Please read below before you submit your eligibility determination application.

Per section 220.199, F.S., for taxable years beginning on or after January 1, 2024, and before taxable years beginning on January 1, 2027, a developer or homebuilder is eligible to receive a credit against the tax imposed under Chapter 220, F.S., for up to 50 percent of the cost of each NSF/ANSI 350 Class R certified noncommercial, residential graywater system purchased during the taxable year. To apply for this tax credit, please fill out this eligibility determination application. The tax credit may not exceed $4,200 for each system purchased. A developer or homebuilder may not receive total credits in excess of $2 million per taxable year.

To claim this credit, a developer or homebuilder must submit an application to the Department of Environmental Protection which includes documentation showing that the developer or homebuilder has purchased for use in this state a graywater system meeting the requirements. The graywater system must meet the functionality assurances provided in paragraph 403.892(3)(c), F.S.

Once the Department receives a complete application, an eligibility determination will be made. If eligible, a determination letter will be submitted to the applicant and the Department of Revenue within 60 days after receipt of a completed application. The taxpayer must attach the certification letter from the Department to the tax return on which the credit is claimed.

Note that Florida rules allow graywater reuse only within the building plumbing. Treated graywater can only be disposed of through the building sewer.

Requirements to Apply for the State of Florida Graywater Tax Credit

  1. You are required to file the F-1120 Corporate Income/Franchise Tax return.
  2. You have a Federal Employer Identification Number (FEIN).
  3. You have proof of payment verifying the purchase of an NSF/ANSI 350 Class R certified noncommercial, residential graywater system purchased during a taxable year beginning on or after January 1, 2024, and before taxable years beginning on January 1, 2027.
  4. You have not already applied for a tax credit with this proof of payment. Only one proof of payment may be submitted per form (one proof of payment may be submitted for multiple units, however).
  5. The system(s) have been or will be installed in a single-family dwelling unit for reuse only in that dwelling unit in Florida.

Contact OSTDS_Feedback@FloridaDEP.gov with any questions.

Last Modified: Tuesday, Jan 07, 2025 - 09:13am