HF 2311

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/01/2023 10:10am

A bill for an act
relating to taxation; income; providing a temporary credit for the purchase and
installation of solar energy systems.

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

Section 1.

new text begin TEMPORARY SOLAR ENERGY SYSTEM CREDIT.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given.
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new text begin (b) "Business property" means class 3a property, as defined in Minnesota Statutes,
section 273.13, subdivision 24.
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new text begin (c) "Energy storage system" means a commercially available technology capable of:
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new text begin (1) absorbing and storing electrical energy; and
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new text begin (2) dispatching stored electrical energy at a later time.
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new text begin (d) "Homestead" means class 1a and 1b residential property, as defined in Minnesota
Statutes, section 273.13, subdivision 22, or an agricultural homestead, as defined in
Minnesota Statutes, section 273.13, subdivision 23.
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new text begin (e) "Photovoltaic device" has the meaning given in Minnesota Statutes, section 216C.06,
subdivision 16.
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new text begin (f) "Solar energy system" means a photovoltaic device with a capacity no greater than
40 kilowatts, solar water heater, or solar thermal system installed alone or in combination
or in conjunction with an energy storage system.
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new text begin (g) "Solar thermal system" has the meaning given in Minnesota Statutes, section
216B.2411, subdivision 2, paragraph (e).
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new text begin (h) "Solar water heater" means an active, closed-loop system that pumps a nonfreezing
heat-transfer fluid through a flat-plate collector that collects solar energy and a heat exchanger
to heat water.
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new text begin Subd. 2. new text end

new text begin Credit allowed; limitation. new text end

new text begin (a) A taxpayer receiving electric service at retail
from a municipal utility or a cooperative electric association and who purchases and places
in service in this state during the taxable year a solar energy system is eligible for a credit
against the tax due under Minnesota Statutes, chapter 290, equal to the lesser of the applicable
percentage of the solar energy system's purchase and installation costs or the maximum
allowable credit.
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new text begin (b) For solar energy systems first placed into service:
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new text begin (1) after December 31, 2022, and before January 1, 2024, the applicable percentage is
15 percent;
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new text begin (2) after December 31, 2023, and before January 1, 2025, the applicable percentage is
13 percent; and
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new text begin (3) after December 31, 2024, and before January 1, 2026, the applicable percentage is
11 percent.
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new text begin (c) The maximum allowable credit is:
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new text begin (1) $2,500 for a solar energy system installed on the site of a taxpayer's homestead; and
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new text begin (2) $15,000 for a solar energy system installed on each business property.
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new text begin (d) For a nonresident or part-year resident the credit must be allocated based on the
percentage calculated under Minnesota Statutes, section 290.06, subdivision 2c, paragraph
(a).
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new text begin (e) Credits granted to a partnership, a limited liability company taxed as a partnership,
an S corporation, or multiple owners of property are passed through to the partners, members,
shareholders, or owners, respectively, pro rata to each partner, member, shareholder, or
owner based on their share of the entity's assets or as specially allocated in their
organizational documents or any other executed agreement, as of the last day of the taxable
year.
new text end

new text begin Subd. 3. new text end

new text begin Credit refundable; appropriation. new text end

new text begin (a) If the amount of credit which a claimant
is eligible to receive under this section exceeds the claimant's tax liability under this chapter,
the commissioner shall refund the excess to the claimant.
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new text begin (b) An amount sufficient to pay the refunds required by this subdivision is appropriated
to the commissioner from the general fund.
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new text begin Subd. 4. new text end

new text begin Expiration. new text end

new text begin This section expires January 1, 2027.
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new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2022, and before January 1, 2026.
new text end