Incentives for Businesses

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Adele Mason
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1 s for Businesses The following overviews of incentive programs are summarized and presented based on a company s location in St. Petersburg, Florida. This summary is for reference purposes only and is not presented as all inclusive. Some incentives are only available in specific areas (see attached maps). Obtain complete program guidelines from the respective program provider. For more program information or assistance in preparing applications, contact the City of St. Petersburg s Economic Development Department = Not Applicable Name of Summary of the HUBZone (Historically Underutilized Business Zone) Empowerment Contracting Contracting opportunities with Federal government. Preference in award of Federal contracts. This federal HUBZone, administered by the U.S. Small Business Administration, stimulates economic development and creates jobs by providing federal contracting preferences to small businesses located in a HUBZone. (See attached map.) Foreign Trade Zone (FTZ) Facilitate trade and global competitiveness of U.S.-based companies. Varies (e.g. reduce federal excise taxes, eliminate formal customs entries, defer/reduce or eliminate payment of duties, etc) Business must be located in a FTZ and engaged in import or export of goods, storage of imported goods for others, or manufacture or assembly of products with imported parts and materials. Local FTZ s are: Port of St. Petersburg, Airport Business Center, St. Petersburg/Clearwater Airport and Pinellas STAR Center. This federal program is administered by Pinellas County Economic Development. Qualified Defense Contractor Tax Refund Creation and/or preservation of defense industry jobs. Refund of certain taxes. Business must apply to the and be approved prior to making a decision to seek a new contract, consolidate contracts, convert to civilian production or to locate or expand in Florida. The business must receive not less than 60% of gross sales from US Dept. of Defense or US Dept. of Homeland Security contracts, create at least 80 new jobs and pay wages at least 115% of the local average wage. $3,000 per new job ($6,000 if business is in an Enterprise Zone). $7.5 million per single qualified applicant in all years, no more than $2 million in tax refunds received in one year.

2 (WAGES = Work and Gain Economic Self-Sufficiency (the s Welfare-to-Work.) = Not Applicable Name of Summary of the Enterprise Zone (EZ) Jobs Tax Credit Creation of new full time jobs for EZ residents. Credit against Corporate Income Tax or Sales and Use Tax. Businesses located in an EZ area may take a monthly credit for new full time jobs created. This credit can be taken for up to 24 months that the new employee remains with the business. Business must create at least one new job. Leased employees are eligible. WAGES clients that are hired are eligible even if they do not live in an EZ area. (See attached map.) 20% of the new employees monthly wages. 30%* of the new employees monthly wages. *WAGES clients eligible for higher amounts. Enterprise Zone (EZ) Property Tax Credit Creation and/or expansion of businesses located in an EZ. Credit against Corporate Income Tax. New, expanding or rebuilt businesses located in an EZ area may receive a credit on the amount of ad valorem taxes paid. Credit is 96% of ad valorem taxes paid. Any unused portion of the credit can be carried forward for up to five years. Business must create at least 5 new full time jobs. (See attached map.) $250,000 ($50,000 annual credit claimed for 5 years.) Enterprise Zone (EZ) Business Equipment Sales Tax Refund Purchase of business equipment by businesses located in an EZ. Refund of State of Florida Sales and Use Tax. Businesses located in an EZ area are eligible for refund of sales taxes paid on the purchase of equipment or machinery. The equipment purchased must have a minimum purchase price of $5,000 per unit and be used exclusively in the EZ area for at least 3 years. (See attached map.) $291 $10,000 per application Enterprise Zone (EZ) Building Materials Sales Tax Refund Rehabilitation or construction of real property located in an EZ area. Refund of State of Florida Sales and Use Tax. Businesses and residents located in an EZ area are eligible for a refund of the sales taxes paid on purchase of building materials used to rehabilitate or construct real property located in an EZ area. Refund available only one time per parcel. Recipient must be either the owner, lessor or lessee of the real property. Work performed must be in compliance with local construction guidelines and requirements. (See attached map.) $500 $10,000

3 (WAGES = Work and Gain Economic Self-Sufficiency (the s Welfare-to-Work.) = Not Applicable Name of Summary of the Urban Job Tax Credit Creation of new full time jobs. Credit against Corporate Income Tax or Sales and Use Tax. Open to targeted industries (e.g., mfg., retail, hotels, warehousing, call centers, etc) in certain areas of the City. New businesses must create at least 30 jobs, existing businesses must create at least 15 new jobs. Leased employees are eligible. (See attached map.) $500 per job. $500 per job ($500 bonus award if new employee is a WAGES client). High Impact Business Performance Grant (HIPI) Creation of new full time jobs by new or expanding businesses in targeted industries. State Grant directly to the business. Businesses must apply to the and be approved prior to making a decision to locate or expand in Florida. Business must be in a designated high-impact sector, create at least 75 new jobs in a 3 year period and make a cumulative capital investment of at least $75 million in connection with a project. Fifty percent (50%) of the grant is awarded upon start of operations and the balance is awarded once full employment and capital investment goals are met. Qualified Target Industry (QTI) Tax Refund Creation of new full time jobs by new or expanding businesses in targeted industries. Refund of certain taxes. Business must apply to the and be approved prior to making a decision to locate or expand in Florida. The business must be in a target industry and create at least 10 new jobs and pay wages at least 115% of the local average wage. $3,000 per new job ($6,000 if business is in an Enterprise Zone). Bonus Awards: $1,000 per new job if business pays 150% of average annual salary; $2,000 per new job if business pays 200% of average annual salary. Pinellas County Job Creation Capital investment and creation of new high wage jobs. Grant directly to the business. Businesses must apply to Pinellas County Economic Development (PCED) and be approved prior to making a decision to locate to or expand in Pinellas County. Business must meet QTI program criteria (see page one), provide a new capital investment of at least $50 million and create jobs with pay of at least 150% of the average county wage. term of the grant is 15 years. This program is administered by PCED. $500 per new job created. Cannot exceed 50% of the net new ad valorem and property taxes paid.

4 Name of Summary of the Capital Investment Tax Credit Attract and grow businesses that are in capital intensive industries. Credit against Corporate Income Tax. Businesses must apply to the and be approved prior to making a decision to locate or expand in Florida and be in a designated high-impact sector. Businesses must create at least 100 new jobs in state and make a cumulative capital investment of at least $25 million in connection with a project. Annual credit is 5% of eligible project costs for up to 20 years. Credit may not exceed a certain percentage of the businesses annual tax liability. Brownfield Redevelopment Bonus Redevelopment of brownfield sites. Refund of certain taxes. Brownfield sites are generally abandoned, vacant or underused properties which may have environmental contamination. Pre-approved applicants receive tax refund per new job created. Business must create at least 10 new jobs and be eligible for QTI Refund or make a $2 million fixed capital investment. 20% of the average annual wage of the new job created. Up to $2,500 per new job created. Quick Response Training Grant Training of employees in new full time jobs. State Grant to a Training Provider on behalf of the business. Businesses must apply to the and be approved prior to making a decision to locate or expand in Florida. Eligible projects are new and expanding/existing businesses that produce exportable goods or services, and create new full time permanent jobs in state for employees who require customized entry-level skills training. Training is limited to 24 months or less and which is not available at local area. This program is administered by Workforce Florida. Incumbent Worker Training Grant Training of existing full time employees. State Grant to a Training Provider on behalf of the business. Provides grant funding to employers to assist with expenses associated with customized skills upgrade training for existing employees. The business will be required to provide a matching contribution to the training project. Business must have been in operation for 1 year, have at least 1 full time employee, and be current on all State taxes. This federal program is administered by Workforce Florida.

5 = Not Applicable Name of Summary of the Sales Tax Exemption on Electricity and Steam Exemption of State sales tax on use of electricity or steam for manufacturing in targeted industries. State Sales and Use Tax Exemption. Businesses in eligible industries are eligible for an exemption of sales tax they pay on their electricity and steam. At least 50% of the electricity and steam used at the business fixed location must be used to operate qualifying machinery or equipment. This program is administered by the Florida Department of Revenue. 50% of the charged State sales tax. 100% of the charged State sales tax. Sales Tax Exemption on Machinery and Equipment (M&E) Exemption of State sales tax on purchase of eligible M&E in targeted industries. State Sales and Use Tax Exemption. Businesses must apply to the and be approved prior to making the M&E purchase. Eligible businesses must use the M&E at a fixed location with exclusive use in spaceport activities. This program is administered by the Florida Department of Revenue. Varies Economic Development Transportation Fund ( Road Fund ) for business retention, attraction or relocation. Grant by the State of Florida to the Local Government for transportation improvements. The City must make a competitive application to the on behalf of the business and be approved prior to the business making a decision to relocate or expand. The grant is used to alleviate a location-specific transportation problem (e.g., access roads, signalization, road widening, etc) that adversely impacts a company s location or expansion decision. $2,000,000 City of St. Petersburg Reduced Transportation Impact Fee Encourage capital investment. Reduction of City transportation impact fee. The City of St. Petersburg collects transportation impact fees (TIF s) for land development projects to fund needed transportation system improvements to support new trips generated by the project. TIF rates are based on project type and size. Projects located in certain areas of the City are eligible for reduced TIF rates. (See attached map.) Varies Varies

6 U.S. Small Business Administration - South Florida District Office: 100 S. Biscayne Blvd. - 7th Floor, Miami, FL (305) website - Foreign Trade Zone Resource Center: Foreign Trade Zone Corporation, website - Enterprise Florida, Inc., Capital Development: 390 North Orange Avenue, Suite 1300, Orlando, Florida 32801, (407) website Office of Tourism, Trade and Economic Development: The Capitol, Suite 2001, Tallahassee, Florida 32399, (850) website Department of Revenue: 1379 Blountstown Highway, Tallahassee, Florida 32304, (850) website Workforce Florida, Inc.: 1974 Commonwealth Lane, Tallahassee, Florida 32303, (850) website - City of St. Petersburg - Economic Development Department: One 4th Street North, St. Petersburg, Florida 33701, (727) website - City of St. Petersburg - Business Assistance Center: 33 6th Street South, Suite 301, St. Petersburg, Florida 33701, (727) website - Pinellas County - Economic Development Department: th Street North, Suite 1-200, Clearwater, Florida 33760, (727) website Source: City of St. Petersburg Economic Development Department, Updated February 2006

7 HUBZone (Historically Underutilized Business Zone ) Map

9 City of St. Petersburg Enterprise Zone Boundary Map

Incentives for Small Businesses

Incentives for Small Businesses The following overviews of incentive programs are summarized and presented based on a company s location in St. Petersburg, Florida. This summary is for reference purposes