Liquid fuel modernization tax credit established, individual income and corporate franchise taxes modified, and report required.
Impact
The bill amends several Minnesota Statutes to include definitions and guidelines on tax credits related to liquid fuel infrastructure costs. Eligible entities could receive a tax credit that covers up to 65% of their qualifying expenses, with a maximum limit set at $800,000. To ensure compliance and effective implementation, the legislation outlines the requirements for the application process and the obligation of the commissioner to monitor progress toward modernizing the fuel infrastructure. This modernization effort is expected to bolster Minnesota's commitment to environmental sustainability and renewable energy sources.
Summary
House File 2811 establishes a Liquid Fuel Modernization Tax Credit aimed at promoting the installation of eligible fuel infrastructure designed to support higher blends of biofuels. This legislation seeks to modernize the state's liquid fuel infrastructure by providing financial incentives to various entities, including corporations and partnerships, that invest in upgrading their fueling systems. The initiative is anticipated to stimulate economic activity within the state by enhancing the availability of renewable fuel options at retail fueling sites and bulk plants, ultimately leading to a reduction in carbon emissions associated with traditional fossil fuels.
Contention
While proponents of the bill argue that it represents a crucial step towards greener fuel sources and aligns with broader environmental goals, concerns have been raised regarding the adequacy of the infrastructure to support higher blends of biofuels. Critics may argue that existing facilities could struggle to adapt to new regulations or that the financial incentives may not be sufficient to motivate necessary investments. Additionally, the bill establishes a Liquid Fuel Modernization Board to advise on the tax credit's implementation, suggesting that ongoing oversight and evaluation will be critical in addressing potential barriers to upgrading existing fuel systems.
Individual income and corporate franchise taxes, property taxes, local government aids, sales and use taxes, tax increment financing, special local taxes, and other various taxes and tax-related provisions modified; various tax refunds and credits modified; reports required; and money appropriated.
Individual income taxes, corporate franchise taxes, sales and use taxes, and other various taxes and tax-related provisions modified; various policy and technical changes made; income tax credits and subtractions modified; and enforcement, return, and audit provisions modified.
Individual income tax provisions modified, corporate franchise tax provisions modified, film production credit modified, allocation increased, and sunset repealed.