1.1 	A bill for an act
1.2 	relating to energy; providing an income or franchise tax credit for installation 
1.3 	of solar thermal equipment; appropriating money;proposing coding for new 
1.4 	law in Minnesota Statutes, chapter 290.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. [290.0681] SOLAR THERMAL INSTALLATION CREDIT.
1.7 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms 
1.8 	have the meaning given.
1.9 	(b) "Solar thermal" means a flat plate or evacuated tube with a fixed orientation that 
1.10 	collects the sun's radiant energy and transfers it to a storage medium for distribution as 
1.11 	energy to heat or cool air or water.
1.12 	(c) "Qualified solar thermal expenditures" means expenditures for the purchase and 
1.13 	installation of solar thermal equipment in residential, commercial, or industrial property 
1.14 	located in this state that is installed after July 1, 2008, and before July 1, 2011, and meets 
1.15 	the requirements of section 216C.25. Qualified solar thermal expenditures do not include 
1.16 	expenditures for equipment used to heat water used in a hot tub or swimming pool, or 
1.17 	for domestic use if less than half of the energy used by the residence for that purpose 
1.18 	is derived from the sun.
1.19 	 (d) "Residential property" means the principal residence used by the taxpayer at the 
1.20 	time the solar thermal equipment is placed in service.
1.21 		Subd. 2.Credit allowed. A taxpayer is allowed a credit against the tax imposed 
1.22 	under this chapter equal to 30 percent of qualified solar thermal expenditures, not to 
1.23 	exceed $6,500.
2.1 		Subd. 3.Credit refundable. If the amount of credit which the taxpayer is eligible 
2.2 	to receive under this section exceeds the individual's tax liability under this chapter, the 
2.3 	commissioner shall refund the excess to the taxpayer.
2.4 		Subd. 4.Appropriation. An amount sufficient to pay the refunds required by this 
2.5 	section is appropriated to the commissioner from the general fund.

2.6 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
2.7 	December 31, 2007.