Business Development Board

GOVERNOR BUSH SIGNS ECONOMIC DEVELOPMENT BILL PACKAGE

FOR IMMEDIATE RELEASE TUESDAY, MAY 30, 2006

CONTACT: RUSSELL SCHWEISS  (850) 488-5394 or SCOTT OPENSHAW (850) 487-2568

GOVERNOR BUSH SIGNS ECONOMIC DEVELOPMENT BILL PACKAGE

 

~ New measures will further diversify and strengthen Florida ’s economy ~

 

       Governor Jeb Bush signed into law a series of bold new economic development initiatives to bolster Florida ’s Innovation Economy.  Among the initiatives, the new legislation creates the 21st Century Technology, Research, and Scholarship Enhancement Act, the Innovation Incentive Program, and Space Florida , as well as provides significant tax exemptions for machinery and equipment used for research and development and manufacturing.

 

        “During times of abundance, it is smart to reinvest some of these one-time revenues back into our economy to attract capital investment and create high wage jobs that, in turn, generate recurring revenue for state and local government,” said Governor Bush.  “I thank Speaker Allan Bense and President Tom Lee for their leadership and commitment to ensuring a world-class business environment in the Sunshine State .  This comprehensive legislative package combines a variety of tools, which include financial incentives, to spur investment and state funding to build our innovation infrastructure and to diversify and strengthen our economy.”

 

        To accelerate the growth of Florida ’s Innovation Economy, Governor Bush signed the following legislation:

 

Senate Bill 2728 - Florida ’s Innovation Incentive Program and Expansion of the Quick Action Closing Fund:

 

Ø       Creates the Innovation Incentive Program and provides $200 million for Florida to take advantage of once-in-a-lifetime opportunities that will yield a significant return for taxpayers in the long-term.  These hubs of innovation will yield high wage jobs - at least 130 percent of the average wage - for Floridians.  The resulting prosperity will generate greater revenue for the community and state without raising taxes.

 

Ø       Provides $45 million for the Quick Action Closing Fund, enabling the state to offer a cash incentive to companies considering Florida as the location for their business.  This fund helps Florida compete with other states and nations to bring high-wage, professional jobs to Florida .  Since this fund was established in 1999, Florida has provided nearly $20 million in incentives to 18 companies, generating an investment of $806 million and creating 5600 jobs.

 

“The economic development legislation the Governor signed into law moves Florida to the forefront of states that welcome and encourage the expansion of industry.   The incentives contained in these three bills will demonstrate that Florida is ready and willing to support the expansion of businesses that have the ability to give back to our great state,” said Senator Mike Fasano. “I applaud my colleagues in the Legislature, and Governor Bush in particular, for having the foresight to look toward the health of Florida 's economic future by sending these landmark economic development packages to the statute books.”

 

“I want to help Floridians find jobs, obtain health care, secure home ownership, and pursue their dreams. It is important that they achieve these goals with their own hard-earned wages,” said Representative Frank Attkisson. “Hopes and dreams are better facilitated when people have good-paying jobs.  That is exactly what we are doing with the creation of these positions through the Innovation Incentive Program.”

 

House Bill 415 - Relating to Sales Tax/Research or Development:

 

Ø       Provides full sales tax exemption for machinery and equipment purchased for use in research and development.  This exemption will improve Florida’s attractiveness as a location for research and development activity, enhance the likelihood that Florida will attract or spawn commercialization and production activity that emerges from a richer research and development environment in the state, and enhance private-public research partnership opportunities.  This new tax exemption will result in an estimated $27 million in tax savings next year.

 

“It's clear that Florida is in the midst of a technological renaissance and I am proud to provide legislation to support the continued diversification of our economy,” said Representative John Quinones.

 

House Bill 69 - Relating to Sales Tax Exemptions/Machinery:

 

Ø       Expands current sales tax exemptions for machinery and equipment used by expanding manufacturers, mining operations and spaceports to expand output in Florida .  Currently, expanding manufacturers must first pay as much as $50,000 in taxes on equipment purchases before being allowed to purchase tax free.  The new law allows the tax free purchases to occur immediately and will result in an estimated $24 million in tax savings next year.

 

“HB 69 will position Florida ’s manufacturers to better compete nationally and globally. Currently, 36 states offer full or partial exemptions many of which are located in the Southeast U.S. and compete with Florida’s manufacturing community,” said Senator Jeff Atwater. “More than 16,000 manufacturing companies will be able to take advantage of this tax break. These 16,000 companies employ some 388,000 Floridians. The dollars this exemption gives back to Florida’s manufacturers will help small manufacturing businesses to grow and more money will be put back into Florida ’s economy. Manufacturers have been trying to pass this legislation for over a decade now and I am proud to see it become law. I thank the Governor for his support of this bill.”

 

“After spending three years advocating for this important tax relief, I'm delighted that we are helping Florida's small manufacturers, we need to do all we can to keep high-quality, high-wage jobs in Florida,” said Representative Matt Meadows.

 

House Bill 1489 - Relating to the State’s Aerospace Industry:

 

This measure implements many of the recommendations put forth by the Commission on the Future of Aeronautics and Space in Florida announced earlier this year by Lt. Governor Toni Jennings, including:

 

Ø       The consolidation of Florida’s existing space entities into a new organization - Space Florida , which will lead state efforts in supporting this field

 

Ø       $35 million to upgrade infrastructure at two facilities at Kennedy Space Center , which are central to Florida ’s efforts to produce the Crew Exploration Vehicle - the replacement vehicle of the Space Shuttle

 

Ø       $3 million for Space Florida operations
Ø       $4 million for innovative education programs to increase interest in math and science, and financing assistance for aerospace business development projects

 

Ø       The expansion of the current sales tax exemption, from 25% to 100%, for machinery and equipment used in production of space or defense products, resulting in annual tax savings of $3 million to the industry

 

Ø       The creation of a Center for Mathematics and Science Ed ucation Research to increase student achievement and implement effective instruction practices

 

“This Space Florida legislation will help to ensure Florida 's nation-wide and world-wide competition in aeronautics,” said Representative Leslie Waters.

 

House Bill 1237 - Relating to Postsecondary Ed ucation Programs - The 21st Century Technology, Research and Scholarship Enhancement Act:

 

This measure invests $95 million in matching grants for universities to build our innovation infrastructure, including:

 

Ø       $30 million to create and expand Centers of Excellence around key sectors of our economy.  The program gives universities a financial boost to leverage public and private dollars to support emerging research and development projects.  The collaboration between industry and academia will help drive inventions and innovations from the lab to the marketplace.

 

Ø       $45 million for the “State University System Research and Economic Development Investment program” to allow universities to build high-tech, cutting edge facilities with advanced equipment to attract flagship research projects.

 

Ø       $20 million to create the “World Class Scholars Program.” The program offers universities the financial resources to attract leading researchers from around the globe to Florida .  Funds may be used for incentives, including building labs, providing high-tech equipment or funding support staff. The state will match the investment of universities dollar-for-dollar.

 

        “The Centers of Excellence and Scholars legislation will continue Florida 's efforts to attract world class scientists to our universities and to create collaborative relationships between our universities and biology information businesses,” said Senator Ron Klein.

 

“This legislation provides an opportunity to foster economic development and spurs promising research in Florida using the strengths of our university systems,” said Senator J. D. Alexander. “It is a benefit to both our universities and the citizens of Florida .”

 

“With the Governor's signature on HB 1237, the state of Florida will send a national and international message that we are serious about our investment in higher education, economic development and the health care of our citizens,” said Representative David Mealor.

 

        Under the leadership of Governor Bush, Florida has provided $19.1 billion in state and local tax relief through 2006-07, increased state reserves by more than 500 percent, and developed into a long-term national leader in job creation.  With virtually no interruption, Florida has maintained its number one ranking in job growth for more than 40 consecutive months.  According to the American Electronics Association, Florida leads the Southeast and ranks fourth nationally in high-tech employment.

 

                Growing Florida ’s economy is critical to the state’s long-term prosperity. For more information on Governor Bush’s economic development initiatives, please visit www.myflorida.com.

 

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