Capital Investment Tax Credit

The Capital Investment Tax Credit is used to attract and grow capital-intensive industries in Florida. It is an annual credit against the corporate income tax for up to 20 years in an amount up to five percent (5%) of the eligible capital costs generated by a qualifying project. Eligible capital costs include all expenses incurred in the acquisition, construction, installation, and equipping of a project from the beginning of construction to the commencement of operations.

AMOUNT OF CREDIT

The annual credit may not exceed a specified percentage of the annual corporate income tax liability generated by the project. Those percentages are:

• One hundred percent, for a project with a cumulative capital investment of at least $100 million;
• Seventy-five percent, for a project with a cumulative capital investment of at least $50 million but less than $100 million; and
• Fifty percent, for a project with a cumulative capital investment of at least $25 million but less than $50 million.

ELIGIBILITY

In order to participate in the program, a company must apply to Enterprise Florida and be certified by the Governor's Office of Tourism, Trade and Economic Development (OTTED) prior to the commencement of operations. In order to qualify for consideration under the program, an applicant must:

• Be in a designated high impact sector (silicon technology; transportation equipment manufacturing SICs 372, 376 and 3711; or information technology SICs 357, 366, 367, 481, 482 and 737);
• Create at least 100 new jobs in Florida in connection with the project; and
• Make a cumulative capital investment of at least $25 million in connection with the project during the period from the beginning of construction to the commencement of operations.

For additional information contact the Economic Development Council of Tallahassee/Leon County, Inc. (850) 521-3111.