The Qualified Target Industry Tax Refund Program (QTI) is a tool available through the State of Florida Department of Economic Opportunity (DEO) to encourage quality job growth to targeted growth industries. This program supports the City’s efforts to diversify the Orlando economy.
- Under QTI, pre-approved applicants who create qualifying jobs in Florida receive tax refunds of $3,000 per new job created ($6,000 in an Enterprise Zone)
- For businesses paying 150% of the average annual wage, add $1,000 per qualifying job
- For businesses paying 200% of the average annual wage, add $2,000 per job
- An approved applicant receives refunds on taxes paid, including corporate income, sales and use, ad valorem, intangible personal property, insurance premium and certain other taxes.
- There is a cap of $5 million per single qualified applicant in all years, and no more than 25% of the total refund approved may be taken in any single fiscal year.
A company must apply to the City of Orlando and Enterprise Florida prior to making a decision to locate or expand in Florida. A qualified applicant must:
- Be a targeted growth industry, as defined by the State of Florida
- Demonstrate that the tax refund is necessary for the business to locate or expand in the community
- Create at least 10 new jobs in the City of Orlando
- If it is an expansion project, the business must increase employment by at least 10% (whichever is greater). For businesses located within the Orlando Enterprise Zone, the increase in employment may be waived.
- Pay an average annual wage that is at least 115% of the State, metropolitan statistical area (MSA) or the local average wage
- For businesses located in an Enterprise Zone, the wage requirements may be waived.
- Demonstrate that the jobs make a significant economic contribution to the local economy
- Demonstrate that there is out-of-state competition for the project application
- Complete a QTI application for the City Orlando and Enterprise Florida
- If the company is approved, a resolution is taken before the Orlando City Council recommending the applicant for the QTI program
- Enterprise Florida evaluates the application and makes a recommendation to DEO who makes the final decision on the project
- DEO issues its approval or disapproval of the application in the form of a Final Order
- Upon approval, the Final Order indicates the amount and schedule of tax refunds approved, as well as the number of jobs and average wage rate for the project jobs
- Once the QTI application is approved, the business works with the City of Orlando and DEO to finalize a tax refund incentive agreement
The City of Orlando and Enterprise Florida will shepherd businesses through the entire process, ensuring that the company understands what is required to complete an effective application.
- The business submits a claim each year for the scheduled tax refund.
- Once the terms of the tax refund agreement are met, the City of Orlando pays the 20 local match into the State of Florida Economic Development Trust Fund and DEO pays the cash refund to the business.
For more information, please contact the Office of Business Assistance at 407.246.2821 or visit Enterprise Florida’s website at www.eflorida.com.