HF3304 (Legislative Session 94 (2025-2026))

Sustainable aviation fuel income tax credit and exemptions for data centers and construction of sustainable aviation fuel facilities repealed, increased general fund amounts reallocated from repealed tax provisions to increase the renter's credit, and corresponding technical changes made.

AI Generated Summary

Purpose of the Bill

This legislative bill aims to change certain tax policies in Minnesota and redirect funds to increase support for renters. It primarily involves repealing specific tax credits and reallocating the resulting savings to enhance the renters' tax credit.

Main Provisions

  • Repeal of Sustainable Aviation Fuel Tax Credit: The bill proposes to eliminate the income tax credit for the production of sustainable aviation fuel. This repeal is designed to increase the state's general fund revenues.

  • Repeal of Sales and Use Tax Exemptions: The bill also calls for the repeal of exemptions from sales and use tax for data centers and the construction of sustainable aviation fuel facilities.

  • Reallocation of Funds: Savings from the repealed tax credits and exemptions will be redirected. These funds are planned to be used to increase the renters' tax credit, providing more financial support to renters in the state.

  • Adjustment of Renters' Credit: The commissioner of revenue is directed to adjust the renters' credit by the certified increase in general fund revenue. This may involve decreasing the income percentage for eligibility, reducing the claimant's payment percentage, or increasing the maximum credit itself.

Significant Changes to Existing Law

  • By repealing the sustainable aviation fuel tax credit and specific sales and use tax exemptions, the bill alters Minnesota's current tax framework, aiming to boost revenue for the state's general fund.

  • Adjustments to the renters' credit will become permanent for future property tax refunds, starting with those based on taxes payable in 2028 onwards.

Relevant Terms

sustainable aviation fuel, income tax credit, sales and use tax exemptions, data centers, renters' credit, property taxes, general fund revenue, Minnesota tax law.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
May 07, 2025HouseFloorActionIntroduction and first reading, referred toTaxes
May 08, 2025HouseFloorActionAuthors added