Solar Energy Sales Tax Exemption

Last updated: July 17, 2019

Program Overview

Implementing Sector:State
Category:Financial Incentive
State:Minnesota
Incentive Type:Sales Tax Incentive
Administrator:Department of Revenue
Eligible Renewable/Other Technologies:Solar Water Heat, Solar Space Heat, Solar Thermal Electric, Solar Thermal Process Heat, Solar Photovoltaics, Solar Pool Heating
Incentive Amount:100% exemption
Maximum Incentive:None

Authorities

Name:Minn. Stat. § 297A.67, Subd. 29
Date Enacted:07/13/2005
Effective Date:08/01/2005

Incentives

Technologies:Solar Water Heat, Solar Space Heat, Solar Thermal Electric, Solar Thermal Process Heat, Solar Photovoltaics, Solar Pool Heating
Sectors:Commercial, Industrial, Residential
Parameters:The incentive is 100.00 %

Summary

In Minnesota, solar-energy systems purchased on or after August 1, 2005, are exempt from the state's sales tax. Solar energy systems are defined as:

"a set of devices whose primary purpose is to collect solar energy and convert and store it for useful purposes including heating and cooling buildings or other energy-using processes, or to produce generated power by means of any combination of collecting, transferring, or converting solar-generated energy." M.S. 297A.67, subd. 29.

Thus the exemption is very broad and could apply to solar Photovoltaic (PV) systems, solar water-heating systems and solar space-heating systems. All components of these systems are exempt, including panels, wiring, pipes, pumps and racks. Buyers must complete Minnesota Department of Revenue Form ST3 "Certificate of Exemption" in order to claim the exemption. Sellers are required to keep the form in their files for tax reference. This incentive has no expiration date.

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