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The Qualified Target Industry (QTI) Tax Refund is a tool available to Florida communities to encourage quality job growth in targeted high value-added businesses. Pre-approved applicants who create jobs in Florida receive tax refunds of $3,000 per net new full-time equivalent Florida job created; $6,000 in an Enterprise Zone or Rural County. For businesses paying 150 percent of the average annual wage, add $1,000 per job; for businesses paying 200 percent of the average annual salary, add $2,000 per job. New or expanding businesses in selected targeted industries or corporate headquarters are eligible. If approved, the applicant may receive refunds on the taxes it pays. This includes corporate income, sales, ad valorem, intangible personal property, insurance premium, communications services, and certain other taxes. There is a cap of $5 million per single qualified applicant in all years, and no more than 25 percent of the total refund approved may be taken in any single fiscal year.

A General Project Overview (GPO) must accompany this application.

Eligibility

In order to participate, a company must apply to Enterprise Florida (EFI) prior to making a decision to locate or expand in Florida. All final decisions on applications are based upon all available information at that time. Any business decisions, such as announcements, leasing of space or hiring of employees, made prior to submission of a complete, effective QTI application will be grounds for disapproval. Projects that clearly do not require inducement will not be approved. In order to qualify for consideration under the program, an applicant must:

• be in a target industry (see attached Target Industries List);
• submit an application before making a decision to locate or expand in Florida, and demonstrate that the tax refund will make a material difference in the company's decision to locate or expand in the community;
• create at least 10 net new full-time equivalent Florida jobs and, if an expansion project, increase employment by at least 10 percent (whichever is greater). For a project located in a rural community or an enterprise zone, the net increase in employment may be waived in special circumstances;
• pay an average annual wage that is at least 115 percent of the state, metropolitan statistical area (MSA), or the local average wages. For a project located in a rural county, rural community, a designated brownfield area or an enterprise zone, the wage requirement may be waived in special circumstances;
• show that the jobs make a significant economic contribution to the area economy; and
• provide a resolution from the city or county commission recommending the applicant for the incentive and committing the community to provide a local match equaling 20 percent of the tax refund. If located in a Rural County or designated brownfield area, the business may elect to be exempt from the local match and accept a refund equal to 80 percent of the refund for which they would otherwise qualify.

Application Process

• EFI staff will shepherd businesses and communities through the entire application process, ensuring that the company and community understand what is required for a complete, effective application.
• EFI reports its evaluation of the application and recommendation to the Director of the Governor's Office of Tourism, Trade and Economic Development (OTTED) who makes the final decision on the project. While the law allows a maximum of 45 days to evaluate the completed application, EFI makes every effort to expedite the process to meet the applicant's schedule.

Approval Process

• OTTED's approval or disapproval of the application is in the form of a letter of certification.
• If the application is approved, the certification will indicate the amount and schedule of tax refunds approved, as well as the number of jobs and average wage rate for the project jobs. These must be the same as stated in the application.
• While the law allows a maximum of 30 days to evaluate the completed application, OTTED makes every effort to expedite the process to meet the applicant's schedule.
• Once the QTI application is approved, the business will begin working directly with OTTED to finalize the tax refund agreement. Within 120 days of issuance of the certification, the QTI business and the Director of OTTED must sign a written tax refund agreement.

Refund Process

• The business submits a claim each year for the scheduled tax refund and the community must pay its local match into the Economic Development Trust Fund.
• If all the terms of the tax refund agreement are met, then OTTED pays the refund, including the local match, directly to the business.
• The Economic-Stimulus Exemption (Chapter 288.106 (4)(b)4, F.S.) can be requested for claims scheduled to be submitted after January 1, 2005, but before July 1, 2006 by existing QTI businesses negatively affected by a named hurricane or tropical storm. A waiver of the local financial support may be requested by certain communities if the QTI match payment will place a financial hardship on the municipality.

Statutory Reference: Section 288.106, Florida Statutes