MN SF3756

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

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

Credits exceeding the annual tax liability may be carried forward and applied to tax liability for the five taxable years following installation, with earlier credits applied first.

Defines mechanical insulation property as insulation materials, facings, and accessory products used for thermal requirements in mechanical piping, equipment, and heating/cooling applications that exceed ASHRAE standards.

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