Florida Economic Development Program Evaluations - Year 10
Report 22-06, November 2022
- Six of the eight programs under review involve businesses that had agreements with the Department of Economic Opportunity (DEO) or the Department of Revenue (DOR). Businesses with projects that had agreements received $263 million in state incentive funds during Fiscal Years 2018-19 through 2020-21. These projects created 29,710 jobs and made $1.3 billion in capital investments, exceeding performance requirements.
- Many businesses that had agreements and received incentive payments during the review period were large and had previously existed in Florida. However, DEO has not received recent appropriations for two of these programs—the Innovation Incentive Program and the Quick Action Closing Fund Program—and no business with an Innovation Incentive Program project received payments during the review period. Further, DEO no longer has the authority to certify new applicants for the Qualified Target Industry Tax Refund Program.
- The remaining two programs do not require such agreements. Businesses received $1.6 million in Enterprise Zone Program tax credits and refunds during the review period. In addition, investors claimed $44.8 million in tax credits for the New Markets Development Program during the review period. These programs have or will soon sunset—the Enterprise Zone Program in 2018 and the New Markets Development Program in 2022.
- OPPAGA recommends the Legislature consider taking action on two economic development programs. Should the Legislature decide to continue the Innovation Incentive Program, it may wish to modify the types of entities that qualify for the program. Further, if the Legislature chooses to reauthorize the New Markets Development Program, it could consider directing DEO to improve program oversight, including using scoring criteria when allocating tax credits and expanding reporting requirements.
Economic development, incentives, Capital Investment Tax Credit, Qualified Target Industry Tax Refund, Brownfield Redevelopment Bonus Refund, High-Impact Incentive Performance Grants, Quick Action Closing Fund, Innovation Incentive Program, Enterprise Zone Program, job creation, capital investment, New Markets, loans, equity, investment, tax credits