5O-2.003. Florida Renewable Energy Production Tax Credit

(1) This rule applies to Florida corporate income taxpayers, as defined in Section 220.193(2)(g), F.S., that own an interest in a general partnership, limited partnership, limited liability company, trust or other artificial entity that owns a Florida renewable energy facility seeking a tax credit toward corporate income tax pursuant to Section 220.193, F.S. This rule does not apply to the tax return filing process regulated by the Florida Department of Revenue.

(2) Pursuant to Section 220.193, F.S., tax credits for the production and sale of electricity from a new or expanded Florida renewable energy facility will be granted for all taxpayers with a limit of $5 million in state fiscal year 2012-2013 and $10 million per state fiscal year in state fiscal years 2013-2014 through 2016-2017.

(3) A taxpayer seeking a Renewable Energy Production Tax Credit must apply to the Florida Department of Agriculture and Consumer Services, Office of Energy (Office) as follows:

(a) Applicants must complete and submit a Florida Renewable Energy Production Tax Credit Application, FDACS-01919, (Rev. 01/15).

(b) Applications must be received by the Office, located at 600 South Calhoun Street, Suite 251, Tallahassee, Florida 32399-0001, either by certified mail or hand delivery.

1. Certified mail means the service provided by the United States Postal Service whereby the sender is provided with a mailing receipt and delivery record.

2. Hand delivery means any physical submission of an application to the Office from a representative of an applicant, courier, or a private delivery service.

(c) Applications must be received by the Office no later than close of business on:

1. January 15, 2014 for the production period January 1, 2013 through December 31, 2013;

2. January 15, 2015 for the production period January 1, 2014 through December 31, 2014;

3. January 15, 2016 for the production period January 1, 2015 through December 31, 2015; and,

4. August 15, 2016 for the production period January 1, 2016 through June 30, 2016.

(d) Applications received after the due date will be determined ineligible.

(e) Applications must include the information required by the application form. All fields and sections on the application must be completed. If for any reason the information required is not applicable, the applicant must note in the specified field either “not applicable” or “n/a”. Applications that are not fully completed or do not include the required information, including blank fields, will be determined incomplete.

(f) Applications must provide the address of the Florida renewable energy facility that produces the electricity qualifying for this corporate income tax credit. The applicant must submit a separate application for each facility. A facility is a building or a group of buildings close to one another that work together to produce electricity from renewable sources.

(g) Applications must include:

1. A summary of the type of renewable energy produced and sold;

2. The kilowatt-hours of electricity produced and sold from renewable energy for each month of the production period for which the applicant is applying:

3. Whether the facility producing that energy is a new or expanded facility; and,

4. The date the renewable energy facility was placed in operation.

(h) Applicants must attach a schedule to the application that identifies all corporations that will receive the credit and the percentage of the credit to be received by each corporation. The credit allocated shall pass through to the owners in the same manner as items of income and expense pass through for federal income tax purposes.

(i) A registered agent as defined in Section 607.0501, F.S., officer, or director with an active registration with the Florida Department of State, Division of Corporations must certify, using the affidavit included as part of the application form, the increase in production and sales that form the basis of the application and that all other information contained in the application and supporting documentation is true and correct.

(4) In addition, applicants must submit with the completed application a description of the project’s economic impact in Florida. Examples of such information include:

(a) The total dollar value of the additional investment in purchases of machinery and equipment made as a result of the project that is eligible for the tax credit incentive;

(b) The total dollar value of the additional investment in construction of buildings made as a result of the project that is eligible for the tax credit incentive;

(c) The type, amount, and dollar value of the renewable energy produced and sold or expected to be produced and sold as a result of the project that is eligible for the tax credit incentive;

(d) The number of jobs created as a result of the project that is eligible for the tax credit incentive; and

(e) The total dollar value of salaries and wages of jobs created as a result of the project that is eligible for the tax credit incentive.

(5) A taxpayer claiming a Florida Renewable Energy Investment Tax Credit under Section 220.192, F.S., is ineligible to claim a credit under this program.

(6) The Office will evaluate the application to verify that the applicant has met the qualifying statutory and rule criteria. The Office will issue a written certification that the applicant is eligible for a tax credit or will issue a written notification that the application was determined incomplete and will include a description of the application’s deficiencies. If the Office determines that an application is incomplete, the taxpayer must submit a corrected application within five business days from notification of the application’s deficiencies. The Office will provide the Florida Department of Revenue a copy of each certification issued upon approval of an application.

(7) If the annual tax credit authorization amount is exhausted within a particular state fiscal year, the Office will allocate credits to qualified applicants based on the priority outlined in Section 220.193(3)(c), F.S.

(8) The Florida Department of Agriculture and Consumer Services will not disburse any funds in connection with the Florida Renewable Energy Production Tax Credit program. Certificates granted will not result in the payment of refunds by the Florida Department of Revenue if the total credits exceed the amount of tax owed. Each certified applicant is responsible for attaching the certificate to its annual tax return filed with the Florida Department of Revenue.

(9) Every taxpayer claiming a Florida Renewable Energy Production Credit must retain documentation that substantiates and supports the credit for a minimum of 3 years after the Office issues a written certification that the taxpayer is eligible for a tax credit. Documentation to substantiate and support the credit includes:

(a) Production records or other evidence of the amount of electricity produced;

(b) Evidence of the increase in production and sales of electricity over the 2011 calendar year by an expanded facility; and,

(c) Evidence establishing that the electricity was produced from renewable energy.

(10) Materials Incorporated by Reference. The Florida Renewable Energy Production Tax Credit Application, FDACS-01919, (Rev. 01/15) is hereby adopted and incorporated by reference. The form may be obtained by contacting the Florida Department of Agriculture and Consumer Services, Office of Energy, at 600 South Calhoun Street, Suite 251, Tallahassee, Florida 32399-0001, or [e-mail], and is available online at: http://www.flrules.org/Gateway/reference.asp?No=Ref-04969.

Rulemaking Authority 220.193(6) FS. Law Implemented 220.193 FS. History–New 5-2-13, Amended 4-1-15.