Florida is moving towards being as eco-friendly as possible. With this in mind, the state will exempt from sales and use tax solar energy systems as well as a part of such a system. Based on the requirements of the exemption in the statute, the Florida Solar Energy Center must periodically certify to the Department of Revenue (“Department”) a list of equipment and hardware that is a solar energy system or part of such a system. Recently, the Florida Solar Energy Center provided a certification of the equipment qualifying, which is provided in more detail below.
A “collector” qualifies as part of a solar energy system. A collector is used to gather energy from the sun and transfer it as energy for use in certain applications. Pumps and controls, which regulate the circulation of fluid between the storage medium and collector, meet the requirements of being part of a solar energy system. Photovoltaic power conditioning equipment also is considered equipment eligible for the exemption. This type of equipment will convert the current from direct current to alternating current.
Storage units, which are equipment that store solar energy for future use, will meet the criteria of equipment qualifying as part of a solar energy system. Finally, there is a list of accessories meeting the criteria necessary for being considered a solar energy system or part thereof. Examples of accessories include piping, insulation, air vents, relief valves, and numerous other items.
If you purchase or sell any of the above, the sale is probably exempt from Florida sales and use tax. However, the Department requires the seller to have proof the sale is exempt. Included at the end of this article is TIP 19A01-09, which has a suggested short certificate to be signed by the purchaser. The certificate should be retained by the seller to prove the sale was exempt.
About the author: David Brennan is an associate attorney with Moffa, Sutton, & Donnini, P.A. His primary practice area is multistate tax controversy. David received a B.S. in Accounting and Finance, with a minor in Computer Science, from Florida State University. He worked as an accountant for a CPA firm before attending law school at Regent University. He received his Juris Doctor in 2013 and was licensed to practice law in Florida in the same year. In 2015, David earned his Masters of Laws in Taxation from Boston University. As a former senior attorney for the Florida Department of Revenue, he handled informal protest appeals, among other things. You can read his BIO HERE.
AUTHORITY
PUBLICATIONS
TIP 19A01-09 Solar Sales and Use Tax Exemptions
ADDITIONAL ARTICLES TO READ
FL SALES & USE TAX AUDITS - THE SUNSHINE STATE EXEMPTS A SOLAR ENERGY SYSTEM, published October 27, 2015, by Matthew Parker, Esq.
FLORIDA TAX INCENTIVES FOR BUSINESS, published October 27, 2015, by Matthew Parker, Esq.
FL CAR DEALER: WHEN IS A SALE TAX EXEMPT?, published March 17, 2013, by James Sutton, CPA, Esq.