Resource: Renewable Energy Minnesota Sales Tax Incentive
Title: Renewable Energy Minnesota Sales Tax Incentive
Resource type: Program/project
Topics: Buildings, Business, Energy, Individual Choices
Keywords: tax, sales tax, incentive, renewable energy, solar
Audience: All
Region: Minnesota Statewide
Summary: The state tax bill passed by the 2005 Minnesota Legislature extended and expanded the sales tax exemption for the purchase of solar energy products.
Content: The state tax bill passed in the 2005 Minnesota Legislature makes it cheaper for homeowners, community leaders and builders to incorporate solar energy into their neighborhoods. Provisions are:

* Preservation of the solar sales tax exemption for purchase of photovoltaic panels and building-integrated solar electric products, which was due to sunset. For this and other solar incentives in MN, see http://dsireusa.org/incentives/index.cfm?re=1&ee=1&spv=0&st=0&srp=1&state=MN

* Expansion of the exemption to cover other components of a solar electric installation such as inverters, piping, wiring, racks, and batteries.

* Expansion of the exemption to solar thermal applications (solar hot water systems).

Worldwide, the solar energy market has recently been growing at more than 30% per year, and production costs continue to decline an average of 5% annually. Solar energy has one of the highest job intensities per unit of output of any energy technology, and thus has huge benefits to the local economies that adopt them. In addition to jobs from the contractors that install systems, the Minnesota economy is projected to benefit from an expanding solar energy manufacturing industry including growth in such areas as semiconductors, plastic films, electronic equipment, instrument measuring, switchgear and switchboard apparatus, wiring, storage batteries, sheet metal, and flat glass.

Suggested by: Philipp Muessig
Added: 08/3/05
Updated: 07/27/11