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A bill to be entitled

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An act relating to tax credits for renewable energy

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technologies; amending s. 196.175, F.S.; revising

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provisions of the renewable energy source exemption;

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excluding the assessed value of certain real property for

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purposes of determining such exemption; amending s.

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212.08, F.S.; redefining the term "ethanol" for purposes

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of the sales tax exemption provided for certain renewable

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energy technologies; specifying eligible items as limited

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to one refund; requiring a purchaser who receives a refund

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to notify a subsequent purchaser of such refund; amending

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s. 220.192, F.S., relating to the renewable energy

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technologies investment tax credit; providing a

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definition; providing for the transferability of such tax

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credit; providing requirements and procedures therefor;

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providing rulemaking requirements and authority; amending

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s. 220.193, F.S.; providing a definition; providing that a

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taxpayer's use of certain credits does not prohibit the

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use of other authorized credits; providing an effective

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date.

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Be It Enacted by the Legislature of the State of Florida:

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     Section 1.  Section 196.175, Florida Statutes, is amended to

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read:

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     196.175  Renewable energy source exemption.--

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     (1)  Improved real property upon which a renewable energy

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source device is installed and operated shall be entitled to an

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exemption in the amount of not greater than the lesser of:

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     (a) The assessed value of such real property less any other

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exemptions applicable under this chapter;

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     (b) the original cost of the device, including the

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installation cost thereof, but excluding the cost of replacing

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previously existing property removed or improved in the course of

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such installation; or

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     (c) Eight percent of the assessed value of such property

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immediately following installation.

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     (2)  The exempt amount authorized under subsection (1)

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shall:

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     (a) Apply in full if the device was installed and operative

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throughout the 12-month period preceding January 1 of the year of

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application for the this exemption; and.

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     (b) Be reduced proportionately if the device was operative

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for a portion of that period, the exempt amount authorized under

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this section shall be reduced proportionally.

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     (3) It shall be the responsibility of The applicant for an

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exemption under pursuant to this section shall to demonstrate

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affirmatively to the satisfaction of the property appraiser that

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he or she meets the requirements for exemption under this section

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and that the original cost pursuant to paragraph (1)(b) and the

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period for which the device was operative, as indicated on the

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exemption application, are correct.

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     (4) An No exemption that is otherwise authorized under

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pursuant to this section may not shall be granted for:

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     (a) A period of more than 10 years; or. No exemption shall

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be granted with respect to

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     (b) A renewable energy source device devices installed

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before July 1, 2008 January 1, 1980, or after December 31, 1990.

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     Section 2.  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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     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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     3.  The Department of Environmental Protection shall provide

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to the department a list of items eligible for the exemption

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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 one purchase of an eligible item is eligible for a

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refund. A purchaser who has received a refund on an eligible item

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must notify any subsequent purchaser of the item that the item is

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no longer eligible for a refund of tax paid. This notification

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must be provided to the purchaser on the sales invoice or other

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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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Department of Environmental Protection. The application shall be

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developed by the Department of Environmental Protection, in

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consultation with the department, 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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Department of Environmental Protection shall review the

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application and shall notify the applicant of any deficiencies.

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Upon receipt of a completed application, the Department of

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Environmental Protection shall evaluate the application for

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exemption and issue a written certification that the applicant is

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eligible for a refund or issue a written denial of such

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certification within 60 days after receipt of the application.

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The Department of Environmental Protection shall provide the

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department with a copy of each certification issued upon approval

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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 Department of Environmental 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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under pursuant to this paragraph shall be made within 30 days

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after formal approval by the department.

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     f.  The department may adopt all rules pursuant to ss.

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120.536(1) and 120.54 to administer this paragraph, including

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rules establishing forms and procedures for claiming this

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exemption.

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     g. The Department of Environmental Protection shall ensure

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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 Department of Environmental Protection shall

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determine and publish on a regular basis the amount of sales tax

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funds remaining in each fiscal year.

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     6.  This paragraph expires July 1, 2010.

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     Section 3.  Subsection (1) of section 220.192, Florida

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Statutes, is amended, present subsection (6) is renumbered as

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

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as subsection (8), and a new subsection (6) is added to that

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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" means a general partnership, limited

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partnership, limited liability company, unincorporated business,

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or other business entity in which a taxpayer owns an interest and

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which is taxed as a partnership or is disregarded as a separate

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entity from the taxpayer for 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 $6.5

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million per state fiscal year for all taxpayers, in connection

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with an investment in the production, storage, and distribution

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of biodiesel (B10-B100) and ethanol (E10-E100) in the state,

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including the costs of constructing, installing, and equipping

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such technologies in the state. Gasoline fueling station pump

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retrofits for ethanol (E10-E100) distribution qualify as an

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eligible cost under this subparagraph.

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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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     (6) TRANSFERABILITY OF CREDIT.--

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     (a) Any corporation or subsequent transferee allowed a tax

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

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part, to any taxpayer by written agreement without transferring

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any ownership interest in the property generating the credit or

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any interest in the entity owning such property. The transferee

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is 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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must be passed through for application against the taxes of the

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corporation's partners, members, or owners in the manner agreed

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to by the partners, members, or owners and without regard to the

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availability to the partners, members, or owners of any portion

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of the federal energy tax credit for the eligible costs.

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     (7)(6) RULES.--The Department of Revenue may 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 transfer of a tax credit, including forms,

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reporting requirements, specific procedures, guidelines, and

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requirements necessary to transfer a tax credit.

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     (c) The pass through of a tax credit to the partner,

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member, or owner of a corporation, including forms, reporting

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requirements, specific procedures, guidelines, and requirements

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necessary for such a pass through.

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     (8)(7) PUBLICATION.--The Department of Environmental

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Protection shall determine and publish on a regular basis the

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amount of available tax credits remaining in each fiscal year.

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     Section 4.  Paragraph (f) is added to subsection (2) and

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paragraph (j) is added to subsection (3) of section 220.193,

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Florida Statutes, 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 from a

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renewable energy facility by the producer of such electricity

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when such use reduces the amount of electricity the producer

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would otherwise purchase.

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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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     (j) A taxpayer's use of the credit authorized under this

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section does not reduce the amount of any credit otherwise

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authorized to that taxpayer under s. 220.186.

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     Section 5.  This act shall take effect July 1, 2008.