Without tax breaks, your company’s bottom line will suffer.
Those with businesses in Orlando might not be taking advantage of the tax breaks in the area. Not only are there a number of state-wide tax breaks but there is a wide range of incentives available to qualifying and expanding companies.
These tax breaks can make your investment in business much easier, affordable, and profitable. That’s why we’ve outlined some of the tax breaks your Orlando business may qualify for that you didn’t already know about.
Infrastructure Incentives
Known as the Economic Development Transportation Fund (or the ‘Road Fund’) that program is designed to specifically target a company’s location and expansion decisions that will improve transportation. This fund is designed to target and alleviate the transportation problems that impact companies.
The amount of money that your company can qualify for is dependent on the number of new and retained jobs that the eligible transit project costs (with a cap at $3 million).
There is also the Duke Energy incentive program which offers help to businesses with low-cost and energy-saving inspections available for new construction and retrofit projects.
Keep in mind there is also the Orlando Utilities Commission which offers a variety of incentives to large power users (that meet specific criteria) on their utility bill. The bill can also be further negotiated directly with the company to specifically suit your business.
Site-Specific Incentives
There are also a number of incentives offered to companies that generate business and create new jobs within designated regions. So, if your company happens to fall within their designated boundaries, you may qualify for additional incentives like the Brownfield Program which targets businesses in the Brownfield area that are underutilized or are commercial sites due to perceived environmental contamination.
There is also the Community Redevelopment Area (CRA) incentive used to target redevelopment or revitalization in such cities as Casselberry, Clermont, Eutis, Groveland, Leesburg, and Orlando. Finally, there is also the Urban Jobs Tax Credit, which is a program used to provide tax credits to eligible businesses that create new jobs in the Orlando area.
Industry-Specific Incentives
It is also recommended to look into the industry-specific incentives that are offered in Florida to assist your business. That’s because there are a number of industry-specific programs like the Qualified Target Industry Tax Refund (QTI) which is an incentive offered to companies that create high wage jobs in value-added industries. These incentives include refunds on corporate income, sales, intangible personal property, insurance premiums, and certain other taxes.
There is also the Capital Investment Tax Credit (CITC) which is used to attract and grow capital intensive industries in Florida. Some eligible industries include advanced manufacturing, clean energy, biomedical technology, financial services, information technology and more.
Tax Exemptions
There are also a variety of tax exemptions that are offered in Florida based on the industry. Firstly, Florida offers Sales and Use Tax Exemptions on machinery and equipment used by Florida businesses to manufacture, product, or process tangible personal property for sale. Meaning, you can get money back on the equipment throughout the year that is used in your company.
Companies are also able to get exemptions on: labor, parts and materials used to repair (and incorporate into) machinery and equipment, electricity used in the manufacturing process, boiler fuels, machinery and equipment used predominately in research and development, commercial space activity (launch vehicles, payloads and fuel, machinery and equipment), and production companies engaged in the production of motion pictures made for television pictures, series, commercial music videos or sound recordings.
Although all of these incentives and tax exemptions can seem overwhelming, taking the tie to read through all that is available to Florida business owners can pay off in the long-run. Not only will you be able to save money in the immediate future, but it can contribute to your bottom line and allow you more money to invest in growth.
If you’d like help distinguishing what your business qualifies for please get in touch with a member of our team who would be happy to help with a personalized assessment.
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