Florida TaxWatch Research Supports Northeast Florida Manufacturers' Position On Taxes & Incentives

Aug. 9, 2011 - PRLog -- Jacksonville, Fla. – The recently released research report from Florida TaxWatch supports the First Coast Manufacturers Association’s (FCMA) tax policy and incentive strategy that encourages the expansion of manufacturing in Florida, reported Lad Daniels, president of FCMA.
   The report begins with the major advantages that manufacturing brings to the state, which includes being capital intensive; key to Florida ports; and driving research and development.
   Research shows that manufacturing has the smallest volatility in personal income streams of all sectors, including all government sectors. And as such, manufacturing provides steady income to Florida residents that helps smooth out tax receipts and provides stability to the state’s economy, even during recessionary periods.
   The report also outlines competitive disadvantages Florida has with other states when it comes to recruiting and retaining manufacturers.
   TaxWatch identifies major problems as…
-   Low capital expenditures on manufacturing;
-   Low capital investment because of taxing policies (sales tax on machinery and equipment and tangible personal tax);
-   Incentive programs that are not targeted toward manufacturing (through Qualified Tax Incentives (QTI) and Capital Investment Tax Credit (CITC).
FCMA has been working with state legislators over the years to address issues affecting the growth and stabilization of the industry. Recommendations from this report almost mirrors the association efforts. They include…
A)   Incentivize capital investment by modifying the current QTI and CITC to positively affect manufacturing;
B)   Reduce penalties for accumulating productive capital;
C)   Lowering and eliminating taxes on inputs to manufacturing;
D)   Improve Florida’s infrastructure with investments.
“I believe this is the most positive report on manufacturing that I have seen since I joined the industry in 1992, Daniels said. “I believe it provides the basis for the Governor and Legislature to move forward on changes to the state’s tax and incentive policies that will encourage Florida Manufacturers to expand and make Florida more competitive among Southern states.”
FCMA is a non-profit trade association serving Northeast Florida. There are over 1,500 manufacturing companies on the First Coast, supplying over 30,000 jobs and generating nearly 15% of the total gross regional product. Additional media information on FCMA is available at www.fcmaweb.com.

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FCMA is a non-profit trade association serving Northeast Florida. There are over 1,500 manufacturing companies on the First Coast, supplying over 30,000 jobs and generating nearly 15% of the total gross regional product. Additional media information on FCMA is available at www.fcmaweb.com.