HF 420

1st Engrossment - 89th Legislature (2015 - 2016) Posted on 04/07/2015 12:25pm

A bill for an act
relating to taxation; individual income; providing a credit for new STEM and
long-term care employees; 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] CREDIT FOR NEW STEM AND LONG-TERM CARE
EMPLOYEES.
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new text begin Subdivision 1. 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) "Economic development region" means any of the development regions defined
in section 462.385.
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new text begin (c) "Eligible individual" means an individual who:
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new text begin (1) graduated from a postsecondary educational institution with a qualifying degree;
and
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new text begin (2) began employment after June 30, 2015, in a qualified position in a qualified
economic development region with an employer with a primary business activity in a
qualified field, except that the employment must be in a qualified field in which the job
vacancy rate for the qualified economic development region is greater than 110 percent of
the statewide average. In the case of a qualified position under Standard Occupational
Classification (SOC) code 29-0000 or SOC code 31-0000, the employer must have a
primary business activity in the qualified field of long-term care.
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new text begin (d) "Maximum qualifying amount" means the allowance for tuition and fees set
in law as required under section 136A.121, subdivision 6, for the calendar year in
which the eligible individual obtained the qualifying degree. For an eligible individual
with a qualifying degree from a two-year postsecondary educational institution, the
maximum qualifying amount equals the allowance for tuition and fees specified for
a two-year institution, and for an eligible individual with a qualifying degree from a
four-year postsecondary educational institution, the maximum qualifying amount equals
the allowance for tuition and fees specified for a four-year institution. For an individual
who obtained a qualifying degree before 2003, the maximum qualifying amount is the
amount under this paragraph for an individual who completed a qualifying degree in 2003.
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new text begin (e) "Qualifying degree" means a two- or four-year degree from an accredited
postsecondary educational institution in one of the following fields:
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new text begin (1) science;
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new text begin (2) technology;
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new text begin (3) engineering;
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new text begin (4) mathematics; or
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new text begin (5) medicine.
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new text begin (f) "Qualified economic development region" means an economic development
region in which the average number of job vacancies per capita in qualified fields for the
second and fourth quarters of the preceding calendar year exceeds by ten percent or more
the statewide average number of job vacancies per capita in qualified fields for the second
and fourth quarters of the preceding calendar year, as determined by the commissioner of
employment and economic development based on data reported in the Job Vacancy Survey.
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new text begin (g) "Qualified field" means any one of the fields of science, technology, engineering,
mathematics, or long-term care.
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new text begin (h) "Qualified position" means a position in one of the following SOC codes:
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new text begin (1) SOC code 15-0000, computer and mathematical occupations;
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new text begin (2) SOC code 17-0000, architecture and engineering occupations;
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new text begin (3) SOC code 19-0000, life, physical, and social science occupations;
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new text begin (4) SOC code 29-0000, health care practitioners and technical occupations; and
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new text begin (5) SOC code 31-0000, health care support occupations.
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new text begin (i) "Standard Occupational Classification" or "SOC" means the 2010 Standard
Occupational Classification adopted by the United States Bureau of Labor Statistics.
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new text begin Subd. 2. new text end

new text begin Credit allowed. new text end

new text begin An eligible individual is allowed a credit against the tax
imposed under this chapter equal to 50 percent of the maximum qualifying amount. The
maximum credit allowed in a taxable year is $5,000 for eligible individuals with four-year
degrees, and $2,500 for eligible individuals with two-year degrees. An individual may
claim the credit under this section in the taxable year in which the individual first becomes
eligible and in each of the four following taxable years, provided that the individual
remains employed in a qualified position in a qualified field in the economic development
region where the individual first became eligible for the credit.
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new text begin Subd. 3. new text end

new text begin Determination of qualified economic development regions. new text end

new text begin On or before
July 1, 2015, the commissioner of employment and economic development must identify
qualified economic development regions for taxable years beginning in 2015, based on
job vacancy data for calendar year 2014. On or before February 15 of each subsequent
year, the commissioner of employment and economic development must identify qualified
economic development regions for the current taxable year, based on job vacancy data for
each qualified field for the previous calendar year. The commissioner of employment and
economic development must make the list of qualified economic development regions,
including for each qualified economic development region a listing of the qualified field or
fields that meet the job vacancy parameters in subdivision 1, paragraph (g), available on
the department Web site and must share the list with the commissioner of revenue, who
also must make the list available on the department Web site.
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new text begin Subd. 4. new text end

new text begin Credit refundable. new text end

new text begin If the amount of the credit under this section for any
taxable year exceeds the claimant's liability for tax under this chapter, the commissioner
shall refund the excess to the claimant. An amount sufficient to pay the refunds required
by this section is appropriated to the commissioner from the general fund.
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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, 2014.
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