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Suwannee County can now offer tax grant incentives to incoming or existing businesses under a newly approved business incentive program presented by Economic Development Director Alvin Jackson. The program was unanimously approved by county commissioners through resolution on Tuesday, May 5. 

In addition to establishing the incentive program, the resolution also authorized the creation of a new county department for economic development, authorized the expenditure of county funds for providing economic development grants to qualified applicants, and identified the county’s target industries. Those industries are transportation and logistics; agribusiness; manufacturing; ecotourism, agritourism, and sports and recreation, clean tech; music and TV, film production, and cultural arts; retirement services; and office, headquarters, and commercial industry.

“This resolution creates a performance-based incentive program,” Jackson said during the commission meeting. “It is designed to serve local businesses and existing industries as well as new industries. It is not limited to industrial, commercial, or retail.”

Under the business incentive program, the county can give a qualified business a grant to match the business’ total property taxes each year minus the existing tax for land and any existing improvements. A portion of the business’ impact fees and water or sewer connection fees will also be funded through the grant. These grants can be awarded to a business for up to four years.

Businesses qualify for the incentive program through a points system based on new capital investment, new construction, new full-time employees, and average wage rate.

According to Jackson, tax grants can bring the county more net property tax proceeds over four years than the county’s former tax abatements would have over the abatements’ 10-year period.

In an example scenario, a fictitious business would be entitled to a grant of about $15,000 each year for four years – a total grant investment of about $60,000. In this scenario, the business’ capital investment and payroll would create a return on investment of $81 for every dollar the county spent in tax grants, Jackson said. If the scenario took into account a five percent growth rate in business, the return on investment could be $110 for every dollar spent in tax grants.

“Look at this as an investment in creating jobs, creating payroll, and bringing new industries to our community as well as helping existing businesses grow,” Jackson said.