Manufacturing 

Tax-Free Electricity 

Charges for electricity used directly and exclusively at a fixed location to operate machinery and equipment that is used to manufacture, process, compound, or produce items of tangible personal property for sale, or to operate pollution control equipment, recycling equipment, maintenance equipment, or monitoring or control equipment used in such operations, may be exempt from the sales tax. Read more. 

• If 75 percent or more of the electricity or steam used at the fixed location is used to operate qualifying machinery or equipment, 100 percent of the sales tax on the charges for electricity or steam used at the fixed location is exempt.
• If less than 75 percent but 50 percent or more of the electricity or steam used at the fixed location is used to operate qualifying machinery or equipment, 50 percent of the sales tax on the charges for electricity or steam used at the fixed location is exempt.

No Machinery State Sales Tax

An exemption from Florida state sales and use tax applies to the amount charged to customers for labor associated with the maintenance or repair of:

• New Manufacturers – In order to qualify for the new business exemption, the machinery and equipment must have been purchased, or a purchase agreement made, prior to the date the business first begins to produce a product for inventory or immediate sale. Purchased machinery and equipment must be received within twelve months of the date that production began.
• Expanding Manufacturers – Industrial machinery and equipment is exempt from tax when purchased by an expanding business.