Starting a Small Business

Boost Your Small Business: Exploring Tax Incentives For Small Business Owners In Florida

by
Sonu Shukla
on
5/30/2023
Boost Your Small Business: Exploring Tax Incentives For Small Business Owners In Florida

For small business owners in Florida, taking advantage of tax incentives can be a powerful strategy to minimize costs, stimulate growth, and enhance profitability. The State of Florida offers a range of tax incentives specifically designed to support small businesses and foster economic development. In this blog post, we will explore some key tax incentives available in the Sunshine State, providing valuable insights for small business owners looking to maximize their tax benefits.

Qualified Target Industry Tax Refund

The Qualified Target Industry (QTI) Tax Refund program aims to encourage the creation of high-wage jobs in targeted industries. Small businesses that create new jobs in qualifying areas, including manufacturing, financial services, or information technology (IT) may be eligible for tax refunds for each job they create. The refund amount depends on various factors, including the wage workers earn, the number of jobs created, and the industry itself.

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Credit: Michael Warren / Getty Images

Capital Investment Tax Credit

The Capital Investment Tax Credit incentivizes small business owners who choose to make significant capital investments in Florida. This tax credit allows eligible businesses to claim a percentage of the cost of qualifying equipment, machinery, or other eligible investments as a credit against their corporate income tax liability. The credit amount is based on the total qualifying investment made by the business.

Research and Development Tax Credit

To encourage innovation and technological advancements, the Research and Development (R&D) Tax Credit provides incentives for small businesses engaged in qualified R&D activities. Eligible businesses, such as laboratories, can claim a tax credit based on a percentage of qualified R&D expenses, including employee wages, supplies, and contracted research costs. This credit aims to reward businesses for investing in research and development initiatives that drive economic growth.

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Credit: Marie Hickman / Getty Images

Sales and Use Tax Exemptions

Small businesses in Florida can benefit from sales and use tax exemptions on specific purchases. These exemptions include machinery and equipment used mainly for research and development or manufacturing purposes.. Additionally, specific energy-efficient and pollution-control equipment can be eligible for sales and use tax exemptions. These particular exemptions allow small businesses to reduce their upfront costs, ultimately improving positive cash flow.

Enterprise Zone Tax Benefits

Florida's Enterprise Zone program is designed to stimulate economic growth in designated geographic areas facing economic challenges. Small businesses located within these zones may be eligible for various tax benefits, including sales tax credits on business equipment purchases, sales tax refunds on building materials, and corporate income tax credits for job creation. These incentives, sometimes called “Enterprise Opportunity Credits,” are designed to encourage investment in economivally downtrodden areas.

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Credit: halbergman / Getty Images

As a small business owner in Florida, being aware of the tax incentives available can provide a significant advantage in optimizing your tax strategy. Your tax professional will be able to assist you in creating a tax plan that is right for you and your business.

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Sonu  Shukla

Sonu Shukla

Sonu Shukla is a CPA, accountant and tax preparer based in Orlando, FL. Sonu is more than just another accountant in Orlando, Florida; he is a small business owner himself. Not content with merely satisfying his clients, Sonu goes the extra mile, carrying out surveys, asking his clientèle what can be changed or improved in his business approach. The unanimous response is always that his work is of the highest order, but changes have filtered into operation, with Sonu dedicating time, energy and much of his resources into improving the services he offers. A Certified Public Accountant and a Certified Financial Planner, Sonu possesses the skills, education and experience to demonstrate unerring business acumen and passionately planned financial strategies.

SONU SHUKLA, CPA, P.A.
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