MN SF4382

Creates a refundable individual income tax credit for purchases of residential heating fuels and residential water services under Minnesota Statutes chapter 290.

Credit equals the lesser of 25 percent of amounts paid for eligible heat and energy costs (including taxes) or $2,000 for married joint filers and $1,000 for all other filers.

Credit is refundable, meaning the state commissioner must refund any excess credit amount that exceeds the taxpayer's total tax liability.

Excludes purchases for which the individual receives reimbursement or other compensation and allocates credit for part-year residents based on residency percentage.

Appropriates sufficient general fund monies to pay refunds and applies to taxable years beginning after December 31, 2021.