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 Machinery Government & Legislation
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

Automation at center stage for NPE

April 20, 2015 2:45 pm ET

Robots are finding a more definitive role in the automation of manufacturing — and those who know expect quite a few more robots will join the...    More

Image

Sidel, BMS reach agreement on spindle patent case

April 20, 2015 1:24 pm ET

Sidel Group and Blow Mold Services LLC have reached an agreement in Sidel's patent infringement lawsuit against BMS involving the spindle chain on a...    More

Image

Milacron restructuring Uniloy manufacturing in Europe

April 17, 2015 2:16 pm ET

Milacron LLC plans to consolidate manufacturing of Uniloy blow molding equipment in Europe into its new facility in the Czech Republic city of...    More

Image

Reifenhäuser acquires German spinneret company Enka Tecnica

April 17, 2015 9:31 am ET

Germany-based Reifenhäuser GmbH & Co. KG, a major manufacturer of extrusion equipment, has announced that it is acquiring Enka Tecnica GmbH, a German ...    More

Image

Madison buys Ferry Industries

April 16, 2015 5:22 pm ET

Ferry Industries, the largest manufacturer of rotational molding machinery, was purchased by Madison Industries, a Chicago holding company that is the...    More

Market Reports

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Injection Molding Market Analysis & Processor Rankings

Plastics News BUNDLED package contains our in-depth Market Analysis of the Injection Molding segment. You will gain keen insight on current trends and our economic outlook.

As a BONUS this includes PN's updated 2014 database of North American Injection Molders RANKED by sales volume. Sort, merge, mail & prospect by end market, materials processed, region, # of plants and more.

Learn more

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Upcoming Plastics News Events

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 15, 2015 - September 17, 2015Plastics Caps & Closures - September 2015

More Events