Florida Incentives and Laws



Last Updated June 2008


Florida is the home of the Space Coast (www.clean-cities.org) and the Gold Coast (www.sfrpc.com/fgcccc.htm) Clean Cities Coalitions. Coordinator contact information is listed in the Points of Contact section.

State Incentives

Alternative Fuels Production Incentive

The Innovation Incentive Program is created within the 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. (Reference House Bill 7135, 2008, and Florida Statutes 377.804)
Renewable Energy Grants

The Renewable Energy Technologies Grants Program provides matching grants for demonstration, commercialization, research, and development projects relating to renewable energy technologies, including those generating or utilizing hydrogen or biomass resources. (Reference Florida Statutes 377.804)
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 in each 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 in each 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

A credit against the state sales and use tax 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 in each 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 in each 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 beginning January 1, 2007, and ending 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 and used in tax years beginning January 1, 2007, and ending December 31, 2012. For tax years beginning January 1, 2009, any entity which 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 House Bill 7135, 2008, and Florida Statutes 220.192)

High Occupancy Vehicle (HOV) Lane Exemption

Inherently Low Emission Vehicles (ILEV) and hybrid electric vehicles (HEV) that are certified and labeled in accordance with federal regulations may be driven in HOV lanes at any time, regardless of the number of passengers in the vehicle. All eligible ILEVs and HEVs must comply with the minimum fuel economy standards set forth in Title 23 of the U.S. Code, section 166(f)(3)(B). The vehicle must display a decal issued by the Florida Division of Motor Vehicles, obtained for a $5 fee, and be renewed annually. Vehicles with decals may use any HOV lane designated as a HOV toll lane without requiring payment of the toll. An HEV is defined as a motor vehicle that draws propulsion energy from onboard sources of stored energy comprised of both an internal combustion engine using combustible fuel and a rechargeable energy storage system, and meets or exceeds the qualifying California standards for a low emission vehicle. (Reference House Bill 7135, 2008, Senate Bill 682, 2008, and Florida Statutes 316.0741)
Point of Contact

Florida Division of Motor Vehicles
Phone (850) 922-9000
http://www.flhsmv.gov/html/titlinf.html

State Laws and Regulations

Ethanol Mandate

Beginning December 31, 2010, all gasoline sold or offered for sale in the state by a terminal supplier, importer, blender, or wholesaler must contain 9-10% ethanol by volume (E10). The fuel mandate does not apply to fuel used in aircrafts or watercrafts, fuel sold to a blender, or fuel sold for use in collector vehicle, off-road vehicles, motorcycles, or small engines. If a terminal supplier, importer, blender, or wholesaler is unable to obtain ethanol fuel or E10 at the same or lower price as unblended gasoline, then the covered entity may apply for a waiver. (Reference House Bill 7135, 2008)
Fuel-Efficient Vehicle Acquisition and Alternative Fuel Use Requirements

When procuring new vehicles under a state purchasing plan, all state agency, state university, community college, and local government fleets must select the vehicle with the greatest fuel efficiency available for a given use class. Exceptions may be made for emergency responder vehicles when documentation is provided. In addition, all state agencies must use ethanol and biodiesel blended fuels when available. State agencies administering central fueling operations for state-owned vehicles must procure ethanol and biodiesel fuels to use in their vehicle fleet to the greatest extent possible. (Reference House Bill 7135, 2008)
Alternative Fuels Study

The Florida Energy and Climate Commission (FECC) is required to conduct a study to evaluate and recommend lifecycle greenhouse gas (GHG) emissions associated with all renewable fuels including biodiesel, renewable diesel, biobutanol, and ethanol derived from any source. FECC must also evaluate and recommend that all renewable fuels introduced into state commerce reduce lifecycle GHG emissions by an average percentage. FECC may also evaluate and recommend the benefits associated with the creation, banking, transfer, and sale of GHG emissions credits among fuel refiners, blenders, and importers. FECC must submit specific recommendations to the state legislature no later than December 31, 2010. (Reference House Bill 7135, 2008)
Biofuels Promotion

The Florida Department of Management Services (DMS), in coordination with the Florida Department of Transportation (DOT), is required to conduct an analysis of fuel additives and biofuels use by the DOT through its central fueling facilities. The DMS is required to encourage other state government entities to analyze transportation fuel usage, including the types and percentages of fuels consumed, and report such information to the DMS. (Reference House Bill 7135, 2008)
Provision for Renewable Fuels Investment

In order to create jobs and improve the state’s general infrastructure, the Florida State Board of Administration may identify and invest up to 1.5% of the net assets of the system trust fund in technology and growth investments of businesses housed in the state of Florida, including biofuels, renewable energy, and other related applications. The State Board of Administration may offer opportunities to small, state-based investment management firms to facilitate their development and growth. (Reference Senate Bill 2310, 2008)
Low-Speed Vehicle Access to Roadways

A low speed vehicle, including a neighborhood electric vehicle, is defined as any four-wheeled electric vehicle capable of achieving a top speed between 20 and 25 miles per hour. Low speed vehicles must comply with the safety standards in Title 49, Code of Federal Regulations, sections 571.500 and 316.2122. (Reference Florida Statutes 320.01 (42))
State Energy Task Force

The Florida Renewable Energy Technologies and Energy Efficiency Act is established to increase the state's energy stability and protect public health by advancing the development of efficient and renewable energy technologies, including those related to hydrogen, ethanol, and biodiesel. The Act creates the Florida Energy Commission, which is responsible for developing recommendations for legislation to establish a state energy policy, focusing on energy-efficiency issues including the encouragement of in-state research, development, and deployment of alternative fuels for motor vehicles. As required by the Act, the Florida Department of Environmental Protection provided a report entitled Leadership by Example: Energy Efficiency and Conservation (PDF 188 KB), which includes a description of state programs designed to achieve energy conservation and energy efficiency through the inclusion of alternative fuel vehicles in state fleets. (Reference Florida Statutes 377.801-377.806 and 377.901)
Point of Contact

General Inquiries
Florida Energy Office
Phone (850) 245-8002
http://www.dep.state.fl.us/energy

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 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)
Electric Vehicle (EV) Surcharge Exemption

EVs are protected from insurance surcharges based on factors such as new technology, passenger payload, weight-to-horsepower ratio, and the types of material used to manufacture the vehicle, unless the Office of Insurance Regulation receives actuarial data that determines the surcharges are justified. (Reference Florida Statutes 627.06535)
Ethanol Production Credit

County governments are eligible to receive waste reduction credits for the use of yard clippings, clean wood waste, or paper waste as feedstock for the production of clean-burning fuels such as ethanol. (Reference Florida Statutes 403.706)
Utilities/Private Incentives

There are currently no known utility or private incentives offered in Florida.
Points of Contact:

NAME/EMAIL	AGENCY	TITLE	PHONE/FAX
Bill Young young@fsec.ucf.edu	Florida Space Coast Clean Cities Coalition	Clean Cities Coordinator	Phone: (321) 638-1443 Fax: (321) 638-1010
Larry Allen lallen@sfrpc.com	Florida Gold Coast Clean Cities Coalition	Clean Cities Coordinator	Phone: (954) 985-4416 Fax: (954) 985-4417
Steven Richardson steven.richardson@netl.doe.gov	U.S. Department of Energy, National Energy Technology Laboratory	Project Manager	Phone: (304) 285-4185 Fax: (304) 285-4638
	Florida Energy Office	General Inquiries	Phone: (850) 245-8002 Fax:
	Florida Division of Motor Vehicles		Phone: (850) 922-9000 Fax:
Jill Stoyshich jill.stoyshich@dep.state.fl.us	Florida Energy Office	Manager, Hydrogen Program	Phone: (850) 245-8277 Fax: (850) 245-8003
Dale Aspy aspy.dale@epa.gov	U.S. Environmental Protection Agency	Environmental Engineer, Region 4	Phone: (404) 562-9041 Fax: (404) 562-9019
Wes Allen wes.allen@gsa.gov	U.S. General Services Administration	Transportation Specialist, Southeast Region	Phone: (404) 608-2217 Fax: (404) 608-2222