HB 13D

1
A bill to be entitled
2An act relating to tax credits for renewable energy
3technologies; amending s. 196.175, F.S.; revising
4provisions of the renewable energy source exemption;
5excluding the assessed value of certain real property for
6purposes of determining such exemption; amending s.
7212.08, F.S.; redefining the term "ethanol" for purposes
8of the sales tax exemption provided for certain renewable
9energy technologies; specifying eligible items as limited
10to one refund; requiring a purchaser who receives a refund
11to notify a subsequent purchaser of such refund; amending
12s. 220.192, F.S., relating to the renewable energy
13technologies investment tax credit; providing a
14definition; providing for the transferability of such tax
15credit; providing requirements and procedures therefor;
16providing rulemaking requirements and authority; amending
17s. 220.193, F.S.; providing a definition; providing that a
18taxpayer's use of certain credits does not prohibit the
19use of other authorized credits; providing an effective
20date.
21
22Be It Enacted by the Legislature of the State of Florida:
23
24     Section 1.  Section 196.175, Florida Statutes, is amended
25to read:
26     196.175  Renewable energy source exemption.--
27     (1)  Improved real property upon which a renewable energy
28source device is installed and operated shall be entitled to an
29exemption in the amount of not greater than the lesser of:
30     (a)  The assessed value of such real property less any
31other exemptions applicable under this chapter;
32     (b)  the original cost of the device, including the
33installation cost thereof, but excluding the cost of replacing
34previously existing property removed or improved in the course
35of such installation; or
36     (c)  Eight percent of the assessed value of such property
37immediately following installation.
38     (2)  The exempt amount authorized under subsection (1)
39shall:
40     (a)  Apply in full if the device was installed and
41operative throughout the 12-month period preceding January 1 of
42the year of application for the this exemption; and.
43     (b)  Be reduced proportionately if the device was operative
44for a portion of that period, the exempt amount authorized under
45this section shall be reduced proportionally.
46     (3)  It shall be the responsibility of The applicant for an
47exemption under pursuant to this section shall to demonstrate
48affirmatively to the satisfaction of the property appraiser that
49he or she meets the requirements for exemption under this
50section and that the original cost pursuant to paragraph (1)(b)
51and the period for which the device was operative, as indicated
52on the exemption application, are correct.
53     (4)  An No exemption that is otherwise authorized under
54pursuant to this section may not shall be granted for:
55     (a)  A period of more than 10 years; or. No exemption shall
56be granted with respect to
57     (b)  A renewable energy source device devices installed
58before July 1, 2008 January 1, 1980, or after December 31, 1990.
59     Section 2.  Paragraph (ccc) of subsection (7) of section
60212.08, Florida Statutes, is amended to read:
61     212.08  Sales, rental, use, consumption, distribution, and
62storage tax; specified exemptions.--The sale at retail, the
63rental, the use, the consumption, the distribution, and the
64storage to be used or consumed in this state of the following
65are hereby specifically exempt from the tax imposed by this
66chapter.
67     (7)  MISCELLANEOUS EXEMPTIONS.--Exemptions provided to any
68entity by this chapter do not inure to any transaction that is
69otherwise taxable under this chapter when payment is made by a
70representative or employee of the entity by any means,
71including, but not limited to, cash, check, or credit card, even
72when that representative or employee is subsequently reimbursed
73by the entity. In addition, exemptions provided to any entity by
74this subsection do not inure to any transaction that is
75otherwise taxable under this chapter unless the entity has
76obtained a sales tax exemption certificate from the department
77or the entity obtains or provides other documentation as
78required by the department. Eligible purchases or leases made
79with such a certificate must be in strict compliance with this
80subsection and departmental rules, and any person who makes an
81exempt purchase with a certificate that is not in strict
82compliance with this subsection and the rules is liable for and
83shall pay the tax. The department may adopt rules to administer
84this subsection.
85     (ccc)  Equipment, machinery, and other materials for
86renewable energy technologies.--
87     1.  As used in this paragraph, the term:
88     a.  "Biodiesel" means the mono-alkyl esters of long-chain
89fatty acids derived from plant or animal matter for use as a
90source of energy and meeting the specifications for biodiesel
91and biodiesel blends with petroleum products as adopted by the
92Department of Agriculture and Consumer Services. Biodiesel may
93refer to biodiesel blends designated BXX, where XX represents
94the volume percentage of biodiesel fuel in the blend.
95     b.  "Ethanol" means an nominally anhydrous denatured
96alcohol produced by the conversion of carbohydrates fermentation
97of plant sugars meeting the specifications for fuel ethanol and
98fuel ethanol blends with petroleum products as adopted by the
99Department of Agriculture and Consumer Services. Ethanol may
100refer to fuel ethanol blends designated EXX, where XX represents
101the volume percentage of fuel ethanol in the blend.
102     c.  "Hydrogen fuel cells" means equipment using hydrogen or
103a hydrogen-rich fuel in an electrochemical process to generate
104energy, electricity, or the transfer of heat.
105     2.  The sale or use of the following in the state is exempt
106from the tax imposed by this chapter:
107     a.  Hydrogen-powered vehicles, materials incorporated into
108hydrogen-powered vehicles, and hydrogen-fueling stations, up to
109a limit of $2 million in tax each state fiscal year for all
110taxpayers.
111     b.  Commercial stationary hydrogen fuel cells, up to a
112limit of $1 million in tax each state fiscal year for all
113taxpayers.
114     c.  Materials used in the distribution of biodiesel (B10-
115B100) and ethanol (E10-E100), including fueling infrastructure,
116transportation, and storage, up to a limit of $1 million in tax
117each state fiscal year for all taxpayers. Gasoline fueling
118station pump retrofits for ethanol (E10-E100) distribution
119qualify for the exemption provided in this sub-subparagraph.
120     3.  The Department of Environmental Protection shall
121provide to the department a list of items eligible for the
122exemption provided in this paragraph.
123     4.a.  The exemption provided in this paragraph shall be
124available to a purchaser only through a refund of previously
125paid taxes. Only one purchase of an eligible item is eligible
126for a refund. A purchaser who has received a refund on an
127eligible item must notify any subsequent purchaser of the item
128that the item is no longer eligible for a refund of tax paid.
129This notification must be provided to the subsequent purchaser
130on the sales invoice or other proof of purchase.
131     b.  To be eligible to receive the exemption provided in
132this paragraph, a purchaser shall file an application with the
133Department of Environmental Protection. The application shall be
134developed by the Department of Environmental Protection, in
135consultation with the department, and shall require:
136     (I)  The name and address of the person claiming the
137refund.
138     (II)  A specific description of the purchase for which a
139refund is sought, including, when applicable, a serial number or
140other permanent identification number.
141     (III)  The sales invoice or other proof of purchase showing
142the amount of sales tax paid, the date of purchase, and the name
143and address of the sales tax dealer from whom the property was
144purchased.
145     (IV)  A sworn statement that the information provided is
146accurate and that the requirements of this paragraph have been
147met.
148     c.  Within 30 days after receipt of an application, the
149Department of Environmental Protection shall review the
150application and shall notify the applicant of any deficiencies.
151Upon receipt of a completed application, the Department of
152Environmental Protection shall evaluate the application for
153exemption and issue a written certification that the applicant
154is eligible for a refund or issue a written denial of such
155certification within 60 days after receipt of the application.
156The Department of Environmental Protection shall provide the
157department with a copy of each certification issued upon
158approval of an application.
159     d.  Each certified applicant shall be responsible for
160forwarding a certified copy of the application and copies of all
161required documentation to the department within 6 months after
162certification by the Department of Environmental Protection.
163     e.  The provisions of s. 212.095 do not apply to any refund
164application made pursuant to this paragraph. A refund approved
165under pursuant to this paragraph shall be made within 30 days
166after formal approval by the department.
167     f.  The department may adopt all rules pursuant to ss.
168120.536(1) and 120.54 to administer this paragraph, including
169rules establishing forms and procedures for claiming this
170exemption.
171     g.  The Department of Environmental Protection shall ensure
172be responsible for ensuring that the total amounts of the
173exemptions authorized do not exceed the limits as specified in
174subparagraph 2.
175     5.  The Department of Environmental Protection shall
176determine and publish on a regular basis the amount of sales tax
177funds remaining in each fiscal year.
178     6.  This paragraph expires July 1, 2010.
179     Section 3.  Subsection (1) of section 220.192, Florida
180Statutes, is amended, present subsection (6) is renumbered as
181subsection (7) and amended, present subsection (7) is renumbered
182as subsection (8), and a new subsection (6) is added to that
183section, to read:
184     220.192  Renewable energy technologies investment tax
185credit.--
186     (1)  DEFINITIONS.--For purposes of this section, the term:
187     (a)  "Biodiesel" means biodiesel as defined in s.
188212.08(7)(ccc).
189     (b)  "Corporation" means a general partnership, limited
190partnership, limited liability company, unincorporated business,
191or other business entity in which a taxpayer owns an interest
192and that is taxed as a partnership or is disregarded as a
193separate entity from the taxpayer for tax purposes.
194     (c)(b)  "Eligible costs" means:
195     1.  Seventy-five percent of all capital costs, operation
196and maintenance costs, and research and development costs
197incurred between July 1, 2006, and June 30, 2010, up to a limit
198of $3 million per state fiscal year for all taxpayers, in
199connection with an investment in hydrogen-powered vehicles and
200hydrogen vehicle fueling stations in the state, including, but
201not limited to, the costs of constructing, installing, and
202equipping such technologies in the state.
203     2.  Seventy-five percent of all capital costs, operation
204and maintenance costs, and research and development costs
205incurred between July 1, 2006, and June 30, 2010, up to a limit
206of $1.5 million per state fiscal year for all taxpayers, and
207limited to a maximum of $12,000 per fuel cell, in connection
208with an investment in commercial stationary hydrogen fuel cells
209in the state, including, but not limited to, the costs of
210constructing, installing, and equipping such technologies in the
211state.
212     3.  Seventy-five percent of all capital costs, operation
213and maintenance costs, and research and development costs
214incurred between July 1, 2006, and June 30, 2010, up to a limit
215of $6.5 million per state fiscal year for all taxpayers, in
216connection with an investment in the production, storage, and
217distribution of biodiesel (B10-B100) and ethanol (E10-E100) in
218the state, including the costs of constructing, installing, and
219equipping such technologies in the state. Gasoline fueling
220station pump retrofits for ethanol (E10-E100) distribution
221qualify as an eligible cost under this subparagraph.
222     (d)(c)  "Ethanol" means ethanol as defined in s.
223212.08(7)(ccc).
224     (e)(d)  "Hydrogen fuel cell" means hydrogen fuel cell as
225defined in s. 212.08(7)(ccc).
226     (6)  TRANSFERABILITY OF CREDIT.--
227     (a)  Any corporation or subsequent transferee allowed a tax
228credit under this section may transfer the credit, in whole or
229in part, to any taxpayer by written agreement without
230transferring any ownership interest in the property generating
231the credit or any interest in the entity owning such property.
232The transferee is entitled to apply the credits against the tax
233with the same effect as if the transferee had incurred the
234eligible costs.
235     (b)  To perfect the transfer, the transferor shall provide
236the department with a written transfer statement notifying the
237department of the transferor's intent to transfer the tax
238credits to the transferee; the date the transfer is effective;
239the transferee's name, address, and federal taxpayer
240identification number; the tax period; and the amount of tax
241credits to be transferred. The department shall, upon receipt of
242a transfer statement conforming to the requirements of this
243paragraph, provide the transferee with a certificate reflecting
244the tax credit amounts transferred. A copy of the certificate
245must be attached to each tax return for which the transferee
246seeks to apply such tax credits.
247     (c)  A tax credit authorized under this section that is
248held by a corporation and not transferred under this subsection
249must be passed through for application against the taxes of the
250corporation's partners, members, or owners in the manner agreed
251to by the partners, members, or owners and without regard to the
252availability to the partners, members, or owners of any portion
253of the federal energy tax credit for the eligible costs.
254     (7)(6)  RULES.--The Department of Revenue may shall have
255the authority to adopt rules pursuant to ss. 120.536(1) and
256120.54 to administer this section, including rules relating to:
257     (a)  The forms required to claim a tax credit under this
258section, the requirements and basis for establishing an
259entitlement to a credit, and the examination and audit
260procedures required to administer this section.
261     (b)  The transfer of a tax credit, including forms,
262reporting requirements, and specific procedures, guidelines, and
263other requirements necessary to transfer a tax credit.
264     (c)  The pass through of a tax credit to the partner,
265member, or owner of a corporation, including forms, reporting
266requirements, and specific procedures, guidelines, and other
267requirements necessary for such a pass through.
268     Section 4.  Paragraph (f) is added to subsection (2) and
269paragraph (j) is added to subsection (3) of section 220.193,
270Florida Statutes, to read:
271     220.193  Florida renewable energy production credit.--
272     (2)  As used in this section, the term:
273     (f)  "Sale" or "sold" includes the use of electricity from
274a renewable energy facility by the producer of such electricity
275when such use reduces the amount of electricity the producer
276would otherwise purchase.
277     (3)  An annual credit against the tax imposed by this
278section shall be allowed to a taxpayer, based on the taxpayer's
279production and sale of electricity from a new or expanded
280Florida renewable energy facility. For a new facility, the
281credit shall be based on the taxpayer's sale of the facility's
282entire electrical production. For an expanded facility, the
283credit shall be based on the increases in the facility's
284electrical production that are achieved after May 1, 2006.
285     (j)  A taxpayer's use of the credit authorized under this
286section does not reduce the amount of any other credit for which
287that taxpayer is eligible under s. 220.186.
288     Section 5.  This act shall take effect July 1, 2008.


CODING: Words stricken are deletions; words underlined are additions.