HF 3878

as introduced - 89th Legislature (2015 - 2016) Posted on 04/11/2016 04:38pm

A bill for an act
relating to taxation; income and corporate franchise; providing a credit for
combined heat and power systems; 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] COMBINED HEAT AND POWER SYSTEM CREDIT.
new text end

new text begin Subdivision 1. new text end

new text begin Credit allowed; limitation; definition. new text end

new text begin (a) A taxpayer is allowed a
credit against the tax imposed under this chapter equal to 50 percent of the total installed
cost of an eligible combined heat and power system, but the credit may not exceed the
taxpayer's liability for tax for the taxable year.
new text end

new text begin (b) For the purposes of this section, "eligible combined heat and power system"
means a system that:
new text end

new text begin (1) meets the requirements of combined heat and power system property as defined
in the Internal Revenue Code, section 48(c)(3)(A)(i) and (ii);
new text end

new text begin (2) has a nameplate output of no less than one megawatt and no more than 26
megawatts;
new text end

new text begin (3) is located in Minnesota; and
new text end

new text begin (4) is installed after December 31, 2015, and before January 1, 2024.
new text end

new text begin (c) Credits claimed by a partnership, a limited liability company taxed as a
partnership, S corporation, or multiple owners of property are passed through to the
partners, members, shareholders, or owners, respectively, pro rata to each partner, member,
shareholder, or owner based on the partner's, member's, shareholder's, or owner's share of
the entity's assets or as specially allocated in the organizational documents as of the last
day of the taxable year in which the eligibility statement was issued.
new text end

new text begin Subd. 2. new text end

new text begin Certification. new text end

new text begin A taxpayer claiming the credit under this section must
certify to the commissioner the installation date, total installed cost, and nameplate output
of the eligible combined heat and power system.
new text end

new text begin Subd. 3. new text end

new text begin Carryover. new text end

new text begin If the amount of the credit determined under this section for
any taxable year exceeds the taxpayer's liability for tax under this chapter, the excess
shall be a credit carryover to each of the ten succeeding taxable years. In no case may
the credit carryover exceed the taxpayer's liability for tax in any taxable year. 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 and then to each successive year
to which the credit may be carried. Taxpayers with credit carryover must certify to the
commissioner the ongoing operation of the eligible combined heat and power system
to be eligible to claim a credit carryover.
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