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Empowering Pasco County Manufacturers: Navigating Florida’s Sales Tax Exemption on Electricity

January 8, 2024

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Manufacturers operating within Florida have a unique opportunity to benefit from a sales tax exemption on electricity usage per Sections 212.08(7)(ff), F.S.. This initiative, facilitated through your electricity provider, aims to support businesses engaged in manufacturing processes by providing partial or full exemptions on sales tax associated with electricity consumption. 

As an added benefit the law also allows for up to three years of taxes paid to be credited to a qualifying company's electric bill. This presents a tangible opportunity for manufacturers to redirect financial resources, contributing to increased competitiveness and overall business growth. 

Steps to Obtain the Sales Tax Exemption 

  1. Complete the Sales Tax Exemption Form for Electricity: 

    1. Manufacturers are encouraged to reach out to their energy provider to obtain a Sales Tax Exemption Form. 

  2. Determine Percentage Usage for Production: 

    1. The level of exemption depends on the percentage of power utilized for production purposes.

    2. If 75% or more of the power in the facility is dedicated to production, a 100% sales tax exemption is granted. 

    3. For power usage falling between 50-75% for production, a 50% exemption is applicable. 

  3. Submit the Application: 

    1. Once the form is completed, manufacturers can submit it by scanning and emailing it to their utility provider. 

  4. Verification and Billing: 

    1. After completion and verification, the sales tax exemption should be reflected on the manufacturer's upcoming utility bills. 

    2. Manufacturers are advised to reach out to the Department of Revenue at 850-617-8346 for specific questions regarding qualification criteria. 

  5. Credit for Taxes Paid: 

    1. After your application is approved utility providers can also assist manufacturers in applying for a refund of any state sales tax that they have been paying on electricity for the past three years using Form DR26S. 

This initiative empowers Pasco County manufacturers to not only reduce operational costs through the sales tax exemption but also enhance energy efficiency and continue to grow their operations in Florida and Pasco County.  

Complete the form below and let Pasco EDC help you explore this program and others aimed to support local manufacturing.