The proposed bill establishes a Liquid Fuel Modernization Tax Credit in Minnesota, designed to encourage the installation of eligible fuel infrastructure at retail fueling sites and bulk plants. It introduces new definitions and provisions for eligible entities and fuel infrastructure, allowing for a tax credit of up to 65% of eligible costs, with a cap of $800,000. Eligible entities must apply for a credit certificate from the commissioner, detailing their costs and any financial assistance received. The bill also sets forth the application review process, credit revocation procedures, and the establishment of a Liquid Fuel Modernization Board to oversee the program.

Additionally, the bill amends existing statutes to mandate that by December 31, 2028, at least 50% of retail gasoline storage and dispensing equipment must be certified for the highest ethanol blend allowed. The commissioner is required to report annually on progress toward this goal. The provisions of the bill will expire on January 1, 2034, for credits claimed in taxable years beginning after December 31, 2033, while the equipment compatibility goal will expire on June 30, 2034. The bill also grants the commissioner of commerce the authority to audit and verify eligibility for the credit, with new provisions taking effect for taxable years starting after December 31, 2023.

Statutes affected:
Introduction: 239.7911, 290.0131, 290.0133, 290.06