Solar-Electric (PV) Sales Tax Exemption

August 01, 2005


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.

Program Overview

Implementing Sector: State
Category: Financial Incentive
State: Minnesota
Incentive Type: Sales Tax Incentive
Web Site:
Start Date: 8/1/01
Eligible Renewable/Other Technologies:
  • Solar Photovoltaics
Incentive Amount: All
Maximum Incentive: None


Name: Minn. Stat. § 297A.67 (29c)
Date Enacted: 8/1/01
Effective Date: 8/1/01
Expiration Date: 7/31/05


Name: Energy Information Center
Organization: Minnesota Department of Commerce
Address: 85 7th Place East
St. Paul MN 55101-2198
Phone: (800) 657-3710

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.