Northwest Florida Realtor: Florida Renewable Energy Production Tax Credit corp tax credit

In June 2006, a renewable energy production tax credit was established in Florida (SB 888) to encourage the development and expansion of renewable energy facilities in the state. This annual corporate tax credit is equal to $0.01/kWh of electricity produced and sold by the taxpayer to an unrelated party during a given tax year. For new facilities (placed in service after May 1, 2006) the credit is based on the sale of the facility's entire electrical production. For an expanded* facility, the credit is based on the increases in the facility's electrical production that are achieved after May 1, 2006.

For the purposes of this credit, renewable energy is defined as "electrical, mechanical, or thermal energy produced from a method that uses one or more of the following fuels or energy sources: hydrogen, biomass, solar energy, geothermal energy, wind energy, ocean energy, waste heat, or hydroelectric power."

The credit may be claimed for electricity produced and sold on or after January 1, 2007 through June 30, 2010. Beginning in 2008 and continuing until 2011, each taxpayer claiming a credit under this section must first apply to the Department of Revenue (DOR) by February 1 of each year for an allocation of available credit. If the credit granted is not fully used in one year because of insufficient tax liability, the unused amount may be carried forward for up to 5 years.

The combined total amount of tax credits which may be granted for all taxpayers under this program is limited to $5 million per state fiscal year. If the amount of credits applied for each year exceeds $5 million, the DOR will award a prorated amount based on each applicant's increased production and sales.

A taxpayer can not claim both this production tax credit and Florida's Renewable Energy Technologies Investment Tax Credit. In June 2008 Florida enacted HB 7135 which specified that a taxpayer's use of the credit does not reduce the amount of the Florida alternative minimum tax available to the taxpayer.

The application form and instructions may be found here

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