HF 2926

as introduced - 89th Legislature (2015 - 2016) Posted on 03/16/2016 01:23pm

A bill for an act
relating to taxation; individual income; providing a refundable credit for
investments in energy efficient home improvements, electric vehicles, and
renewable energy; appropriating money; 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] CLIMATE ACTION TAX CREDIT.
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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 meanings given.
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new text begin (b) "Adjusted gross income" has the meaning given in section 61 of the Internal
Revenue Code.
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new text begin (c) "Climate action expenditure" means the sum of the following during the taxable
year:
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new text begin (1) community solar garden investments;
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new text begin (2) community wind energy investments;
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new text begin (3) new qualified plug-in electric drive motor vehicle investments;
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new text begin (4) qualified energy efficiency improvements;
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new text begin (5) qualified fuel cell property expenditures;
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new text begin (6) qualified geothermal heat pump property expenditures;
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new text begin (7) qualified small wind energy property expenditures;
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new text begin (8) qualified solar electric property expenditures;
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new text begin (9) qualified solar water heating property expenditures; and
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new text begin (10) residential energy property expenditures.
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new text begin (d) "Community solar garden investment" means the subscription amount for the
purchase of electricity generated by a community solar garden program that qualifies
under section 216B.1641.
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new text begin (e) "Community wind energy investment" means:
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new text begin (1) the amount of ownership interest purchased, not including amounts from loans
obtained through the rural wind energy development revolving loan fund under section
216C.39, in a developing community wind energy project that meets the specifications
of section 216B.1612, subdivision 2, paragraph (h); and
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new text begin (2) the amount of principal and interest paid on loans obtained through the rural
wind energy development revolving loan fund under section 216C.39, in a developing
community wind energy project that meets the specifications of section 216B.1612,
subdivision 2, paragraph (h).
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new text begin (f) "New qualified plug-in electric drive motor vehicle" has the meaning given in
section 30D of the Internal Revenue Code.
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new text begin (g) "New qualified plug-in electric drive motor vehicle investment" means the
amount of the purchase of a new qualified plug-in electric drive motor vehicle.
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new text begin (h) "Qualified energy efficiency improvement" has the meaning given in section
25C of the Internal Revenue Code.
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new text begin (i) "Qualified fuel cell property expenditure" has the meaning given in section 25D
of the Internal Revenue Code.
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new text begin (j) "Qualified geothermal heat pump property expenditure" has the meaning given in
section 25D of the Internal Revenue Code.
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new text begin (k) "Qualified small wind energy property expenditure" has the meaning given in
section 25D of the Internal Revenue Code.
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new text begin (l) "Qualified solar electric property expenditure" has the meaning given in section
25D of the Internal Revenue Code.
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new text begin (m) "Qualified solar water heating property expenditure" has the meaning given in
section 25D of the Internal Revenue Code.
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new text begin (n) "Residential energy property expenditure" has the meaning given in section
25C of the Internal Revenue Code.
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new text begin Subd. 2. new text end

new text begin Credit allowed; limitations. new text end

new text begin (a) An individual is allowed a credit against
the tax computed under this chapter for the taxable year equal to one-half of the amount of
the individual's climate action expenditure, but not to exceed $1,000.
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new text begin (b) For a nonresident or a part-year resident, the credit must be allocated based on
the percentage calculated under section 290.06, subdivision 2c, paragraph (e).
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new text begin (c) If an amount expended by a taxpayer is applied to one qualified expenditure or
investment listed in subdivision 1, paragraphs (d) to (n), that amount may not be applied
to a different qualified expenditure or investment listed in subdivision 1, paragraphs (d)
to (n). A taxpayer may claim any or all qualified expenditures or investments listed in
subdivision 1, paragraphs (d) to (n).
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new text begin Subd. 3. new text end

new text begin Credit to be refundable. new text end

new text begin If the amount of credit which a taxpayer who
is a resident or part-year resident of Minnesota is eligible to receive under this section
exceeds the taxpayer's tax liability under this chapter, the commissioner shall refund the
excess to the taxpayer. For nonresident taxpayers, the credit may not exceed the taxpayer's
liability for tax under this chapter.
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new text begin Subd. 4. new text end

new text begin Phaseout. new text end

new text begin For married couples filing joint returns, the maximum credit is
reduced by $1 for every $30 of adjusted gross income in excess of $130,000. For all other
filers, the maximum credit is reduced by $1 for every $15 of adjusted gross income in
excess of $65,000. In no case is the maximum credit less than zero.
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new text begin Subd. 5. new text end

new text begin Inflation adjustment. new text end

new text begin The adjusted gross income amounts used to
calculate the thresholds at which the maximum credit begins to be reduced in subdivision
4 must be adjusted for inflation. The commissioner shall adjust the amounts by the
percentage determined under section 1(f) of the Internal Revenue Code, except that in
section 1(f)(3)(B) the word "2015" shall be substituted for the word "1992." For 2017,
the commissioner shall then determine the percent change from the 12 months ending on
August 31, 2015, to the 12 months ending on August 31, 2016, and in each subsequent
year, from the 12 months ending on August 31, 2015, to the 12 months ending on August
31 of the year preceding the taxable year. The earned income thresholds as adjusted for
inflation must be rounded to the nearest $10 amount. If the amount ends in $5, the amount
is rounded up to the nearest $10 amount.
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new text begin Subd. 6. new text end

new text begin Appropriation. new text end

new text begin An amount sufficient to pay the refunds required by this
section is appropriated to the commissioner from the general fund.
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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, 2015.
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