Florida continues to be one of the most attractive states for real estate development, offering a powerful combination of pro-growth tax policies, workforce-friendly incentives, and access to federal and state-level grants. Whether you're a commercial developer, multifamily housing investor, or clean energy builder, Florida provides an incentive-rich environment to reduce costs and increase return on investment.
Below is a breakdown of the key opportunities developers can access in Florida today:
1. Statewide Incentives from the Florida Department of Economic Opportunity (DEO)
Florida's pro-business environment features no personal income tax and several developer-friendly programs aimed at stimulating capital investment and job creation.
Key Incentive Programs Include:
Qualified Target Industry (QTI) Tax Refund
- Offers tax refunds of $3,000 per net new Florida job created; up to $6,000 in an Enterprise Zone
- Pre-approved applicants receive refunds on corporate income, sales, ad valorem, and other taxes
- Additional $1,000 “per job” bonus available for businesses paying 150% of the average annual wage
- Targets high-impact sectors including headquarters, manufacturing, and logistics Florida Department of Economic Opportunity
Brownfield Redevelopment Bonus Refund
- Provides up to $2,500 per job created in designated brownfield sites
- Tax refund equal to 20% of the average annual wage of new jobs created
- Includes expedited permitting for qualifying redevelopment projects
- Supports cleanup and redevelopment of underutilized contaminated properties Florida Department of Environmental Protection
Capital Investment Tax Credit (CITC)
- Available for projects investing $25 million or more in qualifying sectors
- Provides annual corporate income tax credits for up to 20 years
- Credit equal to 5% of the eligible capital costs generated by a qualifying project
- Used to attract and grow capital-intensive industries in Florida Florida Department of Revenue
2. Affordable Housing Development Incentives
To address Florida's growing demand for housing, the state has expanded programs to support workforce and affordable housing development.
Key Programs Include:
State Housing Initiatives Partnership (SHIP) Program
- Offers grants to developers building income-restricted housing
- Funds may be used for new construction, rehabilitation, down payment assistance, and land acquisition
- SHIP dollars can also cover impact fees, construction financing, and gap funding
- Distributed to all 67 counties and larger cities in Florida Florida Housing Finance Corporation
Sadowski Housing Trust Fund
- Dedicated source of revenue established in 1992 for affordable housing
- Supports new construction and rehabilitation of affordable rental units across the state
- 70% of funds go to the SHIP program for local housing initiatives
- 30% supports Florida Housing Finance Corporation programs Florida Housing Coalition
Low-Income Housing Tax Credit (LIHTC)
- Administered by Florida Housing Finance Corporation
- Delivers equity to qualifying rental developments serving low-income households
- Creates affordable housing for families at or below 60% of area median income
- Can be combined with other financing tools to maximize project feasibility Florida Housing Finance Corporation
3. Local Redevelopment and Urban Incentives
Florida's cities and municipalities offer strong tools to stimulate infill development, commercial revitalization, and infrastructure investment.
Developer Tools Include:
Tax Increment Financing (TIF)
- Rebates a portion of the increased property tax revenue generated by a new development
- Used in Community Redevelopment Areas (CRAs) throughout Florida
- The tax increment—the increase in property taxes after development—funds improvements
- Local government leverages public funds to promote private sector activity City of Tampa
Opportunity Zones
- Florida hosts over 400 federally designated Opportunity Zones
- Offers capital gains tax deferral and potential exclusion for long-term investments
- For investments held for at least 10 years, investors pay no taxes on capital gains produced
- Targets economically distressed communities for revitalization Florida Department of Economic Opportunity
Facade & Site Improvement Grants
- Offered by many cities (e.g., Tampa, Orlando, Fort Lauderdale)
- Incentivizes commercial property upgrades and retail redevelopment
- Often administered through local CRAs and economic development offices
- Helps revitalize aging commercial corridors and downtown districts Florida Redevelopment Association
4. Clean Energy and Sustainability Incentives
Florida developers are increasingly turning to energy efficiency and sustainable construction—backed by federal and state programs—to reduce operational costs and access bonus incentives.
Opportunities Include:
Florida PACE Program (Property Assessed Clean Energy)
- Enables financing of energy-efficient upgrades, solar panels, and storm-hardening improvements
- Repaid through property tax assessments, providing long-term financing
- Available for both residential and commercial properties in participating counties
- Can finance up to 100% of eligible project costs Florida PACE Funding Agency
Florida Solar Energy Center Support
- Provides technical and financial support for residential and commercial solar development
- Offers guidance on utility rebates and interconnection requirements
- Supports solar energy research and implementation throughout the state
- Helps developers incorporate solar technology into new construction projects Florida Solar Energy Center
Inflation Reduction Act (IRA) Tax Credits
- Apply federal tax credits of 30%–70% to energy-efficient upgrades in new builds and retrofits
- Bonus multipliers available for low-income and affordable housing projects
- Expanded Section 45L tax credits for energy-efficient residential buildings
- New Energy Efficient Home Credit offers up to $5,000 per qualifying unit Internal Revenue Service
5. Federal Tax Incentives & Grants ETS Can Help You Access
Engineered Tax Services (ETS) is your trusted partner in securing federal and state-level incentives that real estate developers often miss. These include:
Federal Tax Incentives
179D Energy-Efficient Commercial Buildings Deduction
- Up to $5.00 per square foot for commercial, industrial, and 4+ story multifamily projects
- Sliding scale starting at $0.50/sq ft for 25% energy efficiency improvement
- Expanded under the Inflation Reduction Act of 2022
- Available for both new construction and retrofits of existing buildings IRS
45L Energy-Efficient Home Credit
- $2,500 per qualifying unit for single-family homes certified as ENERGY STAR
- Up to $5,000 per unit for homes certified as DOE Zero Energy Ready
- Available to builders and developers of energy-efficient residential properties
- Requires certification to specific energy efficiency standards ENERGY STAR
Historic Rehabilitation Tax Credit
- 20% credit for certified rehabilitation of historic properties
- Administered by the National Park Service and Florida Division of Historical Resources
- Applies to income-producing historic buildings listed on the National Register
- Encourages preservation and adaptive reuse of historic structures Florida Division of Historical Resources
Cost Segregation Studies
- Accelerate depreciation on newly constructed or purchased properties
- Identifies components eligible for shorter depreciation periods (5, 7, or 15 years)
- Increases early-stage cash flow and reduces tax liability
- Can typically generate 20-40% of a building's cost as accelerated depreciation Engineered Tax Services
Federal & State Grant Support
ETS also assists in identifying and applying for critical funding opportunities, including:
HUD Programs (HOME, CDBG, Housing Trust Fund)
- Offer gap financing and infrastructure support for affordable housing
- Community Development Block Grants support broader community revitalization
- Administered through state and local governments
- Can be combined with tax credits and other incentives U.S. Department of Housing and Urban Development
Florida DEO & Enterprise Florida Grants
- Support brownfield clean-up, infrastructure, job creation, and community revitalization
- Annual incentives report tracks performance of economic development programs
- Competitive grant programs target specific economic development objectives
- May require local government matching funds Florida Department of Economic Opportunity
EPA Brownfield Redevelopment Grants
- Ideal for developers repurposing underutilized or contaminated properties
- Assessment grants, cleanup grants, and revolving loan funds available
- Supplements Florida's state-level brownfield incentives
- Helps address environmental challenges in redevelopment projects Florida Department of Environmental Protection
DOE & IRA Grant Programs
- Clean energy and resilience funding for developers
- Focuses on solar, energy storage, or energy efficiency retrofits
- Substantial funding available through competitive grant programs
- Targets both commercial and residential development U.S. Department of Energy
Conclusion: Florida + ETS = A Blueprint for Profitable, Sustainable Development
From statewide tax incentives and redevelopment tools to energy-efficient design credits and federal grant integration, Florida offers a robust platform for real estate success. With no state income tax, a growing population, and a government committed to economic development, the time to build in Florida is now.
And with Engineered Tax Services as your advisor, you gain the ability to uncover hidden tax savings, unlock financing options, and maximize every available benefit.
Contact Engineered Tax Services today to ensure your Florida project is fully optimized.
