As lawmakers return to Tallahassee Tuesday for a Special Session to approve the budget, one bill for consideration would create millions of dollars in tax breaks for Florida’s aerospace and defense industry.
HB 7031-E is sponsored by Rep. Wyman Duggan, a Jacksonville Republican who is also the Chair of the House Ways & Means Committee.
The House tax bill would expand the law to include nongovernmental tenants doing projects with Space Florida as having an “essential governmental purpose” so they would be exempt from paying ad valorem taxes.
HB 7031-E would give the property tax exemptions if the property is owned by Space Florida and is leased by a company working “with a defense or aerospace contract, program, or project authorized by the board of directors of Space Florida.” The impact of the tax break would be about $11 million per year, according to the House Committee’s analysis.
In addition, the bill would add a sales tax exemption for defense or aerospace machinery and equipment leased to private companies by Space Florida. The sales tax exemption would create a $28 million loophole, according to the House Committee analysis.
“The exemption is for lease payments that entitle the lessee to use tangible personal property owned by Space Florida during the period of July 1, 2026, through June 30, 2027,” according to the House Ways and Means Committee analysis.
The Legislature created Space Florida in 2006. “Space Florida acts as Florida’s point of contact for state aerospace-related activities with federal agencies, the military, state agencies, businesses, and the private sector,” the House Committee analysis said.
HB 7031E includes other provisions, including temporarily exempting firearm accessories from sales tax, creating a four-month sales tax holiday on outdoor supplies, and changing the back-to-school sales tax holiday dates so it would run July 20-Aug. 20, instead of through the entire month of August.
“The total recurring impact on state and local government revenues of the bill in FY 2026-27 is estimated to be -$92.9 million, of which -$3.7 million is on General Revenue, -$12.6 million is on state trust funds, and -$76.6 million recurring is on local government,” the House Committee analysis added.