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Office of Program Policy Analysis and Government Accountability

Several Issues Important in Redesigning Business Recruitment and Expansion Tax Refund Programs, Report No. 04-83, December 2004
 
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In this information brief, OPPAGA determined that redesigning the Qualified Target Industry Tax Refund Program and the Qualified Defense Contractor Tax Refund Program as tax credit programs is feasible but raises important issues. Both programs currently require businesses to meet performance-based objectives as a prerequisite to receiving refunds on a portion of their tax payments to state or local government.

Redesigning the programs would have several implications the Legislature should consider.

  • It would be important to continue to require businesses to meet job creation and other performance-related objectives.
  • Legislative oversight of the programs would become more difficult as the Legislature would no longer be able to control the programs through annual appropriations.  The Legislature currently appropriates funds to pay refunds to companies receiving program incentives. Credits are not subject to appropriation, although the Legislature could cap the amount of credits in statute.
  • Businesses would have less flexibility since tax credits are usually restricted in application to a single type of tax.
  • The administrative workload of the Department of Revenue would increase.

Which Government Program Summaries contain related information?

Office of Tourism, Trade and Economic Development
General Tax Administration (DOR)
Enterprise Florida, Inc.

What other OPPAGA-related materials are available?

  • Report No. 09-36 Scripps Florida Funding Corporation Complies with Requirements and Should Be Continued,published in October 2009.
  • Report No. 07-48 Legislature May Wish to Consider Options for Enhancing Florida’s Recreational Marine Industry, published in December 2007.
  • Report No. 06-61 Scripps Funding Corporation Meets State’s Statutory and Contractual Requirements,published in September 2006.
  • Report No. 05-54 The Legislature Has Several Options Available for Enhancing Rural Enterprise Zones, published in November 2005.
  • Report No. 05-32 OPPAGA Report: Locals Find State Urban Revitalization Programs Useful; More Centralized Program Information Would Be Helpful, published in May 2005.
  • Report No. 04-24 Information Brief: Florida’s Enterprise Zone Program Is Similar to Those of Other States, published in March 2004.
  • Report No. 03-64 Special Review: Enterprise Zone Pilot Project Incentives Not Widely Used, But Progress Made in Revitalizing ProjectArea, published in December 2003.
  • Report No. 99-43 Program Review: Use of Enterprise Zone Incentives Has Increased, but Challenges Continue, published in March 2000.

Copies of this report in print or alternate accessible format may be obtained by telephone (850/488-0021), by FAX (850/487-9213), in person, or by mail (OPPAGA Report Production, Claude Pepper Building, Room 312, 111 W. Madison St., Tallahassee, FL 32399-1475).
e-mail address: oppaga@oppaga.fl.gov


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