With Florida’s pro-business climate and warm weather, the state has always been a target for corporate headquarter relocation and business expansion. Couple that with the elimination of the SALT deduction and a focus on quality of life issues in the age of COVID, Florida has gone from the shortlist to the default choice for expansion and relocation. Among the highlights of the State’s pro-business climate, Florida is a right-to-work state and has no state personal income tax, but there are also significant opportunities for Florida business relocation incentive packages that can be created for businesses.
While packages can be customized commensurate with the level of benefit to the State of Florida and the specific jurisdiction within the State, there are also a number of statewide programs that can be sought depending on the type of relocation or expansion. Two of these statewide programs are the Capital Investment Tax Credit (CITC) and the High Impact Performance Incentive (HIPI).
The Capital Investment Tax Credit (CITC), provides benefits of an annual credit provided for up to 20 years and used against corporate income tax. An annual credit may be claimed for up to 20 years in an annual amount up to 5% of the eligible capital costs generated by a qualifying project. The level of investment and the project’s Florida corporate income tax liability for the 20 years following commencement of operations determines the amount of the annual credit. The CITC is available for the catchall relocation of corporate headquarter facilities, and specifically for the following sectors: advanced manufacturing, clean energy, biomedical technology, financial services, information technology, silicon technology, and transportation equipment manufacturing.
The High Impact Performance Incentive (HIPI), provides benefits of a Florida Department of Economic Opportunity negotiated grant. Once approved, 50% of grant can be provided upon commencement of operations. The balance of the awarded grant is provided once full employment and capital investment goals are met. The HIPI is available for the catchall relocation of corporate headquarter facilities, and the following specific sectors: advanced manufacturing and semiconductors, clean energy, life sciences, financial services, information technology, and transportation equipment manufacturing.
A number of other programs are available statewide or in customized packages, such as employee training funds, sales tax exemptions, ad valorem tax exceptions, Brownfield Redevelopment Bonus Refund, research and development tax credits, and expedited permitting assistance, just to name a few.