Florida planning tax break for new plastics machinery

By Gayle S. Putrich
Staff Reporter

Published: May 30, 2013 1:05 pm ET
Updated: May 30, 2013 4:05 pm ET

Related to this story

Topics Government & Legislation, Machinery
Companies & Associations Society of the Plastics Industry Inc.

Florida plastics processors, and other manufacturers, can now look forward to a tax break when buying new equipment purchases thanks to a new state law.

Signed into law by Republican Gov. Rick Scott as part of a larger economic development bill, facilities classified under NAICS codes 31, 32 or 33 can purchase industrial machinery and equipment without paying the state’s 6 percent sales tax, starting April 30, 2014.

The equipment must have a depreciable life of at least three years, be used for processes that account for at least 50 percent of the facility’s operations and “be integral in the production of the product for sale.”

With the industry finally feeling a real rebound from the economic downturn that started in 2008, plastics manufacturers in Florida are already looking forward to a little bit a relief on planned purchases.

“We make capital purchases pretty regularly,” said Dale Givens, director of operations for King Plastics Corp., a manufacture of polymer sheets, slabs and large-scale shapes in North Port, Fla., “but this could accelerate some of those. And it will definitely make is a little easier.”

Tax abatements and other support will help keep the rebound moving forward and hopefully speed it up, he said, though the numbers are difficult to run.

“It’s hard to measure what the direct impact of a tax break like this is because eventually you’re going to have to buy new equipment no matter what. But this makes it more economical and maybe it means you can do it sooner or buy more expensive machines,” Givens said. “The goal is to put the new equipment in so you can hire more people, create more jobs and at that I think [the tax break] will be successful.”

With the new law, Florida — at least temporarily — joins most of the rest of the country, as only nine states now tax manufacturing equipment purchases: Arizona, California, Hawaii, Kentucky, Minnesota, Nevada, New Mexico, North Dakota, South Dakota.

California, however, has two bills in play that would exempt purchasers of equipment and machinery from the 6.5 percent state sales tax.  California Gov. Jerry Brown (D), in his May Revised Budget update, proposed a statewide sales tax exemption on the purchase of manufacturing or biotech research and development equipment, which the Society of the Plastics Industry Inc. called encouraging.

Florida’s new tax break is set to sunset in April 2017, but there is some concern that it could disappear sooner due to a legislative loophole in the state constitution that requires a two-thirds vote to pass a measure affecting local tax revenues; the bill passed on a on a 68-48 vote, leaving the door open for objection from the Democratic minority.


Comments

Florida planning tax break for new plastics machinery

By Gayle S. Putrich
Staff Reporter

Published: May 30, 2013 1:05 pm ET
Updated: May 30, 2013 4:05 pm ET

Post Your Comments


Back to story


More stories

Image

Top export markets for Italian machinery and molds

April 17, 2014 9:00 am ET

Top export markets for Italian machinery and molds    More

Negri Bossi's new owners may 'bring significant manufacturing' to US

April 16, 2014 1:09 pm ET

Italian plastics equipment major Negri Bossi may “bring significant manufacturing of injection molding machines back to the United...    More

Image

Polyair rebuilds from Sandy with help from Process Control

April 16, 2014 4:11 pm ET

Hurricane Sandy gutted Polyair Inter Pack Inc.'s Carlstadt, N.J., plant more than a year ago, and Brian Clawson won't soon forget the devastation.    More

JSW looks to improve equipment servicing in Europe through contract

April 15, 2014 11:09 am ET

Tokyo-based manufacturer of extruding machinery Japan Steel Works (JSW) has signed an agreement with a Dutch company to help it improve servicing on...    More

Image

US equipment firm buys Negri Bossi

April 14, 2014 1:58 pm ET

Italian plastics equipment major Sacmi Group's offerings are getting a U.S. identity. Sacmi has sold its plastics division to Kingsbury Corp., a machi...    More

Market Reports

Thermoformed Packaging 2014 Market Review & Outlook North America

This in-depth report provides analysis and discussions of economic and political conditions, market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as strategies being implemented by thermoformed packaging companies. In addition, there are reviews of 25 leading thermoformers in the packaging segment, assessing their growth initiatives and performance metrics over 10 years.

Learn more

Automotive Market Review and Outlook 2014 The Americas

This 75-page report features in-depth analysis of the automotive industry for the Americas. It includes discussions of market trends, legislative/regulatory activity impacting production and threats as well as design strategies being implemented by the major automakers. Detailed charts and data tables outline North American automotive production over the last five years.

Learn more

Plastics Building & Construction Market Review and Outlook 2014 with MS Excel chart data

This report provides in-depth analysis of the plastic building and construction market for North America, including discussions of trends, opportunities, threats and the latest developments in construction trends that impact plastics processors.

Learn more

Upcoming Plastics News Events

May 6, 2014 - May 8, 2014Plastics in Medical Devices 2014

May 12, 2014 - May 12, 2014Plastics News Brazil Pharma Summit

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

February 3, 2015 - February 7, 2015Plastics News Executive Forum 2015

More Events