How Small Businesses Are Rebounding With Tax Incentives (Tax Credits)

I recently read an article on Bloomberg.com, titled: "Small Business Is Hiring, but Very Carefully."  The article indicated that in past recessions, small businesses led the rebound, now they're relying on part-time workers and more productivity with fewer people.  The article also discussed an interview with the CEO of a sales promotion company who let go some of his full-time salespeople as a result of the downturn in the economy. The company later kept these employees on as contractors, reducing payroll costs.  

While reading this article I thought about a conversation I had with a local economic development agency.  Florida and local communities within Florida offer tax incentives to businesses to help with their growth and training needs.  There are even greater opportunities for companies located in enterprise zones, brownfield redevelopment, urban and rural areas.  THE PROBLEM? Many small businesses do not take advantage of these opportunities!

As a small business owner, have you thought about getting money to help train your employees?  Or, maybe you’d prefer a tax credit on business equipment and materials?  In a down economy, as a small business owner, you should be excited these opportunities exist.

I hear you asking, what if my business isn’t in Florida?  That is definitely not an issue.  I assure you that your local community offers similar tax incentive programs.  I strongly suggest you contact your local economic development agency and inquire about available tax incentives.  Whatever your situation is, don’t you think you owe it to yourself to at least check these out?

Email me at info@marlynnconsulting.com to find out what incentives are available.  I can also help with other State incentives.

Florida Economic Development Incentives (Part I)

In order to compete for high quality jobs, the Florida offers a number of economic incentive programs to suit your business’ individual need.   Many of these incentives are geared toward new companies, expanding companies, or those considering relocating.  Other types of incentives assist with employee training. Some companies receive incentive funds if they are located  in special areas.  For today’s post, I'm providing details of some incentive opportunities.  To avoid this post being too long, I will present these over a number of posts.  Stay tuned for a number of ways you can SHARE THE COST of growing your business.

TARGETED INDUSTRY INCENTIVES

Qualified Targeted Industry Tax Refund (QTI):   A tool available to encourage quality job growth in targeted high value-added industries.  Eligible companies must be in a target industry; create at least 10 net new full-time Florida jobs (if an expansion project, increase employment by at least 10 percent); and pay at least 115% of the state or county’s average annual wage.  Qualified companies may be eligible for a minimum tax refund of $30,000.  Additional funds are provided to companies whose location is in an enterprise zone, brownfield redevelopment area or designated rural area.

High Impact Performance Incentive Grant (HIPI): This incentive is a negotiated grant used to attract and grow major high impact facilities in Florida.  Eligible projects must operate within designated high-impact sectors (Life Sciences, Financial Services, Transportation Equipment Manufacturing, or Semiconductors); create at least 100 new full-time equivalent Florida jobs (if a R&D facility, create at least 75 new full-time equivalent jobs) in a three-year period; and make a cumulative investment in the state of at least $100 million (if a R&D facility, make a cumulative investment of at least $75 million) in a three-year period.  Once awarded, the business may be awarded 50 percent of the eligible grant upon commencement of operations and the balance of the awarded grant once full employment and capital investment goals are met.

Brownfield Redevelopment Bonus Refund (BFR): This incentive is available to encourage redevelopment and job creation within designated brownfield areas.  To qualify, a company must locate within a brownfield area; be certified as QTI business as defined in Section 288.106, F.S., or be a business that can demonstrate a fixed capital investment of at least $2 million in mixed-use business activities, including multi-unit housing, commercial, retail, and industrial in brownfield areas, or at least $500,000 in brownfield areas that do not require site cleanup; create at least 10 new permanent Florida full-time jobs with benefits (including health insurance at a minimum), excluding construction and site remediation jobs; and show that the project will diversify and strengthen the economy of the area surrounding the site.  A company may receive a tax refund equal to 20 percent of the average annual wage of the new jobs created in a designated brownfield area up to a maximum of $2,500 per new job created.

Send me an email at info@marlynnconsulting.com to find out more about these incentive opportunities.