MN HF4190

Allows taxpayers a tax credit for mechanical insulation property placed in service in Minnesota equal to the lesser of an applicable percentage of costs or the taxpayer's tax liability.

The applicable percentage is the lesser of 30 percent or the energy loss reduction percentage compared to ASHRAE standard 90.1-2007 requirements.

Unused credits exceeding tax liability may be carried forward and applied to tax liability for the five taxable years following the year property was placed in service, with earlier credits applied first.

Mechanical insulation property includes insulation materials, facings, and accessory products for thermal requirements for mechanical piping, equipment, and HVAC applications.

Credit is effective for mechanical insulation property installed after July 1, 2018, for taxable years beginning after December 31, 2017.