MN HF3320

Creates refundable tax credit equal to one-half of climate action expenditures for eligible improvements, capped at $2,000 per individual per taxable year.

Covers three categories of qualifying expenditures: small appliances (electric vehicle chargers, heat pump water heaters, induction ranges, smart thermostats), energy efficiency measures (insulation and similar materials), and large improvements (heat pumps, solar panels, energy storage systems, electric vehicles, electrical panel upgrades).

Applies income-based phaseout reducing maximum credit by $1 for every $30 of adjusted gross income above $130,000 for joint filers, or $1 for every $15 above $65,000 for other filers.

Credit is refundable for Minnesota residents and part-year residents; nonresidents limited to credit amount not exceeding tax liability.

Appropriates sufficient funds from general fund for refunds and expires January 1, 2027, for taxable years beginning after December 31, 2026, effective for taxable years beginning after December 31, 2021.