Tax incentives are offered to new and expanding businesses that meet the requirements set forth by the Hamilton County Board of County Commissioners.
For further information and details on these incentives contact the E.Z.D.A. at 1-866-341-2492.
JOBS TAX CREDIT (Sales & Use Tax)
Allows businesses located in a rural FL EZ, who collect and pay FL sales and use tax, a monthly credit against their tax due on wages paid to new employees in a new full-time job who have been employed by the business for at least 3 months and are residents of a rural FL county. Businesses located within a “Rural EZ,” will receive a credit of 30% paid to new eligible employees who are residents of a “Rural County”. If 20% or more of the permanent, full-time employees are residents of a FL EZ, the credit is 45%. The credit is limited to the amount of tax due on each return. There is no refund or carry-forward for credit in excess of the tax due. Credit is not available if the EZ Jobs Tax Credit, (corporate tax), is taken. Credit is limited to 24 months if the employee remains employed for 24 months.
JOBS TAX CREDIT (Corporate Income Tax)
Allows businesses located in a FL rural EZ who pay corporate income tax a corporate income tax credit for the wages paid to new employees (In a new full-time job) who have been employed by the business for at least 3 months and are residents of a rural FL county. Businesses located within a “Rural EZ” will receive a credit of 30% paid to new eligible employees who are residents of “Rural County”. If 20% or more of the permanent, full-time employees are residents of a FL EZ, the credit is 45%. A 5-year Carry-forward provision is available for unused portions of past credits. Firms must earn more than $5,000 to take advantage of the credit. The Federal tax burden may increase since state tax liability is reduced. The amount of the credit also must be added back to FL taxable income. This credit is not available is the Credit Against Sales tax for Job Creation is taken.
SALES REFUND FOR BUILDING MATERIALS
A refund is available for sales taxes paid on the purchase of building materials used to rehabilitate real property located in an EZ. The total amount of the sales tax refund must be at least $500, but no more than the lesser of $5,000 or 97% of the tax paid per parcel of property. If 20% or more of the permanent, full-time employees of the business are residents of a Florida EZ, the refund will be no more than the lesser of $10,000 or 97% of the tax paid per parcel.
SALES TAX REFUND FOR BUSINESS MACHINERY & EQUIPMENT
A refund is available to businesses for sales taxes paid on the purchase of certain personal business property used exclusively in an EZ for at least 3 years. Business equipment must have a sale price of at least $5,000 per unit. The maximum refund will be no more than $5,000 or 97% of the tax paid. If 20% or more of the permanent, full-time employees of the business are residents of a Florida EZ, the refund will be no more than the lesser of $10,000 or 97% of the tax paid.
PROPERTY TAX CREDIT (Corporate Income Tax)
New or expanded businesses located in an EZ are allowed a credit on FL corporate income tax equal to 96% of ad valorem taxes paid on the new or improved property (the assessment rate varies by county). Any unused portion of the credit may be carried forward for 5 years. The credit can be claimed for 5 years, up to a maximum of $50,000 annually, if 20% or more employees are EZ residents; otherwise the credit is limited to $25,000 annually. Firms must earn more than $5,000 to take advantage of the credit.
COMMUNITY CONTRIBUTION TAX CREDIT PROGRAM
Allows Businesses anywhere in Florida, a 50% Credit on FL corporate income tax, or insurance premium tax, or sales tax refund for donations to local community development projects. Donations must be made to an eligible sponsor conducting and approved community development project. The annual amount of credit granted is limited to $200,000 per firm, and $10,000,000 for the state. For each dollar donated, businesses may receive a 55.5-cent reduction in FL tax liability (50 cents from the credit, 5.5 cents from the deductibility of the donation). The donation may also be deducted from Federal taxable income. A 5-year carry-forward provision is available for an unused portion of the corporate income tax credit (sales tax refunds are available for up to 3 years after the first application).