HF 1897

as introduced - 91st Legislature (2019 - 2020) Posted on 03/04/2019 04:39pm

A bill for an act
relating to taxation; individual income; allowing a tax credit for electric and hybrid
vehicle purchases; amending Minnesota Statutes 2018, section 169.011, by adding
a subdivision; proposing coding for new law in Minnesota Statutes, chapter 290.

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

Section 1.

Minnesota Statutes 2018, section 169.011, is amended by adding a subdivision
to read:

new text begin Subd. 34a. new text end

new text begin Hybrid vehicle. new text end

new text begin "Hybrid vehicle" means an electric vehicle that contains an
internal combustion engine and also allows power to be delivered to the drive wheels by a
battery-powered electric motor.
new text end

Sec. 2.

new text begin [290.0963] ELECTRIC AND HYBRID VEHICLE CREDIT.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the terms defined in this
subdivision have the meanings given.
new text end

new text begin (b) "Purchase price" has the meaning given in section 297B.01, subdivision 14.
new text end

new text begin (c) "Qualifying vehicle" means a vehicle with a purchase price of $50,000 or less that
is:
new text end

new text begin (1) an all-electric vehicle, as defined in section 169.011, subdivision 1a, paragraph (a);
new text end

new text begin (2) a plug-in hybrid electric vehicle, as defined in section 169.011, subdivision 54a; or
new text end

new text begin (3) a hybrid vehicle, as defined in section 169.011, subdivision 34a.
new text end

new text begin "Qualifying vehicle" includes a station wagon, van, and sport utility vehicle, but does not
include a neighborhood electric vehicle as defined in section 169.011, subdivision 47, or
medium-speed electric vehicle as defined in section 169.011, subdivision 39.
new text end

new text begin Subd. 2. new text end

new text begin Credit allowed. new text end

new text begin (a) A taxpayer who purchased a qualifying vehicle in the
taxable year is allowed a credit against the tax imposed under this chapter. The credit equals:
new text end

new text begin (1) $3,000 if the qualifying vehicle purchased by the taxpayer was new; and
new text end

new text begin (2) $1,500 if the qualifying vehicle purchased by the taxpayer was previously owned.
new text end

new text begin (b) A taxpayer may claim a credit under this section only one time.
new text end

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

new text begin Subd. 3. new text end

new text begin Carryover. new text end

new text begin The credit is limited to the liability for tax, as computed under this
chapter, for the taxable year. If the amount of the credit for any taxable year exceeds this
limitation, the excess is a credit carryover to each of the two succeeding taxable years. The
entire amount of the excess unused credit for the taxable year is carried first to the earliest
of the taxable years to which the credit may be carried and then to each successive year to
which the credit may be carried.
new text end

new text begin Subd. 4. new text end

new text begin Sunset. new text end

new text begin This section expires for taxable years beginning after December 31,
2023.
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.
new text end