New Florida Law Creates Renewable Energy Production Tax Credit

Posted by NAW Staff on April 17, 2012 No Comments
Categories : Policy Watch

New legislation, which was allowed to become law without Florida Gov. Rick Scott's signature, contains several provisions relating to renewable energy, energy-efficiency and alternative fuels for motor vehicles.

Among these provisions is a renewable energy production credit against the corporate income tax based on $0.01/kWh of renewable energy produced. The cap is $1 million per corporation and $5 million for state fiscal year 2012-2013, which is increased to $10 million for 2013-2014 through 2016-2017, with provisions for prorating credits if claims exceed the annual cap.

The legislation also institutes a renewable energy technologies investment tax credit against the corporate income tax based on investment in equipment to be used in production, storage and distribution of renewable fuels. The cap is $1 million per corporation and $10 million total per state fiscal year. The definition of "renewable fuel" includes fuels other than ethanol, such as biobutanol.

The bill passed overwhelming by a 38-2 vote in the state Senate and a 113-1 vote in the state House. The provisions take effect July 1.

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