Solar-Electric (PV) Sales Tax Exemption

Summary

In Minnesota, certain energy-efficient products (including PV systems) are exempt from the state sales tax. This exemption includes residential lighting fixtures and compact fluorescent bulbs that carry the Energy Star label, electric heat-pump hot-water heaters with an energy factor of at least 1.9, natural-gas hot-water heaters with an energy factor of at least 0.62, and photovoltaic devices and natural gas furnaces with a fuel efficiency rating of at least 0.92. Under the legislation, "photovoltaic device" means a solid-state electrical device, such as a solar module, that converts light directly into direct current electricity. A "solar module" is a photovoltaic device that produces a specified power output under defined test conditions, usually composed of groups of solar cells connected in series, in parallel or in series-parallel combinations. The exemption is effective for sales and purchases made after July 31, 2001, and before August 1, 2005.