HF 1158

as introduced - 90th Legislature (2017 - 2018) Posted on 03/01/2017 03:38pm

A bill for an act
relating to taxation; individual income; allowing a subtraction for Medicare part
B premiums; amending Minnesota Statutes 2016, section 290.0132, by adding a
subdivision.

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

Section 1.

Minnesota Statutes 2016, section 290.0132, is amended by adding a subdivision
to read:

new text begin Subd. 23. new text end

new text begin Medicare part B premiums. new text end

new text begin (a) The amount paid in Medicare part B premiums
is a subtraction.
new text end

new text begin (b) For a taxpayer deducting medical expenses under section 213 of the Internal Revenue
Code, the subtraction under this subdivision is limited to the lesser of:
new text end

new text begin (1) ten percent of adjusted gross income, as defined in section 62 of the Internal Revenue
Code; or
new text end

new text begin (2) the amount paid in Medicare part B premiums.
new text end

new text begin (c) The subtraction amount determined under paragraph (b) is not considered to have
been deducted in computing federal taxable income.
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, 2016.
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 is measured.
new text end

new text begin Subd. 2. new text end

new text begin Medicare part B subtraction. new text end

new text begin The provisions of section 1, providing an income
tax subtraction for Medicare part B premiums, are intended to reduce health care costs for
senior citizens.
new text end