SF 728

as introduced - 90th Legislature (2017 - 2018) Posted on 02/07/2017 09:09am

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. PILOT PROGRAM; RESIDENTIAL BIOMASS HEATING SYSTEM
TAX CREDIT.

Subdivision 1.

Credit allowed; limitations.

(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:

(1) 33 percent of the purchase price of the residential biomass heating system; or

(2) $5,000.

(b) For the purposes of this section, "residential biomass heating system" means a certified
residential wood heater or residential hydronic heater that meets the definitions in Code of
Federal Regulations, title 40, part 60.531 or 60.5473.

(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).

Subd. 2.

Credit to be refundable.

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.

Subd. 3.

Appropriation.

An amount sufficient to pay the refunds required by this section
is appropriated to the commissioner of revenue from the general fund.

Subd. 4.

Report.

By January 15, 2020, 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:

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

(2) the average amount of credits claimed and the total amount of credits claimed under
this section in the first year;

(3) recommendations for making the credit under this section permanent; and

(4) the administration of the credit under this section, including recommendations for
ensuring compliance.

EFFECTIVE DATE.

This section is effective for taxable years beginning after December
31, 2017, and before January 1, 2023.