SF 2499

as introduced - 88th Legislature (2013 - 2014) Posted on 03/11/2014 09:51am

A bill for an act
relating to taxation; individual income; conforming to the federal extension of
allowable qualified student loan interest; amending Minnesota Statutes 2013
Supplement, section 290.01, subdivision 19.

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

Section 1.

Minnesota Statutes 2013 Supplement, section 290.01, subdivision 19,
is amended to read:

Subd. 19.

Net income.

The term "net income" means the federal taxable income,
as defined in section 63 of the Internal Revenue Code of 1986, as amended through the
date named in this subdivision, incorporating the federal effective dates of changes to the
Internal Revenue Code and any elections made by the taxpayer in accordance with the
Internal Revenue Code in determining federal taxable income for federal income tax
purposes, and with the modifications provided in subdivisions 19a to 19f.

In the case of a regulated investment company or a fund thereof, as defined in section
851(a) or 851(g) of the Internal Revenue Code, federal taxable income means investment
company taxable income as defined in section 852(b)(2) of the Internal Revenue Code,
except that:

(1) the exclusion of net capital gain provided in section 852(b)(2)(A) of the Internal
Revenue Code does not apply;

(2) the deduction for dividends paid under section 852(b)(2)(D) of the Internal
Revenue Code must be applied by allowing a deduction for capital gain dividends and
exempt-interest dividends as defined in sections 852(b)(3)(C) and 852(b)(5) of the Internal
Revenue Code; and

(3) the deduction for dividends paid must also be applied in the amount of any
undistributed capital gains which the regulated investment company elects to have treated
as provided in section 852(b)(3)(D) of the Internal Revenue Code.

The net income of a real estate investment trust as defined and limited by section
856(a), (b), and (c) of the Internal Revenue Code means the real estate investment trust
taxable income as defined in section 857(b)(2) of the Internal Revenue Code.

The net income of a designated settlement fund as defined in section 468B(d) of
the Internal Revenue Code means the gross income as defined in section 468B(b) of the
Internal Revenue Code.

The Internal Revenue Code of 1986, as amended through April 14, 2011, shall be in
effect for taxable years beginning after December 31, 1996, and before January 1, 2012,
and for taxable years beginning after December 31, 2012. The Internal Revenue Code of
1986, as amended through January 3, 2013, is in effect for taxable years beginning after
December 31, 2011, and before January 1, 2013.

The provisions of sections 315 and 331 of the American Taxpayer Relief Act of
2012, Public Law 112-240, extension of increased expensing limitations and treatment
of certain real property as section 179 property and extension and modification of bonus
depreciation, are effective at the same time they become effective for federal purposes.

new text begin Section 221 of the Internal Revenue Code, as amended through January 3, 2013,
allowing the above-the-line deduction for qualified student loan interest, is effective for
taxable years beginning after December 31, 2013.
new text end

Except as otherwise provided, references to the Internal Revenue Code in
subdivisions 19 to 19f mean the code in effect for purposes of determining net income for
the applicable year.