Bill > HF4082

This bill establishes a temporary income tax credit for individuals and businesses in Minnesota that purchase and install solar energy systems, defined as photovoltaic devices (solar panels), solar water heaters, or solar thermal systems, potentially combined with energy storage systems. The credit is available to taxpayers receiving electricity from municipal utilities or cooperative electric associations and is calculated as a percentage of the system's cost, decreasing over time: 15% for systems installed in 2025, 13% for 2026, and 11% for 2027 through 2028. There are limits on the credit amount, with a maximum of $2,500 for systems on a taxpayer's homestead (primary residence) and $15,000 for systems on business property. Importantly, if the credit exceeds a taxpayer's tax liability, the excess amount will be refunded, and funds for these refunds are appropriated from the general fund. This credit program will expire on January 1, 2029, and applies to taxable years beginning after December 31, 2024, and before January 1, 2029.