Sure Orlando is known as a great tourism and hospitality venue, but it’s more than that. Orlando is a great place to locate or relocate a business and it is primed for growth. Orlando consistently ranks as a leading place to conduct business. The state of Florida has no personal income tax and offers a low cost of doing business.
According to Orlando Mayor Buddy Dyer, “In the past five years, we’ve witnessed a city transformed. We’ve experienced prosperity and tremendous growth. Through partnerships and collaboration, we’ve found ways to overcome seemingly daunting challenges.”
“A whole new set of challenges is on the horizon. Our national economy has slowed.It’s getting tougher to put gas in the tank and send our kids to college. Our roads are more crowded every day. The Central Florida population will double in the next quarter century, affecting almost every facet of our lives. The good news is—everything we need to overcome these obstacles is right here in our own Central Florida backyard,” Dyer adds.
Elaborating, John Fremstad, vice president/technology development, Metro Orlando Economic Development Commission (MOEDC), says the economy is continuing to diversify, especially when it comes to technology.
Growth sectors include simulation and training, lasers and optics, digital media (video games), life science/bio-technology and software development. Meanwhile, he says, tourism and hospitality continue to grow along with the financial services, film and television, and manufacturing and distribution sectors.
Growth in these market sectors is continuing to help grow Orlando’s economy, says Fremstad, adding that he believes the Orlando economy will stabilize by the end of 2008, and by mid-2009, “there will be a more rapid growth across all sectors.”
MOEDC, he notes, represents Orange, Osceola, Seminole and Lake Counties as well as the city of Orlando. This metropolitan statistical area is home to 2.1 million people and an 850,000-member workforce.
When it comes to pro-business orientation, Fremstad says one would be hard-pressed to identify a better example than Metro Orlando. Both the State of Florida and Metro Orlando offer attractive incentives to qualifying relocating and expanding companies. Elected officials have demonstrated their commitment to economic development through the adoption of incentive packages based on the needs of the company.
This assistance, he continues, is provided on a case-by-case basis, with job creation, quality of wages and capital investment being the significant deciding factors. The state and local tax climate can also be considered an incentive to investing in the region.
Businesses in Orlando are entitled to many of the same business incentives available statewide. These include no personal income tax; no corporate income tax on limited partnerships or Subchapter-S corporations; no franchise tax on capital stock; no state-level property tax; no property tax on business inventories; no property tax on goods-in-transit for up to 180 days; no sales use tax on goods manufactured or produced in Florida for export outside the state; no sales tax on the purchase of raw materials incorporated into a final product for resale, including non-reusable containers or packaging; and no sales use tax on boiler fuels or on the co-generation of electricity.
Businesses based in Orlando, Fremstad explains, are also eligible for the state’s capital investment tax credit. This business incentive is used by the state to attract and grow capital-intensive industries. This is an annual credit that is provided for up to 20 years. Eligible projects are those in biomedical technology, silicon technology and transportation equipment manufacturing. Projects must also create a minimum of 100 jobs, he adds.
Fremstad adds that strategic partnerships or alliances are encouraged. A strategic partnership or alliance usually consists of two entities working together to achieve a common goal. For an emerging company, these relationships can provide capital as well as a customer base, marketing and sales support and additional technical talent. For the established company, the start-up partner provides new technology, new talent and speed.
Programs Abound to Benefit Businesses
In addition, there are several programs that benefit businesses wanting to locate or relocate to Orlando. These include:
Industrial Development Revenue Bonds (IDRB). IDRB financing is a federal program administered by the state at the local level. These bonds can be used to finance or refinance expansion of manufacturers and non-profit organizations. Bond financing can provide up to 100% funding of a qualified project within federally specified dollar limits.
The Enterprise Florida Bond program. This is available for manufacturing projects between $800,000 and $2 million.
The Florida High Tech Corridor Council (FHTCC) matching grant program. This program provides matching grants to companies in a 23-county region. The grants provide industry-university research projects, said Heathrow, FL-based FHTCC President Randy Berridge. Now in its twelfth year, “We invested $45 million in 800 projects with more than 250 companies. These companies matched it with more than $370 million,” Berridge explains.
Qualified Target Industry Tax Refund program. This is a state incentive that requires local matching funds to create high-wage jobs in targeted high value-added industries. This incentive includes refunds on corporate income, sales, ad valorem, intangible personal property, insurance premium and certain other taxes.
Quick Response Training program. This is a customer-driven training program designed to assist new value-added businesses and provide existing Florida businesses the necessary training for expansion.
