1.1 	A bill for an act
1.2 	relating to taxation; individual income; providing a refundable credit for certain 
1.3 	heat and energy costs;proposing coding for new law in Minnesota Statutes, chapter 
1.4 	290.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. [290.0693] CREDIT FOR CERTAIN HEAT AND ENERGY COSTS.
1.7 		Subdivision 1.Credit allowed; refundable. (a) An individual is allowed a credit for 
1.8 	purchases of residential heating fuels, as defined under section 297A.67, subdivision 15, 
1.9 	and residential water services, as defined under section 297A.67, subdivision 16. The credit 
1.10 	may not be claimed for any purchase for which the individual is reimbursed or otherwise 
1.11 	compensated.
1.12 	(b) The credit equals the lesser of:
1.13 	(1) 25 percent of the amount paid for residential heating fuels and residential water 
1.14 	services, including any applicable taxes; or
1.15 	(2) $2,000 for married taxpayers filing a joint return and $1,000 for all other filers.
1.16 	(c) If the amount of credit that the claimant is eligible to receive under this section 
1.17 	exceeds the claimant's tax liability under this chapter, the commissioner shall refund the 
1.18 	excess to the claimant.
1.19 	(d) For part-year residents, the credit must be allocated based on the percentage calculated 
1.20 	under section 290.06, subdivision 2c, paragraph (e).
1.21 		Subd. 2.Appropriation. An amount sufficient to pay the refunds required by this section 
1.22 	is appropriated to the commissioner from the general fund.

2.1 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
2.2 	31, 2021, and before ......