Greater Osceola and Florida Tax Credits and Incentives
Both Florida and Osceola County 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:
- Osceola County Incentives
- Industry-Specific Incentives
- Workforce Training
- Site-Specific Incentives
- Infrastructure Specific Incentives
- State Tax Exemptions
Osceola County Incentives
Job Creation Bonus
Osceola County may offer a Job Creation Bonus up to $3,000 per job to Qualified Targeted Industries to stimulate the creation and/or retention of high wage jobs in the County. To seek this incentive the company must create at least ten (10) net new jobs at a minimum of 115% of the County’s Average Annual Wage , and commit to retain these jobs for the agreed-upon term. This is a performance-based incentive, payable to the company after certifying and providing satisfactory proof that the jobs have been created and/or retained.
Ad Valorem Property Tax Refund
Osceola County may offer a property tax (ad valorem) refund to Qualified Targeted Industries to stimulate the creation and/or retention of high wage jobs in the County. Through this incentive, the County may refund a portion paid by the company of the property taxes (ad valorem) on the value added to real property or new business personal property for a period of up to 10 years. All applications go through an approval process. Specific levels of refund will be determined by the size, scope and location of the project. This is a discretionary incentive, offered to projects on a case-by-case basis.
Manufacturing Equipment Refund
Companies that purchase qualified NEW manufacturing machinery and equipment that will be used in manufacturing. Machinery and Equipment is defined as equipment purchased and used at a fixed location in Osceola County to manufacture, process, compound, or produce tangible personal property for sale.
- 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, and $50,000 lifetime refund per company, 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.
5-DAY Fast Track Permitting
Osceola County is proud to offer a program to targeted industries that can expedite the local permitting process. This program has been highly successful, and helps to identify the needs of the applicant, as well as, any potential roadblocks.
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 state administered program provides grant funding for customized training for new or expanding businesses. The program is structured to be flexible and to respond quickly to meet individual business training objectives. A local training provider – community college, area technical center, or university – is selected to manage the customized program grant and to provide assistance in the application process. Training can be done in-house with company instructors. Grants are based on the number of individuals being trained. Wages must be 125 percent of the local or state average wage.
- Incumbent Worker Training: A state administered program provides grant funding for customized training for existing businesses. The program is customer driven, structured to be flexible to meet the business’s training objectives, and is a proven employee retention tool. With a focus on upgrading existing employee skills, the business may choose public, private, or its own in-house, training provider.
- On The Job Training: Choose from a talented pool of candidates using tools and assistance provided by CareerSource Central Florida. On-the-Job Training provides the opportunity to train new hires in their actual work environment, while a portion of the new employee’s wages may be reimbursed to the employer during the training period.
- Employed Worker Training Awards: Administered by CareerSource Central Florida, this program provides funding to assist employers in providing customized training to employees for new technologies or production processes designed to enhance the businesses competitiveness. Training can be specialized and should consist of formal training as well as some on-the-job training. Employer will be reimbursed for 50% of the trainees wage rate, for up to six-months. Employees must currently make less than $58,000 per year. Additional restrictions apply.
- 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.
State Tax Exemptions
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.
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.