HF 4305

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/24/2022 03:50pm

A bill for an act
relating to taxation; production tax; creating an exemption from the solar energy
production tax; amending Minnesota Statutes 2021 Supplement, section 272.0295,
subdivision 2.

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

Section 1.

Minnesota Statutes 2021 Supplement, section 272.0295, subdivision 2, is
amended to read:

Subd. 2.

Definitions.

(a) For the purposes of this section, the term "solar energy
generating system" means a set of devices whose primary purpose is to produce electricity
by means of any combination of collecting, transferring, or converting solar generated
energy.

(b) The total size of a solar energy generating system under this subdivision shall be
determined according to this paragraph. Unless the systems are interconnected with different
distribution systems, the nameplate capacity of a solar energy generating system shall be
combined with the nameplate capacity of any other solar energy generating system that:

(1) is constructed within the same 12-month period as the solar energy generating system;
and

(2) exhibits characteristics new text begin at the time of development new text end of being a single development,
including but not limited to ownership structure, an umbrella sales arrangement, shared
interconnection, revenue-sharing arrangements, and common debt or equity financing.

In the case of a dispute, the commissioner of commerce shall determine the total size of the
system and shall draw all reasonable inferences in favor of combining the systems. new text begin In
determining the total size of the system, the commissioner of commerce shall determine
that a solar energy generating system that has received an executed interconnection agreement
pursuant to section 216B.1641, from the public utility subject to section 116C.779, any time
after adoption of the order contained in Public Utility Commission (PUC), docket number
E002/M-13-867, dated August 6, 2015, is considered to be a solar energy generating system
with a capacity of one megawatt alternating current or less and is exempt from the tax
imposed by this section.
new text end

For the purposes of making a determination under this paragraph, the original construction
date of an existing solar energy conversion system is not changed if the system is replaced,
repaired, or otherwise maintained or altered.

(c) In making a determination under paragraph (b), the commissioner of commerce may
determine that two solar energy generating systems are under common ownership when the
underlying ownership structure contains similar persons or entities, even if the ownership
shares differ between the two systems. Solar energy generating systems are not under
common ownership solely because the same person or entity provided equity financing for
the systems.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end