Qualified Target Industry Tax Refund (QTI)

How does the QTI Tax Refund affect Florida businesses?

The Qualified Target Industry (QTI) Tax Refund is an incentive program in Florida supporting businesses that create high-wage jobs in specific target industries. By offering tax refunds, Florida governments hope to attract and retain businesses in these industries, boosting the state’s economy and diversifying the job market.

For Florida-based businesses, participating in the QTI Tax Refund program can lead to significant financial benefits, such as a refund of up to $6,000 per new high-wage job created. This incentive allows businesses to reduce operating costs and allocate more resources toward growth and expansion. Moreover, businesses in designated rural areas or Enterprise Zones may be eligible for additional refunds, further bolstering the program’s benefits.

Need help regarding economic development incentives? Schedule your consultation today with a top economic development attorney.

Which Florida laws and regulations apply to the QTI Tax Refund?

The Qualified Target Industry Tax Refund program is governed by Florida Statutes and regulations, primarily under Florida Statutes § 288.106, which outlines the eligibility criteria, application process, and available refund amounts. In addition to the statute’s guidance, the Florida Department of Economic Opportunity (DEO) evaluates applications and administers the program with Enterprise Florida, Inc.

Furthermore, the DEO issues guidelines and policies that further clarify the program’s implementation and requirements, ensuring that it operates efficiently and effectively to support the state’s economic development goals. By adhering to the regulations set forth by the state, businesses can confidently navigate the QTI Tax Refund program and maximize the benefits it offers.

Which Florida businesses qualify for the QTI Tax Refund?

Businesses must meet specific requirements, including the following:

• Companies must operate in one of the designated target industries, which include life sciences, technology, manufacturing, and aerospace;
• Businesses need to create a specified minimum number of new, high-wage jobs within a set timeframe;
• These new jobs must meet or exceed the average annual wage for the area in which the company is located, as determined by the Florida Department of Economic Opportunity; and
• Companies must secure the support of their local city or county government, which must also provide a local financial match for the QTI Tax Refund.

When a set of facts is appropriate to meet the requirements of QTI Tax Refund, there are many paths a claimant may take. We are value-based attorneys at Jimerson Birr, which means we look at each action with our clients from the point of view of costs and benefits while reducing liability. Then, based on our client’s objectives, we chart a path to seek appropriate remedies.

To determine whether your unique situation may necessitate litigation, please contact our office to set up your initial consultation.

What are the strategic benefits for qualifying Florida businesses?

By qualifying for the QTI Tax Refund, Florida businesses can enjoy several strategic benefits, including:

• Financial Savings: Companies can receive up to $6,000 in tax refunds per new high-wage job created, resulting in significant cost savings.
• Rural and Enterprise Zone Incentives: Businesses in designated rural areas or Enterprise Zones may be eligible for additional refunds, further increasing financial benefits.
• Increased Competitiveness: The tax refunds enable companies to allocate more resources towards growth and expansion, giving them a competitive advantage in their respective industries.
• Workforce Development: By creating high-wage jobs, businesses can attract and retain skilled workers, fostering a robust and talented regional workforce.
• Economic Diversification: Participating in the QTI Tax Refund program allows companies to contribute to the diversification of Florida’s economy, promoting long-term economic stability.
• Positive Brand Image: Companies can leverage their participation in the program to enhance their reputation as responsible corporate citizens committed to creating job opportunities and supporting economic development.

Please contact our office to set up your initial consultation to see what actions or defenses may be available for your unique situation.

Frequently Asked Questions

1. How does the application process for the Qualified Target Industry Tax Refund work?

The application process for the QTI Tax Refund is straightforward. First, businesses must coordinate with their local economic development organization (EDO) to prepare a pre-application. Once the EDO supports the pre-application, they submit it to Enterprise Florida for review. If Enterprise Florida approves, they forward the application to the DEO for final evaluation and approval. Upon receiving DEO’s approval, the company’s representatives, associated local government, and the state execute a Tax Refund Agreement.

2. Are there any deadlines for applying for the QTI Tax Refund?

Yes, there are deadlines for applying for the QTI Tax Refund. Businesses must submit their pre-application to the local EDO before making any announcements or public disclosures about their project or job creation plans. It’s essential to consult with the local EDO early in planning to ensure compliance with all deadlines and requirements.

3. Can companies apply for other incentives in addition to the QTI Tax Refund?

Florida offers various incentives for businesses to foster economic growth, such as the Capital Investment Tax Credit and the High Impact Performance Incentive. Companies can apply for multiple incentives simultaneously, provided they meet the individual program requirements. Therefore, working closely with the local EDO and other relevant agencies is essential to explore all available incentive opportunities and ensure compliance with application processes.

Have more questions about an economic development-related situation?

Crucially, this overview of the QTI Tax Refund does not begin to cover all the laws implicated by this issue or the factors that may compel the application of such laws. Every case is unique, and the laws can produce different outcomes depending on the individual circumstances.

Jimerson Birr attorneys guide our clients to help make informed decisions while ensuring their rights are respected and protected. Our lawyers are highly trained and experienced in the nuances of the law, so they can accurately interpret statutes and case law and holistically prepare individuals or companies for their legal endeavors. Through this intense personal investment and advocacy, our lawyers will help resolve the issue’s complicated legal problems efficiently and effectively.

Having a Jimerson Birr attorney on your side means securing a team of seasoned, multi-dimensional, cross-functional legal professionals. Whether it is a transaction, an operational issue, a regulatory challenge, or a contested legal predicament that may require court intervention, we remain tireless advocates at every step. Being a value-added law firm means putting the client at the forefront of everything we do. We use our experience to help our clients navigate even the most complex problems and come out the other side triumphant.

If you want to understand your case, the merits of your claim or defense, potential monetary awards, or the amount of exposure you face, you should speak with a qualified Jimerson Birr lawyer. Our experienced team of attorneys is here to help. Call Jimerson Birr at (904) 389-0050 or use the contact form to schedule a consultation.