HF 1335

as introduced - 89th Legislature (2015 - 2016) Posted on 03/02/2015 01:22pm

A bill for an act
relating to taxation; energy; allowing income tax credits for renewable energy
production and energy investment; providing for rulemaking; proposing coding
for new law in Minnesota Statutes, chapter 290.

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

Section 1.

new text begin [290.0682] RENEWABLE ENERGY PRODUCTION AND ENERGY
INVESTMENT CREDITS.
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.
new text end

new text begin (b) "Biodiesel fuel" has the meaning given in section 239.77, subdivision 1.
new text end

new text begin (c) "Qualified energy resources" means electricity or biodiesel fuel produced at a
qualified facility through an open-loop biomass process that meets the requirements of
section 45(c)(3) of the Internal Revenue Code.
new text end

new text begin (d) "Qualified facility" means a facility that is located in Minnesota, produces
qualified energy resources, and meets the requirements of section 45(d)(2)(A)(i) or (ii)
of the Internal Revenue Code, except that the facility must be placed into service before
January 1, 2017.
new text end

new text begin Subd. 2. new text end

new text begin Production credit; limitation; allocation. new text end

new text begin (a) A taxpayer with a qualified
facility is entitled to a credit against the tax imposed under this chapter.
new text end

new text begin (b) The tax credit equals 75 percent of the federal credit amount computed under
section 45 of the Internal Revenue Code, without regard to whether the credit in section 45
of the Internal Revenue Code is in effect for the taxable year. The credit may not exceed
the taxpayer's liability for tax under this chapter.
new text end

new text begin (c) Tax credits earned by a partnership, a limited liability company, an S-corporation,
or other pass-through entity may be allocated to the partners, members, or shareholders of
the entity for their direct use in accordance with the provisions of any agreement among
the partners, members, or shareholders.
new text end

new text begin (d) A taxpayer may claim the credit under this subdivision for no more than ten
taxable years for a qualified facility.
new text end

new text begin Subd. 3. new text end

new text begin Energy investment credit; limitation; allocation. new text end

new text begin (a) A taxpayer with a
qualified facility is entitled to a credit against the tax imposed under this chapter.
new text end

new text begin (b) The tax credit equals 75 percent of the federal credit amount computed under
section 48 of the Internal Revenue Code, as if the qualified facility is energy property
under item (a)(3) of section 48 of the Internal Revenue Code, without regard to whether
the credit in section 48 of the Internal Revenue Code is in effect for the taxable year, and
reduced by all other federal nonrefundable credits, other than the minimum tax credit. The
credit may not exceed the taxpayer's liability for tax under this chapter.
new text end

new text begin (c) Tax credits earned by a partnership, a limited liability company, an S-corporation,
or other pass-through entity may be allocated to the partners, members, or shareholders of
the entity for their direct use in accordance with the provisions of any agreement among
the partners, members, or shareholders.
new text end

new text begin (d) No credit may be claimed under this subdivision for the taxable year or any
subsequent taxable year if the taxpayer receives a grant, publicly subsidized loan, or
any other public assistance for the property from the federal government, a state, or any
political subdivision of a state.
new text end

new text begin Subd. 4. new text end

new text begin Carryover. new text end

new text begin If the amount of the credit determined under subdivision 2 or 3
for any taxable year exceeds the taxpayer's liability for tax, the excess shall be a credit
carryover to each of the 15 succeeding taxable years. The entire amount of the excess
unused credit for the taxable year shall be carried first to the earliest of the taxable years to
which the credit may be carried. The amount of the unused credit which may be added
under this subdivision shall not exceed the taxpayer's liability for tax, less the credits
allowed under this section for the taxable year.
new text end

new text begin Subd. 5. new text end

new text begin Credit assignment. new text end

new text begin (a) The recipient of a credit under subdivision 2 or
3 may assign the credit to another taxpayer who is then allowed the credit under this
section. An assignment is not valid unless the assignee notifies the commissioner within
30 days of the date that the assignment is made. The commissioner shall prescribe the
forms necessary for notifying the commissioner of the assignment of a credit and for
claiming a credit by assignment.
new text end

new text begin (b) Credits passed through to partners, members, shareholders, or owners pursuant
to subdivision 2 or 3 are not an assignment of a credit under this subdivision.
new text end

new text begin Subd. 6. new text end

new text begin Disclosure of information. new text end

new text begin Taxpayers applying for a credit under
subdivision 2 or 3 must submit to the commissioner the information necessary to
determine the limitations provided under sections 45 and 48 of the Internal Revenue Code.
new text end

new text begin Subd. 7. new text end

new text begin Rulemaking. new text end

new text begin The commissioner may adopt rules to implement this
section. Rules adopted must be, to the greatest extent possible, compatible with applicable
credits under sections 45 and 48 of the Internal Revenue Code.
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, 2015.
new text end