SPOTLIGHT PROGRAMS

Capital Investment Tax Credit (CITC): The Capital Investment Tax Credit is 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. The amount of the annual credit is based on the eligible capital costs associated with a qualifying project. 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. Projects must create 100 jobs and invest at least $25 million.

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Florida High Impact Performance Incentive (HIPI):  The Florida High Impact Performance Incentive (HIPI) is a discretionary state program that can provide grant funding to businesses in designated industry sectors (including clean energy, life sciences, financial services, corporate HQ, Transportation equipment manufacturing, IT, advanced manufacturing, and semiconductors). To be eligible, a project must create 50 new full-time jobs and make a cumulative investment of $50 million in a three-year period. These numbers are reduced to 25 new jobs and $25 million investment for R&D Facilities. Businesses may receive up to 50% of the specified grant amount upon completion of certain agreed-upon conditions and “commencement of operations” and the balance once full employment and investment goals are met.

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TAX CREDITS

Research and Development Tax Credit: The Research and Development Tax Credit is a corporate income tax credit available to businesses in Florida’s targeted industries that have qualified research expenses in Florida. The credit is equal to 10% of the excess qualified research expense. Must exceed the average Florida research allowed to the previous four years. May carry credit forward for five years.

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TAX EXEMPTIONS

Sales & Use Tax Exemptions: Manufacturing machinery and equipment, research and development equipment, solar energy equipment, commercial space activities, and activities related to the maintenance or repair of aviation activities are exempt from sales and use tax in Florida Semiconductor, defense, and space technology facilities may also be exempt from sales and use tax exemptions.

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Electricity and Steam Sales and Use Tax Exemptions: Charges for electricity directly used at a fixed location to operate machinery and equipment used to manufacture, process, compound, or produce items of tangible personal property for sale, operate pollution control equipment, recycling equipment, maintenance equipment, or monitoring or control equipment used in such operations, may be exempt from the sales tax. If 75% or more of electricity or steam is used at a fixed location to operate qualifying machinery or equipment, 100% of the sales tax on the charges for electricity or steam is exempt. If less than 75% but 50% or more the electricity/steam is used to operate qualified machinery, then 50% of charges are exempt. If less than 50% of electricity/steam is consumed for qualifying purposes, then there is no exemption.

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JOB TRAINING

Quick Response Training (QRT): Administered by CareerSource Florida, the program is a state-funded grant program that provides funding to qualifying businesses to train their net new, full-time employees. Grant funding is provided in the form of a performance-based reimbursable grant (12-month maximum term) for customized, skills-based training. Quick Response Training is available to new or expanding businesses in Florida’s targeted industries. These industries are typically highly-skilled, produce exportable goods or services, and have wages of 125 percent above state or local wages.

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Incumbent Worker Training (IWT): Funded by Federal Workforce Innovation and Opportunity Act (WIOA) and administered by CareerSource Florida, the program provides grants for continuing education and training of current full-time employees at Florida companies. The grant can be used to reimburse companies for up to 75 percent of pre-approved training costs.

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Veterans Florida Business Training Grant: The Veterans Florida Business Training Grant is available to Florida businesses seeking to train and hire military veterans. The program helps business meet workforce demands in a competitive environment by facilitating access to training and education in high-demand fields for veterans. Grant funds are used to match 50% of the training costs, up to $8,000 per veteran.

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Last Updated: August 2023