Greater Osceola and Florida Tax Credits and Incentives
Both Florida and Greater Osceola offer attractive incentives to qualifying relocating and expanding companies. Elected officials have demonstrated their commitment to economic development through the adoption of incentive packages based on the needs of the company.
This assistance is provided on a case-by-case basis, with job creation, quality of wages and capital investment being the significant deciding factors. The state and local tax climate can also be considered an incentive to investing in the region. Available incentives include:
- Industry-Specific Incentives
- Workforce Training
- Site-Specific Incentives
- Infrastructure Specific Incentives
- Osceola Incentives
- Tax Exemptions
The following apply to companies doing business in targeted industries which include but are not limited to Advanced Manufacturing, Agritechnology, Aviation & Aerospace, Clean Technology & Sustainable Energy, Digital Media, Financial Services & Financial Technology, Life Science & Biotechnology, Manufacturing, Warehousing & Distribution, Modeling, Simulation & Training, Optics & Photonics or Corporate Headquarters.
- Qualified Target Industry Tax Refund Program (QTI): (requires local match) Incentive available for companies that create high wage jobs in targeted high value-added industries. This incentive includes refunds on corporate income, sales, ad valorem, intangible personal property, insurance premiums, and certain other taxes.
- Qualified Defense Contractor Tax Refund Program (QDC): Refund for defense contractors for activities including consolidating defense contracts, acquiring new contracts, or converting to civilian production.
- Capital Investment Tax Credit (CITC): Annual credit against high-impact sector projects toward Florida corporate income tax for up to 20 years.
- High Impact Business Performance Incentive Grant (HIPI): Grant used to attract and grow major high impact facilities.
- Quick Response Training Program (QRT): A customer-driven training program designed to assist new value-added businesses and provide existing Florida businesses the necessary training for expansion.
- HUBZone: Historically Underutilized Business Zones (HUBZones) are urban/rural communities or tracts of land with below average median income and/or above average unemployment that have been targeted for small business development. This program is administered by the United States Small Business Administration (SBA).
- Economic Development Transportation Fund (Road Fund): Incentive tool designed to alleviate transportation problems that adversely impact a specific company’s location or expansion decision.
- Manufacturing Equipment Refund
- Business equipment purchased must have a sales price of at least $5,000 per unit.
- Equipment purchased must be used exclusively in Osceola County for at least 3 years.
- Refund is for 50% of the purchase price of the manufacturing equipment (excludes taxes).
- Total annual refund amount shall be capped at $10,000 per company per fiscal year. unless otherwise authorized.
- Applications must be made within 3 months from the date of purchase.
Exclusions: The refund specifically excludes electric utility companies, communications companies, oil or gas exploration or production operations, publishing firms that do not export at least 50 percent of their finished product out of the state, and any firm subject to regulation by the Division of Hotels and Restaurants of the Department of Business Regulation.
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- Aviation Industry Tax Exemptions
- Maintenance or Repair of Aircraft: Exemptions on the amount charged for labor associated with the maintenance or repair of aircraft.
- Equipment Used In Aircraft Repair or Maintenance: Exemptions on the sale of equipment used to repair or maintain aircraft and is installed on aircraft maintained or repaired in Florida.
- Fixed Wing Aircraft Sales or Leases: Exemptions on the sale or lease of fixed wing aircraft used by a “common carrier” as defined by the FAA.
- Clean Technology: Renewable Energy Technologies, Machinery, Equipment and Material Sales and Use Tax Refund allows businesses to apply for a refund of sales and use taxes paid on equipment, machinery and other materials for renewable energy technologies.
- Electricity & Steam Tax Exemption: Exemptions on electricity used directly and exclusively at a fixed location to operate machinery and equipment that is used to manufacture items of tangible personal property for sale, or to operate pollution control equipment, recycling equipment, maintenance equipment, or monitoring or control equipment used in such operations.
- Machinery and Equipment Tax Exemptions
- New Manufacturers: The machinery and equipment must have been purchased, or a purchase agreement made, prior to the date the business first begins to produce a product for inventory or immediate sale.
- Expanding Manufacturers: Industrial machinery and equipment is exempt from tax when purchased by an expanding business for the purpose of increasing “productive output” by not less than ten percent. Sales or use tax of $50,000 for each calendar year of the expansion project must be paid before the exemption or refund is available.
- Printing and Publishing: Printing firms now qualify for the new or expanding business exemption and are not subject to the $50,000 payment of sales or use tax requirement.
- Mining Activities: Businesses engaged in mining activity may qualify for the exemption but may only receive the exemption by way of a future credit against taxes. Mining businesses must also demonstrate the creation of new Florida jobs.
- Repair and Labor Charges: Exemption on the sales tax on labor charges for the repair of, and parts and materials used in the repair of industrial machinery and equipment that qualify for the sales tax exemption.
- Pollution Control Equipment Sales: Use or privilege taxes shall not be collected with respect to any facility or machinery used primarily for the control of pollution in manufacturing, processing, compounding, or producing for sale items of tangible personal property at a fixed location.
- Research & Development: The Sales and Use Tax Exemption on Machinery and Equipment Used for Research and Development is available to help foster innovation throughout the state. Under this exemption, machinery and equipment used predominantly for research and development are exempt from sales and use tax.
- Semiconductor, Defense, or Space Technology Exemptions: Semiconductor, defense and space technology-based industry transactions involving manufacturing or research equipment.
- Space Industry Tax Exemptions
- Property Used Predominantly for Space Flight Business Purposes: Exemptions of sales tax on the lease of Real Property used or occupied predominantly for space flight business, including manufacturing, processing, ground control and ground support and other activities.
- Machinery and Equipment for Space Industry: Exemption of sales tax on machinery and equipment used to increase the productivity output of a spaceport activity and for new and expanding businesses.
- Space Launch Vehicle Fuels: Exemption of excise tax on fuels of such quality not adapted for use in ordinary motor vehicles, being produced for and sold exclusively for space flight.
- Space Laboratories and Carriers: Exemption from ad valorem tax on modules, pallets, racks, lockers, and their necessary associated hardware and subsystems.
- Direct and Overhead Materials: Exemptions of sales tax on tangible personal property used or consumed by a government contractor, including prime and subcontractors, in the performance of a D.O.D. or NASA contract.