Ad Valorem Tax Abatement

Program Guidelines

Who is eligible? New business locating/relocating to Palm Bay and expansion of business already located in Palm Bay that meet the following criteria:

• Key Florida Industries: Cleantech, Life Sciences, Information Technology, Aviation/Aerospace, Homeland Security/Defense, Financial/Professional Services, Manufacturing, Emerging Technologies, Corporate Headquarters, excluding retail.
• New or expanding business who make a positive contribution to the economy of Palm Bay in terms of new jobs and improvements to real and personal property.
• The applicant must be a person, firm, partnership, corporation, or other business organization or entity, with the object of private or public gain, benefit, or advantage, either direct or indirect.

Definition of New Business: as defined in Section 196.012(15), Florida Statutes must meet the following criteria:

• Any business establishing ten (10) or more jobs to employ ten (10) or more full time employees in this State, which manufactures, processes, compounds, fabricates, or produces for sale items of tangible personal property at a fixed location and which comprises an industrial or manufacturing plant; or
• Any business establishing twenty-five (25) or more jobs to employ twenty-five (25) or more full-time employees in this State, whose sales factor, as defined by Section 220.15 (5), Florida Statutes, for the facility with respect to which it requests an economic development ad valorem tax exemption is less than 0.50 for each year the exemption is claimed; or
• An office space in this State owned and used by a corporation newly domiciled in this state; provided such office space houses fifty (50) or more full-time employees of such corporation; or
• A business located in an Enterprise Zone (pursuant to Section 290.0065, Florida Statutes).
• Any new business must first begin operation on a site clearly separate from any other commercial or industrial operation owned by the same business.

Definition of Expansion: as defined in Section 196.012(16), Florida Statutes must meet the following criteria:

• A business establishing ten (10) or more jobs to employ ten (10) or more full time employees in this State, which manufactures, processes, compounds, fabricates, or produces for sale items of tangible personal property at a fixed location and which comprises an industrial or manufacturing plant; or
• Any business establishing twenty-five (25) or more jobs to employ twenty-five (25) or more full time employees in this State, whose sales factor, as defined by Section 220.15(5), Florida Statutes, for the facility with respect to which it requests an economic development ad valorem tax exemption is less than .050 for each year the exemption is claimed; or
• Any business located in an Enterprise Zone (pursuant to Section 290.0065, Florida Statues).

PROGRAM DESCRIPTION

The Building Permit Fee Reduction Program is a performance-based economic development incentive program to encourage new commercial and industrial development within the city limits of Palm Bay (per Resolution 2023-01).

Businesses retaining or creating a minimum of ten (10) full-time jobs and constructs a new building, expands its existing building footprint, or makes interior renovations to an existing structure to accommodate business growth, is eligible for a seventy-five percent (75%) reduction of the building permit fee retained by the City of Palm Bay.

Building Permit Fee Reduction Application

ELIGIBLE PROPERTIES

Businesses located in the Highway Commercial District (HC), Light Industrial and Warehousing District (LI), and Heavy Industrial District (HI) zoning districts as defined in Chapter 185 of the Land Development Code, Palm Bay Code of Ordinances.

PROGRAM GUIDELINES

• Eligible businesses must employ a minimum of ten (10) full-time jobs.
• Eligible projects include businesses constructing new buildings or building expansions for any commercial or industrial use business, as provided in Sections 185.044, Highway Commercial District; 185.045, Light Industrial and Warehousing District; and 185.046, Heavy Industrial District, of the Code of Ordinances of the City of Palm Bay.
• An eligible applicant may be a property owner/operator or a tenant with an owner's affidavit and a copy of the lease agreement.
• Applicants will be deemed eligible for the building permit fee reduction by the Chief Building Official.

Historically Underutilized Business (HUB) Zone

The HUB Zone Empowerment Contracting program provides federal contracting and sub-contracting opportunities for qualified small businesses located in designated areas.

Fostering the growth of these federal contractors as viable businesses, for the long term, helps to empower communities, create jobs, and attract private investment.

Palm Bay has Census Tracts that are designated as a HUB Zone by the U.S. Small Business Administration (SBA). For more information on HUB Zones, visit the SBA's site on the HUB Zone Program.

Contact us for additional information on HUB Zones or to determine whether a business is located within Palm Bay’s HUB Zone.

Foreign Trade Zone #136

Foreign Trade Zones (FTZ) encourage international trade by U.S. companies and preserve jobs in the U.S. International trade increases company revenues by tapping into new markets and provide a competitive edge. A FTZ is an area inside or near a U.S. Customs Port of Entry where foreign and domestic merchandise is considered to be “outside” the United States and exempt from duty, unless such merchandise is transferred for consumption within the U.S.

Port Canaveral is a grantee of FTZ #136, which encompasses more than 4,000 acres with hub sites located throughout Brevard County. Advantages of operating within an FTZ include deferral, reduction, and potential elimination of duties and relief from tariffs as well as other benefits.

International Trade

Expanding Your Market Reach

When deciding on whether to export goods and services to expand your company’s market reach, consider that 95 percent of the world's purchasing power is outside of the Unites States. Because of this, businesses that export their goods or services fair better during a downturn in economy than do businesses that do not export.

If you are interested in resources to expand your market reach and generate additional revenue through exports, visit Export.gov for market research on over 100,000 markets. Explore market research to discover the best prospects for success, your products potential in any given market, and business practices in your desired market. Export.gov also offers A Basic Guide to Exporting, the official beginners guide to exporting as well as webinars, webcasts, and other tools.

The Housing and Community Development Division administers funds received by the City of Palm Bay from:

• U.S. Department of Housing and Urban Development’s Community Development Block Grant (CDBG) Program;
• Brevard County HOME Consortium – HOME Investment Partnerships (HOME) Program;
• U.S. Department of Housing and Urban Development’s Neighborhood Stabilization Program (NSP);
• State of Florida’s State Housing Initiatives Partnership (SHIP) Program;
• Other State and Federal Grant Programs.