Renewable Energy Tax Incentives

The 2006 Florida Energy Act established provisions for sales tax exemptions and corporate income tax credits aimed at promoting infrastructure development that supports hydrogen and biofuels technologies. In addition, the Act created a production tax credit that provides a corporate income tax credit based on the amount of electricity produced from renewable energy sources at a new or expanded Florida facility.

Sales Tax Program

The sale or use of the following in the state of Florida between July 1, 2006, and June 30, 2010, is tax exempt:

• Hydrogen-powered vehicles, materials incorporated into hydrogen powered vehicles, and hydrogen-fueling stations, up to a limit of $2 million in tax each state fiscal year for all taxpayers.
• Commercial stationary hydrogen fuel cells, up to a limit of $1 million in tax each state fiscal year for all taxpayers.
• Materials used in the distribution of biodiesel (B10-B100) and ethanol (E10-100), including fueling infrastructure, transportation, and storage, up to a limit of $1 million in tax each state fiscal year for all taxpayers. Gasoline fueling station pump retrofits for ethanol (E10-E100) distribution qualify for the exemption.

Before submitting a sales tax refund claim to the Department of Revenue, you must first submit this application (pdf 114.06 kB) to the Energy Office to determine eligibility.

For more information about the sales tax program, download:

• List of Eligible Materials for Sales Tax Program (pdf 112.11 kB)
• Frequently Asked Questions (pdf 83.11 kB)
• Taxpayer Information Publication 06A01-10

Infrastructure Investment Tax Credit Program

For tax years beginning on or after January 1, 2007, a credit against the either the corporate income tax or the franchise tax will be granted in an amount equal to the eligible costs. Credits may be used in tax years beginning January 1, 2007, and ending December 31, 2010, after which the credit shall expire. Eligible costs are defined as:

• Seventy-five percent of all capital costs, operation and maintenance costs, and research and development costs incurred between July 1, 2006, and June 30, 2010, up to a limit of $3 million per state fiscal year for all taxpayers, in connection with an investment in hydrogen-powered vehicles and hydrogen vehicle fueling stations in the state, including, but not limited to, the costs of constructing, installing, and equipping such technologies in the state.
• Seventy-five percent of all capital costs, operation and maintenance costs, and research and development costs incurred between July 1, 2006, and June 30, 2010, up to a limit of $1.5 million per state fiscal year for all taxpayers, and limited to a maximum of $12,000 per fuel cell, in connection with an investment in commercial stationary hydrogen fuel cells in the state, including, but not limited to, the costs of constructing, installing, and equipping such technologies in the state.
• Seventy-five percent of all capital costs, operation and maintenance costs, and research and development costs incurred between July 1, 2006, and June 30, 2010, up to a limit of $6.5 million per state fiscal year for all taxpayers, in connection with an investment in the production, storage, and distribution of biodiesel (B10-B100) and ethanol (E10-E100) in the state, including the costs of constructing, installing, and equipping such technologies in the state. Gasoline fueling station pump retrofits for ethanol (E10-E100) distribution qualify as an eligible cost under this subparagraph.

In order to claim a credit on your corporate income tax return, you must first submit this application (pdf 85.97 kB) to the Energy Office to determine eligibility.

For more information about the investment tax credit program, download:

• Frequently Asked Questions  (pdf 109.06 kB)
• Taxpayer Information Publication 06C01-05

Florida Renewable Energy Production Tax Credit

Administered by the Department of Revenue, the Florida renewable energy production credit is intended to encourage the development and expansion of facilities in Florida that produce electricity from renewable energy. The new law provides a corporate income tax credit equal to one cent ($0.01) for each additional kilowatt hour of electricity produced from renewable energy sources at a new or expanded Florida facility. Applications for an allocation of each year's available credit must be filed by the following February 1st.

Information about the production tax credit is available through the Department of Revenue:

• Taxpayer Information Publication 07C01-01
• Or contact the Department of Revenue's Taxpayer Services at 800.352.3671 or 850.488.6800.

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