Housing and Community Development News and Updates

Miami-Dade County Tax Incentive

• Exemption of Sales Tax on Electricity: 50% reduction in the sales tax on electricity for up to five (5) years.

(Only available in the unincorporated areas of the Enterprise Zone) 

State of Florida Sales Tax Incentives

• A corporate Tax Credit of 20%, or 30% of wages paid for new jobs created for Enterprise Zone residents. 96% of Corporate Tax credit on ad valorem taxes not abated by local government.
• 50% of contributions made to approved community organizations is credited against state corporate income taxes.

State of Florida Corporate Income Tax Benefits

• A corporate Tax Credit of 20%, or 30% of wages paid for new jobs created for Enterprise Zone residents. 96% of Corporate Tax credit on ad valorem taxes not abated by local government.
• 50% of contributions made to approved community organizations is credited against state corporate income taxes.

Sample Saving Computation of a Business in an Enterprise Zone

The following illustrates the financial advantages for a business in an unincorporated area of an Enterprise Zone, with a total project cost of $5,344,000 as of September 18, 2008:

• 50% Exemption on County Sales Tax on Electricity: $30,000. 

Assumes a sales tax exemption on electricity of $500 per month.  Five (5) year term.

• Enterprise Zone Property Tax Credit: $250,000

Assessed value of existing building, land, tangible personal property and improvements to existing building totaled $5,250,000 (5 year term).

• Enterprise Zone Jobs Tax Credit: $162,000

The company created 100 new jobs in the facility, of which 30 (30%) are filled by Enterprise Zone residents, with an average wage was $1,500 per month; therefore, the maximum credit of 30% against State corporate income tax was obtained (1 year term).

• Business Equipment Sales Tax Refund: $10,000

A 97% refund of the actual sales tax (6%) paid on business and machinery equipment.

• Building Materials Sales Tax Refund: $10,000

Extensive work needed on this company's building allowed a claim in the maximum amount.

• Sales Tax Exemption on Electricity: $18,000

Exemption is proportionate to the County's incentive.

• Total savings over the life of investment: $480,000

Note: Calculations are based on the assumption that the business meets the conditions under each tax credit incentive.  Incentives are not automatic.  They must be applied for individually and may require State or County approval