The State of Florida, Marion County and the City of Ocala aggressively seek new job creating investment by offering various incentives to assist companies in their site and community selection process. These incentives come in the form of grants, refunds, or abatements and may be used singularly or in concert with each other to enhance a company’s profitability. Typical uses for incentives include: personnel recruitment and training, infrastructure development, mitigating moving costs, reduction of start-up expenses, etc. Generally most incentives may be applied for by new or existing industry although the amounts may vary due to differing formulas applied to the status of the applicant. NOTE: In many cases incentive programs require a condition to exist whereby the company makes a declaration that the funds are needed to help them decide on a specific site or community thereby creating the “inducement.” Commitments prior to this declaration may prohibit the company from being eligible for the funds.
For your convenience, the incentives data is available in a downloadable pdf format. Click here to view Incentives.
LOCAL
CITY OF OCALA:
Economic Improvement Fund: (EIF) A fund generated by the Ocala Electric Utility and managed by the Ocala City Council. Funds may be used for a myriad of purposes including; infrastructure development, training, matching funds grants including State sponsored QTI program, etc. Each case is considered on an individual basis.
NOTE: Applicants MUST locate within the City’s utility service area and each application is approved by Ocala City Council.
MARION COUNTY:
Economic Development Financial Incentive Grant: (EDFIG) A grant program that authorizes direct cash grants to qualified companies that invest a minimum of $300,000 and create a minimum of 10 new jobs in the County. Grant amounts are equal to a percentage of the increased Advalorem taxes generated by the project. Grant amounts vary according to location. Marion County Industrial
Revenue Bonds: (IRBs) A Marion County supported financing program designed to utilize assets and future income of the applicant to guarantee payment of low interest loans. Interest paid to bond purchasers is exempt from federal income tax allowing the buyer to pass along savings to the company in the form of lower rates. Funds may be used for land, building and equipment purchase as well as some “soft costs” such as architectural fees, etc. Users must be manufacturers, health care related and certain non-profits. The maximum amount allowed is $20,000,000 and the practical minimum is $1,500,000. Interest rates are negotiable and are usually tied to a percentage of the current prime rate. A federally mandated per capita amount of bonds are allowed annually.
NOTE: Industrial Development Bonds MUST be used as an inducement.
STATE OF FLORIDA:
Qualified Target Industry program: (QTI) A State sponsored tax refund program based on the number of jobs created and the quality of those jobs. The program allows for refunds of up to $3,000 per job created within certain industrial sectors. Refunds may be taken against corporate income tax, sales tax, intangible personal property tax, insurance premium and certain other taxes. Requirements are that a minimum of ten (10) new jobs be created and that those jobs pay a minimum of 115 percent of the County’s average wage. (Salary requirement may be waived in a Brownfield site or enterprise zone.) Local governments must agree to a matching fund of 20 percent of the total requested. Program may be used in conjunction with other programs such as “Brownfields” to increase the total per job funding amounts.
NOTE: The QTI refund program MUST be used as an inducement.
Quick Response Training program: (QRT) A State sponsored training program designed to help companies identify, recruit and train employees during initial phases of locating or expanding in a Florida community. The program requires at least 10 new full-time jobs be created and allows for training in educational or company facility. Company salaries must be at least 115 percent of the County’s average wage. (Salary requirement may be waived in a Brownfield site or enterprise zone.) Training programs can be established locally through Central Florida Community College, the Marion County School System or other approved facilities.
Economic Development Transportation Fund: (EDTF) A State sponsored infrastructure program designed to remove any transportation impediments to a company choosing a specific site within a community. Application is made in name of company by local government having jurisdiction over impacted roads. Grant amounts are directly tied to jobs created. Grants of $1,000,000 or more require 200 new jobs, $200,000 to $1,000,000 require 100 or more new jobs and less than $200,000 must produce up 100 new jobs. Maximum grant amount is $2,000,000.
NOTE: The Road Fund MUST be used as an inducement.
Enterprise Bond: A Statewide program administered by Enterprise Florida whereby smaller industrial revenue bond requests are pooled together to make the sale financially feasible. Each request must stand on its own merits and the pooled bonds are sold when the assembled total equals $4,000,000. Similar to the regular IRB program and subject to federal guidelines.
Waiver of Sales Tax on Power Consumption by Manufacturers: A State program that allows communities (if they choose to do so) to eliminate the State’s portion of the sales tax normally charged on power consumption in the manufacturing process. The applicant must commit at least 75 percent of its physical structure to a manufacturing process and must request the elimination from their power supplier.
Capital Improvement Tax Credit: (CITC) A program of annual credits against the Florida Corporate Income Tax based on a percentage of capital investment. Program applicable to specific sectors including: life sciences, financial services, corporate headquarters, information technology, transportation equipment manufacturing and semiconductors. Minimum investment needed to qualify for this program is $25 million.
Incumbent Worker Training: A training program funded by the Federal Workforce Investment Act and administered by Workforce Florida, Inc. Provides training to existing workers to maintain workforce competitiveness. Training can occur at community college, vocational centers or company’s facilities. Business must provide matching contribution and training must be completed by end of State’s fiscal year (June 30 th).
Machinery and Equipment Sales Tax Exemption: Machinery and equipment used in the manufacturing process may be exempt from Florida Sales Tax through a process of pre-applying for an exempt status. Existing industries must demonstrate an increase in production of a minimum of ten percent. Program is administered through the Florida Department of Revenue.
Urban Job Tax Credit Program: A program of tax credits against Florida’s Corporate Income Tax or Sales and Use Tax for companies locating within specific urban areas and employing specific number of employees. Communities are identified by size which dictates number of employees necessary. Tax credits vary from $500 per job created to $1,500 for each new job.
NOTE: The State of Florida maintains additional incentives specific to certain industrial sectors.
FEDERAL PROGRAMS:
Foreign Trade Zone Program: A federal program that allows communities to apply for certification of a specific site as a Foreign Trade Zone. Ocala has been approved as Foreign Trade Zone # 217 which is located at Ocala Regional Airport. Companies housed in the trade zone may bring items into the zone, process them and send them back out without paying import tariffs. Items destined for import to the U.S. may be held in the Zone, until sold, thereby improving a company’s cash flow. Customs services are available at the Zone.
FOR MORE INFORMATION CONTACT:
OCALA/MARION COUNTY ECONOMIC DEVELOPMENT CORPORATION
Enterprise Center ◊ Suite 105 3003 SW College Road
Ocala, Florida 34474
TEL: (352) 291-4410 FAX: (352) 291-4414
marketing@ocalaedc.org www.ocalaedc.org |
