Tax Incentives

Click on the tabs below to learn more about the available Tax Incentives in Florida.


Qualified Target Industry Tax Relief (QTI) Abatements

The QTI helps Florida communities attract businesses that are in high impact sectors. The incentive is available for new and expanding industries within certain targeted industries or corporate headquarters that meet certain requirements.

Highlights of the QTI:

  • $3,000 tax refund per net new Florida full-time equivalent job created ($6,000 if in an Enterprise Zone or in a designated rural county)
  • $1,000 per job for businesses paying 150 percent of the average annual wage
  • $2,000 per job for businesses paying 200 percent of the of the average annual wage
  • Refunds available for businesses in designated high impact sectors or those who meet certain export qualifications.
  • $2,500 per job for businesses locating in a designated Brownfield area

Qualified Defense and Space Contractor Tax Refund (QDSC)

The QDSC provides support for Florida's defense, homeland security, and space contractors.

Highlights of the QDSC:

  • $3,000 tax refund per net new Florida full-time equivalent job created or retained ($6,000 if in an Enterprise Zone or in a designated rural county)
  • $1,000 per job for businesses paying 150 percent of the average annual wage
  • $2,000 per job for businesses paying 200 percent of the average annual wage

Capital Investment Tax Credit (CITC)

This tax credit is available every year for up to 20 years and is applied toward a company's corporate income tax liability. The amount of the credit is based on eligible capital costs of a new facility or expansion.

Some of the qualifications of the credit include:

  • Creates at least 100 new jobs
  • Eligible capital costs investment is at least $25 million

Designated high impact sectors for this credit include:

  • Clean energy
  • Biomedical technology
  • Financial services
  • Information technology
  • Silicon technology
  • Transportation equipment manufacturing
  • Corporate headquarters facility

High Impact Performance Incentive Grant (HIPI)

The HIPI program is a negotiated grant provided to qualifying new and expanding businesses in Florida. Applicants have to be recommended by Enterprise Florida, Inc. and approved by the Governor's Office of Tourism, Trade, and Economic Development (OTTED). Once approved 50% of the grant is provided at the start of operations and the remaining amount is awarded once employment and investment requirements are met.

Some of the qualifications of this grant program include:

  • Creates at least 50 new full-time equivalent jobs (25 full-time jobs for a R&D facility) in a three year period
  • Makes a cumulative investment of at least $25 million in a three year period

Designated high impact sectors for this grant program include:

  • Clean energy
  • Corporate headquarters
  • Financial services
  • Life sciences
  • Semiconductors
  • Transportation equipment manufacturers

Rural Incentives

New and expanding companies located in designated counties may qualify for increased incentive awards or have lower wage qualification thresholds.

The PowerSouth counties that are included in this designation are:
  • Calhoun
  • Gulf
  • Holmes
  • Jackson
  • Northwest RACEC (Rural Areas of Critical Economic Concern)
  • Walton (Rural County)
  • Washington

Urban Incentives

New and expanding industries that are located in the urban core or inner city areas of designated cities may qualify for increased incentive awards or have lower wage qualification thresholds.

PowerSouth cites that are included in this program are:

  • Ft. Walton Beach (Okaloosa)
  • Panama City (Bay)
  • Pensacola (Escambia)

Enterprise Zones

Through this program, new and expanding industries may qualify for additional incentives if they are located within designated areas of the state. Incentives includes sales and use tax credit, corporate income credit, sales tax refunds for certain business machinery, equipment, building materials, and electrical energy.

PowerSouth counties that have enterprise zones include:

  • Calhoun
  • Escambia
  • Gadsden
  • Gulf
  • Holmes
  • Jackson
  • Okaloosa
  • Walton
  • Washington

Brownfield Redevelopment Bonus Refund

New businesses who locate on Brownfield designated sites may qualify for this refund program. The program provides tax refunds of up to $2,500 for each job created. The incentive can be combined with the Qualified Target Industry (QTI) Refund program.

Manufacturing and Spaceport Investment Incentive Program (MSII)

This program, which expires on June 30, 2012, provides a tax refund of up to $50,000 on the state sales and use tax for qualifying equipment purchases. This program is available for companies that are within the manufacturing and spaceport activities. Companies must be creating new jobs and/or making a capital investment to qualify for this tax refund.

Sales and Use Tax Exemptions

The following exemptions apply to this tax:

  • Machinery and equipment used by new and expanding industries to manufacture, produce, or process tangible personal property for sale
  • Labor, parts, and materials use in repair of and incorporated into machinery and equipment
  • Electricity used in the manufacturing process
  • Some boiler fuels used in the manufacturing process
  • Semiconductor, defense, and space technology-based industry transactions involving manufacturing equipment
  • Machinery, equipment, and labor component used in research and development
  • Commercial space activity — launch vehicles, payloads and fuel, machinery and equipment for production of items used exclusively at Spaceport Florida
  • 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 music videos, or sound recordings

Foreign Trade Zones

There are two federal trade zones in the PowerSouth service area in Florida. Foreign merchandise that is stored in these zones and merchandise that is being held for export is exempt from state and local ad valorem taxes.

Property Tax Exemptions

The following exemptions apply to this tax:

  • Business inventory
  • Goods in transit (up to 180 days)