Tax Exemptions

Florida offers Sales and Use Tax Exemptions on …
  • Machinery and equipment used by Florida business to manufacture, produce or process tangible personal property for sale;
  • Labor, parts and materials used in repair of and incorporated into machinery and equipment;
  • Electricity used in the manufacturing process;
  • Certain boiler fuels (including natural gas) used in the manufacturing process;
  • Semiconductor, defense and space technology-based industry transactions involving manufacturing equipment;
  • Machinery and equipment used predominantly in research and development;
  • Labor component of research and development expenditures;
  • Commercial space activity – launch vehicles, payloads and fuel, machinery and equipment for production of items used exclusively at Spaceport Florida;
  • Aircraft parts, modification, maintenance and repair, sale or lease of qualified aircraft;
  • Production companies engaged in Florida in the production of motion pictures, made for television motion pictures, television series, commercial music videos or sound recordings.

Aviation Industry Tax Exemptions
  • Maintenance or Repair of Aircraft: Exemptions on the amount charged for labor associated with the maintenance or repair of aircraft.
  • Equipment Used In Aircraft Repair or Maintenance: Exemptions on the sale of equipment used to repair or maintain aircraft and is installed on aircraft maintained or repaired in Florida.
  • Fixed Wing Aircraft Sales or Leases: Exemptions on the sale or lease of fixed wing aircraft used by a "common carrier" as defined by the FAA.

Clean Technology
Renewable Energy Technologies, Machinery, Equipment, and Material Sales and Use Tax Refund allows businesses to apply for a refund of sales and use taxes paid on equipment, machinery, and other materials for renewable energy technologies. 

Electricity & Steam Tax Exemption
Exemptions on electricity used directly and exclusively at a fixed location to operate machinery and equipment that is used to manufacture items of tangible personal property for sale, or to operate pollution control equipment, recycling equipment, maintenance equipment, or monitoring or control equipment used in such operations.

Machinery and Equipment Tax Exemptions
  • New and Expanding Manufacturers: The machinery and equipment must have been purchased, or a purchase agreement made, prior to the date the business first begins to produce a product for inventory or immediate sale.
  • Mining Activities: Businesses engaged in mining activity may qualify for the exemption but may only receive the exemption by way of a future credit against taxes. Mining businesses must also demonstrate the creation of new Florida jobs.
  • Repair and Labor Charges: Exemption on the sales tax on labor charges for the repair of, and parts and materials used in the repair of industrial machinery and equipment that qualify for the sales tax exemption.
  • Pollution Control Equipment Sales: Use or privilege taxes shall not be collected with respect to any facility or machinery used primarily for the control of pollution in manufacturing, processing, compounding , or producing for sale items of tangible personal property at a fixed location.

Research & Development: The Sales and Use Tax Exemption on Machinery and Equipment Used for Research and Development is available to help foster innovation throughout the state. Under this exemption, machinery and equipment used predominantly for research and development are exempt from sales and use tax.

Semiconductor, Defense, or Space Technology Exemptions: Semiconductor, defense and space technology-based industry transactions involving manufacturing or research equipment.

Space Industry Tax Exemptions
  • Property Used Predominantly for Space Flight Business Purposes: Exemptions of sales tax on the lease of Real Property used or occupied predominantly for space flight business, including manufacturing, processing, ground control and ground support and other activities.
  • Machinery and Equipment for Space Industry: Exemption of sales tax on machinery and equipment used to increase the productivity output of a spaceport activity and for new and expanding businesses.
  • Space Launch Vehicle Fuels: Exemption of excise tax on fuels of such quality not adapted for use in ordinary motor vehicles, being produced for and sold exclusively for space flight.
  • Space Laboratories and Carriers: Exemption from ad valorem tax on modules, pallets, racks, lockers, and their necessary associated hardware and subsystems.
  • Direct and Overhead Materials: Exemptions of sales tax on tangible personal property used or consumed by a government contractor, including prime and subcontractors, in the performance of a D.O.D. or NASA contract.