Plain English Breakdown
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HF4082 • 2026
Temporary income tax credit provided for the purchase and installation of solar energy systems.
Temporary income tax credit provided for the purchase and installation of solar energy systems.
Energy
Taxes
Passed Legislature
This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.
Bill History
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2026-03-12
House
Author added Rehrauer
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2026-03-09
House
Introduction and first reading, referred to Taxes
Official Summary Text
Temporary income tax credit provided for the purchase and installation of solar energy systems.
Current Bill Text
Read the full stored bill text
A bill for an act relating to taxation; income; providing a temporary credit for the purchase and installation of solar energy systems. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: Section 1. new text begin TEMPORARY SOLAR ENERGY SYSTEM CREDIT. new text end new text begin Subdivision 1. new text end new text begin Definitions. new text end new text begin (a) For purposes of this section, the following terms have the meanings given. new text end new text begin (b) "Business property" means class 3a property, as defined in Minnesota Statutes, section 273.13, subdivision 24. new text end new text begin (c) "Energy storage system" has the meaning provided in Minnesota Statutes, section 216B.2242, subdivision 1. new text end new text begin (d) "Homestead" means class 1a and 1b residential property, as defined in Minnesota Statutes, section 273.13, subdivision 22, or an agricultural homestead, as defined in Minnesota Statutes, section 273.13, subdivision 23. new text end new text begin (e) "Photovoltaic device" has the meaning given in Minnesota Statutes, section 216C.06, subdivision 16. new text end new text begin (f) "Solar energy system" means a photovoltaic device with a capacity no greater than 40 kilowatts, solar water heater, or solar thermal system installed alone or in combination or in conjunction with an energy storage system. new text end new text begin (g) "Solar thermal system" has the meaning given in Minnesota Statutes, section 216B.2411, subdivision 2, paragraph (e). new text end new text begin (h) "Solar water heater" means an active, closed-loop system that pumps a nonfreezing heat-transfer fluid through a flat-plate collector that collects solar energy and a heat exchanger to heat water. new text end new text begin Subd. 2. new text end new text begin Credit allowed; limitation. new text end new text begin (a) A taxpayer receiving electric service at retail from a municipal utility or a cooperative electric association and who purchases and places in service in this state during the taxable year a solar energy system is eligible for a credit against the tax due under Minnesota Statutes, chapter 290, equal to the lesser of the applicable percentage of the solar energy system's purchase and installation costs or the maximum allowable credit. new text end new text begin (b) For solar energy systems first placed into service: new text end new text begin (1) after December 31, 2024, and before January 1, 2026, the applicable percentage is 15 percent; new text end new text begin (2) after December 31, 2025, and before January 1, 2027, the applicable percentage is 13 percent; and new text end new text begin (3) after December 31, 2026, and before January 1, 2029, the applicable percentage is 11 percent. new text end new text begin (c) The maximum allowable credit is: new text end new text begin (1) $2,500 for a solar energy system installed on the site of a taxpayer's homestead; and new text end new text begin (2) $15,000 for a solar energy system installed on each business property. new text end new text begin (d) For a nonresident or part-year resident the credit must be allocated based on the percentage calculated under Minnesota Statutes, section 290.06, subdivision 2c, paragraph (a). new text end new text begin (e) Credits granted to a partnership, a limited liability company taxed as a partnership, an S corporation, or multiple owners of property are passed through to the partners, members, shareholders, or owners, respectively, pro rata to each partner, member, shareholder, or owner based on their share of the entity's assets or as specially allocated in their organizational documents or any other executed agreement, as of the last day of the taxable year. new text end new text begin Subd. 3. new text end new text begin Credit refundable; appropriation. new text end new text begin (a) If the amount of credit which a claimant is eligible to receive under this section exceeds the claimant's tax liability under this chapter, the commissioner shall refund the excess to the claimant. new text end new text begin (b) An amount sufficient to pay the refunds required by this subdivision is appropriated to the commissioner from the general fund. new text end new text begin Subd. 4. new text end new text begin Expiration. new text end new text begin This section expires January 1, 2029. new text end new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after December 31, 2024, and before January 1, 2029. new text end