Incentives
The City of Palm Coast offers a variety of programs designed to support and incentivize business expansion, relocation, and investment. Palm Coast also collaborates with local, regional and state economic development organizations to provide business with access to resources, networking, opportunities, and workforce development initiatives to support the long-term success of both existing and prospective companies.
LOCAL AND PALM COAST INCENTIVES
Contact us for information regarding local and Palm Coast Incentives:
FLORIDA INCENTIVES
Qualified Targeted Industries for Incentives
Capital Investment Tax Credit
This annual credit, provided for up to twenty years, is used against the corporate income tax. Eligible projects are those in designated high-impact portions of the following sectors: advanced manufacturing, clean energy, biomedical technology, financial services, information technology, silicon technology, transportation equipment manufacturing or a corporate headquarters facility. Projects must also create a minimum of 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’s Florida corporate income tax liability for the 20 years following commencement of operations determines the amount of the annual credit
High Impact Performance Incentive
The HIPI is a negotiated grant used to attract and grow major high-impact facilities in Florida. Grants are provided to applicants pre-approved by the Department of Economic Opportunity (DEO). In order to participate in the program, the project must: operate within designated high-impact portions of the following sectors — Clean Energy, Life Sciences, Financial Services, Corporate Headquarters, Transportation Equipment Manufacturing, Information Technology, Advanced Manufacturing and Semiconductors; create at least 50 new full-time equivalent jobs (if a R&D facility, create at least 25 new full-time equivalent jobs) in Florida in a three-year period; and make a cumulative investment in the state of at least $50 million (if an R&D facility, make a cumulative investment of at least $25 million) in a three year period. Once recommended by Enterprise Florida, Inc. (EFI) and approved by DEO, the high-impact business is awarded 50 percent of the eligible grant upon commencement of operations and the balance of the awarded grant once full employment and capital investment goals are met.
Special Incentives
A Rural Community Development Revolving Loan Fund and Rural Infrastructure Fund exist to meet the special needs that businesses encounter in rural counties. At the same times, Brownfield Incentives offer advantages to businesses that locate on a brownfield site with a Brownfield Site Rehabilitation Agreement (BSRA). The Brownfield Redevelopment Bonus Refund is available to encourage Brownfield redevelopment and job creation. Approved applicants receive tax refunds of up to $2,500 for each job created.
Quick Response Training (QRT)
Quick Response Training provides grant funding for customized training to new or expanding businesses in qualified targeted industries. The program is flexible and structured to respond quickly to meet business training objectives. A local training provider – community college, area technical center, or university – is selected and available to assist in the application process and program development or delivery. If the business has a training program in place, a state training provider will supervise and manage the training program and serve as the fiscal agent for the grant funds. Reimbursable training expenses include: instructors’/trainers ’salaries, curriculum development, textbooks/manuals, and materials/supplies.
Incumbent Worker Training (IWT)
This program provides employers with funds to train currently employed workers in an effort to keep their firms and workers competitive. The program addresses retraining to meet changing skill requirements caused by new technology, retooling, new product lines, and new organizational structuring
Sales Tax Exemptions
Florida offers sales and use tax exemptions on a variety of business purchases, including machinery and equipment used by a new or expanding manufacturer, research and development equipment, and certain other items.
Expedited Permitting Assistance
State and local permit streamlining procedures are available to assist businesses in obtaining necessary permits and approvals in a quick, efficient, and predictable manner.
FEDERAL INCENTIVES
Opportunity Zone
What the Program is: The Opportunity Zone Program is a federal program and aims to foster economic development and job creation in economically distressed communities. It was created by the Federal Tax Cuts and Jobs Act of 2017 to encourage businesses, developers and financial institutions to invest long-term capital in low-income census tract areas. These areas were designated as Qualified Opportunity Zones by the U.S. Department of Treasury in June 2018. Treasury has approved 8,760 Qualified Opportunity Zones, which are in all 50 states, five territories and the District of Columbia.
What the Program is not: The Opportunity Zone Program is not a residential program for home buyers, sellers or owners. It does NOT include tax incentives or rebates for homeowners who live within Opportunity Zones.
DEO does not track individual properties bought or for sale within zones. This is a federal and not a state of Florida program.
How it Works. Investments are made in Opportunity Zones through U.S. Treasury Qualified Opportunity Zone Funds, which must invest over 90 percent of their assets in Qualified Opportunity Zone properties and businesses. Qualified Opportunity Zone Funds attract investors through possible tax benefits. Tax benefits can accrue once unrealized capital gains from other investments are rolled into Qualified Opportunity Zone Funds.
Three tax benefits. The Opportunity Zone Program provides three tax benefits for investing unrealized capital gains in Opportunity Zones and investors can take advantage of one or more of the benefits.
➔ Temporary deferral of taxes on previously earned capital gains Investors can place existing assets with accumulated capital gains into Opportunity Zone Funds. Those existing capital gains are not taxed until the end of 2026 or when the asset is disposed of.
➔ Basis step-up of previously earned capital gains invested. For capital gains placed in Opportunity Funds for at least 5 years, investors’ basis on the original investment increases by 10 percent. If invested for at least 7 years, investors’ basis on the original investment increases by 15 percent.
➔ Permanent exclusion of taxable income on new gains. For investments held for at least 10 years, investors pay no taxes on any capital gains produced through their investment in
New Market Tax Credits
The New Markets Tax Credit (NMTC) Program is a federal financial program that aims to stimulate investment and economic growth in low income urban neighborhoods and rural communities that lack access to the patient capital needed to support and grow businesses, create jobs, and sustain healthy local economies.
The NMTC program attracts capital to low income communities by providing private investors with a federal tax credit for investments made in businesses or economic development projects located in some of the most distressed communities in the nation – census tracts where the individual poverty rate is at least 20 percent or where median family income does not exceed 80 percent of the area median.
Since 2003, the program has parceled out credits worth nearly $20 billion for more than 4,800 projects in all 50 states, the District of Columbia, and Puerto Rico. Some 41 percent of US census tracts qualify for NMTC investments.