STATE OF FLORIDA HAS

• N0 corporate income tax on limited partnerships

• N0 corporate income tax on sub chapter S-corporations

• N0 state personal income tax guaranteed by constitutional provision

• No corporate franchise tax on capital stock

• No state-level property tax assessed

• No property tax on business inventories

• No property tax on goods-in-transit for up to 180 days

• No sales and use tax on goods manufactured or produced in Florida for export outside the state

• No sales tax on purchases of raw materials incorporated in a final product for resale, including non-reusable containers or packaging

• No sales/use tax on co-generation of electricity

TAX EXEMPTIONS

Florida also offers sales and use tax exemptions for:

• Machinery and equipment used by a new or expanding Florida business to manufacture, produce or process tangible personal property for sale

• Labor, parts and materials used in repair of and incorporated into machinery and equipment

• Electricity used in the manufacturing process

• Certain boiler fuels (including natural gas) used in the manufacturing process

• Semiconductor, defense and space technology-based industry transactions involving manufacturing equipment

• Machinery and equipment used predominantly in research and development (effective July 1, 2006)

• Labor component of research and development expenditures

• Commercial space activity — launch vehicles, payloads and fuel, machinery and equipment for production of items used exclusively at Spaceport Florida

• Aircraft parts, modification, maintenance and repair, sale or lease of qualified aircraft

• Production companies engaged in Florida in the production of motion pictures, made for television motion pictures, television series, commercial music videos or sound recordings