SF 2274

as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; providing an income tax credit 
  1.3             for a portion of the cost of acquisition of a 
  1.4             geothermal heating and cooling system; amending 
  1.5             Minnesota Statutes 2000, section 290.06, by adding a 
  1.6             subdivision. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 2000, section 290.06, is 
  1.9   amended by adding a subdivision to read: 
  1.10     Subd. 29.  [CREDIT FOR GEOTHERMAL SYSTEMS.] A taxpayer may 
  1.11  take a credit against the tax due under this chapter equal to 50 
  1.12  percent of the excess expenditure made by the taxpayer during 
  1.13  the taxable year for acquisition and installation of a 
  1.14  geothermal heating and cooling system.  For purposes of this 
  1.15  subdivision, "excess expenditure" means the amount by which the 
  1.16  taxpayer's expenditure for the acquisition and installation of 
  1.17  the geothermal system exceeds the cost of acquisition and 
  1.18  installation of a conventional heating and cooling system that 
  1.19  would have a comparable capacity.  The commissioner of commerce 
  1.20  shall determine amounts that would qualify as excess 
  1.21  expenditures for various common types of geothermal systems, and 
  1.22  provide that information to the commissioner of revenue for use 
  1.23  in determination of the credit available under this subdivision. 
  1.24     If the credit provided under this subdivision exceeds the 
  1.25  tax liability of the taxpayer for the taxable year, the excess 
  1.26  amount of the credit may be carried over to each of the five 
  2.1   taxable years succeeding the taxable year.  The entire amount of 
  2.2   the credit must be carried to the earliest taxable year to which 
  2.3   the amount may be carried.  The unused portion of the credit 
  2.4   must be carried to the following taxable year.  No credit may be 
  2.5   carried to a taxable year more than five years after the taxable 
  2.6   year in which the credit was earned. 
  2.7      [EFFECTIVE DATE.] This section is effective for taxable 
  2.8   years beginning after December 31, 2001.