HF 2360

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/02/2023 02:12pm

A bill for an act
relating to taxation; individual income; allowing a refundable and assignable credit
for electric-assisted bicycle purchases; 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 [290.0687] ELECTRIC-ASSISTED BICYCLE 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 following terms have
the meaning given.
new text end

new text begin (b) "Electric-assisted bicycle" has the meaning given in section 169.011, subdivision
27, except that the term is limited to a new electric-assisted bicycle purchased from an
electric-assisted bicycle retailer.
new text end

new text begin (c) "Electric-assisted bicycle retailer" or "retailer" means a person engaged in the business
of retail sales of new electric-assisted bicycles.
new text end

new text begin Subd. 2. new text end

new text begin Credit allowed. new text end

new text begin (a) A resident individual income taxpayer is allowed a credit
against the tax imposed by this section equal to 75 percent of the amount paid for an
electric-assisted bicycle in the taxable year, excluding any additional parts or accessories.
The credit is limited to $1,500, except for a married taxpayer filing a joint return, the limit
is $1,500 per spouse.
new text end

new text begin (b) The credit percentage in paragraph (a) is reduced by one percentage point until the
credit percentage equals 50 percent, for each $4,000 of adjusted gross income in excess of:
new text end

new text begin (1) $50,000 for a married taxpayer filing a joint return; and
new text end

new text begin (2) $25,000 for all other filers.
new text end

new text begin (c) For the purposes of determining credits under this section, the commissioner must
use the taxpayer's adjusted gross income for the taxable year ending in the calendar year
prior to the calendar year in which the taxpayer applied under subdivision 3.
new text end

new text begin Subd. 3. new text end

new text begin Application; administration of credit; transferability. new text end

new text begin (a) To claim the credit
under this section, a taxpayer must apply to the commissioner for a credit certificate prior
to purchasing an electric-assisted bicycle and assign the credit to an electric-assisted bicycle
retailer. The application must be in the form specified by the commissioner. The
commissioner must issue a credit certificate to an eligible taxpayer stating the credit
percentage and maximum credit for which the taxpayer is eligible. For a married taxpayer
filing a joint return, each spouse may apply to the commissioner separately, and the
commissioner must issue each spouse a separate credit certificate.
new text end

new text begin (b) The commissioner must establish the form and manner by which a taxpayer may
assign a credit to a retailer, but the process for assigning a credit must specify the purchase
price of the electric-assisted bicycle and the amount of the credit for which the taxpayer is
eligible. The commissioner must establish a process through which retailers may quickly
verify the validity of a credit certificate at the time of purchase.
new text end

new text begin (c) An electric-assisted bicycle retailer who was assigned a credit may immediately
apply to the commissioner for reimbursement in an amount equal to the amount of the credit.
new text end

new text begin (d) A credit under this section must not be assigned or transferred more than once.
new text end

new text begin Subd. 4. new text end

new text begin Expiration of credit certificates. new text end

new text begin (a) A credit certificate that was not assigned
to a retailer expires three months after the date the certificate was issued and may not be
assigned to a retailer after expiration.
new text end

new text begin (b) A credit certificate assigned to a retailer under this section expires three months after
the date of assignment. The commissioner must not reimburse a retailer for an expired
certificate.
new text end

new text begin Subd. 5. new text end

new text begin Credit limited. new text end

new text begin A taxpayer may claim and assign a credit under this section
one time during a five calendar year period. This limitation does not apply to credit
certificates that have expired.
new text end

new text begin Subd. 6. new text end

new text begin Credit refundable; appropriation. new text end

new text begin If the amount of credit which the 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. The amount necessary to pay the
refunds required by this section is appropriated to the commissioner from the general fund.
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, 2022.
new text end