July 25, 2024

Florida Lawmakers Could Use Federal Clean Energy Incentives to Fund Urgent Repairs at Florida Prisons

STATEWIDE, Fla. - According to a new analysis by the non-partisan Florida Policy Institute, lawmakers could use provisions in the federal Inflation Reduction Act (IRA) to help shore up funding crucial to repairing outdated Department of Corrections (DOC) facilities.

Specifically, FPI recommends that state lawmakers consider the following options available through the IRA:

  • Replacing the one-third of DOC vehicles that failed to meet state standards with electric or cell-powered vehicles. Under a provision in the IRA, state agencies can transition their transportation fleets to electric vehicles. DOC would be eligible for a tax credit up to a third of the value of vehicles it replaces, capped at $7,500 for small vehicles and $40,000 for larger vehicles.
  • Installing solar panels at DOC facilities.  Under the IRA, non-taxable entities that invest in and produce clean energy are eligible for a direct payment in lieu of tax credits. FPI notes that solar panels could be installed in conjunction with roof repairs, as 108 correctional facilities were identified as needing immediate roof maintenance.
  • Using the IRA’s expanded Energy Efficient Commercial Building Tax Deduction to modernize DOC air conditioning units, water treatment, roofs, and more. Although this deduction does not qualify for a direct payment in lieu of tax credits, a tax-exempt entity, like a state agency, can provide an “allocation letter” to a taxpaying entity (i.e., a contractor) claiming the tax deduction and adjusting the price of the project.

A 2023 report by consulting firm KPMG found that DOC faces immediate capital needs, worth an estimated $2.2 billion, including improvements to roofs, heaters and furnaces, water treatment, lighting, air conditioning units, and chiller/boiler systems.

“These repairs are not optional — without immediate attention given to crumbling infrastructure, including the lack of air conditioning in roughly a quarter of DOC facilities, our state is putting the health and safety of incarcerated people and prison staff at risk,” said Sadaf Knight, CEO of FPI. “As we find ourselves roughly one month into the 2024-25 fiscal year, now is the time for revenue discussions to ensure state lawmakers fully fund these repairs in 2025-26.”

“Florida lawmakers' failure to be smart on crime has directly contributed to the issues DOC has been facing,” said Tachana Joseph-Marc, senior policy analyst at FPI. “Given just how dire the state of DOC's dilapidated infrastructure is and the immediate need for repairs, we urge lawmakers to be smart on revenue options, and deploy the recommended allocations. The more they delay, the worse things will get.”

In addition to the options FPI suggests under the IRA to shore up funding, the think tank also suggests that lawmakers could use $2.2 billion in general revenue reserves — one-quarter of the state’s total $8.8 billion — for crucial facility repairs.

State lawmakers have so far failed to implement common-sense criminal justice reforms, like modifying the “85-percent rule,” which has contributed to people spending more time in Florida prisons, and more taxpayer dollars being invested into incarceration, notes FPI. The growing number of older adults in Florida’s prisons needing specialized health care and the dire need for infrastructure repairs at DOC facilities have rendered the department in a burgeoning budget crisis.

The state budget for FY 2024-25, which began July 1, includes $95 million over last year’s allocation for DOC repairs and maintenance.

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