Competitive Business Climate
Collaboration and can-do spirit promote business growth.
Businesses seeking to expand in or relocate to Florida will find a collaborative, can-do spirit. Here, many entities come together to create a business climate that promotes success.
Such was the case for Brazilian aircraft manufacturer Embraer. The company, which is the world’s third-largest commercial aircraft manufacturer behind Airbus and Boeing, found the perfect location for its first aircraft assembly factory outside of Brazil.
In May 2008, Embraer announced that it would invest $41 million to construct a 149,500-square-foot assembly plant and showroom at Melbourne International Airport. Three components helped seal the deal for Melbourne: workforce, site location and incentives.
Embraer will assemble its new Phenom 100 and Phenom 300 executive jets at Melbourne International Airport. [Photo courtesy of Embraer]
The company expects to begin hiring in January 2010, which corresponds with the retirement of the Space Shuttle. Embraer was quickly convinced that a qualified workforce will be readily available. The company is expected to create 200 high-wage jobs with an annual payroll in excess of $10 million.
Melbourne International Airport also offered a tremendous site location. The greenfield, high and dry site is more than enough to accommodate their plans. The community also offers many amenities for the company’s high net-worth clientele — a key driver in the decision.
A collaborative incentive package was the icing on the cake. Partners on the project include Enterprise Florida, EDC of Florida’s Space Coast, Brevard County, the City of Melbourne, Brevard Workforce Development Board and the Melbourne Airport Authority.Florida’s Business-Friendly Tax Advantages
Incentives are not necessarily the first factor CEOs consider in making site selections, but when the choice gets narrowed down to two or three potential sites, incentives and business-friendly fiscal policies can frequently tip the scale.
Florida consistently earns high marks for its responsible fiscal policies and pro-business tax code. The reasons are clear.
Florida imposes NO:
- State personal income tax (constitutionally guaranteed)
- Corporate franchise tax on capital stock
- Corporate income tax on limited partnerships or subchapter S-corporations
- State-level ad valorem taxes
- Tax on goods-in-transit (up to 180 days)
- Property tax on business inventories
- Sales and use tax on goods manufactured or produced in Florida for export outside the state
- Sales tax on purchases of raw materials incorporated in a final product for resale, including non-reusable containers or packaging
- Sales/use tax on co-generation of electricity