash rebate of 15% to 22% of actual qualified expenditures with a maximum reimbursement of $8 million.

Queue B is for multiple commercials and music videos with $500,000 or more in combined qualified expenditures, and with a minimum of $100,000 in qualified expenditures per production. Production companies in Queue B are eligible for a cash rebate of 15% with a maximum reimbursement of $500,000.

Queue C pertains to independent Florida feature films or documentaries 70 minutes or longer with qualified expenditures of $100,000 to $625,000. Six of the following eight positions must be Florida workers: writer, director, producer, director of photography, star or one of the lead actors, production manager, editor, or production designer. Application must include proof of 50% or more of financing in escrow, or other form dedicated to the production. All major post-production must be done in the state. Taxpayers in this queue are eligible for a cash rebate of 15% to 17% of actual qualified expenditures to a maximum reimbursement of $106,250.

Queue D relates to interactive entertainment produced for distribution in commercial or educational markets, including a video game, simulation or animation, or a production intended for Internet or wireless distribution, with qualified expenditures of $300,000 on a single qualified project. A company producing digital media projects may not qualify for more than three projects in a fiscal year. Projects that extend beyond one fiscal year must reapply each fiscal year to be eligible for incentive funding for that year. Queue D companies are eligible for a 10% cash rebate with a maximum reimbursement of $1 million.

Applications are handled by OFE. If funds are not available in the queue, the qualified project will be added to the queue's wait list. A written contract must be executed between OFE and the certified project. A project that is not qualified/certified will be notified within 15 business days of submission.

There is no sunset for these grants. However, funds are limited and are provided on a fiscal year basis.

Contacts
Miami, FL
305.995.9720

Content Submit a Request
Please complete the following form and a Marcum LLP representative will be in touch with you.










Captcha Image