The State of Florida administers the Qualified Target Industry (QTI) Tax Refund incentive for companies that create high wage jobs in targeted, high value-added industries. The QTI includes refunds on certain taxes; refunds are dependent upon the number of new, full-time jobs created, salary level, and certain other criteria. This program is funded by the State of Florida (80%) and the local community where the company will locate (20%).
GCR, Inc. is a software development company specializing in the design and implementation of custom solutions for public entities. The company operates seven offices throughout the United States, and its products assist in many key areas of the economy, including; air travel, energy, and government administration. In 2019, for the third consecutive year, GCR was listed on the prestigious GovTech list of the top 100 companies leading the government technology industry.
The company is experiencing substantial growth and now desires to create a Center of Excellence for software development. This project represents the reshoring of work that is currently performed through contracts in India and supports the company's commitment to bringing software development jobs back to the U.S.
GCR, Inc. currently has seven U.S. locations. This would be a new business to the State of Florida at the proposed location of 400 International Parkway, Lake Mary. This QTI is attached to two hundred and fifty (250) new jobs, which include computer programming, software development, and software engineers. The capital investment for this project is $5,564,500, which includes construction and renovations, lease payments, and new equipment.
The average annual salary for the new positions will be $75,000, which is 160% of the 2019 annual average wage of $46,754 for Seminole County (as listed in the State of Florida Incentives Average Wage Requirements that became effective on January 1, 2019). GCR submitted this QTI application in late-2019, therefore the 2019 average annual wage requirements are applied.
Job Creation Summary
FY2020 75
FY2021 50
FY2022 50
FY2023 40
FY2024 35
TOTAL: 250
Funding Explanation
GCR, Inc. is eligible for a $6,000 tax refund per net new, full-time job as follows:
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$3,000 per new job (Section 288.106(3)(b)1., Florida Statues);
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An additional $2,000 per new job as a high-impact sector; and
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And additional $1,000 per job as a high wage above 150% above the current AAW.
The QTI program requires Local Financial Support (LFS) in an amount equal to twenty percent (20%) of the annual tax refund. The total tax refund available to GCR, Inc.is equal to $1,500,000 (250 jobs x $6,000 per job). The LFS for the two hundred and fifty (250) new jobs is 20% of the total incentive, or $300,000. This project is located within Unincorporated Seminole County.
If awarded by the Board of County Commissioners, funds would be allocated from the General Fund Reserves.