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HF 370

A bill for an act establishing a solar installation tax credit available against the individual and corporate income taxes, the moneys and credits tax, and the franchise tax, and including effective date and retroactive applicability provisions.

2025-2026 Regular Session Introduced by Eric Gjerde

Bill HF 370 offers tax credits for solar installations, promoting renewable energy adoption by providing financial incentives for individuals and businesses investing in solar.

Introduced, referred to Commerce.
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Bill Summary · HF 370

Summary of Bill HF 370

Purpose and Intent

Bill HF 370 aims to establish a tax credit for solar installations applicable against various state taxes, including individual and corporate income taxes, the moneys and credits tax, and the franchise tax. The intent of this legislation is to promote the adoption of solar energy systems by providing financial incentives to taxpayers who invest in solar technology.

Key Provisions

  • Tax Credit Eligibility: Taxpayers must submit an application for each separate and distinct solar installation to the relevant department. Approval of the application is required to claim the tax credit.

  • Application Deadline: Applications must be filed by May 1 of the year following the installation of the solar energy system.

  • First-Come, First-Served Basis: The department will approve applications on a first-come, first-served basis until the maximum amount of tax credits is reached.

  • Wait List: If the total amount of tax credits applied for exceeds the available amount, a wait list will be established for valid applications. Applicants on the wait list will receive priority in subsequent years.

  • Cumulative Tax Credit Limit: The total value of tax credits claimed annually will not exceed $5 million. Of this amount, at least $1 million is reserved specifically for residential solar energy system installations. If the residential claims do not reach this threshold, the remaining funds will be available for nonresidential installations.

Affected Parties

  • Taxpayers: Individuals and corporations investing in solar energy systems will benefit from the tax credits.
  • Solar Energy Installers: Companies involved in the installation of solar energy systems may see increased business due to the financial incentives provided by this bill.
  • State Revenue: The state will need to manage the distribution of tax credits, which could impact overall tax revenue.

Procedural Aspects

  • Introduced Date: The bill was introduced on February 13, 2025.
  • Current Status: As of now, the bill has been referred to the Commerce Committee for further consideration.

Conclusion

HF 370 represents a significant step towards encouraging the use of renewable energy sources in the state by providing a structured tax credit system for solar installations. By establishing clear guidelines for application and approval, the bill aims to facilitate the growth of solar energy adoption while ensuring that the benefits are distributed fairly among residential and nonresidential applicants.

Compiled from official sources — confirm details with the bill’s official record.

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