SF 1119

This bill amends Minnesota's tax code to add Nuclear Decommissioning Reserve Funds (as defined in Internal Revenue Code section 468A) to the list of entities exempt from state income taxation. These funds are specialized trusts that nuclear power plant operators are required to establish to accumulate money for the eventual decommissioning and cleanup of nuclear facilities. By granting tax-exempt status to these reserve funds, the bill ensures that investment earnings within these funds can grow tax-free at the state level, allowing more resources to accumulate for the costly process of safely decommissioning nuclear plants when they cease operations. The exemption would apply retroactively to taxable years beginning after December 31, 2022.