TIP # 04A01-03
DATE ISSUED: April 19, 2004

Beginning July 1, 1997, solar energy systems, or any component thereof, became exempt from sales and use tax. This exemption was initially mandated to be repealed July 1, 2002, but the repeal date has been extended to July 1, 2005.

The term "solar energy system" means the equipment and requisite hardware that provide and are used for collecting, transferring, converting, storing, or using incidental solar energy for water heating, space heating and cooling, or other applications that would otherwise require the use of a conventional source of energy such as petroleum products, natural gas, manufactured gas, or electricity.

As provided for by statute, the Florida Solar Energy Center from time to time certifies to the Department of Revenue a list of equipment and requisite hardware considered to be a solar energy system or a component thereof. In its most recent certification to the Department, the Florida Solar Energy Center has amended the list to include a solar photovoltaic-powered attic fan ventilation system.

The amended list of equipment and requisite hardware certified by the Florida Solar Energy Center to be a solar energy system or component thereof is included for your reference.

Sellers of solar energy systems or components thereof are required to document exempt sales. The following is a suggested form to be completed by the purchaser and presented to the seller:

References: Sections 212.02(26) and 212.08(7)(hh), Florida Statutes

FLORIDA SOLAR ENERGY CENTER
1679 Clearlake Road
Cocoa, Florida 32922-5703
Telephone 321-638-1000 FAX 321-638-1010

September 2003

The Florida Solar Energy Center certifies the following list to the Department of Revenue, pursuant to Section 212.08(7)(hh), Florida Statutes.

SOLAR ENERGY SYSTEM COMPONENTS

COLLECTOR: The purpose of a solar collector in thermal applications is to gather radiant energy from the sun and transfer it in the form of heat to a fluid for the purpose of domestic water heating, pool heating, space heating and cooling. A collector may consist of an absorber plate and tubing which may or may not be enclosed in an insulated box with a transparent cover. The collector provides the primary energy input to the system. Solar electric systems considered eligible for the exemption collect the light energy from the sun and convert it to electricity. A solar photovoltaic-powered attic fan ventilation system is eligible. A pool blanket is eligible as a "passive" solar collector whether used in conjunction with or independently from an active solar pool system.

TYPICAL MATERIALS: Cover plate - glass, resin - fiberglass, plastic, vinyl; Absorber and tubing - copper, galvanized steel, aluminum, plastic, rubber; Coating - non-selective, moderately selective, and selective; Insulation - polyisocyanurate, homasote, urethane, ductboards, fiberglass; Box - aluminum, galvanized steel, exterior grade wood, molded fiberglass; Photovoltaic Array - photovoltaic modules.

PUMP AND CONTROLS: The equipment which regulates the circulation of the fluid between the storage medium and the collector.

TYPICAL MATERIALS: Pump - bronze, brass, stainless steel, cast iron; Controller - solid state transistorized controller, sensors, timer, snap switches, and photovoltaic modules.

PHOTOVOLTAIC POWER CONDITIONING EQUIPMENT: The equipment which receives the direct current from the photovoltaic array, converts it to alternating current for consumption, and/or transfer to the electric utility grid.

TYPICAL MATERIALS: Inverters, transformers, junction boxes, meters, maximum power trackers, dc to dc converters, and charge controllers.

STORAGE UNIT: The equipment which receives thermal energy, or direct current in the case of a solar electric system, and retains it for future use.

TYPICAL MATERIALS: Conventional tank, solar specific tank, tank equipped with heat exchanger, expansion tank, heat storage by phase change material, desiccants, batteries, regulators, mechanical housing and venting.

ACCESSORIES (when used as an integral part of a solar system): Piping, insulation, air vents, relief valves, mixing valves, check valves, gate valves, assorted bolts, nuts, washers and screws, mounting brackets, angle irons and other structural support (other than roof), solder, flux, pitch and pitch pans or other sealant, drain down reservoir, fans, air handling units, air dampers, heat exchangers, heat transfer fluids, convectors, radiators, pool blankets, direct current wiring, and miscellaneous safety equipment required for P.V. applications; for example, blocking and bypass diodes, surge arrestors, disconnect switches, fuse holders, fuses, relays junction boxes, ground fault detector and/or interrupter, grounding hardware, and utility-interconnection protection equipment.

NOTE: Amount of piping allowable for the exemption is limited to that used in collector construction and the feed and return lines between collector and storage. Piping from the tank to the taps would be required in a conventional system and therefore are not eligible for an exemption. A typical or rule of thumb piping length for feed and return would be a total of 80 to 100 feet. Wiring used in photovoltaic applications considered eligible for the exemption is limited to that wiring which is unique to the system. Therefore, alternating current wiring throughout the structure which would be present without regard to the photovoltaic system is not eligible for the exemption. Tangible personal property in which the solar equipment is integral to the property (such as, calculators, patio lights, appliances and novelty items), and where the cost of the solar equipment cannot be or is not separate from the total product cost, is not considered to be a solar energy system.

State University System of Florida -- An Equal Opportunity/Affirmative Action Employer

A Research Institute of the University of Central Florida

FOR MORE INFORMATION

This document is intended to alert you to the requirements contained in Florida laws and administrative rules. It does not by its own effect create rights or require compliance.

For forms and other information, visit our site at www.myflorida.com/dor. Or call Taxpayer Services, Monday through Friday, 8:00 a.m., to 7:00 p.m., ET, at 800-352-3671 (for Florida residents only), or 850-488-6800

Hearing- or speech-impaired persons should call our TDD at 1-800-367-8331 or 850-922-1115.

For a detailed written response to your questions, write the Florida Department of Revenue, Taxpayer Services, 1379 Blountstown Highway, Tallahassee, FL 32304-2716.

To receive a fax copy of a form, call 850-922-3676 from your fax machine telephone.