Green Tax Expert
Income Tax Help for Green Businesses

Need to know what products are covered and how much you get as a tax credit in Florida.

Florida doesn’t have a state income tax, so “green” plumbing products would only affect your Federal return. Property tax in Florida is paid to the county where the property is located. Any “green plumbing” property tax credits would not be applied state wide. Contact your county tax collector office for more information. The federal income tax, Residential Energy Credit for 2008 covers wind, solar, geothermal, and fuel cell home improvements. The piping and plumbing expenses associated with installing these “green” systems could be eligible for a federal tax credit. There are also Federal credits available for Non-Residential property. The State of Florida may have a grant program, to rebate part of the costs to the homeowner, or business owner, for installing “green plumbing” systems. The Florida Association of Plumbing, Heating, and Cooling Contractors is located in St Petersburg. FL. If you contact them, perhaps they could give further guidance to help answer your question. “The Florida Association of Plumbing, Heating and Cooling Contractors is dedicated to the improvement of the industry through Education and Communication, for the protection of our environment and the health, safety and benefit of society” Here is their website: http://www.flphcc.org/

In order to stimulate the green sector of the economy and get companies started when that sector of the economy was at it’s worst incentives helped to keep companies in it in business and at best help the country come closer and closer to environmental sustainibility for all the resources we use.

Here are two situations where the answer is “yes”: (1) The green products produce positive externalities that are not factored into either the production or purchasing decisions. If, for example, a greener production process lessens water pollution, then an incentive equal to the value of those externalities could be given. Similarly, on the consumer side, if use of the good produces positive externalities that are not captured by the user, then the price of the good can be subsidized (or a tax break given). Tax breaks are given in some states (e.g., Oregon) for energy efficient appliances. (2) If non-green companies or products generate negative externalities but no tax or disincentive is levied, then you could either tax those firms, or give incentives to the green firms. This is an attempt to get the “mix” of green/non-green industries correct. In the absence of either (1) or (2), giving incentives can lead to inefficient resource uses. It IS possible to “overdo a good thing”. Some believe, for example, that the incentives given for ethanol production will eventually be shown to have led to some major inefficiencies and a worsening of “environmental sustainability”.