Bill > SF1046

This bill modifies provisions related to tax credits for railroad infrastructure investments in Minnesota, specifically updating definitions and transfer procedures for credits available to Class II and Class III railroads. The bill clarifies that eligible railroad companies must first apply to the Minnesota Department of Transportation for a "credit certificate" that documents their qualified railroad reconstruction or replacement expenditures, such as track, roadbed, bridges, and industrial leads. These credits can be transferred to other eligible taxpayers through a written agreement, with specific requirements for joint filing and documentation. The bill introduces new language around the credit certificate process, including mandating that the transportation commissioner issue the certificate within 30 days of application and provide details like miles of infrastructure improved and total credit amount. Importantly, an eligible taxpayer can transfer their credit only once per tax year, and the transferee receives a separate "transfer credit certificate" from the revenue commissioner. The changes are retroactively effective for tax years beginning after December 31, 2022, and aim to provide more clarity and structure to the existing railroad infrastructure tax credit program.

Budget and Finance, Transportation and Infrastructure

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF1046&ssn=0&y=2025