Times Chart
The hidden cost of economic development
Economic development could cost the state of Florida an estimated $900-million this year. The biggest chunk of that -- $792-million -- is the potential revenue Florida loses through a series of tax breaks designed to encourage companies to invest in the state and create jobs. Because tax returns are confidential, it's often impossible for the public to find out which companies benefit and how much they get. Here are some of the tax breaks and an estimate of how much revenue Florida will lose because of each in 2004-2005 and 2005-2006.
Tax Breaks
 2004-2005 estimated cost
 2005-2006 estimated cost
Corporate Income Tax
Allows for a deduction of wages paid for targeted jobs in Florida
 $2,500,000
 $2,700,000
Credit of 5% of capital costs for up to 20 years
 $100,000
 N/A
Credit for contributing to community projects
 $3,900,000
 $4,200,000
Credit for hiring in certain urban high-crime areas
 $1,400,000
Credit for hiring in certain rural areas
 $1,500,000
–  
Credit for creating jobs in enterprise zone
 $900,000
$1,000,000
Credit to new and expanding businesses in enterprise zone
 $1,000,000
–  
Credit for child care facilities operated by a business for its employees
 $2,000,000
 $2,000,000
Exemption for certain banks catering to foreign customers
 $9,800,000
 $10,500,000
Deduction for businesses that do research and development in conjunction with state universities
 $3,100,000
 $3,300,000
Documentary Stamp Tax
Exemption for certain international banking transactions
 $29,700,000
 $25,900,000
Insurance Premium Tax
Credit for a % of wages paid to employees located in Florida
 $196,900,000
 $214,900,000
Credit for investing in certain venture capital firms
 $15,000,000
 $14,800,000
Credit for contributing to community projects
 $500,000
  –
Credit of 5% of capital costs for up to 20 years
 $300,000
 $1,700,000
Intangibles Tax
Exemption for accounts receivable, money owed to a company by a customer for products and services provided on credit
 $56,600,000
 $57,800,000
Motor Fuel Tax
Refund for fuel taxes paid by air carriers with employees in the state
 $10,900,000
 $12,100,000
Sales and Use Tax
Exemption on leases or rentals of property used for movie production
 $4,900,000
 $5,200,000
Exemption to encourage commercial fish breeding and beekeeping
 $100,000
 $100,000
Exemption on items manufactured for research and development activities
 $32,100,000
 $33,000,000
Exemption for items manufactured for movie productions
 $8,500,000
 $9,000,000
Exemption for printing for out-of-state customers when they provide the paper
 $15,900,000
 $16,300,000
Exemption for sales or leases of materials and equipment used by film schools
 $ 800,000
 $900,000
Exemption on equipment purchased by new businesses
 $24,100,000
 $24,000,000
Exemption on equipment purchased by expanding businesses and spaceports
 $26,300,000
 $13,400,000
Refund for certain movie and recording equipment
 $2,600,000
 $2,700,000
Exemption on equipment purchased by expanding printing facilities
 $9,400,000
 $10,600,000
Exemption for motion picture video equipment
 $4,700,000
 $4,900,000
Refund for certain motion picture or recording equipment
 $2,600,000
 $2,700,000
Additional movie exemptions
 $13,800,000
 $16,000,000
Exemption for building material used by businesses in enterprise zone
 $300,000
 $300,000
Refund for certain depreciable equipment used by businesses in enterprise zones
 $2,100,000
 $2,200,000
Exemption for equipment used in silicon technology
 $2,500,000
 $2,600,000
Exemption for semiconductor clean rooms
 $100,000
 $100,000
Exemption for machinery and equipment used by the defense and space industry
 $2,100,000
 $2,200,000
Exemption for businesses that do certain aircraft modifications
 $25,700,000
 $24,700,000
Exemption on construction materials used in single-family homes in enterprise zone
 $300,000
 $400,000
Exemption on building materials in redevelopment projects
 $400,000
 $500,000
Credit for contributing to community projects
 $8,000,000
 $8,400,000
Exemption for newspapers and magazines delivered by mail
 $11,300,000
 $11,700,000
Exemption on labor charges for repair and maintenance of certain airplanes
 $2,700,000
 $2,800,000
Exemption on labor charges for repair and maintenance of certain helicopters
 $200,000
 $200,000
Exemption on parts and labor for certain aircraft repair and maintenance
 $2,700,000
 $2,800,000
Exemption on electricity charges used to operate manufacturing machinery and equipment
 $52,300,000
 $57,500,000
Exemption on purchase of solar energy systems
 $1,200,000
 $1,300,000
Exemption on shipping, parts, and labor for machinery repair
 $12,700,000
 $13,900,000
Exemption on sales or lease of certain aircraft by airline companies
 $2,800,000
 $3,000,000
Exemption on materials used by certain printing businesses
 $6,400,000
 $6,700,000
Partial exemption on aircraft brought to Florida for repairs
 $6,900,000
 $7,200,000
Partial exemption on equipment purchased, used or leased to produce records, tapes and motion pictures in Florida
 $28,200,000
 $29,600,000
Exemption on electrical charges used in enterprise zone
 $400,000
 $400,000
Exemption on satellites, space vehicles and property placed on satellites
 $131,000,000
 $128,500,000
Credit for creating jobs in enterprise zone
 $1,400,000
 $1,500,000
Credit for hiring in certain urban high-crime areas
 $5,600,000
 $5,900,000
Severance Tax
Credit for sales tax paid on equipment and machinery by new and expanding phosphate mines
 $2,900,000
 $2,900,000
Total these exemptions, deductions, refunds or credits:
 $  792,100,000
 $807,000,000
Sources: 2004 and 2005 Florida Tax Handbooks, Florida Senate

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