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TIP # 06A01-10
DATE ISSUED: June 30, 2006

Sales Tax Refund on Equipment, Machinery, and Other
Materials for Renewable Energy Technologies

Effective July 1, 2006, and ending July 1, 2010, a refund is available on purchases of equipment, machinery, and other materials for renewable energy technologies. The refund is applicable to the following items.

  • Hydrogen-powered vehicles, materials incorporated into hydrogen-powered vehicles, and hydrogen-fueling stations
  • Commercial stationary hydrogen fuel cells
  • Materials used in the distribution of biodiesel (B10 – B100) and ethanol (E10 – E100), including fueling infrastructure, transportation, and storage for these fuels
These provisions for a refund are contingent upon the following conditions and limitations:
  • The exemption is only available to purchasers by way of a refund of previously paid Florida taxes on qualifying items.
  • The Florida Department of Environmental Protection (DEP) will be preparing a list of specific items that are eligible for the exemption.
  • Purchasers seeking a refund must first file an exemption application with DEP and provide such information as is required by DEP.
  • Within 30 days of the receipt of the exemption application, DEP will notify the applicant of any deficiencies. Upon receipt of a completed exemption application, and all supporting documentation, DEP will evaluate the application for exemption and issue a written certification that the applicant is eligible for a refund or issue a written denial of such certification within 60 days. If an applicant is approved, DEP will forward a copy of the written certification and all supporting documentation to the Department of Revenue (DOR).
  • Each certified applicant will then be responsible for forwarding a certified copy of the exemption application and an Application for Refund - Sales and Use Tax, Form DR-26S, to DOR within 6 months after certification by DEP. If a refund application is not received by DOR within 6 months, a refund will not be issued. A refund will be issued within 30 days of formal approval of the refund application by DOR.

The statutory limitations on the refunds are as follows:

  • The total exemption on hydrogen-powered vehicles, materials incorporated into hydrogen-powered vehicles, and hydrogen-fueling stations is limited to $2 million in tax each state fiscal year.
  • The total exemption on commercial stationary hydrogen fuel cells is limited to $1 million in tax each state fiscal year.
  • The total exemption on materials used in the distribution of biodiesel and ethanol, including fueling infrastructure, transportation, and storage for these fuels, is limited to $1 million in tax each state fiscal year.

References: Ch. 2006-230, L.O.F. s. 212.08(7)(ccc), F.S.



FOR MORE INFORMATION

For exemption applications and information from the Florida Department of Environmental Protection (DEP), please visit its website at www.dep.state.fl.us/energy/fla_energy/. You may also telephone your questions to DEP at 850-245-8002.

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.

To obtain an Application for Refund - Sales and Use Tax (Form DR-26S) from the Florida Department of Revenue, visit our Internet site at www.myflorida.com/dor/. Or call Taxpayer Services, 8:00 a.m., to 7:00 p.m., ET, Monday through Friday, excluding holidays, at 800-352-3671 or 850-488-6800

Persons with hearing or speech impairments may call our TDD at 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.