Temporary income tax credit provided for the purchase and installation of solar energy systems.

This Minnesota bill creates a temporary income tax credit for residents and businesses that purchase and install solar energy systems, such as photovoltaic panels or solar water heaters. The credit allows taxpayers to reduce their state income tax liability by a percentage of their system's cost, with the percentage decreasing from 15% to 11% between 2025 and 2029, and caps the credit at $2,500 for homes and $15,000 for businesses. If the credit exceeds a taxpayer's tax bill, the state will refund the difference using funds from the general fund. The program is set to expire on January 1, 2029, and applies to systems installed during specific taxable years beginning after December 31, 2024.