Minnesota Legislature
SF 3608
as introduced - 89th Legislature (2015 - 2016) Posted on 08/24/2016 02:17pm
Current Version - as introduced
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A bill for an act
relating to taxation; income and corporate franchise; providing for temporary
refundable solar investment tax credits; appropriating money.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1. new text begin SOLAR ENERGY INVESTMENT TAX CREDIT.
new text end
new text begin Subdivision 1. new text end
new text begin Definitions. new text end
new text begin
(a) For the purposes of this section, the following terms
have the meanings given.
new text end
new text begin
(b) "Commissioner" means the commissioner of revenue.
new text end
new text begin
(c) "Corporate solar energy expenditure" means an expenditure during the taxable
year by a corporation for energy property, but not to exceed $1,000 for investor-owned
utility customers, and not to exceed $1,500 for municipal, public, and cooperatively
owned utility customers.
new text end
new text begin
(d) "Energy property" has the meaning given in the Internal Revenue Code, section
48(3)(A)(i) and (ii).
new text end
new text begin
(e) "Individual solar energy expenditure" means the sum of the following during the
taxable year by an individual, but not to exceed $500 for investor-owned utility customers,
and not to exceed $750 for municipal, public, and cooperatively owned utility customers:
new text end
new text begin
(1) qualified solar electric property expenditures; and
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new text begin
(2) qualified solar water heating property expenditures.
new text end
new text begin
(f) "Qualified solar electric property expenditure" has the meaning given in section
25D of the Internal Revenue Code.
new text end
new text begin
(g) "Qualified solar water heating property expenditure" has the meaning given in
section 25D of the Internal Revenue Code.
new text end
new text begin Subd. 2. new text end
new text begin Credit allowed; limitations; application and allocation. new text end
new text begin
(a) A taxpayer
is eligible to apply for a credit against the tax computed under Minnesota Statutes, chapter
290, for the taxable year equal to the amount of the taxpayer's individual solar energy
expenditure or corporate solar energy expenditure.
new text end
new text begin
(b) 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
(c) The commissioner must not allocate more than $2,500,000 in credits for the
taxable year beginning after December 31, 2015, and before January 1, 2017. Any portion
of a taxable year's credits that is not allocated by the commissioner cancels and may not be
carried forward to subsequent taxable years.
new text end
new text begin
(d) Applications for tax credits must be made available on the Department of
Revenue's Web site by July 1, 2016, and the commissioner must begin accepting
applications by August 1, 2016. The commissioner must allocate tax credits to taxpayers
in the order that the tax credit request applications are filed. The commissioner must
approve or reject an application for tax credit within 15 days of receiving the application.
The expenditure specified in the application must be made prior to application, or within
60 days of the allocation of the credits, but in no case after December 31, 2016. If the
investment is not made within 60 days, the credit allocation is canceled and available for
reallocation. An applicant that fails to make an expenditure as specified in the application
within 60 days of allocation of the credits must notify the commissioner of the failure to
invest within five business days of the expiration of the 60-day expenditure period.
new text end
new text begin
(e) All tax credit request applications filed with the commissioner on the same day
must be treated as having been filed contemporaneously. If two or more applicants file tax
credit request applications on the same day, and the aggregate amount of credit allocation
claims exceeds the aggregate limit of credits under paragraph (d) or the lesser amount of
credits that remain unallocated on that day, then the credits must be allocated among the
applicants who filed on that day on a pro rata basis with respect to the amounts claimed. The
pro rata allocation for any one applicant is the product obtained by multiplying the amount
of credits that remain unallocated on that day by a fraction, the numerator of which is the
amount of the credit allocation claim filed on behalf of an applicant and the denominator of
which is the total of all credit allocation claims filed on behalf of all applicants on that day.
new text end
new text begin
(f) An applicant must notify the commissioner when an expenditure for which
credits were allocated has been made. After receiving notification that the expenditure
was made, the commissioner must issue credit certificates for the taxable year in which
the investment was made to the applicant.
new text end
new text begin Subd. 3. new text end
new text begin Credit to be refundable. new text end
new text begin
If the amount of credit that a taxpayer is
allocated under this section exceeds the taxpayer's tax liability under Minnesota Statutes,
chapter 290, the commissioner shall refund the excess to the taxpayer.
new text end
new text begin Subd. 4. 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 from the general fund.
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, and before January 1, 2017.
new text end
Sec. 2. new text begin COMMUNITY SOLAR GARDEN INVESTMENT TAX CREDIT.
new text end
new text begin Subdivision 1. new text end
new text begin Definitions. new text end
new text begin
(a) For the purposes of this section, the following terms
have the meanings given.
new text end
new text begin
(b) "Commissioner" means the commissioner of revenue.
new text end
new text begin
(c) "Community solar garden expenditure" means the subscription amount for the
purchase of electricity generated by a community solar garden program that qualifies
under Minnesota Statutes, section 216B.1641, for the taxable year, but not to exceed $250.
new text end
new text begin Subd. 2. new text end
new text begin Credit allowed; limitations; application and allocation. new text end
new text begin
(a) A taxpayer
is eligible to apply for a credit against the tax computed under Minnesota Statutes, chapter
290, for the taxable year equal to the amount of the taxpayer's community solar garden
expenditure.
new text end
new text begin
(b) 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
(c) The commissioner must not allocate more than $1,000,000 in credits for the
taxable year beginning after December 31, 2015, and before January 1, 2017. Any portion
of a taxable year's credits that is not allocated by the commissioner cancels and may not be
carried forward to subsequent taxable years.
new text end
new text begin
(d) Applications for tax credits must be made available on the Department of
Revenue's Web site by July 1, 2016, and the commissioner must begin accepting
applications by August 1, 2016. The commissioner must allocate tax credits to taxpayers
in the order that the tax credit request applications are filed. The commissioner must
approve or reject an application for tax credit within 15 days of receiving the application.
The expenditure specified in the application must be made prior to application, or within
60 days of the allocation of the credits, but in no case after December 31, 2016. If the
investment is not made within 60 days, the credit allocation is canceled and available for
reallocation. An applicant who fails to make an expenditure as specified in the application
within 60 days of allocation of the credits must notify the commissioner of the failure to
invest within five business days of the expiration of the 60-day expenditure period.
new text end
new text begin
(e) All tax credit request applications filed with the commissioner on the same day
must be treated as having been filed contemporaneously. If two or more applicants file tax
credit request applications on the same day, and the aggregate amount of credit allocation
claims exceeds the aggregate limit of credits under paragraph (d) or the lesser amount of
credits that remain unallocated on that day, then the credits must be allocated among the
applicants who filed on that day on a pro rata basis with respect to the amounts claimed. The
pro rata allocation for any one applicant is the product obtained by multiplying the amount
of credits that remain unallocated on that day by a fraction, the numerator of which is the
amount of the credit allocation claim filed on behalf of an applicant and the denominator of
which is the total of all credit allocation claims filed on behalf of all applicants on that day.
new text end
new text begin
(f) An applicant must notify the commissioner when an expenditure for which
credits were allocated has been made. After receiving notification that the expenditure
was made, the commissioner must issue credit certificates for the taxable year in which
the investment was made to the applicant.
new text end
new text begin Subd. 3. new text end
new text begin Credit to be refundable. new text end
new text begin
If the amount of credit that a taxpayer is
allocated under this section exceeds the taxpayer's tax liability under Minnesota Statutes,
chapter 290, the commissioner shall refund the excess to the taxpayer.
new text end
new text begin Subd. 4. 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 from the general fund.
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, and before January 1, 2017.
new text end
Sec. 3. new text begin TAX CREDITS TO BE TRANSFERABLE.
new text end
new text begin
The commissioner of revenue, in developing the application for credits under
sections 1 and 2, shall establish a process for allowing the credits claimed to be
transferable from the applying taxpayer to another taxpayer. Credits transferred under this
program must be applied to offset liability for tax under Minnesota Statutes, chapter 290,
for the taxable year beginning after December 31, 2015, and before January 1, 2017, and
may not be carried forward to any other taxable year.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end