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Hendry County Economic Development Incentives

Link to Hendry County Website

Hendry County welcomes the opportunity to discuss options in detail and your business requirements.

Gregg Gillman, President
Hendry County EDC
863.612.4912
gregg@Hendryedc.com

Enterprise Zone Jobs Tax Credit (Sales & Use Tax)
What is the Rural Enterprise Zone Program?

Allows businesses located in a rural Florida enterprise zone, who collect and pay Florida sales and use tax, a monthly credit against their tax due on wages paid to new employees in a new full-time job who have been employed by the business for at least 3 months and are residents of a rural Florida county.

What are the Advantages?

Businesses located within a “Rural EZ” will receive a credit of 30% paid to new eligible employees who are residents of a “Rural County”. If 20% or more of the permanent, full-time employees are residents of a Florida enterprise zone, the credit is 45%.

What are the Limitations?

The credit is limited to the amount of tax due on each return. There is no refund or carry forward for credit in excess of the tax due. This credit is not available if the Enterprise Zone Jobs Tax Credit against Corporate Income Tax is taken. The credit is limited to 24 months if the employee remains employed for 24 months.

How do I receive Credit?

Form DR-15ZC must be submitted to an Enterprise Zone Coordinator and DOR within 6 months after the new employee is hired. Within 10 working days of receiving a completed tax credit application, DOR will notify the business that the application has been approved.


Enterprise Zone Jobs Tax Credit (Corporate Income Tax)

What is the Rural Enterprise Zone Program?

Allows businesses located in a Florida rural enterprise zone who pay corporate income tax a corporate income tax credit for the wages paid to new employees (in a new full-time job) who have been employed by the business for at least 3 months and are residents of a rural Florida county.

What are the advantages?

Businesses located within a “Rural EZ” will receive a credit of 30%paid to new eligible employees who are residents of a “Rural County”. If 20% or more of the permanent, full-time employees are residents of a Florida enterprise zone, the credit is 45%.A five-year carry forward provision is available for unused portions of past.

What are the limitations?

The Federal tax burden may increase since state tax liability is reduced. The amount of the credit also must be added back to Florida taxable income. This credit is not available if the Enterprise Zone Jobs Tax Credit against Sales and Use Tax is taken.

How do I receive the credit?

Form F-1156Z, which requires a list of names and addresses of eligible employees, must be certified by an Enterprise Zone Coordinator and submitted with the business’ corporate income tax return.


Enterprise Zone Property Tax Credit (Corporate Income Tax)

What is the Rural Enterprise Zone program?

New or expanded  businesses located  in an enterprise zone  are allowed a credit  on Florida corporate  income tax equal to  96% of ad valorem  taxes paid on the  new or improved  property (the  assessment rate  varies by county).

What are the advantages?

Any unused portion of the credit may be carried forward for five years.  The credit can be  claimed for five years,  up to a maximum of  $50,000 annually,  if 20% or more  employees are  enterprise zone  residents; otherwise  the credit is limited to  $25,000 annually.

What are the limitations?

The Federal tax burden may increase, since state tax liability is reduced.  The amount of the credit must also be added back to Florida taxable income.

How do I receive the credit?

Businesses must file Form DR-456 with the county property appraiser before April 1 of the first year in which the new or expanded property is subject to assessment. An Enterprise Zone Coordinator will certify Form F-1158Z.  Firms must include copies of receipts for applicable ad valorem taxes paid with tax returns and Form F-1158Z.


Community Contribution Tax Credit Program (Corporate Income Tax)

What is the Rural Enterprise Zone program?

Allows businesses anywhere in Florida a 50% credit on Florida corporate income tax, insurance premium tax, or sales tax refund for donations to local community development projects. Donations must be made to an eligible sponsor conducting an approved community development project. The annual amount of credit granted is limited to $200,000 per firm and $12,000,000 for the state.

What are the advantages?

For each dollar donated, businesses may receive a 55.5-cent reduction in Florida tax liability (50 cents from the credit, 5.5 cents from the deductibility of the donation). The donation may also be deducted from Federal taxable income.
A five-year carry forward provision is available for any unused portion of the corporate income tax credit (sales tax refunds are available for up to three years after submission of the first application)

What are the limitations?

IRS rules for the valuation of donated goods may require depreciation recapture; therefore, the deduction may be decreased.

By reducing the state tax liability, state taxes deducted from federal income are decreased; therefore, the federal tax burden may increase.

How do I receive the credit?

The project sponsor submits a proposal to OTTED for approval and solicits donations from businesses. Businesses file form 8E-17TCA#01 to OTTED.
Once the donation has been approved; a copy of the approval letter must be submitted with the state tax return or application for a sales tax refund (Form DR-26S). Project proposals must be recertified on an annual basis.


Sales Tax Refund for Business Machinery and Equipment Used in an Enterprise Zone

What is the Rural Enterprise Zone program?

A refund is available for sales taxes paid on the purchase of certain business property, (e.g. tangible personal property such as office equipment, warehouse equipment, and some industrial machinery and equipment), which is used exclusively in an enterprise zone for at least three years.
What are the advantages?

This incentive reduces the cost of purchasing new and used qualified tangible personal property that is used in an enterprise zone.

What are the limitations?

Business equipment must have a sales price of at least $5,000 per unit. The maximum refund per application will be no more than $5,000 or 97% of the tax paid. If 20% or more of the permanent, full-time employees of the business are residents of a Florida enterprise zone, the refund will be no more than the lesser of $10,000 or 97% of the tax paid.

How do I receive the credit?

Form DR-26S and Form EZ-E (must be certified by an Enterprise Zone Coordinator) for the enterprise zone in which the business is located, and must be filed with the Department of Revenue within 6 months of when the business equipment is purchased or when the tax is due.


Sales Tax Refund for Building Materials Used in an Enterprise Zone

What is the Rural Enterprise Zone program?

A refund is available for sales taxes paid on the purchase of building materials used to construct or rehabilitate real property located in an enterprise zone.

What are the advantages?

This incentive reduces the cost of constructing or rehabilitating real property that is located in an enterprise zone.
What are the limitations?

The total amount of the sales tax refund must be at least $500, but no more than the lesser of $5,000 or 97% of the tax paid. If 20% or more of the permanent, fulltime employees of the business are residents of a Florida enterprise zone the refund will be no more than the lesser of $10,000 or 97% of the tax paid per parcel.
How do I receive the credit?
Form DR-26S and Form EZ-M (must be certified by an Enterprise Zone Coordinator) must be filed with the Department of Revenue within 6 months of when the improvements are certified as being substantially complete or by September 1 after the property is first subject to assessment.
For more information please refer to the Rural EZ Incentive Matrix


Ad Valorem Tax Exemption:
The county commissioners have the power to grant economic development ad valorem tax exemptions. The intent is to provide an incentive to those new or expanded businesses which make a possible contribution to the economy of the county in terms of new jobs and improvements to real and personal property.

Important Definitions:
Expansion of an existing business

  • Business Expansion
    • A business establishing ten or more jobs to employ ten or more full-time employees in this state, which manufactures, processes, compounds, fabricates, or produces for sale items of tangible personal property at a fixed location and which comprises an industrial, manufacturing, or processing plant;
    • Any business establishing 25 or more jobs to employ 25 or more full-time employees in this state, whose sales factor for the facility with respect to which it requests an economic development ad valorem tax exemption is less than 0.50 for each year the exemption is claimed; provided that such business increases operations on a site collocated with a commercial or industrial operation owned by the same business, resulting in a new increase in employment of not less than ten percent or an increase in productive output of not less than ten percent
      • Sales factor is defined by F.S. 220.15(5);
    • Any business located in an enterprise zone that increases operations on a site collocated with a commercial or industrial operation owned by the same business;

B. Any expansion of an existing business must increase operations on a site collocated with a commercial or industrial operation owned but the same business, resulting in a net increase in employment of not less than ten percent of said collocated site or an increase in productive output of not less than ten percent of the said collocated site. The ten percent requirement does not apply to enterprise zone.

Improvements:

  • Physical changes made to raw land, and structure place on or under the land surface

New Businesses

    • A business establishing ten or more jobs to employ ten or more full-time employees in this state, which manufactures, processes, compounds, fabricates, or produces for sale items of tangible personal property at a fixed location and which comprises an industrial, manufacturing, or processing plant;
    • Any business establishing 25 or more jobs to employ 25 or more full-time employees in this state, the sales factor for the facility with respect to which it requests an economic development ad valorem tax exemption is less than 0.50 for each year the exemption is claimed
      • Sales factor is defined by F.S. 220.15(5);
    • An office space in this space in this state owned and used by a corporation newly domiciled in this state; provided such office space houses 50 or more full-time employees of such corporation; provided that such business or office first begins operation on a site clearly separate from any other commercial or industrial operation owned by the same business; or
    • Any business located in an enterprise zone that first begins operation on a site clearly separated from any other commercial or industrial operation owned by the same business

Application:
Any eligible person, firm, partnership or corporation which desires an exemption shall file with the board of county commission
For more information please refer to Hendry County Code Article VIII. Economic Development Ad Valorem Tax Exemption