In partnership with city, county, and state governments, Hendry County can help qualified businesses secure tax refunds or tax-free bond financing.
Property Tax Exemptions
Hendry County has passed an Economic Development ordinance allowing for the exemption of property taxes for real estate improvements and equipment. Qualifying firms must either build new facilities or expand existing facilities and hire 10 or more new full-time employees to be eligible for up to 10 years ad valorum county tax exemptions. The current ad valorum tax rate is 8.91 mils.
Industrial Revenue Bonds
Hendry County has been a leader in the issuance of Industrial Revenue Bonds. Bonds are for financing a wide variety of manufacturing projects, and range in amounts from $2,000,000 to $10,000,000. The state of Florida also offers a small bond program.
Qualified Target Industry Tax Refund Program
This program, administered through Enterprise Florida, provides tax refunds to pre-approved applicants of up to $5,000 per new job created. New or expanding businesses in selected targeted industries or corporate headquarters are eligible. Industries approved under the QTI program include:
- Corporate Headquarters
- Fabricated Metal Products
- Food and Kindred Products
- Industrial Equipment and Machinery
- Apparel and Other Textile Products
- Electronic and Electric Equipment
- Furniture and Fixtures
- Transportation Equipment
- Paper and Allied Products
- Instruments and Related Products
- Rubber and Miscellaneous Plastics
- Miscellaneous Manufacturing
- Primary Metal Industries
- Back Office Insurance and Finance
Sales Tax Exemption
Expanding businesses may be eligible for sales tax exemptions. Sales and use tax exemptions are available for manufacturing equipment purchases above $50,000, research and development costs, exemptions for the motion picture, television, and sound recording industries.
Manufacturer's Electricity Sales Tax Exemption
Charges for electricity used directly and exclusively to operate machinery and equipment used to manufacture or produce items for sale or to operate pollution control, recycling or maintenance equipment are exempt from sales tax. A five year phase in period will be used to implement this exemption. Beginning on July 1, 1997, 20% of qualifying electricity charges will be exempt. The exemption will increase to 40% beginning on July 1, 1997, 60% beginning on July 1, 1998, 80% on July 1, 1999, and finally 100% on July 1, 2000.
Recycling Tax Incentives
In 1988, several tax incentives were created to encourage business recycling and to spark the development of the recycling industry in Florida.
Manufacturing Equipment Tax Exemption
Designated new manufacturing industries locating in Florida are allowed a refund on the 6% sales tax paid on purchases of new machinery and equipment qualifying as Section 38 property, as defined in the Internal Revenue Code. If a manufacturer obtains a temporary exemption permit from the Department of Revenue, then qualifying machinery and equipment may be purchased tax exempt instead of the firm paying the tax and claiming a refund.
Expanding Florida manufacturers who meet specific criteria can also qualify for an exemption on new production machinery and equipment. For an existing manufacturer wanting to expand, a $50,000 cap on sales tax liability is imposed for purchases of machinery and equipment that will increase production by at least 10%.
Aircraft Tax Exemption
Aircraft Tax Exemption - Repairs, modification, and maintenance of aircraft weighing over 20,000 pounds are exempt from sales taxes.
Aerospace Tax Exemption
Aerospace Tax Exemption - Machinery, fuel, and equipment for production of items used exclusively at Spaceport Florida are tax exempt.
Agriculture Tax Incentive
Agriculture Tax Incentive - Sale of farm equipment is taxed at only 3%.
Boiler Fuel Tax Exemption
Boiler Fuels (which include recycled oil, waste oil, and solid waste materials used as fuel,) materials incorporated in the final product, and containers/packaging are not subject to sales and use tax.
Computer Software Tax Exemption
Custom software and certified resource recovery equipment are exempt from the sales and use tax, as is cogeneration of electricity.
Pollution Control Tax Incentive
Equipment is assessed at salvage value for property tax purposes.