Gov. Rick Scott wants to eliminate Florida's sales tax on equipment and machinery bought by businesses.
Scott on Wednesday in Jacksonville said he will ask the Legislature this year to fully exempt such purchases from sales tax.
Florida currently offers a sales tax exemption on equipment purchased for industrial use if it expands a manufacturer's output by at least 5 percent.
The productive output requirement had been 10 percent, but the Legislature reduced it to 5 percent last year.
Scott says the tax puts Florida at a competitive disadvantage with other states that already exempt such equipment.The governor's office did not immediately say how much the exemption would reduce state revenues.
Scott says the change would encourage businesses to expand and create jobs in Florida.