SALES AND USE TAX EXEMPTION ON MACHINERY AND EQUIPMENT






Tax exemption award made to businesses to aid new and expanding businesses that use machinery and equipment at a particular location to manufacture, process, compound, or produce tangible personal property for sale or for exclusive use in spaceport activities.

How?

To qualify for the new business exemption...

  • Either the machinery and equipment must have been purchased or a purchase agreement made prior to the date the business first begins to produce a product for inventory or immediate sale.
  • If a purchase agreement was made, machinery and equipment must be received within twelve months of the date that production began.


To qualify for the expanding business exemption...

  • The new machinery and equipment must have been purchased to increase "productive output" by more than 10%.
  • The sales or use tax of $50,000 for each calendar year of the expansion project must be paid.
  • Printing firms are not subject to the $50,000 payment of the sales or use tax requirement. Businesses engaged in mining activities may only receive the exemption by way of a future credit against severance taxes and must demonstrate the creation of new jobs for Floridians.


Exclusions:

  • Electric utility companies, communications companies, oil or gas exploration or production operations, and publishing firms that do not export at least 50% of their finished product out of the sate.
  • Any firm subject to regulation by the Division of Hotels and Restaurants of the Department of Business Regulation.


For detailed information contact:

Enterprise Florida, Inc.
Tax Information Services
The Atrium Building, Suite 201
325 John Knox Road
Tallahassee, Florida 32303
(850) 488-6300 Fax: (850) 922-9595