Florida Business Advantages and Incentives
Florida has traditionally boasted a variety of advantages that make it a profitable site for nearly every type of business while progressive legislation ensures that Florida will remain a magnet for new and expanding business. This fact sheet provides highlights of Florida's advantages, incentives and reasons so many companies have chosen to locate and expand their businesses in Florida.
- In Florida, businesses profit from modest tax bills.
- No sales/use tax on boiler fuels. Corporate income tax rate for C-corporations is 5.5 percent.
- First $5,000 of taxable income apportioned to Florida is exempt.
- No corporate income tax on subchapter S-corporations.
- No state personal income tax guaranteed by constitutional provision.
- No corporate franchise tax on capital stock.
- No state-level property tax; assessed at the county level. Exemptions of up to 10 years may be granted locally to new or expanding businesses. No property tax on business inventories.
- No property tax on goods-in-transit for up to 180 days.
- No sales and use tax on goods manufactured or produced in the state for export outside the state.
- No sales tax on purchases of raw materials incorporated in final product for resale, including non-reusable containers or packaging.
- No sales/use tax on boiler fuels.
Numerous tax incentives benefit new or expanding Florida industries.
- Sales/use tax exemption for purchases of machinery and equipment used by a new Florida business to manufacture, produce, or process tangible personal property for sale. For a an existing Florida manufacturer wanting to expand, a $50,000 cap on sales tax liability is imposed for purchases of machinery and equipment that will increase production b a least 10 percent.
- Sales tax exemption on labor component of Research and Development expenditures.
- Pollution control equipment is assessed at salvage value rather than fair market value for property taxes.
- Foreign source dividends are deleted from corporate income tax base.
- Certain international financial transactions are exempt from documentary stamp tax.
- International banking transactions are not subject to her intangible personal property tax.