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Tax Exemptions

Minnesota Renewable Energy Tax Exemptions


General

The Database of Efficiency and Renewable Energy Incentives is a comprehensive source of information on state, local, utility and federal incentives for renewable energy and energy efficiency. 

Solar


Excludes the value added by solar-electric (PV) systems from real property taxation. The land on which a PV system is located remains taxable. Learn more about this exemption. 

Solar-energy systems purchased in Minnesota are exempt from the state sales tax. This applies to solar energy systems where the primary purpose is to collect solar energy and convert and store it for useful purposes including heating and cooling buildings. Learn more about this exemption.

Wind


All real and personal property of wind-energy systems is exempt from the state's property tax. The land on which a wind system is located remains taxable. Learn more about this exemption. 

Wind-energy conversion systems used as electric-power sources are exempt from state sales tax. Materials used to manufacture, install, construct, repair or replace wind-energy systems also are exempt from the state sales tax.

Minnesota generally conforms to the federal MACRS depreciation system. The table in this document shows the Modified Accelerated Cost Recovery System (MACRS) for five-year property. More information here.

Hydrogen


Hydrogen used to power an internal combustion engine or fuel cell is exempt from the sales and use tax.