Florida Incentives and Laws

Last Updated June 2006

State Incentives

Renewable Energy Grants

The Renewable Energy Technologies Grants Program provides matching grants for demonstration, commercialization, research, and development projects relating to renewable energy technologies, including those generating or utilizing hydrogen or biomass resources. (Reference Senate Bill 888, 2006 and Florida Statutes 377.804)

Hydrogen and Biofuels Tax Exemption

Through July 1, 2010, in the state of Florida the sale or use of the following is exempt from the state sales, rental, use, consumption, distribution, and storage tax: 1) hydrogen powered vehicles and related materials, and hydrogen refueling stations, up to a maximum of $2 million in taxes each state fiscal year for all taxpayers; 2) materials used in the distribution of biodiesel (B10-B100) and ethanol (E10-E100), including refueling infrastructure, transportation, and storage, up to a maximum of $1 million in taxes each state fiscal year for all taxpayers. Gasoline refueling station pump retrofits for ethanol (E10-E100) distribution also qualify for this exemption. (Reference Senate Bill 888, 2006 and Florida Statutes 212.08)

Hydrogen and Biofuels Investment Tax Credit

A credit against the state sales and use tax is available for costs incurred between July 1, 2006, and June 30, 2010 for the following: 1) 75% of all capital costs, operation and maintenance costs, and research and development costs incurred in connection with an investment in hydrogen-powered vehicles and hydrogen vehicle fueling stations in the state, up to a limit of $3 million per state fiscal year for all taxpayers, and 2) 75% of all capital costs, operation and maintenance costs, and research and development costs incurred in connection with an investment in the production, storage, and distribution of biodiesel (B10-B100) and ethanol (E10-E100) in the state. This includes the costs of constructing, installing, and equipping such technologies, up to a maximum of $6.5 million per state fiscal year for all taxpayers; gasoline refueling station pump retrofits for ethanol (E10-E100) distribution also qualify.

Credits may be used in tax years beginning January 1, 2007, and ending December 31, 2010. If the credit is not fully used in any one tax year because of insufficient tax liability on the part of the corporation, the unused amount may be carried forward and used in tax years beginning January 1, 2007, and ending December 31, 2012.

(Reference Senate Bill 888, 2006 and Florida Statutes 220.192)

High Occupancy Vehicle (HOV) Lane Exemption

Inherently Low Emission Vehicles (ILEVs) and hybrid electric vehicles that are certified and labeled in accordance with federal regulations may be driven in HOV lanes at any time, regardless of the number of passengers in the vehicle. The vehicle must have a decal issued by the Florida Division of Motor Vehicles, obtained for a $5 fee, which must be renewed annually. (Reference Florida Statutes 316.0741)

Point of Contact

Florida Division of Motor Vehicles
Phone (850) 922-9000
dmv@hsmv.state.fl.us
http://www.hsmv.state.fl.us/html/titlinf.html
 

State Laws and Regulations

State Energy Task Force

The Florida Renewable Energy Technologies and Energy Efficiency Act was established to increase the state’s energy stability and protect public health by advancing the development of efficient and renewable energy technologies, including those related to hydrogen, ethanol and biodiesel. The Act creates the Florida Energy Commission, which is responsible for developing recommendations for legislation to establish a state energy policy, focusing on energy-efficiency issues including the encouragement of in-state research, development, and deployment of alternative fuels for motor vehicles. Furthermore, the Florida Department of Environmental Protection is responsible for providing a report detailing the state's leadership by example in energy conservation and energy efficiency, including a description of state programs designed to achieve energy conservation and energy efficiency through the inclusion of alternative fuel vehicles in state fleets. (Reference Senate Bill 888, 2006 and Florida Statutes 403.809)

Point of Contact

General Inquiries
Florida Energy Office
Phone (850) 245-8002
http://www.FloridaEnergy.org
 

Alternative Fuel Vehicle (AFV) Program Support

The Governor’s Office and the Governor’s executive agencies are directed to continue their energy conservation efforts to reduce the demand for energy in Florida and are further encouraged to develop innovative conservation initiatives. In addition, all other departments and agencies of state government, as well as all local governments, are encouraged to develop and implement long-term conservation initiatives. This may include but is not limited to the recommendation that state and local governments invest in energy-efficient equipment and hybrid electric or alternative fuel vehicles. (Reference Executive Order 05-241, 2005)

Alternative Fuels Tax

A person operating an alternative fuel vehicle (AFV) must purchase an annual decal from the Florida Department of Motor Vehicles in lieu of the excise tax on gasoline. Refueling stations are not allowed to fuel an AFV that does not display the proper decal. State and local government AFV fleets are exempt from paying the decal fee. A person fueling vehicles from his or her own facilities is required, in addition to the state alternative fuel fee imposed by this section, to pay a local alternative fuel fee in lieu of each cent of excise tax levied by a county. (Reference Florida Statutes 206.877)

Alternative Fuel License

Anyone who wishes to be a wholesale distributor of an alternative fuel must first obtain a license from the Florida Department of Revenue. (Reference Florida Statutes 206.89)

Electric Vehicle (EV) Surcharge Exemption

EVs are protected from insurance surcharges based on factors such as new technology, passenger payload, weight-to-horsepower ratio, and the types of material used to manufacture the vehicle unless the Office of Insurance Regulation receives actuarial data that determines the surcharges are justified. (Reference Florida Statutes 627.06535)

Ethanol Production Credit

County governments are eligible to receive waste reduction credits for using yard clippings, clean wood waste, or paper waste as feedstocks for the production of clean-burning fuels such as ethanol. (Reference Florida Statutes 403.706)

Utilities/Private Incentives

There are currently no known utility or private incentives offered in Florida

Florida Points of Contact: