Incentives Summary
Both the State of Florida and the City of Tallahassee/Leon County offer attractive economic incentives to qualifying new and existing companies.
Elected officials have demonstrated their commitment to economic development by inducing business growth that is beneficial to our City and County.
Economic incentives are tailored to assist individual companies and are reviewed on a case-by-case basis. Incentives are available to new and existing businesses with the number of jobs, wages, capital investment and location (within designated target areas for economic growth and development) being the more significant deciding factors.
- Local Incentives
- City of Tallahassee/Leon County Targeted Business Pilot Program
- State Incentives
- Qualified Target Industry Tax Refund Program (QTI)
- Quick Response Training Program (QRT)
- Economic Development Transportation Fund (Road Fund)
- Urban Job Tax Credit Program
- Community Redevelopment Agency (CRA)
- Incumbent Worker Training Program
- High Impact Performance Incentive Grant (HIPI)
- Capital Investment Tax Credit
- Workforce Innovation in Regional Economic Development (WIRED)
Local Incentives
City of Tallahassee/Leon County Targeted Business Pilot Program
The Targeted Business Pilot Program (TBPP) is an initiative to induce business growth that is beneficial to the City of Tallahassee and Leon County. The program is designed to help implement the City and County's long-term vision for economically viable and environmentally sustainable growth.
The TBPP offers incentives to new and existing businesses that create value-added jobs within the City of Tallahassee and Leon County. The program seeks to reward businesses that will diversify the economy, are suited to the City and County's business mix, and will generate revenue growth from the sales of goods and services outside the local economy. The program also seeks to reward businesses that locate in designated target areas for economic growth and development; that build environmentally sensitive projects; that do business with other local businesses; and that practice good corporate citizenship.
Funds awarded under this program would be used to reimburse 1) up to 100% of the cost of development fees and 2) a portion of the capital investment of the business project based on ad valorem taxes paid. The amount of funding would be based on a scoring system evaluated by a review committee with final approval and award granted by the City and County Commissions, respectively. The higher the score obtained, the greater the percentage of development fees and ad valorem taxes that are reimbursed.
For projects located within the city limits, the County will match the amount of ad valorem taxes reimbursed by the City. For projects located in the unincorporated area, the county will calculate the tax reimbursement using the city ad valorem millage rate. The maximum number of years that the ad valorem tax reimbursement can be awarded for is ten years.
State Incentives
Qualified Target Industry Tax Refund Program (QTI)
The Qualified Target Industry (QTI) Tax Refund Program is a tool available to Florida communities to encourage quality job growth in targeted high value-added industries.
Pre-approved applicants who create jobs in Florida receive tax refunds of $3,000 per net new full-time equivalent Florida job created; $6,000 in an Enterprise Zone or Rural County. For businesses paying 150 percent of the average annual wage, add $1,000 per job; for businesses paying 200 percent of the average annual salary, add $2,000 per job. New or expanding businesses in selected targeted industries or corporate headquarters are eligible.
Quick Response Training Program (QRT)
The Quick Response Training Program (QRT) is customer-driven and designed as an inducement to secure new value-added businesses to Florida as well as provide existing businesses the necessary training for expansion. Through this incentive, Florida is able to effectively retain, expand and attract employers offering high-quality jobs. The program is flexible and structured to respond quickly to meet the business’s training objectives. Workforce Florida, Inc., the state’s public-private partnership created to coordinate job-training efforts, administers the program.
Economic Development Transportation Fund (Road Fund)
The Economic Development Transportation Fund , commonly referred to as the "Road Fund," is an incentive tool designed to alleviate transportation problems that adversely impact a specific company's location or expansion decision. The elimination of the problem must serve as an inducement for a specific company's location, retention, or expansion project in Florida and create or retain job opportunities for Floridians.
Urban Job Tax Credit Program
The Florida Legislature created the Urban Job Tax Credit Program in 1997 to encourage the creation of jobs in urban areas of Florida (section 212.097, Florida Statutes). The Program provides tax credits to eligible businesses that are located within the 13 Urban Areas designated by the Office of Tourism, Trade and Economic Development (OTTED) and hire a specific number of employees. In the Tallahassee Urban Area, the credit is $1,000 per qualified job and can be taken against either the Florida Corporate Income Tax or the Florida Sales and Use Tax, but not both.
Detailed reference map of eligible locations within Tallahassee (666 kb)- General boundary map of eligible locations within Tallahassee (13 kb)
Community Redevelopment Agency (CRA)
A CRA is a public organization that works to improve a specific area (called a Community Redevelopment District) in a community through redevelopment and economic investment. There are currently 174 redevelopment districts in Florida; 119 of which are downtown districts.
The Tallahassee CRA, created in 1998, consists of over 1,450 acres of residential, commercial/retail and industrial land uses, all conveniently located near the heart of downtown Tallahassee. Included within the boundaries of the redevelopment area are (1) thirteen neighborhood communities; (2) seven major commercial/retail areas; and (3) numerous mixed-use areas. In addition, the area borders parts of Florida Agricultural and Mechanical University (FAMU) and the Florida State University (FSU). Extensive City infrastructure, including water, sewer, electricity and gas, are available throughout the redevelopment area.
Incumbent Worker Training Program
The Incumbent Worker Training Program is funded by the Federal Workforce Investment Act (WIA) and administered by Workforce Florida, Inc. Through this program, Florida is able to provide training to currently employed workers to keep Florida's workforce competitive in a global economy and to retain existing businesses.
High Impact Performance Incentive Grant (HIPI)
The High Impact Business Performance Incentive Grant is a negotiated incentive used to attract and grow major high impact facilities in Florida. Grants are provided to pre-approved applicants in certain high-impact sectors as designated by the Governor's Office of Tourism, Trade and Economic Development (OTTED).
Once recommended by Enterprise Florida, Inc. (EFI) and approved by OTTED, the high impact business is awarded 50 percent of their eligible grant upon commencement of operations and the balance of the awarded grant once full employment and capital investment goals are met.
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.
Workforce Innovation in Regional Economic Development (WIRED)
On February 1, 2006 U.S. Secretary of Labor Elaine Chao announced Workforce Innovation in Regional Economic Development (WIRED) as a major component of President Bush's Competitiveness Agenda. Through the WIRED Initiative, the U.S. Department of Labor via the Employment and Training Administration will invest $195 million in thirteen regional economies, including Northwest Florida. The WIRED Initiative is empowering regions to implement ground-breaking strategies that will result in their workforce investment system becoming a key component of the area's economic development strategy. The 100% match built into the WIRED Northwest Florida program turns a $15 million grant into a $30 million initiative.
In the new global economy, talent development is the key factor in America's economic competitiveness. To stay ahead of global competition, America must identify strategies to further integrate workforce and economic development with education at the regional level where companies, workers, researchers, entrepreneurs, and governments come together to create a competitive advantage. Ultimately, the WIRED Initiative will expand employment and advancement opportunities for American workers and catalyze the creation of high-skill and high-wage job opportunities.
Florida's Great Northwest will function as the lead partner in a coalition composed of workforce development, secondary and post secondary education, entrepreneurial and new business development, economic development organizations, and area businesses. The coalition's focus is on developing training initiatives designed to create a skilled workforce in the target industries of aerospace & defense, life sciences (medical device manufacturing, medical technologies, biotechnology, and health services), information technology/software development and electronics engineering, alternative energy, and construction services.
For additional information contact the Economic Development Council of Tallahassee/Leon County, Inc. (850) 521-3111