SF 2848

as introduced - 88th Legislature (2013 - 2014) Posted on 03/24/2014 08:08am

A bill for an act
relating to taxation; modifying the internship credit; amending Minnesota
Statutes 2013 Supplement, section 136A.129, subdivisions 1, 3, 5.

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

Section 1.

Minnesota Statutes 2013 Supplement, section 136A.129, subdivision 1,
is amended to read:

Subdivision 1.

Definitions.

(a) For the purposes of this section, the terms defined in
this subdivision have the meanings given to them.

(b) "Eligible employer" means a taxpayer under section 290.01 with employees
located in greater Minnesota.

(c) "Eligible institution" means a Minnesota public postsecondary institution or
a Minnesota private, nonprofit, baccalaureate new text begin , or graduate new text end degree-granting college or
university.

(d) "Eligible student" means a student enrolled in an eligible institution who has
completed one-half of the credits necessary for the respective degree or certification new text begin ,
including a graduate degree new text end .

(e) "Greater Minnesota" means the area of the state outside of the counties of Anoka,
Carver, Chisago, Dakota, Hennepin, Isanti, Ramsey, Scott, Sherburne, Washington, and
Wright.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2013 Supplement, section 136A.129, subdivision 3, is
amended to read:

Subd. 3.

Program components.

(a) An intern must be an eligible student who has
been admitted to a major program that is related to the intern experience as determined
by the eligible institution.

(b) To participate in the program, an eligible institution must:

(1) enter into written agreements with eligible employers to provide internships that
are at least 12 weeks long and located in greater Minnesota;

(2) determine that the work experience of the internship is related to the eligible
student's course of study; and

(3) provide academic credit for the successful completion of the internship or ensure
that it fulfills requirements necessary to complete a vocational technical education program.

(c) To participate in the program, an eligible employer must enter into a written
agreement with an eligible institution specifying that the intern:

(1) would not have been hired without the tax credit described in subdivision 4;

(2) did not work for the employer in the same or a similar job prior to entering
the agreement;

(3) does not replace an existing employee;

(4) has not previously participated in the program;

(5) will be employed at a location in greater Minnesota;

(6) will be paid at least minimum wage for a minimum of 16 hours per week for a
period of at least deleted text begin 12 deleted text end new text begin eight new text end weeks; and

(7) will be supervised and evaluated by the employer.

(d) The written agreement between the eligible institution and the eligible employer
must certify a credit amount to the employer, not to exceed $2,000 per intern. The total
dollar amount of credits that an eligible institution certifies to eligible employers in a
calendar year may not exceed the amount of its allocation under subdivision 4.

(e) Participating eligible institutions and eligible employers must report annually to
the office. The report must include at least the following:

(1) the number of interns hired;

(2) the number of hours and weeks worked by interns; and

(3) the compensation paid to interns.

(f) An internship required to complete an academic program does not qualify for the
greater Minnesota internship program under this section.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

Minnesota Statutes 2013 Supplement, section 136A.129, subdivision 5, is
amended to read:

Subd. 5.

Reports to the legislature.

(a) By February 1, deleted text begin 2015 deleted text end new text begin 2016 new text end , the office
and the Department of Revenue shall report to the legislature on the greater Minnesota
internship program. The report must include at least the following:

(1) the number and dollar amount of credits allowed;

(2) the number of interns employed under the program; and

(3) the cost of administering the program.

(b) By February 1, deleted text begin 2016 deleted text end new text begin 2017 new text end , the office and the Department of Revenue shall
report to the legislature with an analysis of the effectiveness of the program in stimulating
businesses to hire interns and in assisting participating interns in finding permanent
career positions. This report must include the number of students who participated in the
program who were subsequently employed full-time by the employer.