HF 2550

as introduced - 89th Legislature (2015 - 2016) Posted on 03/08/2016 04:10pm

A bill for an act
relating to taxes; individual income and corporate franchise; providing a tax
credit to employers that employ qualified veterans under age 35; amending
Minnesota Statutes 2014, section 290.06, by adding a subdivision.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2014, section 290.06, is amended by adding a
subdivision to read:

new text begin Subd. 37. new text end

new text begin Employment of qualified veteran tax credit. new text end

new text begin (a) For taxable years
beginning after December 31, 2015, a taxpayer is allowed a credit against the tax imposed
under this chapter for employment of one or more qualified veterans who had not attained
the age of 35 on the day the veteran began working for the employer.
new text end

new text begin (b) "Qualified veteran" has the meaning given in section 51 of the Internal Revenue
Code.
new text end

new text begin (c) The credit equals the credit allowed under section 51 of the Internal Revenue
Code without regard to the limitation to federal liability, but is limited to the portion of the
federal credit allowed for employment of qualified veterans in Minnesota, and is limited
to employment of qualified veterans who had not attained the age of 35 on the day the
veteran began working for the employer.
new text end

new text begin (d) The credit under this subdivision is in effect without regard to whether or not the
credit allowed under section 51 of the Internal Revenue Code is allowed for wages paid
during the taxable year.
new text end

new text begin (e) If the amount of the credit determined under this section exceeds the liability for
tax under this chapter, the excess may be carried forward to each of the next ten taxable
years. The entire amount of the excess unused credit for the taxable year shall be carried
first to the earliest of the taxable years to which the credit may be carried, and then to each
successive year to which the credit may be carried. The amount of the unused credit which
may be added under this paragraph shall not exceed the taxpayer's liability for tax less the
credit under this section for the taxable year.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2015.
new text end

Sec. 2. new text begin PURPOSE STATEMENT; TAX EXPENDITURES.
new text end

new text begin Subdivision 1. new text end

new text begin Authority. new text end

new text begin This section is intended to fulfill the requirement under
Minnesota Statutes, section 3.192, that a bill creating, renewing, or continuing a tax
expenditure provide a purpose for the tax expenditure and a standard or goal against
which its effectiveness may be measured.
new text end

new text begin Subd. 2. new text end

new text begin Employment of qualified veteran tax credit. new text end

new text begin The provisions of section 1,
providing a tax credit for the employment of qualified veterans, are intended to give an
incentive to employers to hire returning veterans under the age of 35 who would otherwise
be unemployed and to encourage their reintegration into the community. The standard
against which the effectiveness of the credit is to be measured is the number of veterans
under the age of 35 who are hired under the tax credit.
new text end