By Brian French | JacksonvilleBusinessNews.com | October 22, 2026
Quick Answer
Jacksonville companies grow with a stack of advantages: no state personal income tax, a 5.5% corporate rate, city property-tax rebate grants, state workforce training grants, and permanent federal expensing rules. Most incentives are performance-based, paid after jobs and investment are delivered, and must be negotiated before a site decision is final.
Key Takeaways
| Item | Detail | Source |
|---|---|---|
| State personal income tax | None (constitutional) | Florida Constitution / Tax Foundation |
| Corporate income tax | 5.5% on income over $50,000 | Florida DOR / Tax Foundation |
| State tax competitiveness rank | 5th, 2026 | Tax Foundation |
| City’s main incentive tool | REV grant (property-tax rebate) | Jacksonville OED |
| Training grant reimbursement (IWT) | Up to 75% of costs | CareerSource Florida |
| SBIR/STTR authorization | Renewed through Sept. 30, 2031 | S. 3971, signed April 13, 2026 |
| Federal R&D expensing | Permanent for domestic R&E | OBBBA, Section 174A |
This article is general information, not tax or legal advice. Incentive terms are negotiated case by case; confirm details with a CPA, attorney or the agencies listed.
The Florida Tax Advantage
Direct answer: Florida’s tax structure favors founders and growing companies. There is no state personal income tax, pass-through entities like S corporations and most LLCs pay no state corporate tax, and C corporations pay a flat 5.5% on income above $50,000. The Tax Foundation ranks Florida’s system fifth in the nation for 2026.
What Florida Does Not Tax
For a founder deciding where to build, the absence of certain taxes is often worth more than any single grant. According to economic development summaries of the state’s tax code, Florida has:
- No state personal income tax, protected by the state constitution
- No corporate income tax on S corporations or limited partnerships
- No corporate franchise tax on capital stock
- No state-level property tax
- No property tax on business inventories
- No sales tax on goods manufactured in Florida for export out of state
- No estate or inheritance tax
That matters most for pass-through businesses, which describes most startups and mid-market private companies. Owners of an S corporation or a partnership-taxed LLC pay federal tax on their share of profits, but nothing to the state.
The Corporate Income Tax
C corporations pay Florida’s combined corporate income and franchise tax at 5.5% on Florida-apportioned net income, with the first $50,000 exempt. Every corporation subject to the tax must file a return even if no tax is due.
For venture-backed startups organized as Delaware C corporations, the 5.5% rate rarely bites in early years because few are profitable. It becomes relevant at scale, and it compares favorably with neighboring and competing states.
| Tax Item | Florida | Notes |
|---|---|---|
| Personal income tax | 0% | Major draw for founders and executives |
| Corporate income tax | 5.5% | First $50,000 exempt |
| State sales tax | 6% | Duval County adds a local surtax |
| Inventory tax | None | Benefits distributors and logistics firms |
| Manufacturing equipment | Sales tax exemption | For new and expanding manufacturers |
Sales Tax Breaks for Makers and Movers
Florida exempts sales tax on machinery and equipment used by new or expanding businesses to manufacture, produce or process goods for sale. For Jacksonville’s manufacturing base, which the city has courted heavily on the Northside and Westside, that exemption can be meaningful on a large equipment purchase.
The Federal Layer: OBBBA Changes
Federal tax law shifted in 2025 in ways that matter to every Jacksonville company planning capital or research spending. The One Big Beautiful Bill Act, signed July 4, 2025, made several provisions permanent:
- Domestic R&D expensing (Section 174A): Companies can again immediately deduct domestic research and experimental costs instead of amortizing them over five years. Foreign R&E must still be amortized over 15 years.
- 100% bonus depreciation: Restored permanently for qualifying property acquired after January 19, 2025.
- Section 179 expensing: The annual cap rose to $2.5 million, according to tax advisory firm KBKG.
- Qualified business income deduction: The 20% deduction for pass-through income was made permanent.
- Opportunity Zones: The program was made permanent, with new rolling 10-year zone designations and enhanced benefits for rural areas.
For a Jacksonville software or health-tech startup with a large engineering payroll, the R&D expensing change is often the single most valuable tax development of the past two years.
JAXUSA Partnership and City Grants
Direct answer: Jacksonville’s primary incentive is the Recapture Enhanced Value (REV) grant, which rebates a share of new property taxes a project generates. The city also offers targeted grants for headquarters, distressed areas and Downtown. JAXUSA Partnership coordinates site selection and introductions, while City Council approves most incentive deals.
Who Does What
| Organization | Role |
|---|---|
| JAXUSA Partnership | Regional economic development; site selection support across 7 counties |
| City Office of Economic Development (OED) | Structures and recommends city incentives |
| Downtown Investment Authority (DIA) | Downtown-specific incentives and development deals |
| Jacksonville City Council | Approves incentive agreements by ordinance |
| FloridaCommerce | State incentives and grant programs |
| CareerSource Northeast Florida | Workforce recruiting and training grants |
JAXUSA, a private nonprofit division of JAX Chamber, works with economic development partners in Baker, Clay, Duval, Flagler, Nassau, Putnam and St. Johns counties. It is typically the first call for a company considering a relocation or significant expansion, and its project managers help executives and site consultants through the process. JAXUSA reports helping create more than 137,000 jobs and $13.6 billion in capital investment since 1990.
The REV Grant: How It Works
A REV grant refunds a portion of the new ad valorem (property) tax revenue a development or property improvement generates. It can apply to real property and tangible personal property such as equipment.
The key feature is timing. Payments are made after the project creates taxable value and the company has paid its property taxes. The city is effectively sharing future tax revenue that would not exist without the project.
Recent Jacksonville deals show the range:
| Project | Investment | Jobs | REV Grant Terms |
|---|---|---|---|
| Winn-Dixie HQ (proposed) | Headquarters investment | 200 new | 20-year, 50% REV up to $12M, plus $6.5M HQ Retention Grant |
| Project Underground (manufacturer) | $10M | 80 new | 50% REV, up to $275,000 |
| Project Pan (meat processing) | $28M | 100 new | 6-year, 50% REV up to $800,000 |
| Project Rotunda (manufacturer) | $44M | 120 added | 50% REV up to $1.1M |
Sources: Jacksonville Daily Record and Jacksonville Today reporting, 2025–2026.
Clawbacks Are Standard
Jacksonville’s agreements tie money to performance. In the Project Underground ordinance approved by City Council in January 2026, the REV grant is reduced proportionally if the company creates fewer than 80 jobs and rescinded entirely if it creates fewer than 64. Agreements also set deadlines for completing the capital investment.
The OED also publishes a return-on-investment estimate for each deal. For Project Pan, staff calculated $3.50 in return for every $1 of incentives. For Project Rotunda, the estimate was $4.19 per $1.
What Earns Extra Consideration
The OED gives additional positive consideration to certain projects:
- Projects located Downtown
- Projects that affect the Jacksonville Port Authority (JAXPORT)
- Projects in economically distressed areas
- Companies whose operations would require support from local businesses
- New in 2026: Projects at Cecil Airport and Cecil Field
Project Pan illustrates the distressed-area angle. The OED cited its location in a Brownfield Redevelopment Area and a Level I Economically Distressed Area as reasons for support.
New Strings: Veteran Hiring
On August 25, 2026, City Council voted 18-0 for Resolution 2026-0574. Companies receiving REV grants must now make a good-faith effort to fill at least 10% of new jobs with qualified veterans or active-duty military spouses. The OED oversees compliance. The language is a good-faith effort, not a hard quota, but applicants should build a veteran recruiting plan into their proposals.
The Shift Away From Cash
The most important trend for 2026 applicants is a change in City Council’s appetite. Council members have grown wary of cash completion grants and forgivable loans paid from the general fund, and have urged economic development officials to rely on targeted property tax incentives instead.
The debate has played out in Downtown. A proposed Publix-anchored tower in Gateway Jax’s Pearl Square district carried an incentive package of nearly $50 million, including a cash completion grant of more than $28 million. Council deferred it in August 2026 so the developer and the DIA could restructure the deal, and in October postponed action again until after the November Amendment 3 vote. Jacksonville Today reported that the city still faces about $68.1 million in unbudgeted cash incentive commitments, and Council set aside $33.95 million earlier this year to pay some down.
What this means for applicants: Expect REV grants and other property-tax-based tools to be the default. Requests for upfront cash will face tougher scrutiny, and the developer of the Downtown Publix project has floated low-interest development loans as an alternative.
State Programs That Still Exist
Direct answer: Florida eliminated Enterprise Florida and repealed the Qualified Target Industry (QTI) tax refund in 2023. Remaining state tools include the Capital Investment Tax Credit, the High Impact Performance Incentive, the Job Growth Grant Fund, a capped R&D tax credit, and CareerSource workforce training grants.
What Changed in 2023
Many online guides still list programs that no longer exist. HB 5, effective July 1, 2023, eliminated Enterprise Florida, moved its duties to the renamed Department of Commerce (FloridaCommerce), and repealed a long list of incentives, including:
- Qualified Target Industry (QTI) tax refund
- Quick Action Closing Fund
- Innovation Incentive Program
- Florida New Markets Tax Credit
- Economic Gardening pilot programs
- Microfinance Loan Program
If a consultant or website pitches a QTI refund for a Jacksonville project in 2026, the information is outdated.
Programs Still Available
| Program | Who It Fits | Key Feature |
|---|---|---|
| Capital Investment Tax Credit (CITC) | Capital-intensive projects, $25M+ | Annual corporate tax credit for up to 20 years |
| High Impact Performance Incentive (HIPI) | Major facilities in designated sectors | Negotiated grant, half paid at start of operations |
| Florida Job Growth Grant Fund | Communities, colleges, infrastructure | Funds public infrastructure and training, not single companies |
| Florida R&D Tax Credit | Qualified research spenders | Capped statewide allocation |
| Quick Response Training (QRT) | New and expanding employers | Customized training for new hires |
| Incumbent Worker Training (IWT) | Existing businesses, even small ones | Reimburses up to 75% of training costs |
CITC is an annual credit against corporate income tax for up to 20 years, aimed at sectors such as corporate headquarters, financial services, IT, life sciences, semiconductors and advanced manufacturing. It requires a capital investment of at least $25 million.
HIPI is a negotiated grant for major facilities in sectors including clean energy, corporate headquarters, financial services, life sciences, semiconductors and transportation equipment manufacturing. Half of the grant is typically paid when operations begin, with the balance paid once employment and investment targets are met.
The Job Growth Grant Fund has awarded more than $305 million since 2019, according to the governor’s office. The money goes to public infrastructure and workforce training, and cannot be used for the exclusive benefit of a single company. Jacksonville has used it before, including for a rail spur serving the Cecil Commerce Center industrial site.
Workforce Training Grants
For mid-market employers, CareerSource Florida’s training grants are among the most accessible state programs. Quick Response Training supports new and expanding businesses training new hires. Incumbent Worker Training reimburses up to 75% of training costs for existing employees, and small for-profit businesses can apply at any time.
According to CareerSource Florida, it awarded $2.9 million in IWT grants to 69 businesses and $6.5 million in QRT grants to 24 businesses in 2023–2024. CareerSource Northeast Florida serves employers in Baker, Clay, Duval, Nassau, Putnam and St. Johns counties.
Federal Non-Dilutive Funding: SBIR and STTR
For research-driven startups, the federal Small Business Innovation Research and Small Business Technology Transfer programs remain a key source of non-dilutive capital. Both programs lapsed on September 30, 2025, and new awards stopped for about six months. On April 13, 2026, the Small Business Innovation and Economic Security Act reauthorized them through September 30, 2031.
The new law adds Strategic Breakthrough awards as a post-Phase II funding path, tightens foreign-ownership and national security screening, sets limits on proposal submissions per company, and allows unused fiscal 2026 funds to roll into fiscal 2027. The programs together provide roughly $4 billion a year. For Jacksonville companies near Mayo Clinic, Naval Station Mayport or Naval Air Station Jacksonville, defense and health research solicitations are natural targets.
Venture Capital and Capital Flow
Direct answer: Jacksonville’s venture market is still emerging, with startup activity concentrated in fintech, health-tech, logistics technology and data analytics. Local capital tends to favor B2B companies with revenue. Founders typically combine local angels and Florida funds with national investors, plus non-dilutive grants and debt.
The Ecosystem Today
Startup trackers describe Jacksonville as an emerging ecosystem built on its history as a banking, insurance and logistics center. Seedtable’s 2026 Jacksonville rankings feature companies such as Availity in healthcare transactions, Duos Technologies and Urban SDK in transportation and infrastructure analytics, Forcura in health-tech, and LoanLogics in mortgage technology.
The sector pattern lines up with the region’s economic base:
| Sector | Why Jacksonville Fits |
|---|---|
| Fintech | Deep banking, payments and financial services talent |
| Health-tech | Mayo Clinic, Baptist Health, UF Health Jacksonville |
| Logistics tech | JAXPORT, rail and interstate network |
| Data analytics | Transportation, insurance and government clients |
| Aerospace and defense | Cecil Airport, Naval bases, growing supplier base |
Where Money Is Moving
Geographically, investment interest clusters in a few corridors:
- Downtown Jacksonville, where Gateway Jax reports more than $1.2 billion invested in its Pearl Square district and the Bay Street Innovation Corridor hosts autonomous transit
- Southside and the Butler Boulevard corridor, home to many financial services and technology employers
- Cecil Airport and the Westside, now favored in city incentive policy for aerospace and logistics
- Northwest Jacksonville, where distressed-area and brownfield designations improve incentive eligibility
JAXUSA President Aundra Wallace has said the region is attracting investment in aerospace, logistics, fintech and manufacturing, and that a Florida Semiconductor Institute affiliated with the University of Florida is likely to be located in Jacksonville.
Building a Capital Stack
Most Jacksonville founders do not rely on a single source. A typical growth-stage capital stack might combine:
- Founder capital and angels, often through local networks
- Non-dilutive grants, such as SBIR/STTR for research-heavy companies
- Tax savings, from R&D expensing, bonus depreciation and Florida’s pass-through treatment
- City incentives, such as REV grants tied to a facility investment
- Training grants, to offset hiring costs
- Institutional venture capital, from Florida funds or national firms
- Debt, including state-supported lending programs administered through FloridaCommerce
Step-by-Step Application Blueprint
Direct answer: Securing Jacksonville incentives follows a predictable path: engage JAXUSA or the city early, before committing to a site; prepare documented job, wage and investment projections; negotiate terms through the OED; win City Council approval; then meet reporting milestones to receive payments.
Step 1: Engage Before You Decide
Economic development incentives are designed to influence a location decision. Contact JAXUSA Partnership or the city’s Office of Economic Development before signing a lease, buying land or announcing an expansion. Jacksonville’s deals often note competing locations; Project Underground, for example, was weighing sites in Georgia and Tennessee.
Step 2: Build the Project Profile
Prepare a clear summary agencies can evaluate:
| Document | What It Shows |
|---|---|
| Capital investment schedule | Real and personal property spend by year |
| Job creation plan | New positions, timing, and retained jobs |
| Wage data | Average annual wage and benefits value |
| Site options | Competing locations under consideration |
| Company financials | Ability to complete the project |
| Ownership disclosure | Required for state and some federal programs |
Average wage matters. Jacksonville deal summaries routinely report it, and higher-wage projects generally earn stronger support.
Step 3: Understand Confidentiality
Florida law allows economic development agreements to use code names while negotiations are underway. That is why Jacksonville deals appear in public records as “Project Underground” or “Project Pan.” Ask the OED how and when your identity will become public.
Step 4: Negotiate Terms
Key variables in a REV grant negotiation include:
- Percentage of new property tax rebated (50% is common)
- Duration, from roughly 5 to 20 years
- Maximum dollar cap
- Job and investment thresholds, with proportional reductions and rescission triggers
- Completion deadlines
- Veteran hiring good-faith effort, now required for REV grants
Step 5: Win Council Approval
Most city incentives require City Council legislation. Deals typically go through the Mayor’s Budget Review Committee, then Council’s Rules and Finance committees, before a full Council vote. Expect questions about ROI, wages and clawbacks. Budget several weeks to a few months.
Step 6: Layer State and Federal Tools
While the city deal advances, pursue complementary programs:
- Apply to CareerSource for QRT or IWT grants
- Review eligibility for CITC or HIPI on large capital projects
- Coordinate with your CPA on R&D expensing, bonus depreciation and Section 179
- Track open SBIR/STTR solicitations if your work involves research
Step 7: Stay Compliant
Compliance is where incentives are won or lost after approval. Common requirements include:
| Requirement | Why It Matters |
|---|---|
| Annual job and wage reporting | Triggers or reduces payments |
| Proof of capital investment | Confirms taxable value |
| Property tax payment | REV payments follow paid taxes |
| Deadline adherence | Missed dates can void agreements |
| E-Verify use | Required for Florida private employers with 25+ employees |
| Veteran hiring documentation | New REV grant condition |
Keep payroll records, investment invoices and hiring documentation organized from day one. The money arrives after you prove performance.
Brian’s Take
When I managed money, I learned to treat any subsidy as a discount on a decision, never as the reason for it. Jacksonville incentives work the same way. A REV grant can meaningfully improve the return on a new facility, but it pays out over years, after you have built the building, hired the people and paid the taxes. If the project does not stand on its own, the grant will not save it.
The 2026 shift at City Hall reinforces that discipline. Council’s growing reluctance toward cash grants means companies should plan around performance-based, property-tax rebates rather than upfront checks. That is not bad news. It favors operators who can execute.
The bigger opportunity for most Jacksonville founders sits in less glamorous places: no state income tax on pass-through profits, immediate federal expensing for domestic R&D, and training grants many small firms never apply for. Stack those correctly and the math often beats a headline incentive package.
Frequently Asked Questions
Does Florida have a state income tax?
Florida has no state personal income tax, a protection written into the state constitution. C corporations pay a 5.5% corporate income tax on Florida-apportioned income above $50,000. S corporations and most LLCs taxed as partnerships do not pay state corporate income tax.
What is a REV grant in Jacksonville?
A Recapture Enhanced Value grant rebates part of the new property tax revenue a project generates. Jacksonville commonly rebates 50% of the increase over a set number of years, paid after the company invests, creates jobs and pays its property taxes.
Is the Qualified Target Industry (QTI) program still available?
No. Florida repealed the QTI tax refund in 2023 under HB 5, which also eliminated Enterprise Florida. State incentives now run through FloridaCommerce.
Can a small business get Jacksonville incentives?
City REV grants are usually tied to significant capital investment and job creation. Smaller businesses often benefit more from CareerSource training grants, which can reimburse up to 75% of training costs, and from federal tax provisions like Section 179 expensing.
What changed for startups in federal tax law?
The One Big Beautiful Bill Act made immediate expensing of domestic R&D costs permanent under Section 174A, restored 100% bonus depreciation, raised the Section 179 cap and made Opportunity Zones permanent.
Are SBIR grants available again?
Yes. SBIR and STTR were reauthorized on April 13, 2026, through September 30, 2031, after a roughly six-month lapse. The new law adds Strategic Breakthrough awards and stricter security reviews.
How long does it take to get a Jacksonville incentive approved?
Timelines vary, but most deals move from OED recommendation through committee review to a full City Council vote over several weeks to a few months. Complex Downtown deals can take longer.
Do Jacksonville incentives require hiring veterans?
Since August 2026, companies receiving REV grants must make a good-faith effort to fill at least 10% of new jobs with qualified veterans or active-duty military spouses.
Sources and Further Reading
- Tax Foundation, Florida Tax Rates, Collections, and Burdens, 2026
- Florida Department of Revenue, Corporate Income/Franchise Tax guidance
- Economic Development Corporation of Sarasota County, State of Florida incentives and tax climate summary
- CBIZ, “One Big Beautiful Bill Act is Finalized – Biggest Impacts” (July 2025)
- Baker McKenzie, provisions in the One Big Beautiful Bill Act encouraging domestic investment
- KBKG, summary of the One Big Beautiful Bill Act tax provisions
- The Florida Senate, 2023 Summary of Legislation Passed, CS/CS/HB 5 Economic Programs
- Florida League of Cities, HB 5 Economic Programs legislative bulletin (2023)
- Jacksonville Today / Jacksonville Daily Record, “City considering up to $12M in tax incentives for Winn-Dixie” (April 13, 2026)
- Jacksonville Daily Record, “City Council approves up to $275,000 in tax relief for manufacturer’s expansion” (January 27, 2026)
- Jacksonville Daily Record, Project Pan meat processing incentive coverage (July 2025)
- Jacksonville Daily Record, Project Rotunda incentive coverage (February 2025)
- Jacksonville Today, “Jacksonville City Council OKs veteran-hiring legislation” (August 26, 2026)
- Jacksonville Daily Record, City Council veteran hiring and Cecil Airport incentive legislation (July 28, 2026)
- Jacksonville Today, “Jacksonville keeps dishing out incentives — but will that change?” (April 29, 2026)
- Jacksonville Today, Downtown Publix incentive coverage (August 5 and October 6, 2026)
- Jacksonville Daily Record, “Incentive package for Downtown Publix hits roadblock” (August 4, 2026)
- JAXUSA Partnership, About JAXUSA Partnership
- Invest: / Capital Analytics, “Spotlight On: Aundra Wallace, President, JAXUSA Partnership” (June 2026)
- Executive Office of the Governor, Florida Job Growth Grant Fund award announcement (February 2026)
- Florida Chamber of Commerce / CareerSource Florida, “Elevating Florida’s Workforce through Training Grants”
- North Carolina Military Business Center, SBIR/STTR Reauthorization Progress Update (2026)
- Mondaq, “SBIR/STTR Programs Reauthorized After Six-Month Lapse” (April 20, 2026)
- Seedtable, Best Startups in Jacksonville 2026
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