Incentives for Economic Development Bob Rohrlack, CEcD Senior Vice President Enterprise Florida

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Incentives for Economic DevelopmentBob
Rohrlack, CEcDSenior Vice PresidentEnterprise
Florida
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Why we use incentives

• To promote creation of high-quality jobs
• To diversify Floridas economy
• To support business retention, expansion, and
  location opportunities
• To foster economic growth in special needs areas

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Qualified Target Industry (QTI) Tax Refund

• Tax refund based on net new to Florida jobs (10
  min.)
• Refund of multiple state and local taxes
• sales, corporate income, ad valorem, others
• Average wage at least 115 (state or local)
• Requires 20 local match
• Must be a clear inducement for expansion or
  location
• Special considerations for Rural Areas,
  Enterprise Zones, and Brownfields
• Performance based incentive

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Economic Development Transportation Fund (EDTF)
or Road Fund

• Grant to local government to alleviate a
  transportation impediment
• Turn lanes
• Signalization
• New road construction
• Must be an inducement for retention, expansion,
  or location
• Eligibility requirements similar to QTI
• Funded at 10M for FY 2006/07

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Workforce Incentives

• Administered by Workforce Florida, Inc.
• Customized training for new and employees
• Managed through local educational institution
• Quick Response Training (QRT)
• QTI eligible businesses
• Focus is on new employees
• Incumbent Worker Training (IWT)
• Open to all businesses
• Skills upgrade training for existing workers

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Discretionary Incentives

• Quick Action Closing Fund
• Deal closing tool used at the discretion of the
  Governor and the Legislative Budget Commission
• Addresses a competitive gap vis-à-vis other
  states
• New statutory requirements include
• Average wage of 125
• 5 1 payback to the state
• Local support
• Innovation Incentive
• RD
• Innovation business

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Special Needs Areas

• Rural
• Rural Job Tax Credit
• Rural Infrastructure Fund
• Regional Rural Development Grant
• Rural Revolving Loan Fund
• Urban
• Urban Job Tax Credit

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Special Needs Areas (continued)

• Enterprise Zones
• EZ Jobs Tax Credit
• Sales Tax Refund for Business Machinery and
  Equipment
• Sales Tax Refund for Building Materials
• Property Tax Credit
• Brownfields
• Brownfield Bonus tax refund (with QTI or
  stand-alone)
• Special considerations for other incentives
• Increased flexibility
• QTI average wage waiver

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Sales Tax Exemptions

• RD equipment (new!)
• Manufacturing machinery and equipment and
  subsequent labor, parts, and materials used to
  repair equipment
• Semiconductor, defense, and space technology
  production equipment
• Electricity used in the manufacturing process
• Certain boiler fuels, including natural gas, used
  in the manufacturing process
• Certain aircraft and spacecraft expenditures
• Film, television, and other production activities

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2006 Legislative Update

• RD equipment sales tax exemption
• Elimination of the 50,000 sales tax threshold
  for MME (10 expansion threshold still required)
• Defense and Space (SDST) exemption increased to
  100 approval process simplified
• 12 month confidentiality period
• Closing Fund eligibility requirements
• Innovation Incentive

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Additional Items

• Annual incentives report
• Testify to legislature
• Competitive analysis
• Incentives marketing
• Training workshops

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Contacts Business Retention and Recruitment

• Bob Rohrlack, Senior Vice President of Business
  Retention and Recruitment
• 407.316.4740 brohrlack_at_eflorida.com
• Dan Weber, Director of Business Recruitment
• 407.316.4734 dweber_at_eflorida.com
• Crystal Sircy, Vice President, Competitive
  Programs and Policies
• 850.488.0992 csircy_at_eflorida.com
• Marty Wilson, Incentives Manager
• 407.316.4625 mwilson_at_eflorida.com
• Michelle Lay, Incentives Manager
• 850.922.8737 mlay_at_eflorida.com
• Bridget Merrill, Senior Director, Rural
  Competitiveness and Policies
• 850.922.8655 bmerrill_at_eflorida.com
• April Money, Rural Program Coordinator
• 850.488.9366 amoney_at_eflorida.com

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Contacts Workforce Florida

• Jayne Burgess, Program Director
• 850.922.8933 jburgess_at_workforceflorida.com
• Debbie McMullian, QRT Coordinator
• 850.922.8647 dmcmullian_at_workforceflorida.com
• Catherine Kennedy, IWT Coordinator
• 850.921.8646 ckennedy_at_workforceflorida.com

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