Bill Text: MN HF3380 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Renewable energy production and energy investment income tax credits allowed, and rulemaking provided.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2014-05-12 - Introduction and first reading, referred to Energy Policy [HF3380 Detail]
Download: Minnesota-2013-HF3380-Introduced.html
1.2relating to taxation; energy; allowing income tax credits for renewable energy
1.3production and energy investment; providing for rulemaking;proposing coding
1.4for new law in Minnesota Statutes, chapter 290.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. [290.0682] RENEWABLE ENERGY PRODUCTION AND ENERGY
1.7INVESTMENT CREDITS.
1.8 Subdivision 1. Definitions. (a) For purposes of this section, the following terms
1.9have the meanings given.
1.10(b) "Biodiesel fuel" has the meaning given in section 239.77, subdivision 1.
1.11(c) "Qualified energy resources" means electricity or biodiesel fuel produced at a
1.12qualified facility through an open-loop biomass process that meets the requirements of
1.13section 45(c)(3) of the Internal Revenue Code.
1.14(d) "Qualified facility" means a facility that is located in Minnesota, produces
1.15qualified energy resources, and meets the requirements of section 45(d)(2)(A)(i) or (ii)
1.16of the Internal Revenue Code, except that the facility must be placed into service before
1.17January 1, 2017.
1.18 Subd. 2. Production credit; limitation; allocation. (a) A taxpayer with a qualified
1.19facility is entitled to a credit against the tax imposed under this chapter.
1.20(b) The tax credit equals 75 percent of the federal credit amount computed under
1.21section 45 of the Internal Revenue Code, without regard to whether the credit in section 45
1.22of the Internal Revenue Code is in effect for the taxable year. The credit may not exceed
1.23the taxpayer's liability for tax under this chapter.
2.1(c) Tax credits earned by a partnership, a limited liability company, an S-corporation,
2.2or other pass-through entity may be allocated to the partners, members, or shareholders of
2.3the entity for their direct use in accordance with the provisions of any agreement among
2.4the partners, members, or shareholders.
2.5(d) A taxpayer may claim the credit under this subdivision for no more than ten
2.6taxable years for a qualified facility.
2.7 Subd. 3. Energy investment credit; limitation; allocation. (a) A taxpayer with a
2.8qualified facility is entitled to a credit against the tax imposed under this chapter.
2.9(b) The tax credit equals 75 percent of the federal credit amount computed under
2.10section 48 of the Internal Revenue Code, as if the qualified facility is energy property
2.11under item (a)(3) of section 48 of the Internal Revenue Code, without regard to whether
2.12the credit in section 48 of the Internal Revenue Code is in effect for the taxable year, and
2.13reduced by all other federal nonrefundable credits, other than the minimum tax credit. The
2.14credit may not exceed the taxpayer's liability for tax under this chapter.
2.15(c) Tax credits earned by a partnership, a limited liability company, an S-corporation,
2.16or other pass-through entity may be allocated to the partners, members, or shareholders of
2.17the entity for their direct use in accordance with the provisions of any agreement among
2.18the partners, members, or shareholders.
2.19(d) No credit may be claimed under this subdivision for the taxable year or any
2.20subsequent taxable year if the taxpayer receives a grant, publicly subsidized loan, or
2.21any other public assistance for the property from the federal government, a state, or any
2.22political subdivision of a state.
2.23 Subd. 4. Carryover. If the amount of the credit determined under subdivision 2 or 3
2.24for any taxable year exceeds the taxpayer's liability for tax, the excess shall be a credit
2.25carryover to each of the 15 succeeding taxable years. The entire amount of the excess
2.26unused credit for the taxable year shall be carried first to the earliest of the taxable years to
2.27which the credit may be carried. The amount of the unused credit which may be added
2.28under this subdivision shall not exceed the taxpayer's liability for tax, less the credits
2.29allowed under this section for the taxable year.
2.30 Subd. 5. Credit assignment. (a) The recipient of a credit under subdivision 2 or
2.313 may assign the credit to another taxpayer who is then allowed the credit under this
2.32section. An assignment is not valid unless the assignee notifies the commissioner within
2.3330 days of the date that the assignment is made. The commissioner shall prescribe the
2.34forms necessary for notifying the commissioner of the assignment of a credit and for
2.35claiming a credit by assignment.
3.1(b) Credits passed through to partners, members, shareholders, or owners pursuant
3.2to subdivision 2 or 3 are not an assignment of a credit under this subdivision.
3.3 Subd. 6. Disclosure of information. Taxpayers applying for a credit under
3.4subdivision 2 or 3 must submit to the commissioner the information necessary to
3.5determine the limitations provided under sections 45 and 48 of the Internal Revenue Code.
3.6 Subd. 7. Rulemaking. The commissioner may adopt rules to implement this
3.7section. Rules adopted must be, to the greatest extent possible, compatible with applicable
3.8credits under sections 45 and 48 of the Internal Revenue Code.
3.9EFFECTIVE DATE.This section is effective for taxable years beginning after
3.10December 31, 2014.
1.3production and energy investment; providing for rulemaking;proposing coding
1.4for new law in Minnesota Statutes, chapter 290.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. [290.0682] RENEWABLE ENERGY PRODUCTION AND ENERGY
1.7INVESTMENT CREDITS.
1.8 Subdivision 1. Definitions. (a) For purposes of this section, the following terms
1.9have the meanings given.
1.10(b) "Biodiesel fuel" has the meaning given in section 239.77, subdivision 1.
1.11(c) "Qualified energy resources" means electricity or biodiesel fuel produced at a
1.12qualified facility through an open-loop biomass process that meets the requirements of
1.13section 45(c)(3) of the Internal Revenue Code.
1.14(d) "Qualified facility" means a facility that is located in Minnesota, produces
1.15qualified energy resources, and meets the requirements of section 45(d)(2)(A)(i) or (ii)
1.16of the Internal Revenue Code, except that the facility must be placed into service before
1.17January 1, 2017.
1.18 Subd. 2. Production credit; limitation; allocation. (a) A taxpayer with a qualified
1.19facility is entitled to a credit against the tax imposed under this chapter.
1.20(b) The tax credit equals 75 percent of the federal credit amount computed under
1.21section 45 of the Internal Revenue Code, without regard to whether the credit in section 45
1.22of the Internal Revenue Code is in effect for the taxable year. The credit may not exceed
1.23the taxpayer's liability for tax under this chapter.
2.1(c) Tax credits earned by a partnership, a limited liability company, an S-corporation,
2.2or other pass-through entity may be allocated to the partners, members, or shareholders of
2.3the entity for their direct use in accordance with the provisions of any agreement among
2.4the partners, members, or shareholders.
2.5(d) A taxpayer may claim the credit under this subdivision for no more than ten
2.6taxable years for a qualified facility.
2.7 Subd. 3. Energy investment credit; limitation; allocation. (a) A taxpayer with a
2.8qualified facility is entitled to a credit against the tax imposed under this chapter.
2.9(b) The tax credit equals 75 percent of the federal credit amount computed under
2.10section 48 of the Internal Revenue Code, as if the qualified facility is energy property
2.11under item (a)(3) of section 48 of the Internal Revenue Code, without regard to whether
2.12the credit in section 48 of the Internal Revenue Code is in effect for the taxable year, and
2.13reduced by all other federal nonrefundable credits, other than the minimum tax credit. The
2.14credit may not exceed the taxpayer's liability for tax under this chapter.
2.15(c) Tax credits earned by a partnership, a limited liability company, an S-corporation,
2.16or other pass-through entity may be allocated to the partners, members, or shareholders of
2.17the entity for their direct use in accordance with the provisions of any agreement among
2.18the partners, members, or shareholders.
2.19(d) No credit may be claimed under this subdivision for the taxable year or any
2.20subsequent taxable year if the taxpayer receives a grant, publicly subsidized loan, or
2.21any other public assistance for the property from the federal government, a state, or any
2.22political subdivision of a state.
2.23 Subd. 4. Carryover. If the amount of the credit determined under subdivision 2 or 3
2.24for any taxable year exceeds the taxpayer's liability for tax, the excess shall be a credit
2.25carryover to each of the 15 succeeding taxable years. The entire amount of the excess
2.26unused credit for the taxable year shall be carried first to the earliest of the taxable years to
2.27which the credit may be carried. The amount of the unused credit which may be added
2.28under this subdivision shall not exceed the taxpayer's liability for tax, less the credits
2.29allowed under this section for the taxable year.
2.30 Subd. 5. Credit assignment. (a) The recipient of a credit under subdivision 2 or
2.313 may assign the credit to another taxpayer who is then allowed the credit under this
2.32section. An assignment is not valid unless the assignee notifies the commissioner within
2.3330 days of the date that the assignment is made. The commissioner shall prescribe the
2.34forms necessary for notifying the commissioner of the assignment of a credit and for
2.35claiming a credit by assignment.
3.1(b) Credits passed through to partners, members, shareholders, or owners pursuant
3.2to subdivision 2 or 3 are not an assignment of a credit under this subdivision.
3.3 Subd. 6. Disclosure of information. Taxpayers applying for a credit under
3.4subdivision 2 or 3 must submit to the commissioner the information necessary to
3.5determine the limitations provided under sections 45 and 48 of the Internal Revenue Code.
3.6 Subd. 7. Rulemaking. The commissioner may adopt rules to implement this
3.7section. Rules adopted must be, to the greatest extent possible, compatible with applicable
3.8credits under sections 45 and 48 of the Internal Revenue Code.
3.9EFFECTIVE DATE.This section is effective for taxable years beginning after
3.10December 31, 2014.
