Gov. Rick Scott is asking the Legislature to make a manufacturing sales tax exemption proposed in his 2015-16 budget a permanent measure to give Florida businesses a real opportunity for growth.
“Any time the company has an opportunity to grow, machinery purchases are a huge part of that,” said Terry Ellis, vice president of business development at WestPoint Home in Chipley.
Manufacturing employs more than 317,000 Floridians. The sales tax exemption covering manufacturing machinery and equipment was first implemented on a limited basis in 2012. In 2013, the Legislature extended the exemption for three years to last from 2014 through April 30, 2017.
“Getting a sales tax exemption just makes it easier to grow and reach out to buy new equipment,” Ellis said.
An analysis by Florida TaxWatch, a nonprofit taxpayer research institute and government watchdog, estimates the exemption would save qualifying businesses across the state $142.5 million in taxes on machinery and equipment purchases annually.
The scope of industries covered by the bill is expansive and touches nearly every conceivable product or service offered by Florida businesses. The exemption applies to a broad range of manufacturing types, including food production, tobacco, textiles, clothing and footwear, wood, paper products, printing services, petroleum products, chemicals, pharmaceuticals, plastics, rubber, metal fabrication, glass, concrete, HVAC, communications technology, aircraft and motor vehicles, medical supplies, jewelry, household goods, furniture and more.
Knowing which incentives are available is a key strategy for any business owner to get a leg up as new tax exemptions are being added to give Florida a better business climate.
“It’s just another step,” Ellis said. “Anything we can do to make the State of Florida more competitive and recruiting and getting businesses to come here is a win.”
