TheDMAWay

Florida Voters Approve New Solar & Renewable Energy Tax Exemptions

by DMA Staff | Sep 23, 2016
DMA_Blog_Florida_RenewableEnergyTaxExemptions


By: Patrick Price, CCIM | Director, Property Tax at DMA

 
Florida voters overwhelmingly approved Amendment 4 on the August 30, 2016, primary ballot. Because it’s a constitutional amendment, this measure needed more than just a simple majority — requiring at least 60 percent “yes-votes” for adoption. It received more than 70 percent of the votes, despite a limited formal budget behind the campaign. This was in large part due to the "Sunshine State" thus far being behind many others in providing property tax incentives (at least to businesses) for solar & renewable energy. It was supported by a wide-array of groups or organizations, including the business community, environmental concerns, chambers of commerce, and most editorial boards of news organizations across the state. While the focus is clearly on solar, it seems to capture all renewable energy sources (i.e. biomass).

The measure will not only prohibit the taxation of such equipment as "tangible personal property,” but will also preclude the assessor (known in Florida as the Property Appraiser) from considering such installations in the valuation of the real property where it is installed.

This will undoubtedly have implications and create opportunity for many commercial & industrial properties in Florida in future years. With the aforementioned voter-approval now secured, legislators will amend the state constitution in the 2017 session, and the exemptions will be effective starting January 1, 2018, and expire December 31, 2037.

Please do not hesitate to contact your local DMA office should you have specific questions or requests.