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Industry Sales & Use Tax Exemptions

Florida offers Sales & Use tax exemptions for these applications.

Technology Tax Exemptions

Clean Technology

Renewable Energy Technologies, Machinery, Equipment, and Material Sales and Use Tax Refund allows businesses to apply for a refund of sales and use taxes paid on equipment, machinery, and other materials for renewable energy technologies. 

Research & Development

The Sales and Use Tax Exemption on Machinery and Equipment Used for Research and Development is available to help foster innovation throughout the state. Under this exemption, machinery and equipment used predominantly for research and development are exempt from sales and use tax.

Industry Tax Exemptions

Semiconductor, Defense, or Space INDUSTRY

Semiconductor, defense and space technology-based industry transactions involving manufacturing or research equipment.

Aviation Industry

Maintenance or Repair of Aircraft

Exemptions on the amount charged for labor associated with the maintenance or repair of aircraft.

Equipment Used In Aircraft Repair or Maintenance

Exemptions on the sale of equipment used to repair or maintain aircraft and is installed on aircraft maintained or repaired in Florida.

Fixed Wing Aircraft Sales or Leases

Exemptions on the sale or lease of fixed wing aircraft used by a “common carrier” as defined by the FAA.

Space Industry

Property Used Predominantly for Space Flight Business

Purposes: Exemptions of sales tax on the lease of Real Property used or occupied predominantly for space flight business, including manufacturing, processing, ground control and ground support and other activities.

Machinery and Equipment for Space Industry

Exemption of sales tax on machinery and equipment used to increase the productivity output of a spaceport activity and for new and expanding businesses.

Space Launch Vehicle Fuels

Exemption of excise tax on fuels of such quality not adapted for use in ordinary motor vehicles, being produced for and sold exclusively for space flight.

Space Laboratories and Carriers

Exemption from ad valorem tax on modules, pallets, racks, lockers, and their necessary associated hardware and subsystems.

Direct and Overhead Materials

Exemptions of sales tax on tangible personal property used or consumed by a government contractor, including prime and subcontractors, in the performance of a D.O.D. or NASA contract.

Manufacturing Tax Exemptions

Electricity & Steam Tax Exemption

Exemptions on electricity used directly and exclusively at a fixed location to operate machinery and equipment that is used to manufacture items of tangible personal property for sale, or to operate pollution control equipment, recycling equipment, maintenance equipment, or monitoring or control equipment used in such operations.

Machinery and Equipment Tax Exemptions

New and Expanding Manufacturers: The machinery and equipment must have been purchased, or a purchase agreement made, prior to the date the business first begins to produce a product for inventory or immediate sale.

Mining Activities: Businesses engaged in mining activity may qualify for the exemption but may only receive the exemption by way of a future credit against taxes. Mining businesses must also demonstrate the creation of new Florida jobs.

Repair and Labor Charges: Exemption on the sales tax on labor charges for the repair of, and parts and materials used in the repair of industrial machinery and equipment that qualify for the sales tax exemption.

Pollution Control Equipment Sales: Use or privilege taxes shall not be collected with respect to any facility or machinery used primarily for the control of pollution in manufacturing, processing, compounding , or producing for sale items of tangible personal property at a fixed location.

learn more about Incentives

Incentives are available to qualifying relocating and expanding companies on a case-by-case basis with job creation, quality of wages and capital investment being the significant deciding factors.