SF 1601

as introduced - 90th Legislature (2017 - 2018) Posted on 03/02/2017 09:47am

A bill for an act
relating to taxation; income; establishing a temporary refundable energy credit for
retrofitting commercial property for motion-sensing technology; requiring a report;
appropriating money.

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

Section 1. new text begin CREDIT FOR RETROFITTING MOTION-SENSING TECHNOLOGY.
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new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given them.
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new text begin (b) "Retrofit" means installation of new technology in a building for the purpose of
improving the energy efficiency of the building.
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new text begin (c) "Motion-sensing technology" means technology that is designed to detect motion
and is intended to improve energy efficiency for a building by activating lighting only when
the area surrounding the installed technology is occupied.
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new text begin (d) "Commercial property" means property classified under Minnesota Statutes, section
273.13, subdivision 24.
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new text begin (e) "Qualified taxpayer" means the owner of commercial property that has received
certification under subdivision 3.
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new text begin (f) "Eligible expenses" means the amount paid by the qualified taxpayer for retrofitting
with motion-sensor technology in the taxable year.
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new text begin Subd. 2. new text end

new text begin Credit allowed. new text end

new text begin (a) A qualified taxpayer is allowed a credit against the tax
imposed under Minnesota Statutes, chapter 290, equal to the lesser of 25 percent of eligible
expenses or $10,000.
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new text begin (b) For a nonresident or part-year resident, the credit under this subdivision must be
allocated based on the percentage calculated under Minnesota Statutes, section 290.06,
subdivision 2c, paragraph (e).
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new text begin Subd. 3. new text end

new text begin Certification requirement; manner of claiming. new text end

new text begin (a) To be eligible for the
credit under this section, a commercial property owner must apply to the commissioner of
commerce for certification that the commercial property has been retrofitted with
motion-sensing technology, as those terms are defined in subdivision 1. The application
must be in a form and manner prescribed by the commissioner of commerce in consultation
with the commissioner of revenue.
new text end

new text begin (b) Upon determination that the commercial property has been retrofitted with
motion-sensing technology, the commissioner of commerce must issue a certificate to the
commercial property owner designated in the application. The certificate must state the
amount of eligible expenses.
new text end

new text begin (c) The commissioner of revenue shall prescribe the manner in which the credit is claimed.
new text end

new text begin Subd. 4. new text end

new text begin Credit refundable. new text end

new text begin (a) If the amount of the credit for which a qualified taxpayer
is eligible exceeds the taxpayer's liability for tax under this chapter, the commissioner of
revenue shall refund the excess to the individual.
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new text begin (b) The amount necessary to pay the refunds required by this section is appropriated to
the commissioner of revenue from the general fund up to a maximum of $250,000.
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new text begin Subd. 5. new text end

new text begin Report. new text end

new text begin By March 1, 2020, the commissioner of revenue, in compliance with
Minnesota Statutes, sections 3.195 and 3.197, shall provide a report to the chairs and ranking
minority members of the committees of the house of representatives and senate with
jurisdiction over taxes and energy on:
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new text begin (1) the number of taxpayers claiming the credit under this section and the average amount
of credits claimed;
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new text begin (2) the size and location of the commercial property in which the motion-sensing
technology was retrofitted;
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new text begin (3) the amount of energy saved during the taxable years the credit was in effect; and
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new text begin (4) the administration of the credit, including recommendations.
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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, 2019.
new text end