This bill introduces a temporary tax credit for the purchase and installation of solar energy systems in Minnesota. It defines key terms related to solar energy systems, including "solar energy system," "photovoltaic device," and "solar water heater." The bill establishes that taxpayers who receive electric service from a municipal utility or cooperative electric association and install a qualifying solar energy system during the taxable year can receive a credit against their state income tax. The credit is set at a percentage of the system's purchase and installation costs, with specific percentages outlined for different time frames: 15% for systems installed between January 1, 2025, and December 31, 2026; 13% for those installed between January 1, 2026, and December 31, 2027; and 11% for installations between January 1, 2027, and December 31, 2028.

Additionally, the bill specifies maximum allowable credits of $2,500 for residential installations and $15,000 for business properties. It includes provisions for nonresidents and partnerships regarding credit allocation and ensures that any excess credit beyond a claimant's tax liability will be refunded. The section establishing this credit will expire on January 1, 2029, and is effective for taxable years beginning after December 31, 2024.