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Minnesota Legislature

Office of the Revisor of Statutes

SF 2429

as introduced - 91st Legislature (2019 - 2020) Posted on 03/14/2019 09:14am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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1.6 1.7 1.8 1.9 1.10 1.11 1.12 1.13 1.14 1.15 1.16 1.17 1.18 1.19 1.20 1.21 1.22 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12 2.13 2.14 2.15 2.16
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A bill for an act
relating to taxation; individual income and corporate franchise; allowing a tax
credit for certain mechanical insulation; amending Minnesota Statutes 2018, section
290.06, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2018, section 290.06, is amended by adding a subdivision
to read:


new text begin Subd. 39. new text end

new text begin Credit for installation of mechanical insulation. new text end

new text begin (a) A taxpayer is allowed
a credit against the tax imposed by subdivision 1 or 2c for mechanical insulation property
placed in service in this state in an amount equal to the lesser of the:
new text end

new text begin (1) applicable percentage of the cost of mechanical insulation property placed in service
in this state during the taxable year; or
new text end

new text begin (2) taxpayer's liability for tax for the taxable year.
new text end

new text begin (b) If the amount of the credit exceeds the limitation under paragraph (a), clause (2), the
excess may be carried forward and applied to the taxpayer's tax liability for the five taxable
years following the taxable year in which the property was placed in service. The entire
amount of the unused credit must be applied first to the earliest year for which there is a
tax liability. If there are credits for more than one year that are available to offset a liability,
the earlier credit must be applied first.
new text end

new text begin (c) For purposes of this subdivision:
new text end

new text begin (1) "applicable percentage" means the lesser of:
new text end

new text begin (i) 30 percent; or
new text end

new text begin (ii) the reduction in energy loss, expressed as a percentage, from the installed mechanical
insulation property compared with mechanical insulation property that meets or exceeds
the minimum ASHRAE standard;
new text end

new text begin (2) "ASHRAE" means the American Society of Heating, Refrigerating, and
Air-Conditioning Engineers;
new text end

new text begin (3) "minimum ASHRAE standard" means ASHRAE standard 90.1-2007, or the most
recently adopted ASHRAE standard applicable as of December 31 of the year the mechanical
insulation property was placed in service;
new text end

new text begin (4) "cost of mechanical insulation property" includes any amount paid or incurred to
acquire and install mechanical insulation property that meets or exceeds the minimum
ASHRAE standard;
new text end

new text begin (5) "mechanical insulation property" includes insulation materials, facings, and accessory
products used for thermal requirements for mechanical piping and equipment, hot and cold
applications, and heating, venting, and air conditioning applications; and
new text end

new text begin (6) "liability for tax" means liability for tax under subdivision 1 or 2c, as applicable,
after allowance of any other nonrefundable credit.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for mechanical insulation property
installed after July 1, 2019, for taxable years beginning after December 31, 2018.
new text end