Bill > SF441

This bill establishes a temporary income tax credit for Minnesota residents and businesses who purchase and install solar energy systems between 2025 and 2028. The credit is available for solar energy systems with a capacity up to 40 kilowatts, including photovoltaic devices, solar water heaters, and solar thermal systems, which can be combined with an energy storage system. The credit percentage decreases over time: 15% for systems installed in 2025, 13% for systems installed in 2026, and 11% for systems installed in 2027-2028. The maximum credit is $2,500 for residential homestead systems and $15,000 for business property systems. The credit is refundable, meaning if the credit amount exceeds the taxpayer's tax liability, the excess will be refunded. The credit applies to taxpayers receiving electric service from municipal utilities or cooperative electric associations, and for non-resident or part-year residents, the credit will be proportionally allocated. The bill also allows credits for partnerships, LLCs, S corporations, and other multi-owner properties to be passed through to individual partners, members, shareholders, or owners. The solar energy system tax credit will expire on January 1, 2029, and is effective for taxable years beginning after December 31, 2024.