Corporate Tax

Relocation of your organization headquarters to Florida? Do not Neglect Your Enterprise Incentives | Bilzin Sumberg

Because of Florida’s business-friendly climate and warm weather, the state has always been a destination for corporate headquarters relocation and business expansion. Coupled with the elimination of the SALT deduction and a focus on quality of life issues in the age of COVID, Florida has moved from being shortlisted to being the default choice for expansion and relocation. Among the highlights of the state’s business-friendly climate, Florida is a state entitled to work and has no state income tax, but there are also significant opportunities for Florida business relocation incentive packages that can be created for businesses.

While packages can be customized based on benefit to the state of Florida and the specific jurisdiction within the state, there are also a number of state-wide programs that can be enjoyed depending on the type of move or expansion. Two of these nationwide programs are the Capital Investment Tax Credit (CITC) and the High Impact Performance Incentive (HIPI).

The Investment Tax Credit (CITC) offers the benefits of an annual credit that is granted for up to 20 years and used against corporate income tax. An annual credit can be used for up to 20 years at an annual rate of up to 5% of the eligible capital costs of a qualified project. The annual credit amount is determined by the amount of investment and corporate tax liability of the Florida project for the 20 years following operations. The CITC is available for large corporate headquarters relocations and specifically for the following sectors: advanced manufacturing, clean energy, biomedical technology, financial services, information technology, silicon technology, and transportation manufacturing.

The High Impact Performance Incentive (HIPI) offers the benefits of a negotiated grant from the Florida Department of Economic Opportunity. After approval, 50% of the grant can be made available when the activity starts. The remainder of the grant will be made available once the goals of full employment and capital investment are achieved. The HIPI is available for the extensive relocation of corporate headquarters and the following specific sectors: advanced manufacturing and semiconductors, clean energy, life sciences, financial services, information technology, and transportation manufacturing.

A number of other programs are available nationwide or in tailored packages, such as:

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