HF 687

as introduced - 87th Legislature (2011 - 2012) Posted on 02/24/2011 10:31am

A bill for an act
relating to taxes; providing a refundable credit for reemployment of certain
members of the military; appropriating money; proposing coding for new law in
Minnesota Statutes, chapter 290.

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

Section 1.

new text begin [290.0682] MILITARY REEMPLOYMENT CREDIT.
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new text begin Subdivision 1. new text end

new text begin Credit allowed. new text end

new text begin An employer who employs fewer than 100
employees in Minnesota during the taxable year is allowed a credit against the tax imposed
under this chapter equal to $10,000 for each eligible employee who returns to employment
during the taxable year. An employer may not claim more than one credit for any one
eligible employee in a taxable year.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given.
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new text begin (b) "Employer" means:
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new text begin (1) all persons employing others and all persons acting in the interest of an
employer; and
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new text begin (2) a self-employed individual, as defined in section 401(c)(1)(B) of the Internal
Revenue Code, who meets the requirements for an eligible employee, but does not include:
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new text begin (i) the federal government;
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new text begin (ii) the state, or any political or governmental subdivision of the state; or
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new text begin (iii) the University of Minnesota.
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new text begin (c) "Eligible employee" means an individual who, as a member of the Minnesota
National Guard or other reserve component of the United States armed forces, was ordered
under United States Code, title 10, into federal active service, as defined under section
190.05, subdivision 5c, for a period of 90 days or more, reported for and performed such
federal active military service, and was separated or discharged from such service, as
shown by the person's United States Department of Defense form DD-214 or other official
military discharge papers. An eligible employee must also have either:
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new text begin (1) been employed in a USERRA-eligible job or position at the time the individual
was ordered into active service, and complied in every way with the requirements of
USERRA for:
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new text begin (i) providing advance written or verbal notice to the individual's civilian employer,
prior to leaving the civilian job for military training or service, except when precluded by
military necessity;
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new text begin (ii) not exceeding the five-year cumulative limit on periods of service;
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new text begin (iii) being released from military service under conditions other than dishonorable;
and
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new text begin (iv) reporting back to the person's civilian job in a timely manner or submitting a
timely application for reemployment; or
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new text begin (2) in the case of a self-employed individual, resumed active management and
operation of the individual's business.
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new text begin (d) "USERRA" means the Uniformed Services Employment and Reemployment
Rights Act of 2004, codified as United States Code, title 38, at chapter 43 (sections 4301
through 4333).
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new text begin (e) "USERRA-eligible job or position" means a job or position that is eligible for
protection under USERRA.
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new text begin Subd. 3. new text end

new text begin Credit refundable. new text end

new text begin If the amount of credit that an employer is eligible
to receive under this section exceeds the liability for tax under this chapter, or if the
employer is not subject to tax under this chapter, the commissioner shall refund the excess
to the taxpayer.
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new text begin Subd. 4. new text end

new text begin Appropriation. new text end

new text begin An amount sufficient to pay the refunds authorized under
this section is appropriated to the commissioner from the general fund.
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new text begin Subd. 5. new text end

new text begin Credit revocable. new text end

new text begin If an employer who received a credit under this section
is at any time found in violation of USERRA reemployment requirements with regard to
an eligible employee for whom the credit was claimed, the credit is revoked and subject
to repayment.
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new text begin Subd. 6. new text end

new text begin Manner of claiming. new text end

new text begin (a) The commissioner shall prescribe the manner in
which the credit may be issued or claimed. This may include allowing the credit only as
a separately processed claim for refund.
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new text begin (b) The claim must include:
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new text begin (1) information from the eligible employee's DD-214 form documenting release
from military service;
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new text begin (2) disclosure that a claim meeting the requirements of the law results in payment of
a $10,000 tax credit to the employer; and
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new text begin (3) the signature of the eligible employee attesting to satisfactory return to civilian
employment.
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new text begin (c) The claim must state that the employee has protections of the USERRA regarding
reemployment, irrespective of whether or not the employee chooses to sign the claim.
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new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2010.
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