This bill, H.F. No. 1697, seeks to amend Minnesota Statutes 2024, section 290.0695, regarding individual income and corporate franchise taxation. Specifically, it modifies provisions related to the transfer and certification of tax credits.

The key changes involve defining terms related to tax credits for railroad reconstruction or replacement expenditures. These include:

• Credit certificate: Issued by the commissioner of transportation.
• Eligible taxpayer: A railroad classified as Class II or Class III by the U.S. Surface Transportation Board.
• Eligible transferee: Any taxpayer subject to tax under this chapter or chapter 297I.
• Qualified railroad reconstruction or replacement expenditures: Costs incurred for maintenance, reconstruction, or replacement of railroad infrastructure, as well as new construction of industrial leads, sidings, and extensions by Class II or III railroads in Minnesota.
• Transfer credit certificate: Issued to a transferee by the commissioner.

These modifications clarify and expand eligibility for tax credits related to railroad infrastructure improvements in Minnesota. The bill was introduced by Representatives Elkins and Davids and referred to the Committee on Taxes for review.