Renewable Energy Equipment Sales Tax Exemption

Incentive Type: Sales Tax Exemption
Eligible Renewable/Other Technologies: Solar Water Heat, Solar Space Heat, Photovoltaics, Renewable Fuel Vehicles, Fuel Cells, Solar Pool Heating, Refueling Stations, Ethanol, Biodiesel
Applicable Sectors: Commercial, Residential, General Public/Consumer
Amount: All
Maximum Incentive: None
Website: http://www.dep.state.fl.us/energy/energyact/incentives.htm
Authority 1: Fla. Stat. § 212.08
Effective Date: 7/1/97 for solar; 7/1/2006 for others
Expiration Date: None for solar; 7/1/2010 for others

Summary:

Solar energy systems have been exempt from Florida's sales and use tax since July 1, 1997. The term "solar energy system" means the equipment and requisite hardware that provide and are used for collecting, transferring, converting, storing or using incidental solar energy for water heating, space heating and cooling, or other applications that would otherwise require the use of a conventional source of energy such as petroleum products, natural gas, manufactured gas or electricity. Vendors of solar energy systems or components are required to document exempt sales.

This exemption was originally set to expire July 1, 2002, but was extended an additional three years. In May 2005, the exemption was made permanent when HB 805 (2005) was signed into law.

In June 2006, Senate Bill 888 added "equipment, machinery and other materials for renewable energy technologies" to the list of items specifically exempt from the state sales and use tax. This includes hydrogen-powered vehicles; hydrogen-fueling stations (up to $2M total); commercial stationary hydrogen fuel cells (up to $1M total); and materials used in the distribution of biodiesel (B10-B100) and ethanol (E10-E100), including fueling infrastructure, transportation, and storage (up to $1M total).

The exemption is available to a purchaser as a refund of previously paid taxes. An application, along with the sales invoice or other proof of purchase must be filed with the Department of Environmental Protection. This exemption for fuel cells and other equipment, machinery and materials for renewable energy technologies is effective through July 1, 2010. The exemption for solar energy systems, however, remains a permanent exemption. See website above for a draft sales tax exemption application form.

Contact:

Taxpayer ServicesFlorida Department of Revenue
1379 Blountstown Hwy.
Tallahassee, FL 32304-2716
Phone: (800) 352-3671 Phone 2: (850) 488-6800
Web site: http://www.myflorida.com/dor