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The Committee on Communications and Public Utilities (Bennett)

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recommended the following amendment:

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     Senate Amendment (with title amendment)

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     Delete lines 696 through 974

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and insert:

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     Section 7.  Paragraph (ccc) of subsection (7) of section

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212.08, Florida Statutes, is amended to read:

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212.08  Sales, rental, use, consumption, distribution, and

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storage tax; specified exemptions.--The sale at retail, the

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rental, the use, the consumption, the distribution, and the

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storage to be used or consumed in this state of the following are

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hereby specifically exempt from the tax imposed by this chapter.

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     (7)  MISCELLANEOUS EXEMPTIONS.--Exemptions provided to any

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entity by this chapter do not inure to any transaction that is

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otherwise taxable under this chapter when payment is made by a

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representative or employee of the entity by any means, including,

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but not limited to, cash, check, or credit card, even when that

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representative or employee is subsequently reimbursed by the

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entity. In addition, exemptions provided to any entity by this

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subsection do not inure to any transaction that is otherwise

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taxable under this chapter unless the entity has obtained a sales

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tax exemption certificate from the department or the entity

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obtains or provides other documentation as required by the

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department. Eligible purchases or leases made with such a

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certificate must be in strict compliance with this subsection and

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departmental rules, and any person who makes an exempt purchase

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with a certificate that is not in strict compliance with this

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subsection and the rules is liable for and shall pay the tax. The

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department may adopt rules to administer this subsection.

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     (ccc)  Equipment, machinery, and other materials for

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renewable energy technologies.--

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     1.  As used in this paragraph, the term:

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     a.  "Biodiesel" means the mono-alkyl esters of long-chain

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fatty acids derived from plant or animal matter for use as a

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source of energy and meeting the specifications for biodiesel and

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biodiesel blends with petroleum products as adopted by the

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Department of Agriculture and Consumer Services. Biodiesel may

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refer to biodiesel blends designated BXX, where XX represents the

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volume percentage of biodiesel fuel in the blend.

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     b. "Ethanol" means an nominally anhydrous denatured alcohol

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produced by the conversion of carbohydrates fermentation of plant

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sugars meeting the specifications for fuel ethanol and fuel

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ethanol blends with petroleum products as adopted by the

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Department of Agriculture and Consumer Services. Ethanol may

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refer to fuel ethanol blends designated EXX, where XX represents

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the volume percentage of fuel ethanol in the blend.

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     c.  "Hydrogen fuel cells" means equipment using hydrogen or

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a hydrogen-rich fuel in an electrochemical process to generate

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energy, electricity, or the transfer of heat.

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     d. "Wind energy" or "wind turbines" means rotary mechanical

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equipment that uses wind to produce at least 10kW of electrical

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energy.

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     2.  The sale or use of the following in the state is exempt

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from the tax imposed by this chapter:

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     a.  Hydrogen-powered vehicles, materials incorporated into

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hydrogen-powered vehicles, and hydrogen-fueling stations, up to a

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limit of $2 million in tax each state fiscal year for all

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taxpayers.

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     b.  Commercial stationary hydrogen fuel cells, up to a limit

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of $1 million in tax each state fiscal year for all taxpayers.

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     c.  Materials used in the distribution of biodiesel (B10-

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B100) and ethanol (E10-E100), including fueling infrastructure,

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transportation, and storage, up to a limit of $1 million in tax

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each state fiscal year for all taxpayers. Gasoline fueling

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station pump retrofits for ethanol (E10-E100) distribution

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qualify for the exemption provided in this sub-subparagraph.

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     d. Wind turbines, up to a limit of $1 million in tax each

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state fiscal year for all taxpayers.

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     3. The Florida Energy and Climate Commission Department of

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Environmental Protection shall provide to the department a list

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of items eligible for the exemption provided in this paragraph.

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     4.a.  The exemption provided in this paragraph shall be

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available to a purchaser only through a refund of previously paid

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taxes. Only the initial purchase of an eligible item from the

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manufacturer is subject to refund. A purchaser who has received a

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refund on an eligible item must notify any subsequent purchaser

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of the item that the item is no longer eligible for a refund of

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tax paid. This notification must be provided to the subsequent

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purchaser on the sales invoice or other proof of purchase.

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     b.  To be eligible to receive the exemption provided in this

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paragraph, a purchaser shall file an application with the

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commission Department of Environmental Protection. The

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application shall be developed by the commission Department of

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Environmental Protection, in consultation with the department,

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and shall require:

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     (I)  The name and address of the person claiming the refund.

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     (II)  A specific description of the purchase for which a

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refund is sought, including, when applicable, a serial number or

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other permanent identification number.

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     (III)  The sales invoice or other proof of purchase showing

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the amount of sales tax paid, the date of purchase, and the name

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and address of the sales tax dealer from whom the property was

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purchased.

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     (IV)  A sworn statement that the information provided is

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accurate and that the requirements of this paragraph have been

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met.

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     c.  Within 30 days after receipt of an application, the

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commission Department of Environmental Protection shall review

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the application and shall notify the applicant of any

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deficiencies. Upon receipt of a completed application, the

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commission Department of Environmental Protection shall evaluate

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the application for exemption and issue a written certification

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that the applicant is eligible for a refund or issue a written

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denial of such certification within 60 days after receipt of the

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application. The commission Department of Environmental

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Protection shall provide the department with a copy of each

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certification issued upon approval of an application.

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     d.  Each certified applicant shall be responsible for

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forwarding a certified copy of the application and copies of all

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required documentation to the department within 6 months after

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certification by the commission Department of Environmental

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Protection.

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     e. The provisions of s. 212.095 do not apply to any refund

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application made pursuant to this paragraph. A refund approved

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pursuant to this paragraph shall be made within 30 days after

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formal approval by the department.

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     f. The commission may adopt the form for the application

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for a certificate, requirements for the content and format of

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information submitted to the commission in support of the

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application, other procedural requirements, and criteria by which

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the application will be determined by rule. The department may

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adopt all other rules pursuant to ss. 120.536(1) and 120.54 to

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administer this paragraph, including rules establishing

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additional forms and procedures for claiming this exemption.

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     g. The commission Department of Environmental Protection

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shall be responsible for ensuring that the total amounts of the

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exemptions authorized do not exceed the limits as specified in

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subparagraph 2.

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     5. The commission Department of Environmental Protection

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shall determine and publish on a regular basis the amount of

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sales tax funds remaining in each fiscal year.

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     6. This paragraph expires July 1, 2010, except as it

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relates to wind turbines. The provisions of this paragraph

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relating to wind turbines expire July 1, 2012.

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     Section 8.  Subsection (1) of section 220.192, Florida

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Statutes, is amended, present subsection (6) of that section is

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renumbered as subsection (7) and amended, present subsection (7)

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of that section is renumbered as subsection (8), and a new

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subsection (6) is added to that section, to read:

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220.192  Renewable energy technologies investment tax

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credit.--

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     (1)  DEFINITIONS.--For purposes of this section, the term:

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     (a)  "Biodiesel" means biodiesel as defined in s.

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212.08(7)(ccc).

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     (b) "Corporation" includes a general partnership, limited

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partnership, limited liability company, unincorporated business,

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or other business entity, including entities taxed as

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partnerships for federal income tax purposes.

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     (c)(b) "Eligible costs" means:

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     1.  Seventy-five percent of all capital costs, operation and

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maintenance costs, and research and development costs incurred

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between July 1, 2006, and June 30, 2010, up to a limit of $3

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million per state fiscal year for all taxpayers, in connection

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with an investment in hydrogen-powered vehicles and hydrogen

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vehicle fueling stations in the state, including, but not limited

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to, the costs of constructing, installing, and equipping such

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technologies in the state.

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     2.  Seventy-five percent of all capital costs, operation and

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maintenance costs, and research and development costs incurred

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between July 1, 2006, and June 30, 2010, up to a limit of $1.5

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million per state fiscal year for all taxpayers, and limited to a

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maximum of $12,000 per fuel cell, in connection with an

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investment in commercial stationary hydrogen fuel cells in the

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state, including, but not limited to, the costs of constructing,

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installing, and equipping such technologies in the state.

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     3.  Seventy-five percent of all capital costs, operation and

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maintenance costs, and research and development costs incurred

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between July 1, 2006, and June 30, 2010, up to a limit of $14

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$6.5 million per state fiscal year for all taxpayers, in

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connection with an investment in the production, storage, and

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distribution of biodiesel (B10-B100) and ethanol (E10-E100) in

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the state, including the costs of constructing, installing, and

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equipping such technologies in the state. Gasoline fueling

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station pump retrofits for ethanol (E10-E100) distribution

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qualify as an eligible cost under this subparagraph.

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     4. Seventy-five percent of all capital costs, operation and

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maintenance costs, and research and development costs incurred

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between July 1, 2008, and June 30, 2012, up to a limit of $9

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million per state fiscal year for all taxpayers, in connection

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with an investment in the production of wind energy.

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     (d)(c) "Ethanol" means ethanol as defined in s.

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212.08(7)(ccc).

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     (e)(d) "Hydrogen fuel cell" means hydrogen fuel cell as

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defined in s. 212.08(7)(ccc).

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     (f) "Wind energy" or "wind turbines" has the same meaning

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as in s. 212.08(7)(ccc).

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(g) "Taxpayer" includes corporations as defined in ss.

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220.03 or 220.192.

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     (6) TRANSFERABILITY OF CREDIT.--

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     (a) For tax years beginning on or after January 1, 2009,

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any corporation or subsequent transferee allowed a tax credit

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under this section may transfer the credit, in whole or in part,

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to any taxpayer by written agreement without transferring any

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ownership interest in the property generating the credit or any

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interest in the entity owning such property. The transferee is

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entitled to apply the credits against the tax with the same

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effect as if the transferee had incurred the eligible costs.

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     (b) To perfect the transfer, the transferor shall provide

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the department with a written transfer statement notifying the

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department of the transferor's intent to transfer the tax credits

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to the transferee; the date the transfer is effective; the

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transferee's name, address, and federal taxpayer identification

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number; the tax period; and the amount of tax credits to be

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transferred. The department shall, upon receipt of a transfer

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statement conforming to the requirements of this paragraph,

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provide the transferee with a certificate reflecting the tax

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credit amounts transferred. A copy of the certificate must be

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attached to each tax return for which the transferee seeks to

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apply such tax credits.

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     (c) A tax credit authorized under this section which is

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held by a corporation and not transferred under this subsection

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shall be passed through to the taxpayers designated as partners,

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members, or owners, respectively, in the manner agreed to by such

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persons whether or not such partners, members, or owners are

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allocated or allowed any portion of the federal energy tax credit

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for the eligible costs.

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     (7)(6) RULES.--The Department of Revenue shall have the

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authority to adopt rules pursuant to ss. 120.536(1) and 120.54 to

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administer this section, including rules relating to:

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     (a) The forms required to claim a tax credit under this

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section, the requirements and basis for establishing an

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entitlement to a credit, and the examination and audit procedures

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required to administer this section.

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     (b) The implementation and administration of the provisions

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allowing a transfer of a tax credit, including rules prescribing

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forms, reporting requirements, and specific procedures,

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guidelines, and requirements necessary to transfer a tax credit.

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     Section 9.  Paragraphs (f) and (g) are added to subsection

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(2) and paragraphs (f) and (g) of subsection (3) of section

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220.193, Florida Statutes, are amended, and paragraphs (j) and

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(k) are added to subsection (3) of that subsection, to read:

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     220.193  Florida renewable energy production credit.--

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     (2)  As used in this section, the term:

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     (f) "Sale" or "sold" includes the use of electricity by the

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producer of such electricity which decreases the amount of

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electricity that the producer would otherwise have to purchase.

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     (g) "Taxpayer" includes a general partnership, limited

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partnership, limited liability company, trust, or other

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artificial entity in which a corporation, as defined in s.

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220.03(1)(e), owns an interest and is taxed as a partnership or

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is disregarded as a separate entity from the corporation under

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chapter 220.

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     (3)  An annual credit against the tax imposed by this

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section shall be allowed to a taxpayer, based on the taxpayer's

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production and sale of electricity from a new or expanded Florida

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renewable energy facility. For a new facility, the credit shall

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be based on the taxpayer's sale of the facility's entire

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electrical production. For an expanded facility, the credit shall

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be based on the increases in the facility's electrical production

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that are achieved after May 1, 2006.

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     (f)1.  Tax credits that may be available under this section

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to an entity eligible under this section may be transferred after

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a merger or acquisition to the surviving or acquiring entity and

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used in the same manner with the same limitations.

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     2.  The entity or its surviving or acquiring entity as

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described in subparagraph 1. may transfer any unused credit in

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whole or in units of no less than 25 percent of the remaining

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credit. The entity acquiring such credit may use it in the same

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manner and with the same limitations under this section. Such

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transferred credits may not be transferred again although they

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may succeed to a surviving or acquiring entity subject to the

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same conditions and limitations as described in this section.

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     3.  In the event the credit provided for under this section

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is reduced as a result of an examination or audit by the

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department, such tax deficiency shall be recovered from the first

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entity or the surviving or acquiring entity to have claimed such

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credit up to the amount of credit taken. Any subsequent

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deficiencies shall be assessed against any entity acquiring and

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claiming such credit, or in the case of multiple succeeding

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entities in the order of credit succession.

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     4. It is the intent of the Legislature that this paragraph

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is remedial in nature and applies retroactively to the effective

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date of the law establishing the credit.

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     (g)  Notwithstanding any other provision of this section,

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credits for the production and sale of electricity from a new or

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expanded Florida renewable energy facility may be earned between

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January 1, 2007 and June 30, 2010. The combined total amount of

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tax credits which may be granted for all taxpayers under this

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section is limited to $5 million per state fiscal year. It is the

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intent of the Legislature that this paragraph is remedial in

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nature and applies retroactively to the effective date of the law

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establishing the credit.

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     (j) When an entity treated as a partnership or a

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disregarded entity under this chapter produces and sells

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electricity from a new or expanded renewable energy facility, the

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tax credit earned by such entity shall pass through in the same

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manner as items of income and expense pass through for federal

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income tax purposes. It is the intent of the Legislature that

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this paragraph is remedial in nature and applies retroactively to

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the effective date of the law establishing the credit.

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     (k) A taxpayer's use of the tax credit granted pursuant to

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this section does not reduce the amount of any credit available

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to such taxpayer under s. 220.186. It is the intent of the

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Legislature that this paragraph is remedial in nature and applies

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retroactively to the effective date of the law establishing the

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credit.

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================ T I T L E  A M E N D M E N T ================

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And the title is amended as follows:

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     Delete lines 41 through 58

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and insert:

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technologies; requiring that the Florida Energy and

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Climate Commission rather than the Department of

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Environmental Protection implement certain

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responsibilities concerning eligibility and application

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for the tax exemption; requiring the commission to adopt,

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by rule, an application form, including the required

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content and documentation to support the application, for

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the taxpayer to use in claiming the tax exemption;

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amending s. 220.192, F.S.; defining terms relating to a

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tax credit; providing that 75 percent of all capital,

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operation, and maintenance costs, and research and

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development costs incurred between specified dates, up to

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a specified limit, may be credited against taxes owed in

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connection with an investment in the production of wind

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energy; allowing the tax credit to be transferred for a

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specified period; providing procedures and requirements;

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authorizing the Department of Revenue to adopt rules;

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amending s. 220.193, F.S.; defining the term "sale" or

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sold"; defining the term "taxpayer"; providing legislative

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intent concerning retroactive application of certain

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renewable energy production tax credits; providing for

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passing of a renewable energy production tax credit under

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certain conditions;

3/26/2008  8:08:00 PM     579-05864A-08