Could a newly certified Florida renewable-energy technologies investment tax credit be transferred to another taxpayer?

Plain-English summary

The taxpayer asked whether an entity receiving a Florida Energy and Climate Commission certificate for eligible renewable-energy costs incurred from July 1, 2006 through June 30, 2010 could transfer the credit.

Florida answered yes. At the time of the TAA, all open tax years began on or after January 1, 2009, and section 220.192 allowed a corporation or later transferee to transfer all or part of the credit by written agreement without transferring the credit-generating property or entity ownership.

The transferor had to notify the Department with specified transfer details, and the transferee had to attach the resulting certificate to each return claiming the credit. The statute also allowed an untransferred credit held by a corporation to pass through to designated partners, members, or owners under the stated procedures.

What this means for you

This is historical credit guidance. It shows that eligibility to transfer depended on the tax year and certification procedures, not merely on having incurred renewable-energy costs.

Common questions

Was the certified credit transferable? Yes, under the stated timing.

Did the property generating the credit also have to transfer? No.

What documentation did the transferee need? The Department-issued transfer certificate attached to each return claiming the credit.

Citations and references

• Fla. Stat. § 220.192(6), as quoted and applied in the advisement.

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 10C1-008

Original ruling text

TAX: Corporate Income
TAA NUMBER: 10C1-008
ISSUE: Renewable Energy Technologies Investment Tax Credit
STATUTE CITES: Section 220.192, F.S.
RULE CITES: None.
QUESTION: Whether an entity that currently receives a tax credit certification for the renewable energy
technologies investment tax credit from the Florida Energy and Climate Commission for eligible costs
incurred between July 1, 2006 and June 30, 2010, may transfer the credit?
ANSWER: Since all open tax years as of the date of this technical assistance advisement are tax years that
began on or after January 1, 2009, any credit certification provided by the Florida Energy and Climate
Commission at this time is eligible for transfer.

August 31, 2010
XXX
XXX
XXX
Re:

Technical Assistance Advisement 10C1-008
Corporate Income Tax - Apportionment – Renewable Energy Technologies Investment
Tax Credit
Section 220.192, F.S.
XXX, hereinafter referred to as “Taxpayer”

Dear XXX:
Your letter dated XXX, requests a Technical Assistance Advisement concerning whether an
entity that receives a tax credit certification for the renewable energy technologies investment
tax credit from the Florida Energy and Climate Commission for eligible costs incurred between
July 1, 2006 and June 30, 2010, may transfer the credit to the Taxpayer. This response to your
request constitutes a Technical Assistance Advisement under Chapter 12-11, Florida
Administrative Code, and is issued to you under the authority of section 213.22, Florida Statutes.
Section 220.192(6), F.S., provides:
(a) For tax years beginning on or after January 1, 2009, any corporation or
subsequent transferee allowed a tax credit under this section may transfer
the credit, in whole or in part, to any taxpayer by written agreement without
transferring any ownership interest in the property generating the credit or
any interest in the entity owning such property. The transferee is entitled to
apply the credits against the tax with the same effect as if the transferee had
incurred the eligible costs.
(b) To perfect the transfer, the transferor shall provide the department with a
written transfer statement notifying the department of the transferor's intent to
transfer the tax credits to the transferee; the date the transfer is effective; the
transferee's name, address, and federal taxpayer identification number; the tax
period; and the amount of tax credits to be transferred. The department shall, upon
receipt of a transfer statement conforming to the requirements of this section,
provide the transferee with a certificate reflecting the tax credit amounts
transferred. A copy of the certificate must be attached to each tax return for which
the transferee seeks to apply such tax credits.

Technical Assistance Advisement 10C1-008
Page 2

(c) A tax credit authorized under this section that is held by a corporation and not
transferred under this subsection shall be passed through to the taxpayers
designated as partners, members, or owners, respectively, in the manner agreed to
by such persons regardless of whether such partners, members, or owners are
allocated or allowed any portion of the federal energy tax credit for the eligible
costs. A corporation that passes the credit through to a partner, member, or owner
must comply with the notification requirements described in paragraph (b). The
partner, member, or owner must attach a copy of the certificate to each tax return
on which the partner, member, or owner claims any portion of the credit.
(Emphasis Supplied)
Since all open tax years as of the date of this letter are tax years that began on or after January 1,
2009, any credit certification provided by the Florida Energy and Climate Commission at this
time is eligible for transfer.
This response constitutes a Technical Assistance Advisement under s. 213.22, F.S., which is
binding on the Department only under the facts and circumstances described in the request for
this advice as specified in s. 213.22, F.S. Our response is based on those facts and the specific
situation summarized above. You are advised that subsequent statutory or administrative rule
changes or judicial interpretations of the statutes or rules upon which this advice is based may
subject similar future transactions to a different treatment than expressed in this response.
You are further advised that this response, your request and related backup documents are public
records under Chapter 119, F.S., and are subject to disclosure to the public under the conditions
of s. 213.22, F.S. Confidential information must be deleted before public disclosure. In an effort
to protect confidentiality, we request you provide the undersigned with an edited copy of your
request for Technical Assistance Advisement, the backup material and this response, deleting
names, addresses and any other details which might lead to identification of the taxpayer. Your
response should be received by the Department within 15 days of the date of this letter.
Sincerely,
Robert DuCasse
Technical Assistance and Dispute Resolution
RCD/tlg
Control No.: 87209