Why Business is Thriving in the Sunshine State

business center in florida with palm trees

There are many factors contributing to the business-friendly environment Florida offers to new and existing companies. One of the most notable features of this pro-business climate is the favorable tax structure. The state’s tax structure is beneficial to businesses due to a plethora of tax exemptions and constitutional provisions in place to maximize profitability and growth. Substantially lowered taxation in Florida has helped businesses achieve lower operating costs, therefore allowing for more competitive pricing and greater profits. Some of the tax policies that have established Florida as a unique environment for business owners are:

NO corporate income tax on limited partnerships
NO corporate income tax on subchapter S-corporations
NO state personal income tax guaranteed by constitutional provision
NO corporate franchise tax on capital stock
NO state-level property tax assessed
NO property tax on business inventories
NO property tax on goods-in-transit for up to 180 days
NO sales and use tax on goods manufactured or produced in Florida for export outside the state
NO sales tax on purchases of raw materials incorporated in a final product for resale, including non-reusable containers or packaging
NO sales/use tax on co-generation of electricity
To go along with these constitutionally provided tax breaks, many exemptions and credits are available to companies that meet certain criteria. For example, sales and use tax exemptions are available on machinery purchased by new or expanding Florida companies, commercial space activity equipment, labor and parts for maintenance on aircraft and manufacturing equipment, and labor and machinery for research and development. Businesses from a great variety of professional fields can reap the benefits of these policies, helping contribute to growth as well as diversity in the economy. Florida’s pro-business tax structure is a driving force behind the state’s emergence as a hotspot for new and expanding companies.

Published on 17th July 2013 by Jessica McKeeby
Categories: Industry, Strategy

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