Gov. Scott eliminates taxes on the purchase of equipment
Today, Governor Rick Scott announced his commitment to Building Up Florida Manufacturing Jobs in the upcoming legislative session by eliminating taxes on the purchase of equipment to encourage manufacturing companies to grow in Florida. The Governor said building up the state’s manufacturing sector is critical to strengthening the state’s economy because it creates stable jobs for Florida families.
Governor Scott said, “We have 17,500 manufacturing companies in Florida today that employ more than 300,000 Florida families. In the upcoming legislative session, we are committed to building up Florida manufacturing jobs by eliminating the tax barriers on companies who purchase equipment.
“Florida’s current policy puts our state at a competitive disadvantage because most states do not force manufacturers to pay taxes on the purchase of equipment or require them to adhere to regulations for tax exemptions. In order to build up our manufacturing jobs in Florida, we must remove these barriers to investment. We know that when manufacturers purchase equipment in our state, they are investing in Florida workers for years to come. We want more manufacturers to move to Florida, and our existing manufacturing companies to buy the equipment they need to grow and create more jobs to support Florida families.
“Eliminating the barriers on investment for our manufacturing industry will also benefit our ports and the many small businesses that support manufacturers. Manufacturing accounts for almost 90 percent of Florida exports that depend on our ports. Small businesses make up nearly 96 percent of the state’s exporting firms and produce 67 percent of the state’s total exports. Building up Florida manufacturing is about building up Florida jobs all across our state.”
Governor Scott will propose legislation this session to fully eliminate an outdated “productive output” requirement, currently at 5 percent, required for businesses to receive a sales tax exemption on equipment. Until January 1, 2013, manufacturers were required to show proof of meeting a “productive output” requirement of 10 percent. Governor Scott reduced this 10 percent requirement down to 5 percent in the 2012 legislative session.
The Governor’s commitment to Building Up Florida Manufacturing Jobs will also utilize Quick Response Training (QRT) funding to train workers to transition from other sectors of the economy, such as construction, into manufacturing. In November, Governor Scott announced that he would work with the Legislature to double QRT funding to $12 million.