Individual income and corporate franchise tax; transfer and certification provisions modified.

HF 1697 modifies Minnesota's tax code to allow Class II and Class III railroads to transfer unused tax credits for infrastructure upgrades (like track, bridges, and sidings) to other businesses. The bill creates a process where eligible railroads can apply for a "credit certificate" for qualified investments, then transfer the unused credit amount via written agreement to eligible taxpayers subject to state income tax. Transferees must document the transfer with the state, and the credit can be used over five years. This applies retroactively to tax years beginning after December 31, 2022, affecting railroads and businesses under Minnesota Statutes chapter 290.