HF 917

1st Engrossment - 90th Legislature (2017 - 2018) Posted on 03/08/2018 04:16pm

A bill for an act
relating to taxation; individual income; providing a temporary refundable credit
for residential biomass heating systems; requiring a report.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1. new text begin PILOT PROGRAM; RESIDENTIAL BIOMASS HEATING SYSTEM
TAX CREDIT.
new text end

new text begin Subdivision 1. new text end

new text begin Credit allowed; limitations. new text end

new text begin (a) An individual who purchases and installs
a residential biomass heating system during the taxable year is allowed a credit against the
tax computed under Minnesota Statutes, chapter 290, for the taxable year equal to the lesser
of:
new text end

new text begin (1) 33 percent of the purchase price of the residential biomass heating system; or
new text end

new text begin (2) $5,000.
new text end

new text begin (b) For the purposes of this section, "residential biomass heating system" means:
new text end

new text begin (1) a pellet stove or wood heater, as defined in Code of Federal Regulations, title 40,
section 60.531; or
new text end

new text begin (2) a residential forced-air furnace or residential hydronic heater, as defined in Code of
Federal Regulations, title 40, section 60.5473.
new text end

new text begin (c) For a nonresident or a part-year resident, the credit must be allocated based on the
percentage calculated under Minnesota Statutes, section 290.06, subdivision 2c, paragraph
(e).
new text end

new text begin (d) No credit may be allowed under this section for a residential biomass heating system
that is not certified by the federal Environmental Protection Agency as meeting the 2015
New Source Performance Standards for air emissions for these heating systems, contained
in Code of Federal Regulations, title 40, part 60, subparts AAA and QQQQ, as applicable.
new text end

new text begin Subd. 2. new text end

new text begin Credit to be refundable. new text end

new text begin If the amount of credit that a taxpayer who is a resident
or part-year resident of Minnesota is eligible to receive under this section exceeds the
taxpayer's tax liability under Minnesota Statutes, chapter 290, the commissioner shall refund
the excess to the taxpayer. For nonresident taxpayers, the credit may not exceed the taxpayer's
liability for tax under Minnesota Statutes, chapter 290.
new text end

new text begin Subd. 3. new text end

new text begin Appropriation. new text end

new text begin An amount sufficient to pay the refunds required by this section
is appropriated to the commissioner of revenue from the general fund.
new text end

new text begin Subd. 4. new text end

new text begin Report. new text end

new text begin By January 15, 2021, the commissioner of revenue, in compliance
with Minnesota Statutes, sections 3.195 and 3.197, must provide a report to the chairs and
ranking minority members of the house of representatives and senate legislative committees
with jurisdiction over taxes and energy on:
new text end

new text begin (1) the number of taxpayers claiming the credit under this section in the first year;
new text end

new text begin (2) the average amount of credits claimed and the total amount of credits claimed under
this section in the first year;
new text end

new text begin (3) recommendations for making the credit under this section permanent; and
new text end

new text begin (4) the administration of the credit under this section, including recommendations for
ensuring compliance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2018, and before January 1, 2024.
new text end