Corporate Tax Benefits Available In Florida

Thanks to its pro-business taxation policies, Florida has been counted amongst the best states for business and entrepreneurship

. The cost of starting and managing a business goes down remarkably in the state due to the competitive and targeted financial advantages in Florida. Policy makers in the state have concentrated on tort reform and this has resulted into successes like elimination of joint and several liabilities, rate reductions for workers compensation insurance, and class-action suit reform. The tax climate in Florida has been structured in such a way that it flows as per the want of the companies coming in to incorporate their business. These factors have ensured that Florida State remains as one of the preferred business destinations in the United States even amongst foreign businesses entering the US.

There are several tax benefits available for companies operating in Florida that allow them to utilize their capital for growth and expansion. For example, there is no corporate income tax on limited partnerships and sub-chapter S-corporations. No corporate franchise tax is levied on capital stock. For business inventories and goods-in-transit, no property tax is imposed. No sales tax is imposed on the goods manufactured in Florida and sent to other states. Also no sales tax is levied on purchase of raw material including non-reusable cartons and packing material. There is no sales tax charged on co-generation of electricity.

There are many other tax exemptions that a business may take benefit of while in Florida. Florida state administration offers sales and use tax exemptions on machinery and equipments used by a new or expanding company in Florida to manufacture, produce or process physical personal property for sale. Businesses also get tax exemptions on labor, parts and materials used in repair of machinery and equipments and on electricity used in manufacturing process. Tax exemption is also given on purchase of boiler fuels and natural gas when they are to be used in the manufacturing process. Exemption in tax is also given in manufacturing equipment related transactions happening in semiconductor, defense and space technology-based industries. No sales and use tax is levied on purchase of machines and equipments that are to be used in research and development and on labor components occurring in research and development expenditures. Usage tax is also exempted from commercial space activities like launch vehicle, payloads, fuels and machines and equipments which are used exclusively in production process for space station in Florida. Companies engaged in manufacturing aircraft parts, their modification, maintenance, repair, sale or lease; are also given tax exemption in Florida.

Other than these tax benefits, there are several other advantages given to businesses entering into Florida along-with excellent infrastructure and overall business environment.

by: Travis Henry

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