by: Glenn M. Cooper, Esq.

This article will outline various services and incentives available from the State of Florida as well as its counties and municipalities to promote the establishment of business and investment.

State of Florida (Enterprise Florida) (www.eflorida.com)

Enterprise Florida, Inc. is a partnership between Florida's government and business leaders and is the principal economic development organization for the State of Florida.

Enterprise Florida's mission is to increase economic opportunities for all Floridians, by supporting the creation of quality jobs, a well-trained workforce, and globally competitive businesses. It pursues this mission in cooperation with its statewide network of economic development partners.

State Services

• Site Selection
• Community Profiles and Information
• Customized Business Project Proposals
• Incentive Information Assistance with Regular Issues and Permissions
• Referrals also to Economic Development Resources Through the State
• Trade Assistance
• Market Information
• Trade Leads
• Matchmaking
• Inbound and Outbound International Trade Missions and Delegations
• International Trade Events

State Incentives

Qualified Target Industry (QTI)

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. New or expanding businesses, serving multi-state and/or international markets, in targeted industries or designated corporate headquarters are eligible for this refund. Pre-approved applicants who create new jobs to Florida, paying 115% of the average annual area wage, can receive tax refunds up to $3,000 per new job created, up to $6,000 in an Enterprise Zone or Rural County. Additional "per job" bonuses are available for businesses paying 150 or 200 percent of the average annual area wage.

Incentives created at the County and municipal level (as opposed to State incentives discussed above that may be administered at the County level) include job growth incentives and exemption, abatement or refunds of certain County or municipal taxes.

Quick Response Training (QRT)

Quick Response Training (QRT) is a customer driven training program designed as an inducement to secure new value-added businesses to Florida and provide existing businesses the necessary training for expansion. Through this incentive, Florida is able to effectively retain, expand and attract employers offering high- quality jobs. Workforce Florida, Inc. administers the program, with technical advice provided by the Department of Education. Eligible projects are new or expanding Florida businesses that produce exportable goods or services, create new permanent full-time jobs and employ Florida workers who require customized entry-level skills training.

Economic Development Transportation Fund (Road Fund)

The Economic Development Transportation Fund, commonly referred to as the "Road Fund," is an incentive tool designed to alleviate transportation problems that adversely impact a specific company's location or expansion decision. The elimination of the problem must serve as an inducement for a specific company's location, retention or expansion in Florida and must create or retain jobs.

Incumbent Worker Training (IWT)

The Incumbent Worker Training Program is funded by the Federal Workforce Investment Act (WIA) and administered by Workforce Florida, Inc. Through this program, Florida is able to provide grant funds to companies for training currently employed workers to keep Florida's workforce competitive in a global economy and to retain existing businesses. The IWT program is open to all Florida businesses that have been in operation for a minimum of one year prior to the application date, have at least one employee, and are current with all state taxes.

High Impact Performance Incentive Grant (HIPI)

The High Impact Performance Incentive Grant (HIPI) is a negotiated incentive used to attract and grow major high impact facilities in Florida. Grants are provided to pre-approved applicants in certain high-impact sectors (currently silicon technology and transportation equipment manufacturing) as designated by the Governor's Office of Tourism, Trade and Economic Development. In order to participate in the program, a company must be in a designated high impact sector; create at least 100 new full-time equivalent jobs (if a research and development facility, create at least 75 new full-time equivalent jobs) in Florida in a three year period; and make a cumulative investment in the state of at least $100 million (if a research and development facility, make a cumulative investment of at least $75 million) in a 3-year period.

Capital Investment Tax Credit CITC)

The Capital Investment Tax Credit (CITC) is an annual credit against Florida State corporate income tax liability. The amount of the annual credit is equal to 5 percent of the eligible capital costs and can be taken for 20 consecutive years. 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. For projects making a cumulative capital investment of at least $100 million, the credit may be applied towards one hundred percent (100%) of the project's annual Florida corporate income tax liability for 20 consecutive years. If the cumulative capital investment is at least $50 million but less than $100 million, the credit may be applied to seventy-five percent (75%) of the project's annual corporate income tax liability. The ultimate value of credit will depend on the project's Florida corporate income tax liability for the 20 years following commencement of operations. Florida's Corporate Income Tax Rate is 5.5% of apportioned taxable income.

Enterprise Zone Opportunities

Enterprise Zones offer opportunities for entrepreneurial initiatives and small business expansion in 31 targeted areas around the state. Enterprise Zones may be in rural or urban areas of Florida, and businesses locating within an Enterprise Zone qualify for sales and corporate tax credits. Enterprise Zones may also include Brownfield sites offering additional financial incentives for businesses.

Jobs Tax Credit

Credit against sales & use taxes on wages paid to new employees who have been employed by the business for at least 3 months and are residents of a Florida enterprise zone (or are WAGES Program participants

Sales Tax Refund for Business Machinery and Equipment Used in an Enterprise Zone

Refund on sales taxes paid on the purchase of certain business property.
Sales Tax Refund for Building Materials Used in an Enterprise Zone
A refund for sales taxes paid on the purchase of building materials used to rehabilitate real property located in an enterprise zone.

Sales Tax Exemption for Electrical Energy Used in an Enterprise Zone

A 50% sales tax exemption available to qualified businesses located in an enterprise zone on the purchase of electrical energy.

Brownfields

Brownfields are properties that are abandoned or under-utilized commercial or industrial sites, or they have redevelopment complications, such as liability issues or a shortage of available financing, due to contamination or perceived contamination.

However, cleanup of brownfield sites in Florida is generally easier, quicker, and cheaper than brownfield sites in many other parts of the country. That’s because the severity of environmental degradation/contamination in Florida generally does not even begin to approach that in many other US states, since Florida never had smokestack industries.

Businesses that clean up and redevelop an existing brownfield site are provided with generous financial incentives, technical assistance from the state university system, and are offered limited liability protection. Other advantages of brownfield sites for businesses include :

• Highly attractive business locations with existing infrastructure.
• Expedited permitting process, since this is re-use rather than new ground.
• Brownfield properties are often located within enterprise zones that provide additional financial incentives.

County Services and Incentives

Most every county in Florida has an official economic development organization responsible for offering services to foreign companies and investors, as well as administering State and local government incentives. These organizations assist in site selection offering community tours. They also assist with Local permitting and regulatory issues, provide local market research, impact analysis and provide local business and governmental contacts among many other valuable services available (most always free of charge). These services include many of the State services described above as well as other locally customized services and incentives. Generally, all inquires are treated with strict confidence.

The Beacon Council (www.beaconcouncil.com)

The Beacon Council International Task Force is a committee consisting of local business leaders in the international arena and is focused on attracting and developing international business in Miami-Dade County, Florida.

The Beacon Council, Miami-Dade County's official economic development partnership, is a not-for-profit, public-private organization that focuses on job creation and economic growth by coordinating community-wide programs; promoting minority business and economic development; providing assistance to local businesses in their expansion efforts; and marketing Greater Miami throughout the world.

The Beacon Council’s professional staff provides :

-International Marketing of Greater Miami as a strategic headquarters, manufacturing and trade center and as a thriving entrepreneurial community.

-Active Government-to-Business visitation program.

-Information on key issues such as labor rates, taxation and growth trends.

-Assistance with the following:

• labor recruitment and training
• permitting
• site identification
• financing
• incentive programs
• market research and area presentations

The Broward Alliance (www.browardalliance.org)

The Broward Alliance is Broward County’s official public/private partnership for economic development. Its purpose is to create new high-wage jobs by attracting business to the area and by assisting local firms in their expansion efforts. This is carried out through the participation and contributions of both private and public sectors members who serve on the Alliance committees.

The International Marketing Committee of the Broward Alliance focuses on attracting foreign direct investment to Broward and supporting growth of international trade. The Committee’s program includes hosting international business delegations, participating in global marketing missions and mobilizing Broward County’s network of international representatives.

The Palm Beach County Business Development Board (www.bdb.org)

The Palm Beach County Business Development Board (BDB) is a private, not-for-profit corporation founded in 1982 as Palm Beach county's official economic development organization. The work to attract and retain business investment through corporate relocations, expansions and international trade; and provide marketing support and business networking services through a paid membership organization that partially funds our economic development services. Since 1993, more than 225 company relocations and expansions assisted by the Business Development Board resulted in the creation of over 22,000 jobs and added in excess of $4 billion to the Palm Beach County economy.