Pollution control business surcharge imposed.

HF 1635 imposes a 5% pollution control surcharge on the "net pollution control income" of businesses and individuals with certified pollution violations. It directly affects entities that the Minnesota Pollution Control Agency (MPCA) has certified as having at least one unresolved pollution control violation (e.g., violations of environmental laws or permits). The bill requires the MPCA to notify violators of required remedial actions; if violations remain unresolved, the MPCA issues a delinquency notice and certifies the entity to the tax commissioner by January 31 each year. The surcharge applies to taxable income from the pollution control business for the year the delinquency notice is issued, effective for tax years beginning after December 31, 2025.