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SF441 (Legislative Session 94 (2025-2026))

Temporary income tax credit for the purchase and installation of solar energy systems authorization

AI Generated Summary

The bill SF No 441 proposes to introduce a temporary tax credit for Minnesota residents who install solar energy systems. Here’s a breakdown of the main points:

  1. Definitions:

    • The bill defines various terms related to solar energy, such as solar energy systems, photovoltaic devices, solar water heaters, and solar thermal systems. These definitions help clarify what types of equipment qualify for the credit.

  2. Eligibility and Credit Amount:

    • Residents who are customers of municipal utilities or cooperative electric associations and install eligible solar energy systems can receive a tax credit.
    • The credit is the lesser of a specified percentage of the cost of purchasing and installing the system or a maximum dollar amount.
    • For systems installed between different dates from 2025 to 2029, the credit percentage decreases over time: 15% for 2025-2026, 13% for 2026-2027, and 11% for 2027-2029.
    • The maximum credit is $2,500 for systems installed at a homestead (residential properties) and $15,000 for systems installed at business properties.

  3. Nonresidents and Part-Year Residents:

    • These individuals can also qualify for the credit, but it will be prorated based on the time they lived in Minnesota.

  4. Pass-through Entities:

    • If a solar system is installed on property owned by partnerships, LLCs, or S corporations, the credit can be passed through to the individual partners, members, or shareholders according to their ownership stakes or as specifically allocated in any agreement or organizational documents.

  5. Refunds:

    • If the tax credit exceeds the taxpayer’s liability, the excess will be refunded. Funds for these refunds will come from the state's general fund.

  6. Expiration Date:

    • The bill is set to expire on January 1, 2029.

This legislation aims to promote the use of solar energy in Minnesota by providing financial incentives for the installation of solar systems.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
January 20, 2025SenateFloorActionIntroduction and first reading
January 20, 2025SenateFloorActionReferred toTaxes
February 02, 2025SenateFloorActionAuthor added

Citations

 
[
  {
    "analysis": {
      "added": [
        "Clarifies that 'business property' refers to class 3a property."
      ],
      "removed": [],
      "summary": "Defines 'business property' within the context of the bill.",
      "modified": []
    },
    "citation": "273.13, subdivision 24"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Specifies the definition of 'solar thermal system'.",
      "modified": []
    },
    "citation": "216B.2411, subdivision 2, paragraph e"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Details on how the tax credit is allocated for nonresident or part-year residents.",
      "modified": []
    },
    "citation": "290.06, subdivision 2c, paragraph a"
  }
]

Sponsors