With much praise and few qualms, the Florida Senate on Thursday passed a costly plan that that could give businesses incentives and tax breaks for hiring the unemployed and stimulate job creation in the space flight, defense contractor and film industries. The vote was unanimous.
SB 1752, which will cost the state $193.8 million over three years for an unknown return, is being hailed by the business community as a valuable tool to help the state dig out of its 11.9 percent jobless rate. It now heads to the House.
But, it’s too soon to say how many jobs the bill -- called "Jobs for Florida" -- would actually create, says the bill’s sponsor, Sen. Don Gaetz, R-Niceville. It’s a fact that leaves even supporters wary.
“This is not a dole-out free money to folks around the state,” said Gabe Sheheane, of the Florida Chamber of Commerce. “It is an investment.”
The bill would cost Florida $81 million, including a roughly $35 million one-time appropriation in its first year; $72.9 million in its second; and $38.2 million in its third.
The bill's proposals are myriad, and among other things, it would:
- Authorize $1,000 per-person tax credits for two years to businesses for hiring the unemployed and cap it at 10,000;
- Provide $20 million in tax credits to the film and entertainment industry annually for five years;
- Appropriate $20 million to fund space flight programs and retrain Space Coast employees;
- Add flexibility to $14.5 million in earmarked funds given to Space Florida;
- Increase matching state grants for federal research grants;
- Expand the tax refund cap for space flight, defense contract and high-paying, high-skilled qualified target industries, from $35 million to $100 million;
- Create state Commercialization Matching Grant program to match federal grants for small businesses;
- Authorize sales tax refunds for manufacturing equipment for space flight programs, manufacturing businesses and entertainment industries;
- Extend the Florida Homebuyer Opportunity Program for a year;
- Cap sales and use taxes on boats and boat refits in the state at $18,000;
Details on the bill’s exact impact on the job market are scarce, and experts were not able to quantify its consequences beyond the assurance that it would stimulate the job market.
Florida TaxWatch, a nonprofit that analyzes the tax impact of Florida legislation, said it would be hard to figure how many direct jobs the bill creates. But, its impact is simple:
“I would say that everything in that bill is aimed at creating jobs,” said Kurt Wenner, director of Tax Research.
Even indirect measures, which some have claimed do not necessarily stimulate job creation, would help the job market, Wenner said. Lowering the sales tax on boats and refits keeps customers from going out of state and gives Florida employers money to expand their workforce. Although his bill does not require employers to use the money saved from boat taxes, Gaetz said he has been told by people in the boat industry that they would use the money to hire staff.
The extension of the Homebuyer Opportunity Program would help retailers by encouraging sales of furniture and other items needed that accompany the purchase of a house, said Rick McAllister, president of the Florida Retail Federation.It originally included passages that changed permitting requirements for developers, but the section was removed because of significant concern from the environmental community.