The City of Hollywood is committed to Economic Development and shall make available the following programs designed to stimulate and encourage businesses to expand and locate in our great City. Below you will find economic incentives that are offered through City, County and State programs.

For more information on the incentives available to your business please call
954-921-3388 or email ahampton@hollywoodfl.org.

Small Business Administration HUBZone Program

The HUBZone Empowerment Contracting program was enacted into law as part of the Small Business Reauthorization Act of 1997. The program falls under the auspices of the US Small Business Administration. The program encourages economic development in historically underutilized business zones - "HUBZones" - through the establishment of preferences.

The City of Hollywood has two qualifying HUBZones. To see if your business qualifies as a HUBZone please visit http://map.sba.gov/hubzone/init.asp#address.

The first Hollywood HUBZone is located north of Sheridan Street to Stirling Road between Dixie Highway and North 30th Terrace and qualifies by Census Tract as a HUBZone.

The Downtown HUBZone is located between Dixie Highway and south 17th avenue and between Polk Street and Van Buren Street and is a redesignated area that once qualified as a HUBZone but was reassigned to a new census tract in 2000 and will cease this redesignation on Dec. 12, 2005.

A "HUBZone" is an area that is located in one or more of the following:

• a qualified census tract (as defined in section 42(d)(5)(C)(i)(I) of the Internal Revenue Code of 1986);
• a qualified "non-metropolitan county" (as defined in section 143(k)(2)(B) of the Internal Revenue Code of 1986) with a median household income of less than 80 percent of the State median household income or with an unemployment rate of not less than 140 percent of the statewide average, based on US Department of Labor recent data; or
• lands within the boundaries of federally recognized Indian reservations.

TYPES OF HUBZone CONTRACTS

A competitive HUBZone contract can be awarded if the contracting officer has a reasonable expectation that at least two qualified HUBZone small businesses will submit offers and that the contract can be awarded at a fair market price.

A sole source HUBZone contract can be awarded if the contracting officer does not have a reasonable expectation that two or more qualified HUBZone small businesses will submit offers, determines that the qualified HUBZone small business is responsible, and determines that the contract can be awarded at a fair price. The government estimate cannot exceed $5 million for manufacturing requirements or $3 million for all other requirements.

A full and open competition contract can be awarded with a price evaluation preference. The offer of the HUBZone small business will be considered lower than the offer of a non-HUBZone/non-small business-providing that the offer of the HUBZone small business is not more than 10 percent higher.

For more information on the HUBZone program please visit https://eweb1.sba.gov/hubzone/internet/

Economic Development Ad Valorem Tax Exemption (City Incentive)

An Ad Valorem Tax exemption may be granted to an eligible new or expanding business by the City of Hollywood and will not exceed 25% of the City portion of the ad valorem tax. The City Commission may grant up to 50% for new or expanding businesses which locates in the Liberia Area Business Corridor. The period of time for which the exemption will remain in effect shall not exceed eight (8) years and is determined by the total number of points in four (4) 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 abatement beyond the first year after adoption of the Ordinance.

Local Alternative Economic Development Incentive Program (LAEDI) (City Incentive)

The Local Alternative Economic Development Incentive Program provides an enhanced competitive advantage in the attraction of new and expanded businesses to the City. The 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 ten (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 (QTI) (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 (HIPI)

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 (3) 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 (3) year period.

Capital Investment Tax Credit (CITC)

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.

WORKFORCE TRAINING INCENTIVES:

Quick Response Training Incentives

Quick Response Training (QRT) is a customer-driven training program designed to assist new value-added businesses and provide existing Florida businesses the necessary training for expansion. This program is customized, flexible and responsive to individual company needs. Workforce Florida Inc. is Florida' innovative private-public partnership for competitive workforce incentives. For additional information on these incentives, visit http://www.workforceflorida.com.

Incumbent Worker Training Program

Incumbent Worker Training (IWT) is a program provides training to currently employed workers to keep Florida's workforce competitive in a global economy and to retain existing businesses. The program is available to all Florida businesses that have been in operation for at least one year prior to application and require training for existing employees. For additional Information on the IWT program, visit http://www.workforceflorida.com.

ROAD INFRASTRUCTURE INCENTIVE:

Economic Development Transportation 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. These grants are limited to $2 million and are awarded to the local government for public transportation facility improvements.

SPECIAL OPPORTUNITY INCENTIVES:

Urban Incentives

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. For more detailed information on urban incentives, visit http://www.eflorida.com.

Enterprise Zone Incentives

Florida offers an assortment of tax incentives to businesses that choose to create employment within an enterprise zone, which is a specific geographic area targeted for economic revitalization. These include a sales and use tax credit, tax refund for business machinery and equipment used in an enterprise zone, sales tax refund for building materials used in an enterprise zone, and a sales tax exemption for electrical energy used in an enterprise zone, visit http://www.eflorida.com.

Brownfield Incentives

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 Brownfield incentives, visit http://www.eflorida.com.