Amendment 4 and Florida Solar: Property Tax Exemption
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The best states for residential solar are those which offer strong incentives. Some of the best solar incentives are solar income tax credits, net metering, and utility rebates. However, many other incentives exist, including sales tax exemptions and property tax exemptions. Florida’s Amendment 4 has enshrined solar property tax exemptions into law.
The Details of Florida’s Solar Amendment 4
In 2016, Solar Amendment 4 passed. The amendment tackled an issue that Florida neglected — property taxes. Solar installations usually increase home value by several thousand dollars. Some studies show a four percent increase in home value.
Solar Property Tax Exemptions in Florida
Solar Amendment 4 exempted homes from the property tax increases coming from solar. A solar installation can increase a home’s value by more than $10,000. A home value increase of that size will raise your taxes too.
What Is the Average Florida Property Tax?
Property tax rates in Florida vary by county. The average property tax in Florida clocks in at $1,752. Where you live in Florida affects your taxes. Even in counties with low property tax rates, homes with solar installations have higher taxes.
What Does Florida’s Solar Property Tax Exemption Cover?
The scope of Solar Amendment 4 is simple. If solar increases your home’s value, that increase in home value won’t count towards your property taxes. The amendment covers the solar panels themselves, alongside wiring, racking systems, and battery backup. Battery backup, in particular, is a large part of residential solar and can double the value of your solar installation.
The Importance of Florida Solar Amendment 4
Florida does not have a state income tax, which means that it does not have a state income tax credit. While Florida solar homeowners can benefit from the federal income tax credit, they must look elsewhere for state-level incentives.
Net Metering in Florida
One of the most widespread solar incentives in America is net metering. Net metering is sending excess solar-produced electricity to the grid. Your utility company compensates you for each watt you send.
Florida Net Metering Is in Danger
The Florida Senate and House passed HB 741, a bill sponsored by Florida Power & Light. The bill guts net metering in the Sunshine State. The bill will damage residential solar in Florida, making tax exemptions even more critical.
The Centrality Florida Solar Tax Exemptions
Because net metering expires in a few years, tax exemptions have taken a central role in Florida solar incentives. The solar property tax exemption and the solar sales tax exemption benefit Florida solar homeowners. Currently, they are one-half of the equation alongside net metering. Once HB 741 takes effect, the property tax exemptions will take full responsibility.
How Florida Tax Exemptions Benefit Solar Homeowners
Solar tax exemptions save homeowners hundreds, if not thousands, of dollars. Florida homeowners can cut down the price of solar significantly by combining net metering with tax exemptions. Because net metering is going away after 2028, we recommend that homeowners go solar now. Take advantage of these solar incentives and get a free solar quote for your home.