HF 4517 Summary: Minnesota Carbon Assessment and Rebate Act

• Imposes a carbon assessment on carbon-based fuels (coal, petroleum, natural gas, municipal waste) starting January 1, 2020 at $40 per ton of CO2 emitted, increasing by $5 annually for five years, then $10 annually for six years, then $15 annually thereafter.

• Assessment applies to production or distribution of carbon-based fuels in Minnesota and electricity generated out-of-state for Minnesota consumption, with exceptions for petroleum used as lubricants or product components.

• Establishes a carbon assessment rebate account receiving all assessment revenue, with rebates paid annually to individuals on a per capita basis to maintain revenue neutrality.

• Rebates provided as tax credits under chapter 290 for taxpayers, spouses, and dependents, with credits refundable if they exceed tax liability; requires outreach to identify and pay non-tax filers.

• Requires annual reports beginning September 1, 2021 analyzing assessment collections, rebate amounts, emissions reductions, and sector impacts, plus a separate January 1, 2022 report on administrative procedures for quarterly or monthly rebate payments.