Office of Program Policy Analysis and Government Accountability
Office of Program Policy Analysis and Government Accountability

Several Issues Important in Redesigning Business Recruitment and Expansion Tax Refund Programs

Report 04-83, December 2004

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Report Summary

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.

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Copies of this report in print or alternate accessible format may be obtained by email OPPAGA@oppaga.fl.gov, telephone (850) 488-0021, or mail 111 W. Madison St., Room 312 Tallahassee, FL 32399-1475.
Copies of this report in print or alternate accessible format may be obtained by email OPPAGA@oppaga.fl.gov, telephone (850) 488-0021, or mail 111 W. Madison St., Room 312 Tallahassee, FL 32399-1475.
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