The Florida Enterprise Zone Program offers an assortment of tax incentives to businesses that choose to create employment within an enterprise zone, which is a specific geographic area targeted for economic revitalization. Tax incentives include a sales and use tax credit, tax refund for business machinery and equipment used in an enterprise zone, sales tax refund for building materials used in an Enterprise Zone, and a sales tax exemption for electrical energy used in an enterprise zone. Local governments can provide additional incentives for a zone located within their boundaries.
The Florida Department of Revenue is responsible for processing all enterprise zone tax incentive applications. The local coordinator is responsible for verifying enterprise zone addresses. All tax incentive applications must be certified at a local office before the applications are sent to the Department of Revenue to be processed. Representatives from the Department of Revenue provide technical assistance on the eligibility requirements to businesses and to local enterprise zone coordinators. For more information visit Enterprise Florida.
For more information, Michael Rankin, Economic Development Director General E-MAIL
or call (352) 728-9786, ext. 1111.
Here are some benefits:
Sales Tax Exemption for Purchases of Industrial Machinery and Equipment
Effective April 30, 2014, a business may qualify for a sales tax exemption on purchases of industrial machinery and equipment that will be used to manufacture, process, compound, or produce for sale items of tangible personal property. Parts and accessories will also be exempt if they are purchased before the machinery and equipment are placed in service
Repairs, Maintenance, Parts and Labor
Replacement engines, parts, equipment, and labor used in or for the maintenance or repair of fixed wing or rotary wing aircraft (helicopters) with a certified maximum takeoff weight of more than 2,000 pounds are exempt from sales and use tax. Dealers who make tax-exempt charges for replacement engines, parts, equipment, and labor used in or for the maintenance or repair of aircraft over 2,000 pounds are required to document the Federal Aviation Administration registration number (“N-number”) and the maximum certified takeoff weight of the eligible aircraft on the bill of sale, invoice, or other tangible evidence of sale.
Electrical Energy Used in an Enterprise Zone
A business that is located in an enterprise zone may apply for a 50 percent exemption from sales tax for purchases of electrical energy. The business must also be in a county that has an ordinance exempting such businesses from municipal utility taxes.
If the number of full-time, permanent employees of the business who live in an enterprise zone divided by the total number of full-time, permanent employees is 20 percent or greater, the business may receive an exemption of 100 percent of the sales tax for purchases of electrical energy.
Building Materials Used to Rehabilitate Real Property Located in an Enterprise Zone
A business or individual that rehabilitates real property located in an enterprise zone may apply for a refund of sales tax paid on the purchase of building materials. The refund claim must be at least $500 and no more than $5,000, unless the number of full-time, permanent employees who live in an enterprise zone divided by the total number of full-time, permanent employees is 20 percent or greater. If the 20 percent requirement is met, the applicant may receive a refund up to $10,000. The applicant must be the owner, lessee, or lessor of the rehabilitated real property who caused the rehabilitation to take place.
Community Contribution Tax Credit or Refund
A business that donates cash, property, or goods to an approved community-based organization or government agency may apply for a refund of sales tax. The refund is equal to 50 percent of the value of the donation, with a limit of $200,000 per year.
Business Property Used in an Enterprise Zone
A business that buys property for use in an enterprise zone may apply for a refund of sales tax paid on the property. To be eligible for a refund, the property must:
- Qualify under section 38 of the Internal Revenue Code of 1954, as amended.
- Have a 5-year class life for federal depreciation purposes.
- Have a minimum sales price of $5,000.
- The maximum refund amount is $5,000, unless the number of full-time, permanent employees of the business who live in an enterprise zone divided by the total number of full-time, permanent employees is 20 percent or greater. If the 20 percent requirement is met, the business may receive a refund up to $10,000.