Florida Tax Incentives for Businesses

It’s no surprise Florida is consistently one of the most business-friendly states in the country. 

Its low corporate tax and the list of tax incentives for economic development are largely the reason for this. Florida tax incentives include a wide array of credits and other financial incentives.

In this guide, we’ll walk you through the available Florida tax incentives and what you need to know to access them.

Job Creation Incentives

This is for creating new jobs:

Experiential Learning Tax Credit Program

This program encourages businesses to hire apprentices, pre-apprentices, and student interns. The details include:

• Available for tax years 2022 through 2025

• $2,000 tax credit per apprentice/intern hired

• Maximum credit of $10,000 per year

• They also allow you to carry your credit forward for up to two years

• Apply online with the Florida Department of Revenue

To qualify, businesses must:

• have existed and been operational for at least 3 years

• have in full-time employment at least one qualifying intern for 9+ consecutive weeks 

• OR have one qualifying apprentice for 500+ hours

• have 20%+ of their full-time employees as former interns/apprentices

Rural Job Tax Credit 

This program incentivizes job creation in Florida's 36 designated rural counties:

• Tax credit of $1000 to 5000 per new qualified employee

• Up to $500,000 of maximum credit per calendar year

• Can be applied to corporate income tax or sales/use tax.

• Credit may be carried forward for 5 years.

To qualify, businesses have to:

• Be located in a designated rural area.

• Operate in an eligible industry. For example, agriculture, manufacturing, and tourism.

• Meet minimum job creation requirements based on business size

Urban High-Crime Area Job Tax Credit

Similar to the rural program, this credit encourages job creation in 13 specified urban areas.

• $500 - $2,000 tax credit per new qualified employee

• Can be applied to sales/use tax or corporate income tax

• You have 5 years to carry the credit forward

Similar eligibility requirements to the rural program apply but apply to urban high-crime areas.

Capital Investment Incentives

Florida also allows businesses to take advantage of programs to get them to invest in the state:

Capital Investment Tax Credit

This focuses on the high-impact industries that are investing heavily:

• For designated sectors like technology, transportation, and clean energy

• Requires a minimum investment of $25 million and at least 100 full-time new jobs

• Credit of 5-100% of eligible capital costs for up to 20 years

• Must be certified by the Florida Department of Commerce

Contaminated Site Rehabilitation Tax Credit

It rewards businesses for rehabilitating brownfield sites:

• Eligible rehabilitation costs get a 50% tax credit

• Up to $500,000 per site per year

• 5 years to carry credit forward

• Must be approved by the Florida Department of Environmental Protection

New Markets Tax Credit

The main goal of this program is to encourage investment in low-income communities:

• 39% tax credit on qualified investment purchase price

• 7 years to claim credit

• Can be carried forward for 5 years

State Housing Tax Credit

For businesses that provide low-income housing in urban areas:

• Up to 9% credit on eligible costs for each year of the credit period

• Run by Florida Housing Finance Corporation

Research and Development Florida Tax Incentives

There are also incentives for businesses engaged in research and development activities:

Research and Development Tax Credit

Like the federal R&D credit, this program rewards qualifying research expenses:

• Qualified research costs are subject to a 10% tax credit

• For businesses in the eligible target industries like the technology or manufacturing industries

• They must also qualify for a federal R&D tax credit

• Apply through the Florida Department of Commerce

Exemption for Research or Development Costs

It is a sales and use tax exemption on certain R&D expenses:

• Commercially exploitable results must be produced

• It excludes ordinary testing, quality control, and non-technical research

Credit for Manufacturing of Human Breast Milk Derived Human Milk Fortifiers

This unique credit supports businesses in this specialized industry:

• 50% tax credit on equipment costs for the production of human milk fortifiers

• For tax years 2023-2024

• It can be carried forward for 5 years 

Energy and Environmental Incentives

Several Florida tax incentives encourage renewable energy and environmental protection:

Solar Energy Systems Exemption

Businesses that purchase solar energy systems are exempt from sales and use tax, provided:

• In actuality, the system takes sunlight and turns it into usable energy.

• Florida Solar Energy Center certifies equipment.

• Total product cost can be separated from the cost of solar components

Hazardous Waste Facility Tax Credit

Offered to owners of commercial hazardous waste recycling facilities:

• Credit for expenses related to site evaluations and permitting

• Get an additional 5% credit on the cost of stationary recycling equipment

Industry-Specific Florida Tax Incentives

Several Florida tax incentives are available for specific business activities and industries:

Entertainment Industry Tax Credit

This program is no longer accepting new applications, but credits may still be claimed:

• Florida qualified production activities tax credit

• Florida Department of Commerce approval is a requirement

• It can be carried forward for 5 years

Film in Florida Sales Tax Exemption

Sales and use tax exemptions are available to qualified production companies on:

• Payment for the purchase or lease of certain production equipment

• Rental of real property (sets, stages, etc.)

Credit for Qualified Railroad Reconstruction or Replacement Expenditures

Available to Class II and Class III railroads:

• Qualified railroad expenditures in Florida get a 50% tax credit

• Maximum credit is limited to $3,500 per mile of track owned or leased in Florida

Community Development Incentives

There are other programs Florida offers to promote business investment in community development:

Community Contribution Tax Credit

Donations to eligible community development projects can give tax credits to businesses:

• A tax credit of 50% on contributions of cash, property, or goods

• Credits per business of up to $200,000 annually

• Applied to corporate income tax, insurance premium tax, or sales tax

• The credit can be carried forward for 5 years

New Worlds Reading Initiative Tax Credit

This gives support to programs that promote childhood literacy:

• Dollar-for-dollar tax credit for contributions to the initiative

• Can be applied to many state taxes (corporate income, beverage excise, and many more.)

Strong Families Tax Credit

This program supports child welfare organizations:

• Dollar-for-dollar tax credit on donations to qualified charities.

• Can be used for multiple state taxes.

Live Local Program Tax Credit

It encourages donations to affordable housing programs:

• Dollar-for-dollar credit for corporate income or insurance premium tax

• Florida Housing Finance Corporation donations

Scholarship-Funding Organizations Tax Credit

Tax credits are available for contributions to nonprofit scholarship organizations:

• Dollar-for-dollar credit toward various state taxes

• Supports school choice programs in Florida

In Summary

Florida tax incentives allow businesses to reduce their tax burden while contributing to the state’s growth. You can do business strategically with these incentives in your business plans. This can help you make the best use of the advantages of operating in Florida’s business-friendly environment. As always, consult qualified tax professionals. Just to ensure you’re snatching up all applicable incentives and staying compliant with state regulations.

At our pay stub generator, we help businesses of all sizes streamline their operations. So, you can take full advantage of Florida tax incentives. With our easy-to-use tools, you can handle payroll and create professional pay stubs easily. This ensures you devote more time to strategic growth and maximizing available tax credits.

* Photo sourced from Benham Norouzi on Unsplas