Tax Incentives for Businesses Locating or Expanding in Tampa

Published by nora | Filed under Buyer / Seller Tips, Market Trends, Miscellaneous, Real Estate

Businesspeople launching new firms or expanding enterprises in Tampa or in other cities of Hillsborough County can obtain tax incentives this year. Last year, voters approved an economic development proposal authorizing county commissioners to offer tax breaks to businesses that can create jobs for unemployed residents.

Commissioners approved initial plans that would provide a 50-percent reduction in real estate taxes for a period of five to seven years, depending on the type and number of jobs added. Recipients are required to pay above average wages and to maintain the number of jobs written in the contract with the county.

Prospective business owners in Tampa could get a much higher tax break if certain commissioners can push their proposal for a higher property tax reduction rate. These commissioners believe that the county needs a stronger incentive for businesses to create jobs, particularly in places where there are few jobs and where the jobless rate is high.

Additionally, many commissioners are concerned about job creation efforts in community redevelopment areas, particularly CRAs in the cities of Tampa, Plant and Temple Terrace. They noted that the new tax incentive proposal doesn’t include CRAs, where there is already a program that redevelops blighted neighborhoods with funds coming from a portion of property taxes. Several commissioners argued that the extension of the tax incentive proposal to CRAs can further help alleviate the job situation in these areas where minorities often make up a large part of the population.

Though the initial details of the tax incentive plan are already satisfactory to the commissioners, they’re still looking for ways to enhance the plan. But at the same time, they’re also making sure that the tax breaks are not too much, making the county lose so much revenue without anything in return. They’re trying to balance their effort of attracting new job-creating firms while maintaining business property taxation as a strong source of county revenue. The state of Florida also has the same principle when considering tax incentives to offer to new businesses.

In recent surveys, Tampa and other cities in Florida were among the top cities considered for relocation and expansion by commercial real estate executives and by foreign investors. Tampa always comes out in business location surveys because of its business-friendly policies, its affordable commercial properties, its fair weather, its relatively large inventory of lower-priced homes, its skilled labor force, and access to the highly-ranked Tampa International Airport.

With these business-welcoming features, the new tax incentive program in Tampa is a great bonus.

Find the best Tampa commercial properties with the help of the Tampa4U team.