Incentives Managed at the Local Level

Tax Increment Economic Development Grant

This is a negotiated incentive between the company and the local government where the project will be located and operates similar to a tax rebate on net new county/city property taxes payable to the local government (exclusive of school and other taxes).  The company will pay taxes on real property and improvements as per the local government applicable tax schedule.  Company and local government sign a develoment agreement before company commits to location.  An annual grant in accordance with the negotiated development agreement, but not exceeding the amount of taxes resulting from the new increment added to the tax roles is paid to the company from available city/county revenues.  The duration of the grant and portion of taxes on which the grant is based varies from county to county and is negotiated with the local governing authority.
 

Targeted Economic Development Area Special Funds (Duval County Only)

These are special programs designed to induce the location of certain high economic value projects (high wage, high capital investment, etc.) to critical areas of Jacksonville (Duval County).  The Northwest Area Fund is limited to projects locating in the Duval County area bounded by I-10 on the south, I-95 on the east and the county boundary on the northwest.  The purpose of the fund is to enhance the economic feasibility of the project.  The fund is customarily used to fund infrastructure shortfalls, but may be used for other purposes.
 

Development Site Land Cost Write Down

For certain targeted industry sector high economic impact projects considering a location within publicly owned industrial/commercial areas, the local governing authority owning the land may offer a site at a negotiated below market rate (including zero cost).
 

Free Trade Zone (FTZ)

This is a federal program managed at the local level.  FTZs are physical zones within the FTZ license holder's operating area in which goods arriving from a foreign county may be temporarily held pending further shipment to another foreign country or into the United States.  While in the zone the goods are treated, for customs tariff purposes, as if never arriving in the U.S. and therefore import duties are not accessed until the goods are removed from the zone into the U.S.  In some cases processing of the goods may change the form to the extent that subsequent duty on the processed product may be lower than the total duty applied to the components parts.  The Jacksonville Port Authority is the license holder for the region.  Existing zones have been established in several areas around the region.  New sub-zones may also be established.
 

Industrial Development Revenue Bond (IDB's)

This is a federal interest rate subsidy managed at the local and state levels.  IDB's function like loans that afford private manufacturing companies access to low tax-exempt interest rates.  The maximum loan amount is limited to $20 million.  Interest rates for qualifying borrowers is often as low as 50% -60% of the existing prime rate.  Application is made to the city/county where the project will be located.  An "inducement" resolution/agreement is then executed.  Inducement is required prior to commitment to locate or expand by the company.
 

Recovery Zone Facility Bonds

This is a special federally enacted program put into place to spur economic recovery as a result of the current economic recession.  The program operates similarly to IDB's with the exception that eligible project include, in addition to manufacturing, other private sector projects and restrictions on maximum capital investment and maximum bond issue size are relaxed.  The State of Florid and certain large population counties (Duval) have access to a Recovery Zone Bond Allocation Pool from which eligible projects can be financed.  The program expires December 31, 2010.
 

Recruiting, Screening, Placement Assistance

The Northeast Florida office of WorkSource (Division of state Workforce Development Board) assists new companies in the recruitment, screening and placement of employees.  This agency will recruit, screen and test candidates against the criteria established by the company.  The value of this benefit at $300-$500 per employee hired.