Economic Development and Housing

Qualified Target Industry (QTI) Tax Refund Program

City of Clearwater

QUALIFIED TARGET INDUSTRY (QTI) TAX REFUND PROGRAM

S.288.106.F.S.

How the Program Works

This program provides tax refunds to pre-approved applicants for $3,000 per new job created and $6,000 in an Enterprise Zone, $2,500 bonus in a designated Brownfields area. Plus, there is an increased award per job for extremely high wages. If approved, the applicant may receive refunds on the taxes it pays including corporate income, sales, ad valorem, intangible personal property, insurance premium, and certain other taxes. There is a cap of $5 million per single qualified applicant in all years, and no more than 25% of the total refund approved may be taken in a single fiscal year. New or expanding business in selected targeted industries or corporate headquarters are eligible. The program requires an annual appropriation by the Legislature to execute payments.

Targeted Industries

Only businesses serving multi-state and international markets are targeted. Business must be able to locate to other states. Retail activities, utilities, mining and other extraction or processing businesses and activities regulated by the Division of Hotel and Restaurants of the Department of Business and Professional Regulation are statutorily excluded from consideration.

Effective 9/1/96 Targeted List

• Corporate headquarters
• Business services
• Research and development
• Security and commodity brokers
• Chemical and allied products
• Insurance carriers
• Rubber and misc. plastics
• Holding and other investment offices
• Primary metal industries
• Non-depository Credit Inst.
• Fabricated metal products
• Motion picture sound recording/reproducing studios
• Communications
• Electronic and other electric equipment
• Transportation equipment
• Apparel and other textiles
• Instruments and related products
• Lumber and wood products
• Printing and publishing
• Miscellaneous manufacturing
• Furniture and fixtures
• Wholesale distribution
• Paper and allied products
• Food and kindred products
• Stone, clay and glass
• Industrial machinery and equipment

Business Files Application State Approval Required Prior to Making Decision

This incentive has a "but for" clause. A company has to prove that they would have considered other locations but chose Florida, among other reasons, because of this incentive program. In order to participate in the program, a company must apply to Enterprise Florida prior to making a decision to locate or expand in Florida. All final decisions on applications are based upon all available information at that time. If a company has made public announcements, incurred costs or made commitments at their Florida location, the state deems them ineligible for the QTI program.

The application is a critical part of this program. It is the vehicle used by Enterprise Florida and the Governor’s Office of Tourism, Trade and Economic Development (OTTED) in evaluating the business and the project. Projects will be evaluated based on wage level, economic impact, capital investment, long-term commitment to the state and community, and local support for the project. Thorough responses are of utmost importance.

Qualifications

In order to qualify for consideration under the program, an applicant must meet the following requirements:

• Be a target industry
• Demonstrate that the tax refund is necessary for the business to locate or expand in the community
• Create at least 10 new jobs and, if an expansion project, increase employment by at least 10 percent, jobs must be created within a three-year period
• Effective 1/01/07, the corporate average annual salary of all new hires must be at least $40,230 if wages 150% of state, county or Metropolitan Statistical Area, $52,475, additional $1,000 award per new full-time equivalent job; if 200%, $69,966, additional $2,000 award per each full-time new job
• Show that the jobs make a significant economic contribution to the area economy
• Provide a city resolution recommending the applicant for the incentive and committing the community to provide a local match equaling 20% of the tax refund

For more information, contact Economic Development and Housing.