Elimination of Florida’s Manufacturing Equipment Tax Gains Legislative Momentum
A bill that would provide a tax break on the purchase of manufacturing equipment is gaining ground in the Florida Legislature.
The Florida House Economic Affairs Committee voted on April 16 to make Florida more competitive by supporting Gov. Rick Scott’s call for elimination of the tax (HB 391). The bill now moves to the House floor for a full vote.
Currently Florida is the only state on the Atlantic seaboard and on the Gulf coast that charges sales tax on manufacturing equipment and this makes Florida less competitive.
The Governor hopes the tax break will help bring more manufacturing firms to Florida, creating jobs in a critical industry for the state. Florida is home to more than 17,500 manufacturing companies, employing more than 300,000 Floridians.
The tax break in conjunction with up to 90% below-market, fixed interest rate financing under the Small Business Administration (SBA) 504 Loan Program for the purchase and installation of new or used fixed machinery and equipment is a win-win for growing and expanding manufacturers in Florida.
Under the 504 Loan Program offered through Florida First Capital, manufacturers put down as little as 10% on fixed equipment purchases with amortization terms of 10 and 20 years available. 504 equipment projects begin at $125,000 and associated fees and soft costs can be financed in the loan to minimize out-of-pocket costs.
“Other states do not charge a sales tax on buying machinery and we’ve got to do the exact same thing. Florida’s current policy puts our state at a competitive disadvantage because most states do not force manufacturers to pay taxes on the purchase of equipment or require them to adhere to regulations for tax exemptions,” said Gov. Scott. “Building up Florida manufacturing is about building Florida jobs across our state.”
For more information about SBA 504 loans in Florida, contact a Florida First Capital Loan Officer here. Florida’s original statewide SBA Certified Development Company (CDC). Email: firstname.lastname@example.org. Phone: 850.681.3601 or toll-free at 888.320.5504.