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Area Development - Site Selection, Facility Planning and Workforce Development

Florida Basic Business Taxes 2011

Florida's economic development, finance, and tax organizations provide a range of incentive programs to initiate new business and commercial investment. Specific programs include a Qualified Defense and Space Contractor Tax Refund and a Capital Investment Tax Credit.

March 2011
Corporate income tax:
Florida corporate income tax liability is computed using federal taxable income, modified by certain Florida adjustments, to determine adjusted federal income. A corporation doing business within and outside Florida may apportion its total income. Adjusted federal income is apportioned to Florida using a three-factor formula. The formula is a weighted average, designating 25 percent each to factors for property and payroll, and 50 percent to sales. Non-business income allocated to Florida is added to the Florida portion of adjusted federal income. An exemption of up to $5,000 is subtracted to arrive at Florida net income. Tax is computed by multiplying Florida net income by 5.5 percent.

Sales and use taxes:
Sales tax is 6 percent with a county option of 0-1.5 percent.

Florida has no.
• corporate income tax on limited partnerships;
• corporate income tax on subchapter S-corporations;
• state personal income tax guaranteed by constitutional provision;
• corporate franchise tax on capital stock;
• state-level property tax assessed;
• property tax on business inventories;
• property tax on goods-in-transit for up to 180 days;
• sales and use tax on goods manufactured or produced in Florida for export outside the state;
• sales tax on purchases of raw materials incorporated in a final product for resale, including non-reusable containers or packaging; or
• sales/use tax on co-generation of electricity.

Florida offers Sales and Use Tax Exemptions on.
• Machinery and equipment used by a new or expanding Florida business to manufacture, produce or process tangible personal property for sale;
• Labor, parts and materials used in repair of and incorporated into machinery and equipment;
• Electricity used in the manufacturing process;
• Certain boiler fuels (including natural gas) used in the manufacturing process;
• Semiconductor, defense and space technology-based industry transactions involving manufacturing equipment;
• Machinery and equipment used predominantly in research and development;
• Labor component of research and development expenditures;
• Commercial space activity - launch vehicles, payloads and fuel, machinery and equipment for production of items used exclusively at Spaceport Florida;
• Aircraft parts, modification, maintenance and repair, sale or lease of qualified aircraft; and
• Production companies engaged in Florida in the production of motion pictures, made-for-television motion pictures, television series, commercial music videos, or sound recordings.

Florida State Contact:
Enterprise Florida, Inc.
800 North Magnolia Avenue, Suite 1100
Orlando, FL 32803
(407) 956-5600
Fax: (407) 956-5599

Incentive and tax information is provided to Area Development by each state's economic development or commerce agency for information purposes only and is subject to revision at any time by the state government. Please contact the state agency directly for full requirements and offerings.

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