Florida Hydrogen Laws and Incentives
State Incentives
Alternative Fuels Production Incentive
The Innovation Incentive Program was created within the Florida Office of Tourism, Trade, and Economic Development to provide resources for business projects that allow the state to effectively compete for high-value research and development, including alternative and renewable energy projects. To qualify, an alternative and renewable energy project must involve collaboration with an institution of higher education; provide the state a minimum full return on investment within a 20-year period; include matching funds provided by the applicant or other available sources; and be located in the state of Florida. Additional criteria may apply. For the purposes of this incentive, alternative and renewable energy means electrical, mechanical, or thermal energy produced from a method that uses one or more of the following energy sources: ethanol, cellulosic ethanol, biobutanol, biodiesel, biomass, biogas, hydrogen fuel cells, ocean energy, hydrogen, solar, hydro, wind, or geothermal. Incentive awards are subject to state funding availability. This program has not been funded for 2009; however, federal funding may be available through the Florida Energy and Climate Commission to support selected state energy grant programs. (Reference Florida Statutes 288.1089)
Renewable Energy Grants
The Renewable Energy and Energy-Efficient Technologies Grants Program and Farm to Fuel Grants Program provide matching grants for demonstration, commercialization, research, and development projects related to renewable energy technologies or bioenergy. Incentive awards are subject to state funding availability. These programs have not been funded for 2009; however, federal funding may be available through the Florida Energy and Climate Commission to support selected state energy grant programs. (Reference Florida Statutes 377.804 and 570.957)
Hydrogen and Biofuels Tax Exemption
Through July 1, 2010, the sale or use of the following is exempt from Florida state sales, rental, use, consumption, distribution, and storage tax: 1) hydrogen powered vehicles and related materials, and hydrogen fueling stations, up to a maximum of $2 million in taxes per fiscal year in aggregate; 2) materials used in the distribution of biodiesel (B10-B100) and ethanol (E10-E100), including fueling infrastructure, transportation, and storage, up to a maximum of $1 million in taxes per fiscal year for all taxpayers. Gasoline fueling station dispenser retrofits for ethanol (E10-E100) distribution also qualify for this exemption. (Reference Florida Statutes 212.08)
Hydrogen and Biofuels Investment Tax Credit
An income tax credit is available for costs incurred between July 1, 2006, and June 30, 2010, for the following: 1) 75% of all capital, operation and maintenance, 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 maximum of $3 million per fiscal year for all taxpayers; and 2) 75% of all capital operation and maintenance, 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, up to a maximum of $6.5 million per fiscal year for all taxpayers. This includes the costs of constructing, installing, and equipping such technologies; gasoline fueling station dispenser retrofits for ethanol (E10-E100) distribution also qualify.Credits may be used in tax years through 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 through December 31, 2012. Any entity that is allowed the investment tax credit may transfer the credit, in whole or in part, to any taxpayer by written agreement without transferring ownership interest in the qualified property.
(Reference Florida Statutes 220.192)
State Laws and Regulations
Alternative Fuel Economic Development
In order to stimulate local economic development, landowners may apply to amend the local government comprehensive plan to expand existing uses of rural agricultural industrial centers. This includes facilities that prepare biomass materials that can be used for the production of fuel, renewable energy, bioenergy, or alternative fuel. (Reference House Bill 7053, 2009, and Florida Statutes 163.3177)
State Energy and Climate Commission
The Florida Energy and Climate Commission (FECC) was created through the state's 2008 comprehensive energy legislation, which aims to reduce greenhouse gas emissions and encourage investment in alternative and renewable energy technologies. The FECC's responsibilities include administering financial incentive programs, completing annual assessments of Florida's Energy and Climate Change Action Plan, and providing recommendations to the Governor and the Legislature on energy and climate change policies. The FECC also works cooperatively with other state entities to develop state energy and climate change policies and programs. (Reference Florida Statutes 377.6015)
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 paying the excise tax on gasoline. Fueling 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. In addition to the state alternative fuel fee imposed by this section, a person fueling a vehicle from their own facility is required 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
An individual 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)
