S.F. No. 4086 - Minnesota Carbon Assessment and Rebate Act

• Imposes a revenue-neutral carbon assessment on carbon-based fuels (coal, petroleum, natural gas, municipal solid waste, refuse-derived fuel) based on lifecycle CO2 emissions, starting at $40 per ton in 2020 and increasing by $5-$15 per ton annually depending on the program year.

• Assessment applies to fuel production/distribution in Minnesota and electricity generated outside the state for Minnesota consumption, with exemptions for petroleum used as lubricants or product components and provisions to prevent double-taxation.

• Establishes a carbon assessment rebate account where all collected assessments are deposited and used to fund per capita rebates to Minnesota residents, ensuring revenue-neutrality.

• Rebates paid to individuals as tax credits under chapter 290, with refundable credits for those exceeding tax liability; includes provisions to identify and pay non-filers including low-income residents who don't file taxes.

• Requires annual reports beginning September 1, 2021, analyzing assessment collections, rebate distribution, emissions reduction, and recommendations regarding sector exemptions and payment frequency adjustments.