Florida 2022 Regular Session

Florida House Bill H1163 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1
2	2
3		-	~~CS/~~HB 1163 2022
	3	+	HB 1163 2022
4	4
5	5
6	6
7	7		CODING: Words stricken are deletions; words underlined are additions.
8		-	hb1163-~~01-c1~~
	8	+	hb1163-00
9	9		Page 1 of 6
10	10		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
11	11
12	12
13	13
14	14		A bill to be entitled 1
15	15		An act relating to sales tax exemptions for hydrogen 2
16	16		products; amending s. 212.08, F.S.; exempting from 3
17	17		sales taxes the purchase of certain machinery and 4
18	18		equipment that produce electric or steam energy from 5
19	19		burning hydrogen; requiring a proration of the 6
20	20		exemption under specified conditions; exempting from 7
21	21		sales taxes the purchase of hydrogen used in specified 8
22	22		industrial settings; defining the terms "green 9
23	23		hydrogen" and "primarily used"; exempting from sales 10
24	24		taxes the purchase of certain machinery and equipment 11
25	25		involving green hydrogen, certain types of ammonia, 12
26	26		and certain electrochemical reactions of green 13
27		-	hydrogen and oxygen; ~~providing guidelines for~~ 14
28		-	~~purchasers~~ to ~~use in obtaining an exemption~~; ~~providing~~ 15
29		-	~~penalties; authorizing the Department of Revenue~~ to 16
30		-	~~adopt rules to implement the exemptions~~; providing an 17
31		-	effective date. 18
	27	+	hydrogen and oxygen; authorizing the Department of 14
	28	+	Revenue to adopt rules to implement the exemptions; 15
	29	+	providing guidelines for purchasers to use in 16
	30	+	obtaining an exemption; providing penalties; providing 17
	31	+	an effective date. 18
32	32		19
33	33		Be It Enacted by the Legislature of the State of Florida: 20
34	34		21
35	35		Section 1. Paragraph (c) of subsection (5) and paragraph 22
36	36		(b) of subsection (7) of section 212.08, Florida Statutes, are 23
37	37		amended, and paragraph (ppp) is added to subsection (7) of that 24
38	38		section, to read: 25
39	39
40		-	~~CS/~~HB 1163 2022
	40	+	HB 1163 2022
41	41
42	42
43	43
44	44		CODING: Words stricken are deletions; words underlined are additions.
45		-	hb1163-~~01-c1~~
	45	+	hb1163-00
46	46		Page 2 of 6
47	47		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
48	48
49	49
50	50
51	51		212.08 Sales, rental, use, consumption, distribution, and 26
52	52		storage tax; specified exemptions. —The sale at retail, the 27
53	53		rental, the use, the consumption, the distribution, and the 28
54	54		storage to be used or consumed in this state of the following 29
55	55		are hereby specifically exempt from the tax imposed by this 30
56	56		chapter. 31
57	57		(5) EXEMPTIONS; ACCOUNT OF USE.— 32
58	58		(c) Machinery and equipment used in production of 33
59	59		electrical or steam energy. — 34
60	60		1. The purchase of machinery and equipment for use at a 35
61	61		fixed location which machinery and equipment are necessary in 36
62	62		the production of electrical or stea m energy resulting from the 37
63	63		burning of hydrogen or boiler fuels other than residual oil , is 38
64	64		exempt from the tax imposed by this chapter. Such electrical or 39
65	65		steam energy must be primarily for use in manufacturing, 40
66	66		processing, compounding, or producing for s ale items of tangible 41
67	67		personal property in this state. Use of a de minimis amount of 42
68	68		residual fuel to facilitate the burning of nonresidual fuel 43
69	69		shall not reduce the exemption otherwise available under this 44
70	70		paragraph. 45
71	71		2. In facilities where machinery and equipment are 46
72	72		necessary to burn hydrogen, or both residual and nonresidual 47
73	73		fuels, the exemption shall be prorated. Such proration shall be 48
74	74		based upon the production of electrical or steam energy from 49
75	75		nonresidual fuels and hydrogen as a percentage of elect rical or 50
76	76
77		-	~~CS/~~HB 1163 2022
	77	+	HB 1163 2022
78	78
79	79
80	80
81	81		CODING: Words stricken are deletions; words underlined are additions.
82		-	hb1163-~~01-c1~~
	82	+	hb1163-00
83	83		Page 3 of 6
84	84		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
85	85
86	86
87	87
88	88		steam energy from all fuels. If it is determined that 15 percent 51
89	89		or less of all electrical or steam energy generated was produced 52
90	90		by burning residual fuel, the full exemption shall apply. 53
91	91		Purchasers claiming a partial exemption shall obtain such 54
92	92		exemption by refund of taxes paid, or as otherwise provided in 55
93	93		the department's rules. 56
94	94		3. The department may adopt rules that provide for 57
95	95		implementation of this exemption. Purchasers of machinery and 58
96	96		equipment qualifying for the exemption provided in this 59
97	97		paragraph shall furnish the vendor with an affidavit stating 60
98	98		that the item or items to be exempted are for the use designated 61
99	99		herein. Any person furnishing a false affidavit to the vendor 62
100	100		for the purpose of evading payment of any tax imposed under this 63
101	101		chapter shall be subject to the penalty set forth in s. 212.085 64
102	102		and as otherwise provided by law. Purchasers with self -accrual 65
103	103		authority shall maintain all documentation necessary to prove 66
104	104		the exempt status of purchases. 67
105	105		(7) MISCELLANEOUS EXEMPTIONS. —Exemptions provided to any 68
106	106		entity by this chapter do not inure to any transaction that is 69
107	107		otherwise taxable under this chapter when payment is made by a 70
108	108		representative or employee of the entity by any means, 71
109	109		including, but not limited to, cash, check, or credit card, even 72
110	110		when that representative or employee is subsequently reimbursed 73
111	111		by the entity. In addition, exemptions provided to any entity by 74
112	112		this subsection do not inure to any transaction that is 75
113	113
114		-	~~CS/~~HB 1163 2022
	114	+	HB 1163 2022
115	115
116	116
117	117
118	118		CODING: Words stricken are deletions; words underlined are additions.
119		-	hb1163-~~01-c1~~
	119	+	hb1163-00
120	120		Page 4 of 6
121	121		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
122	122
123	123
124	124
125	125		otherwise taxable under this chapter unless the entity has 76
126	126		obtained a sales tax exemption certificate from the department 77
127	127		or the entity obtains or provides other documentation as 78
128	128		required by the department. Eligible purchases or leases made 79
129	129		with such a certificate must be in strict compliance with this 80
130	130		subsection and departmental rules, and any person who makes an 81
131	131		exempt purchase with a certificate that is not in strict 82
132	132		compliance with this subsection and the rules is liable for and 83
133	133		shall pay the tax. The department may adopt rules to administer 84
134	134		this subsection. 85
135	135		(b) Boiler fuels.—When purchased for use as a combustible 86
136	136		fuel, purchases of natural gas, residual oil, recycled oil, 87
137	137		waste oil, solid waste material, coal, sulfur, hydrogen, wood, 88
138	138		wood residues or wood bark used in an industrial manufacturing, 89
139	139		processing, compounding, or production process at a fixed 90
140	140		location in this state are exempt from the taxes imposed by this 91
141	141		chapter; however, such exemption shall not be allowed unless the 92
142	142		purchaser signs a certificate stating that the fuel to be 93
143	143		exempted is for the e xclusive use designated herein. This 94
144	144		exemption does not apply to the use of boiler fuels that are not 95
145	145		used in manufacturing, processing, compounding, or producing 96
146	146		items of tangible personal property for sale, or to the use of 97
147	147		boiler fuels used by any firm subject to regulation by the 98
148	148		Division of Hotels and Restaurants of the Department of Business 99
149	149		and Professional Regulation. 100
150	150
151		-	~~CS/~~HB 1163 2022
	151	+	HB 1163 2022
152	152
153	153
154	154
155	155		CODING: Words stricken are deletions; words underlined are additions.
156		-	hb1163-~~01-c1~~
	156	+	hb1163-00
157	157		Page 5 of 6
158	158		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
159	159
160	160
161	161
162	162		(ppp) Green hydrogen. — 101
163	163		1. As used this paragraph, the term: 102
164	164		a. "Green hydrogen" means hydrogen created using an 103
165	165		electrolytic process powered from renewable energy sources, 104
166	166		including solar energy, wind energy, and geothermal energy. The 105
167	167		term also includes hydrogen created using the pyrolytic 106
168	168		decomposition of methane gas. 107
169	169		b. "Primarily used" means a use of at least 50 percent. 108
170	170		2. The following are exempt from the tax imposed by this 109
171	171		chapter: 110
172	172		a. The purchase of machinery and equipment primarily used 111
173	173		in the production, storage, transportation, compression, or 112
174	174		blending of green hydrogen. The machinery and equipment must be 113
175		-	used at a ~~fixed~~ location. 114
	175	+	used at a fix location 114
176	176		b. The purchase of machinery and equipment primarily used 115
177	177		in the production, storage, transportation, compression, or 116
178	178		blending of ammonia derived from green hydrogen, if the ammonia 117
179	179		will be converted back to green hydrogen before its u se or sale. 118
180		-	The machinery and equipment must be used at a ~~fixed~~ location. 119
	180	+	The machinery and equipment must be used at a fix location. 119
181	181		c. The purchase of machinery and equipment that are 120
182	182		necessary to produce electrical energy resulting from the 121
183	183		electrochemical reaction of green hydrogen and oxygen in a fuel 122
184	184		cell. The electrical energy must be primarily used in 123
185	185		manufacturing, processing, compounding, or producing for sale 124
186	186		items of tangible personal property in this state. The machinery 125
187	187
188		-	~~CS/~~HB 1163 2022
	188	+	HB 1163 2022
189	189
190	190
191	191
192	192		CODING: Words stricken are deletions; words underlined are additions.
193		-	hb1163-~~01-c1~~
	193	+	hb1163-00
194	194		Page 6 of 6
195	195		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
196	196
197	197
198	198
199		-	and equipment must be used at a ~~fixed~~ location. 126
	199	+	and equipment must be used at a fix location. 126
200	200		3. Purchasers of machinery and equi pment qualifying for 127
201	201		the exemption provided in this paragraph shall furnish the 128
202	202		vendor with an affidavit stating that the item or items to be 129
203	203		exempted are for the use designated herein. Purchasers with 130
204	204		self-accrual authority pursuant to s. 212.183 are not required 131
205	205		to provide this affidavit but shall maintain all documentation 132
206	206		necessary to prove the exempt status of purchases. 133
207	207		4. A person furnishing a false affidavit to the vendor for 134
208	208		the purpose of evading payment of any tax imposed under this 135
209	209		chapter shall be subject to the penalty set forth in s. 212.085 136
210	210		and as otherwise provided by law. Purchasers with self -accrual 137
211	211		authority pursuant to s. 212.183 are not required to provide an 138
212	212		affidavit but shall maintain all documentation necessary to 139
213	213		prove the exempt status of purchases. 140
214	214		5. The department may adopt rules to implement the 141
215	215		exemptions in this paragraph. 142
216	216		Section 2. This act shall take effect July 1, 2022. 143