The Qualified Target (QTI) Tax Refund
The Qualified Target Industry (QTI) Tax Refund is a tool available to encourage quality job growth in targeted high value-added businesses. Pre-approved applicants who create jobs receive tax refunds of $3,000 per net new full-time equivalent job created; $6,000 per job in an Enterprise Zone. For businesses paying 150 percent of the average MSA(North Port-Bradenton-Sarasota) annual wage, add $1,000 per job; for businesses paying 200 percent of the average annual salary, add $2,000 per job. New or expanding businesses in selected targeted industries or corporate headquarters are eligible. If approved, the applicant may receive refunds on the taxes it pays. This includes corporate income, sales, ad valorem, insurance premium, communications services, and certain other taxes. There is a cap of $5 million per single qualified applicant in all years, and no more than 25 percent of the total refund approved may be taken in any single fiscal year.
In order to participate, a company must apply through the Economic Development Corporation of Sarasota County prior to making a decision to locate or expand in Florida. All final decisions on applications are based upon all available information at that time. Any business decisions, such as announcements, leasing of space or hiring of employees, made prior to submission of a complete QTI application will be grounds for disapproval. Projects that clearly do not require inducement will not be approved. In order to qualify for consideration under the program, an applicant must:
- Be in a target industry
- Submit an application before making a decision to locate or expand in Florida, and demonstrate that the tax refund will make a material difference in the company’s decision to locate or expand in the community
- Create at least 10 net new full-time equivalent jobs and, or if an expansion project, increase employment by at least 10 percent (whichever is greater). For a project located in an enterprise zone, the net increase in employment may be waived in special circumstances
- Pay an average annual wage that is at least 115 percent of the state, metropolitan statistical area (MSA)North Port-Bradenton-Sarasota, or the local average wages. For a project located in a designated Brownfield area or an enterprise zone, the wage requirement may be waived in special circumstances. Contact us for more information.
The Qualified Defense Contractor Tax Refund
The Qualified Defense Contractor Tax Refund (QDC) program is a tool to preserve and grow Florida’s high technology employment base – giving Florida a competitive edge as defense or homeland security contractors acquire new contracts or subcontracts, consolidate contracts or subcontracts, or convert contracts to commercial production. Pre-approved projects receive tax refunds of up to $5,000 per job created or saved in Florida. The conversions of defense jobs to civilian production, the acquisition of a new defense contract, or the consolidation of a defense contract are eligible projects. If approved, an applicant may receive refunds on taxes it pays related to the project. This includes corporate income, sales, ad valorem, intangible personal property, and certain other taxes. Up to 25 percent of the total refund may be taken per year as long as the business is maintaining employment and wage levels at the agreed upon level or higher. There is a cap of $7.5 million per single qualified applicant in all years and no more than $2.5 million in tax refunds may be received in any fiscal year. Contact us for more information.
Capital Investment Tax Credit (CITC)
Used to attract and grow capital-intensive industries in Florida, the Capital Investment Tax Credit (CITC) is an annual credit, provided for up to twenty years, against the corporate income tax. The amount of the annual credit is based on the eligible capital costs associated with a qualifying project. 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.
In order to participate in the program, a company must apply to the Economic Development Corporation of Sarasota County prior to the commencement of operations. In order to qualify for consideration under the program, an applicant must:
- Operate within designated high impact portions of the following sectors: Life Sciences, Financial Services, Information Technology, Transportation Equipment Manufacturing, and Semiconductors;
- Create at least 100 new jobs in Florida in connection with the project;
- Make a cumulative capital investment of at least $25 million in connection with the project during the period from the beginning of construction to the commencement of operations.
Eligibility: The amount of the annual credit is up to five percent of the eligible capital costs generated by a qualifying project, for up to 20 years. The annual credit may not exceed a specified percentage of the annual corporate income tax liability generated by the project. Those percentages are:
One hundred percent, for a project with a cumulative capital investment of at least $100 million; Seventy-five percent, for a project with a cumulative capital investment of at least $50 million but less than $100 million; and Fifty percent, for a project with a cumulative capital investment of at least $25 million but less than $50 million. Contact us for more information.
High Impact Performance Incentive Grant (HIPI)
The High Impact Performance Incentive is a negotiated grant used to attract and grow major high impact facilities in Florida. Grants are provided to applicants pre-approved by the Governor’s Office of Tourism, Trade and Economic Development (OTTED) working in cooperation with the Economic Development Corporation of Sarasota County. In order to participate in the program, the project must:
- Operate within designated high-impact portions of the following sectors: Life Sciences, Financial Services, Transportation Equipment Manufacturing, or Semiconductors;
- Create at least 50 new full-time equivalent jobs (if a R&D facility, create at least 25 new full-time equivalent jobs) in Florida in a three-year period; and
- Make a cumulative investment in the state of at least $50 million (if a R&D facility, make a cumulative investment of at least $25 million) in a three-year period.
Contact us for more information.
Quick Response Training Grant (QRT)
The QRT program provides grant funding for customized training for new or expanding “for profit” businesses that require customized entry-level skills training not available at the local level. The program has been structured to be flexible and to “respond quickly” to meet the business’s training objectives. A local fiscal agent (i.e. community college, technical institute, or university) is selected and is available to help develop or deliver the customized program and to provide assistance in the application process. If the business already has a training program in place, the local training provider will supervise and manage the training program and serve as the fiscal agent for the grant funds.
Incumbent Worker Training Grant (IWT)
The IWT program provides grant funding for customized training for existing for profit businesses. Businesses applying for an IWT grant must have been in operation in Florida for at least one year prior to application date, have at least one full-time employee, demonstrate financial viability, and be current on all state tax obligations. Funding priority is given to businesses with 25 or fewer employees.
Economic Development Transportation Fund
Grant to local government to alleviate a transportation impediment that adversely impacts 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 project in Florida and create or retain job opportunities for Floridians. Up to $2,000,000 may be provided to a local government to implement the improvements. The actual amount funded is based on the cost of the necessary improvements and is limited to $5,000 per job created and/or retained. Eligible projects are those that facilitate economic development by eradicating location-specific transportation problems (e.g., access roads, signalization, road widening, etc.) on behalf of a specific eligible company (e.g., manufacturing, corporate/regional headquarters, and certain other multi-state business services). Contact us for more information.