Enterprise and Empowerment Zones

(This Web page is for informational purposes only. Please contact the JEDC for detailed information and other eligibility requirements.)

The City of Jacksonville has both a state Enterprise Zone and a federal Empowerment Zone that provide numerous financial incentives to businesses operating in these areas. To learn more about these two beneficial program incentives, click on the links below:

Enterprise Zone Incentives

(The Enterprise Zone incentive information provided on this Web site is for informational purposes only. For complete eligibility criteria and verification, contact Joe Whitaker at 630-1624 or e-mail josephw@coj.net.)

View Enterprise Zone map (PDF 473k)

Determine if a property is located in the Enterprise Zone

Read more about the Enterprise Zone designation and regulation

There are seven different incentives available under this program:

Enterprise Zone Jobs Tax Credit (Sales Tax)

This credit allows businesses located in the Enterprise Zone a monthly credit against their Florida sales and use tax due on wages paid to new, full-time employees equal to 20 percent of wages paid to new eligible employees who are residents of the Enterprise Zone (and/or are Welfare Transition Program participants residing anywhere). If 20 percent or more of the employees are residents of the Enterprise Zone, the credit is 30 percent of wages paid to new eligible employees.

The credit is limited to the amount of tax due on each return. There is no refund or carry-forward for credit in excess of the tax due. This credit is not available if the Enterprise Zone Jobs Tax Credit against corporate tax is taken. The credit is limited to 24 months if the employee remains employed for 24 months.

Forms must be filed with the JEDC Enterprise Zone Development Agency (EZDA) within four months of hire date. Failure to file on time will result in credit being disallowed. EZDA has 10 business days to process and certify the form. Form DR-15CS (Sales and Use Tax Return) must be submitted by the 20th of the next month (or will be considered late).

Download Form DR-15ZC (PDF 331k)
Download Form DR-15CS (PDF 61k)
View Florida Statute 212.096

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Enterprise Zone Jobs Tax Credit (Corporate Income Tax)

This credit allows businesses located in the Enterprise Zone a corporate income tax credit on wages paid to new, full-time employees equal to 20 percent of wages paid to new eligible employees who are residents of the Enterprise Zone (and/or are Welfare Transition Program participants residing anywhere). If 20 percent or more of the employees are residents of the Enterprise Zone, the credit is 30 percent of wages paid to new eligible employees.There is a five-year carry-forward provision for unused portion of past credits.

Firms must earn more than $5,000 to take advantage of the credit. This credit is not available if the Credit Against Sales Tax for Job Creation is taken. The amount of the credit must be added back to the Florida taxable income. Federal tax burden may increase since state tax liability is reduced. The credit is limited to 24 months if the employee remains employed for 24 months.

The JEDC Enterprise Zone Development Agency (EZDA) has 10 business days to process and certify the form.

Download Form F-1156Z (PDF 36k)
Download form F-1120 (PDF 157k)
View Florida Statute 220.181

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Business Machinery and Equipment Sales Tax Refund

This program provides a refund on state sales tax paid on the purchase of eligible machinery and equipment costing at least $5,000 per unit, which is used exclusively in an Enterprise Zone for at least three years.

If 20 percent or more of the permanent, full-time employees of the business are Enterprise Zone residents, the maximum refund per application will be no more than the lesser of $10,000 or 97 percent of the sales tax paid on eligible machinery and equipment purchases of up to $171,800.

If less than 20 percent of the permanent, full-time employees of the business are Enterprise Zone residents, the maximum refund per application will be no more than the lesser of $5,000 or 97 percent of the sales tax paid on eligible machinery and equipment purchases of up to $85,900.

There is no limit on the number of applications that can be applied for provided the per unit price of the eligible machinery is at least $5,000 and has been purchased within six months of filing.

Applications for Enterprise Zone business machinery and equipment sales tax refunds must be filed with the Florida Department of Revenue within six months after the machinery and/or equipment is purchased. The EZDA has 10 business days to review and verify the business is located within the Enterprise Zone.

Download form DR-26S (PDF 213k)
Download form EZ-E (PDF 170k)
View Florida Statute 212.08(5)(h)

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Building Materials Sales Tax Refund

This program provides a refund on state sales tax paid on the purchase of building materials used to rehabilitate real property located within the Enterprise Zone. Only one sales tax refund on building materials is available per parcel of real property unless there is a change in ownership or lessee. A building permit must be issued by the City of Jacksonville Building and Zoning Department for improvements being made to the building site.

The minimum refund available is $500, which roughly equates to $8,600 of building materials. If 20 percent or more of the permanent, full-time employees of the business are Enterprise Zone residents, the maximum refund per parcel will be no more than the lesser of $10,000 or 97 percent of the sales tax paid on building material purchases of up to $171,800. If less than 20 percent of the permanent, full-time employees of the business are Enterprise Zone residents, the maximum refund per parcel will be no more than the lesser of $5,000 or 97 percent of the sales tax paid on building material purchases of up to $85,900.

Applications for Enterprise Zone building material sales tax refunds must be filed with the Florida Department of Revenue within six months after the building materials are purchased, unless the Property Appraiser reassesses the property. In that event, the Enterprise Zone property owner has six months from the date of the reassessment to make the application. The EZDA has 10 business days to review and verify the business is located within the Enterprise Zone.

Download form DR-26S (PDF 213k)
Download form EZ-M (PDF 164k)
View Florida Statute 212.08(5)(g)

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Enterprise Zone Property Tax Credit

This credit allows new or expanded businesses located in the Enterprise Zone and creating five or more new jobs a corporate income tax credit equal to 96 percent of ad valorem taxes paid on the new or improved property. Any unused portion of the credit may be carried forward for five years. This credit also allows rebuilding business who have suffered damage in an "emergency" a tax credit based on the ad valorem taxes paid from the assessments on property replaced or restored.

Firms must earn more than $5,000 to take advantage of the credit. The amount of the credit must be added back to the Florida taxable income. Federal tax burden may increase since state tax liability is reduced.

If 20 percent or more of the full-time employees are Enterprise Zone residents, then the maximum of $50,000 annual credit can be claimed for five years; otherwise, the credit is limited to $25,000 annually for five years.

Form DR-456 must be filed with the Property Appraiser no later than April 1 of the year in which the real property is first subject to assessment. The EZDA has 10 business days to review and verify the business is located within the Enterprise Zone.

Download form F-1158Z (PDF 831k)
Download form DR-26S (PDF 213k)
Download form DR-456 (PDF 16k)
View Florida Statute 220.182

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Sales Tax Exemption for Electrical Energy

This program provides businesses located within the Enterprise Zone in a: newly occupied structure (no previous electrical service); renovated structure (no electrical service for three); or has received a building materials sales tax refund, a 50 percent exemption on municipal utility tax and at least a 50 percent exemption from the state sales tax on electrical energy.

If 20 percent or more of the business' employees are Enterprise Zone residents, the business will receive a 100 percent exemption from the state sales tax; if less than 20 percent of the business' employees are Enterprise Zone residents, the business will receive a 50 percent exemption from the state sales tax.

The EZDA has 10 business days to review and verify the business is located within the Enterprise Zone. Please note that the mailing address has changed for form DR-15JEZ. The new address is:

    Florida Department of Revenue
    Central Registration
    Fuel Unit
    P.O. Box 6480
    Tallahassee, FL 32314

Download form DR-15JEZ (PDF 418)
View Florida Statute 212.08(15)

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Community Contribution Tax Credit

This program allows any business in Florida to receive a 50 percent credit on Florida corporate income tax, insurance premium tax or sales tax refund for donations to local community development projects. The annual amount of credit granted is limited to $200,000 per firm and $5,000,000 for the state.

The approved community development project must be undertaken by an "eligible sponsor" and must be located in the Enterprise Zone. The locational requirement may not apply if the project is "designed to construct or rehabilitate housing for low-income or very-low-income households" and is an approved project by the Governor's Office of Trade, Tourism and Economic Development (OTTED).

For each dollar donated, businesses may receive a 55.5-cent reduction in Florida tax liability (50 cents from the credit and 5.5 cents from the deductibility of the donation). The donation may also be deducted from federal taxable income. A five-year carry-forward provision is available for any unused portion of the credit.

Firms must earn more than $5,000 to take advantage of the credit. Federal tax burden may increase since state tax liability is reduced. IRS rules of valuation of donated goods may require depreciation recapture; therefore, the deduction may be decreased.

To receive the credit, the project sponsor must first submit a proposal to OTTED for approval. Then businesses file form 8E-17TCA#01 to OTTED. Projects must be recertified on an annual basis.

For more information on this program contact:

     Burt Von Hoff

     Executive Office of the Governor

     Office of Tourism, Trade and Economic Development

     The Capitol; Suite 2001

     Tallahassee, Florida 32399-0001

     Phone: 850-487-2568

     Fax: 850-487-3014

     Email: BURT.VONHOFF@MYFLORIDA.COM

Download Form 8E-17TCA#1
Download Community Contribution Tax Credit Program Application for Sponsor Recertification
Download Proposed Project Sponsor Outline (PDF 169k)
View Florida Statute 220.183

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Empowerment Zone Incentives

(The Empowerment Zone incentive information provided on this Web site is for informational purposes only. For complete eligibility criteria and verification, contact Joe Whitaker at 630-1624 or e-mail josephw@coj.net).

View an Empowerment Zone Map (PDF 626k)

Read more about the Empowerment Zone designation and regulation

Download IRS Publication 954 - Tax Incentives for Distressed Communities provides detailed information on several Empowerment Zone programs

There are several different incentives available under this program including wage credits, tax deductions, bond financing, capital gains liability reduction, and others.

Wage Credits:
- Empowerment Zone Employment Wage Credit
  This program provides a credit against federal taxes up to $3,000 (20 percent of wages paid on the first $15,000) for businesses for each year of EZ designation for every existing employee and new hire who lives and works in the Empowerment Zone.
  
  It is available through Dec. 31, 2009. Businesses cannot count wages for both the Work Opportunity Tax Credit and the Welfare to Work Credits and the Empowerment Zone Wage Credit.
  
  Download IRS Form 8844
- Work Opportunity Tax Credit
  This program provides a credit up to $2,400 against federal taxes for businesses for each new hire from groups that have high unemployment rates or other special employment needs including youth ages 18 to 24 who live in an EZ and summer hires ages 16 to 17 who live in an EZ. Businesses do not have to be located in the Empowerment Zone.
  
  The program expires for individuals who begin work after Dec. 31, 2005 and cannot be combined with Welfare to Work Tax Credit. State Employment Services Agency must certify employee is in targeted group.
  
  Download IRS Form 8850
- Welfare to Work Wage Credit
  This program provides a two-year credit against federal taxes for businesses that hire long-term family assistance recipients. Credits are available up to $3,500 for the first year and $5,000 for the second year for each new hire.
  
  The program expires for individuals who begin work after Dec. 31, 2005. Business does not have to be in an EZ to qualify. Cannot be combined with Work Opportunity Tax Credit. State Employment Services Agency must certify employee is in targeted group.
  
  Download IRS Form 8850
Tax Deductions:
- Increased Section 179 Deduction
  This program allows business to claim increased Section 179 deduction (up to $20,000 in additional expensing increasing to $35,000 for property acquired after Dec. 31, 2001) if the businesses qualify as an Enterprise Zone Business. Can be claimed on certain depreciable property such as equipment or machinery.
  
  Download IRS Form 4562
- Environmental Clean-up Cost Deduction
  This program allows businesses to deduct qualified cleanup costs of hazardous substances in certain areas (Brownfields) in the tax year the business pays or incurs the costs. The property must be located in an Empowerment Zone and must be certified by a State environmental agency. The Jacksonville Empowerment Zone is also designated as a Brownfield area. Includes costs paid or incurred prior to Jan. 1, 2004.
Bond Financing
- Enterprise Zone Facility Bonds
  This program allows the state and local governments to issue Enterprise Zone Facility Bonds (a type of tax-exempt bond) to make loans at lower interest rates to Enterprise Zone Businesses to finance Qualified Zone Property.
- Qualified Zone Academy Bonds
  This program allows state and local governments to match no-interest loans with private funding sources to finance public school renovations and programs.
Capital Gains Liability Reduction
- Nonrecognition of Gains on Sale of Empowerment Zone Assets
  Under this program, the capital gain on Empowerment Zone Assets (stock, partnership interests, and business property) of an Enterprise Zone Business held for more than one year is not recognized (and is rolled over) if replacement Empowerment Zone Assets is acquired within 60 days. This allows the business to delay payment of capital gains to a taxable year where the gain is netted against a capital loss or to a year when it would otherwise be a benefit to the company. The election by taxpayer is for Empowerment Zone Assets acquired after Dec. 21, 2000, and before Jan. 1, 2010.
- Partial Exclusion of Gain on Sale of Empowerment Zone Stock
  This program provides an exclusion of 60 percent or the gain on sale of small business stock of a C Corporation that is an Enterprise Zone Business located in an Empowerment Zone if the stock is held for at least five years.
  
  Stock must be acquired after Dec. 21, 2000, and before Jan. 1, 2010, at original issuance in exchange for cash. Sixty-percent exclusion does not apply to gain after Dec. 31, 2014. The business must be an Enterprise Zone Business located in the Empowerment Zone.
Other Incentives
- New Market Tax Credits
  Equity investors in qualified Community Development Entities (CDEs) can obtain a tax credit against Federal taxes of 5 percent to 6 percent of the amount invested for each of the years the investment is held, for up to seven years of the credit period.
  
  Allocations of the credit will be made annually from 2001 to 2007 to qualified CDEs. Investors must purchase stock or partnership interest in a CDE for cash at original issuance. Credit available at time of purchase (one year) and six anniversary dates of acquisition of investment.
  
  Click here to learn more about New Market Tax Credits
- Low Income Housing Tax Credits
  This program provides a 10-year credit against federal taxes for owners of newly constructed or renovated rental housing who set aside a specified percentage of units for low-income persons for a minimum of 15 years. The credit varies for new construction and renovation.
  
  Project must receive allocation of state's annual credit ceiling or use multifamily housing tax-exempt bonds that receive allocation of State's bond volume cap. Allocations are made on basis of State plan. The project does not have to be located in an EZ to qualify.
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About the Enterprise Zone

The City of Jacksonville was awarded an official Enterprise Zone designation, effective July 1, 1995. The Jacksonville Enterprise Zone was redesignated effective Jan. 1, 2006 through Dec. 31, 2015. Jacksonville's Enterprise Zone is a 20-square-mile base area with three additional developable sites totaling an additional 2,000 acres of property targeted for economic revitalization.

Businesses located within the Enterprise Zone and/or the developable site areas are eligible to take advantage of various financial incentives offered by the State of Florida through the Enterprise Zone Program. Additionally, Jacksonville's Enterprise Zone area is designated a Brownfield Area. (Click here to learn more about Brownfield incentives).

As required by Florida statute 290.0055, the City of Jacksonville created the Enterprise and Empowerment Zone Development Agency Board to assist with ongoing performance of the Enterprise and Empowerment Zones. (Download the Board Member List (PDF 35k)).

All Enterprise Zone tax credit application are required to be submitted to the JEDC for verification that the business or applicant seeking Enterprise Zone tax credits is located within the Enterprise Zone boundaries.

For more information concerning specific benefits offered by the Enterprise Zone, please contact Joe Whitaker, enterprise zone coordinator, at 904-630-1624 or e-mail josephw@coj.net.
About the Empowerment Zone

The Community Tax Relief Act of 2000, signed into law Dec. 15, 2000, offers communities direct access to programs that will encourage development and create prosperity for low-income areas by using tax incentives that encourage economic growth. Expanding business development and commerce leads to greater job opportunities for residents and to improved access to goods and services, both of which help energize long-term revitalization. Jacksonville was awarded a Round III Empowerment Zone Designation in 2002.

As required by federal law, the City of Jacksonville created the Enterprise and Empowerment Zone Development Agency Board to assist with ongoing performance of the Enterprise and Empowerment Zones. (Download the Board Member List (PDF 35k)).

All Empowerment Zone tax credit application are required to be submitted to the JEDC for verification that the business or applicant seeking Empowerment Zone tax credits is located within the Empowerment Zone boundaries.

For more information concerning specific benefits offered by the Empowerment Zone, please contact Joe Whitaker at 630-1624 or e-mail josephw@coj.net.

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Jacksonville Economic Development Commission
Business Development Division

1 West Adams Street, Suite 200, Jacksonville, FL 32202
(904) 630-1906