HF 3021

as introduced - 89th Legislature (2015 - 2016) Posted on 04/14/2016 04:49pm

A bill for an act
relating to taxation; individual income; providing a temporary refundable credit
for residential biomass heating systems; requiring a report.

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

Section 1. new text begin PILOT PROGRAM; RESIDENTIAL BIOMASS HEATING SYSTEM
TAX CREDIT.
new text end

new text begin Subdivision 1. new text end

new text begin Credit allowed; limitations. new text end

new text begin (a) An individual who purchases
and installs a residential biomass heating system during the taxable year is allowed a
credit against the tax computed under Minnesota Statutes, chapter 290, for the taxable
year equal to the lesser of:
new text end

new text begin (1) 33 percent of the purchase price of the residential biomass heating system; or
new text end

new text begin (2) $5,000.
new text end

new text begin (b) For the purposes of this section, "residential biomass heating system" means
a system that qualifies as a certified residential wood heater or residential hydronic
heater that meets the 2015 Standards of Performance of the federal Environmental
Protection Agency as published in the Federal Register on March 16, 2015, Docket
No. EPA-HQ-OAR-2009-0734, or any final rule issued in that docket or federal order
pertaining thereto.
new text end

new text begin (c) For a nonresident or a part-year resident, the credit must be allocated based
on the percentage calculated under Minnesota Statutes, section 290.06, subdivision 2c,
paragraph (e).
new text end

new text begin Subd. 2. new text end

new text begin Credit to be refundable. new text end

new text begin If the amount of credit that 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 Minnesota Statutes, chapter 290, the commissioner shall
refund the excess to the taxpayer. For nonresident taxpayers, the credit may not exceed the
taxpayer's liability for tax under Minnesota Statutes, chapter 290.
new text end

new text begin Subd. 3. 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 of revenue from the general fund.
new text end

new text begin Subd. 4. new text end

new text begin Report. new text end

new text begin By January 15, 2019, the commissioner of revenue, in compliance
with Minnesota Statutes, sections 3.195 and 3.197, must provide a report to the chairs
and ranking minority members of the house of representatives and senate legislative
committees with jurisdiction over taxes and energy on:
new text end

new text begin (1) the number of taxpayers claiming the credit under this section in the first year;
new text end

new text begin (2) the average amount of credits claimed and the total amount of credits claimed
under this section in the first year;
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new text begin (3) recommendations for making the credit under this section permanent; and
new text end

new text begin (4) the administration of the credit under this section, including recommendations
for ensuring compliance.
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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, 2016, and before January 1, 2022.
new text end