TAX NEWS - 2010

Florida Manufacturing and Spaceport Investment Incentive Program

Beginning July 1, 2010, the Manufacturing and Spaceport Investment Incentive Program will become available to "eligible entities" through the Office of Tourism, Trade, and Economic Development. Eligible entity means an entity that manufactures, processes, compounds, or produces items for sale of tangible personal property or engages in spaceport activities.

An eligible entity may receive refunds in the maximum amount of $50,000 in state sales and use tax in a single year on "eligible equipment purchases" used in manufacturing, processing, compounding, or production of tangible personal property for sale or for exclusive use in spaceport activities. Eligible equipment purchases generally means the cost of production of machinery and equipment placed into service in the state's 2010-2011 or 2011-2012 fiscal years over the eligible entity's cost of purchases placed in service in the entity's fiscal year that began in 2008.

To receive a refund, an eligible entity must apply to the Office of Tourism, Trade, and Economic Development for a tax refund allocation. Applications must be received no later than September 1, 2011, for the 2010-2011 fiscal year. Once an entity has been approved by the Office of Tourism, Trade, and Economic Development for a "tax refund allocation," the entity must submit an Application for Refund (Form DR-26S), to the Department of Revenue within 30 days of the approval by the Office of Tourism, Trade, and Economic Development.

For additional information on the Manufacturing and Spaceport Investment Incentive Program, please call the Office of Tourism, Trade, and Economic Development at (850) 487-2568.