By: Emily G. Pierce
The Senate and House adopted legislation (SB 90/HB 1351) implementing Amendment 4 which had been approved by a supermajority of the voters in 2016. Prior to the approval of Amendment 4, the Florida Constitution exempted renewable energy source devices (a/k/a solar equipment) installed on residential properties from being taxed as tangible personal property, but did not extend the exemption to business and commercial properties. Solar equipment installed on non-residential property by the real property owner was taxed as real property and, when installed by someone other than the owner of the property, was taxed as tangible personal property. According to statistics published during the push for Amendment 4, despite its nickname as the Sunshine State, Florida ranks in the bottom half of the country when it comes to the use and installation of solar equipment and, as of 2014, solar energy accounted for only 5% of the energy used by Floridians.
With some exceptions, Senate Bill 90 now exempts 80% of the value of solar equipment from consideration when assessing real property and tangible personal property for home, commercial and industrial properties. It is anticipated that based upon this legislation and other “solar friendly” steps being taken by the state and many local governments that solar power will make up almost 1/3 of Florida’s energy capacity by 2023 and will result in significant investments by the solar industry and big businesses in energy-efficient technology creating new jobs and strengthening Florida’s electric grid.
For a copy of Senate Bill 90 or for further details, please contact Emily G. Pierce at epierce@rtlaw.com .