Incentives & Tax Credits
Economic Development Ad Valorem Tax Exemption
An ad valorem tax exemption may be granted to an eligible new or expanding business by the City of Hollywood that shall not exceed 25% of the City's portion of the ad valorem tax. The City Commission may grant up to 50% for new or expanding businesses that choose to locate in the Liberia Area Business Corridor.
The period of time for which the exemption will remain in effect shall not exceed eight years and is determined by the total number of points in four categories. Businesses that may have a detrimental impact on the environmental quality of the City are ineligible. An annual review must be submitted to continue the ad valorem tax exemption beyond the first year after adoption of the Ordinance.
Local Alternative Economic Development Incentive Program
The Local Alternative Economic Development Incentive Program provides an enhanced competitive advantage in the attraction of new and expanded businesses to the City of Hollywood. Eligibility requirements include: the business shall not participate in the Economic Development Ad Valorem Tax Exemption Program; must make capital investments in a facility in the City of Hollywood of not less than $1,000,000 or $500,000 if in a target area; must be newly located within the City or represent an expansion of an existing business; must create a minimum of at least 10 new permanent full-time jobs; and will not include the increased assessed value of tangible personal property.
Points are awarded based upon jobs created, ownership and capital investment. Each point shall make a business eligible for an annual payment of up to $1,000; up to a maximum annual payment of $100,000. The maximum annual payment to any eligible firm over its lifetime shall not exceed $500,000.
Qualified Target Industry Tax Refund
State / County / City incentive
The Qualified Target Industry (QTI) Tax Refund incentive is available for companies that create high wage, value added jobs in targeted high value-added industries such as (but not limited to): communications, corporate headquarters, research & development, manufacturing, and electronic equipment. Pre-approved applicants who create jobs in Florida receive tax refunds of $3,000 per net new Florida full-time equivalent 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.
High Impact Performance Incentive Grant
The High Impact Performance Incentive Grant (HIPI) 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 designated by the Governor's Office of Tourism, Trade and Economic Development.
In order to participate in the program, a company must be in a designated high impact sector; create at least 100 new full-time equivalent jobs (if a research and development facility, create at least 75 new full-time equivalent jobs) in Florida in a three-year period; and make a cumulative investment in the state of at least $100 million (if a research and development facility, make a cumulative investment of at least $75 million) in a three-year period.
Capital Investment Tax Credit
The Capital Investment Tax Credit is an annual credit against the project's Florida corporate income tax for up to 20 years. Eligible projects are those in designated, high-impact sectors (currently silicon technology, biotechnology, biocertain transportation equipment manufacturing or certain information technology facilities) that create at least 100 jobs and invest at least $25 million in eligible capital costs.
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. The level of investment and the project' Florida corporate income tax liability for the 20 years following commencement of operations determines the amount of the annual credit. Florida' Corporate Income Tax Rate is 5.5% of apportioned taxable income.
Economic Development Transportation Fund
The , 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. These grants are limited to $2 million and are awarded to the local government for public transportation facility improvements.
Florida offers increased incentive awards and lower wage qualification thresholds for businesses locating in many urban core / inner city areas that are experiencing conditions affecting the economic viability of the community and hampering the self-sufficiency of the residents.
Florida offers incentives to businesses that locate in Brownfield sites, which are underutilized industrial or commercial sites due to actual or perceived environmental contamination. The Brownfield Redevelopment Bonus Refund is available to encourage Brownfield redevelopment and job creation. Approved applicants receive tax refunds of $2,500 for each job created. For more detailed information on Urban and Brownfield incentives, visit eFlorida.