State and Local Green Tax Credit and Incentives

Most States offer various tax credits, deductions, rebates and other incentives to encourage homeowners, businesses, non-profit organizations and others to take steps to make buildings and operations more eco-friendly. The State of Florida is no exception, offering incentives as tax credits, tax exemptions and rebates for equipment to convert to renewable energy sources. The following Florida Green Tax Credits and Incentives are available:

Corporate Tax Credits

Renewable Energy Production Tax Credit – In order to incentivize businesses to either build or enlarge facilities which produce energy from renewable sources, the State of Florida offers a credit equal to $0.01 per kilowatt hour of electricity produced and sold by the taxpayer to a third party in a Florida fiscal year. Acceptable energy sources include: solar thermal electric, biomass, wind, photovoltaics, geothermal electric, hydroelectric, hydrogen, tidal energy, ocean thermal and wave energy. The credit is limited to a total of $5 million per Florida fiscal year, and unused credits can be carried forward up to five years. The credit expires on June 30, 2010.

Renewable Energy Technologies Investment Tax Credit – A tax credit of 75% of capital, maintenance, operations, and research and development costs may be claimed for investment in each of three areas:

• Vehicles powered by hydrogen and re-fueling stations for these vehicles;
• Commercial stationary hydrogen fuel cells
• Biodiesel and ethanol production, distribution and storage

Unused credit amounts may be carried over. This incentive is scheduled to expire on December 31, 2010 and unused credits may be carried over through 2012.

Sales Tax Incentives

Renewable Energy Equipment Sales Tax Exemption – Businesses or homeowners are exempt from sales tax that would ordinarily be charged for renewable energy equipment, including

• Vehicles powered by hydrogen
• Fuel stations for hydrogen vehicles ($2 million total)
• Commercial hydrogen fuel cells (stationary) ($1 million maximum)
• Fueling stations, transportation and storage for distribution of biodiesel (B10 – B100) or ethanol (E10 – E100)

Solar Energy Systems Equipment Sales Tax Exemption -- “Solar energy systems” are exempt from Florida sales tax. This exemption is available to everyone, and it has been permanently continued past its original expiration date. This applies to any equipment that is needed to convert to solar energy for space heating and cooling (HVAC), water heating, and other uses that previously required electricity, petroleum products, natural gas or manufactured gas.

Solar Energy System Incentives Program
This Florida State Rebate program is available to all. It offers a rebate on the cost to purchase a solar water heater, photovoltaics (PV), or solar pool heater. PV systems must be 2kW and larger; solar water heaters must provide 50% or more of the hot water used within a building. For a PV system, the rebate is $4 per watt DC, up to a maximum of $20,000 for residential installations and $100,000 for non-residential installations. Qualifying solar Water Heaters earn a $500 rebate for residential installations, and $15 per 1,000 BTU per day for non-residential or multi-family installations, up to a maximum of $5,000. Solar pool heating qualifies for a $100 rebate. This program is scheduled to expire on June 30, 2010.

Local Option – Special Districts – PACE Financing
Special Property-Assessed Clean Energy (PACE) financing is available to property owners to allow them to pay for energy-efficiency improvements. In cities and counties that establish special districts with authority to collect revenue through a special assessment, property owners borrow from the special district to make improvements. The amount borrowed is recovered over a period of years and is repaid by the homeowner through a special assessment on the property. As of January 2010, however, special districts for PACE financing have not been established by any cities or counties in Florida.

For information on additional tax credits and incentives offered by Florida Counties to their residents, click here.  This needs to link to the article “Florida County Green Tax Credits and Incentives”, which should reside in the Articles Library.

A large number of Green Incentives are available from various utility companies and authorities throughout the state. To learn how you can increase your savings by combining Federal, Florida State, County and other incentives for going Green without breaking the bank, call our Green tax credits and incentives experts today at 800-385-0587.

For information on Green tax credits and incentives in other states, please call us at 800-385-0587.