HF 1341

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to taxation; income; allowing a refundable credit for adoption expenses;
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 [290.0678] ADOPTION CREDIT.
new text end

new text begin Subdivision 1. new text end

new text begin Credit allowed. new text end

new text begin (a) An individual is allowed a credit against the tax
imposed by this chapter equal to the amount of Minnesota qualified adoption expenses.
new text end

new text begin (b) Minnesota qualified adoption expenses for an eligible child who is not a child
with special needs equal 50 percent of the following amounts paid or incurred:
new text end

new text begin (1) the total qualified adoption expenses under section 23 of the Internal Revenue
Code, determined using twice the dollar limitation under section 23(b)(1) of the Internal
Revenue Code; minus
new text end

new text begin (2) the amount of the federal credit allowed under section 23 of the Internal Revenue
Code, determined without regard to the limitation based on the amount of tax under
section 23(b)(4) of the Internal Revenue Code; and minus
new text end

new text begin (3) the amount of the reduction of the federal credit under the income limitation
under section 23(b)(2) of the Internal Revenue Code.
new text end

new text begin (c) Minnesota qualified adoption expenses for a child with special needs equals the
greater of the following amounts:
new text end

new text begin (1) the amount determined under paragraph (b), but substituting a credit rate of
100 percent; or
new text end

new text begin (2) one-half of the federal dollar limitation under section 23(b)(1) of the Internal
Revenue Code, determined regardless of the expenses paid.
new text end

new text begin Subd. 2. new text end

new text begin Federal definitions; limitations. new text end

new text begin Unless otherwise specifically provided,
the definitions under section 23(d) of the Internal Revenue Code and the limitations on
allowable expenses under sections 23(b)(3) and 23(e) of the Internal Revenue Code apply
in determining the credit under this section.
new text end

new text begin Subd. 3. new text end

new text begin Taxable years. new text end

new text begin For purposes of calculating the credit under this section,
expenses and credits are allowed in the same taxable year as allowed under the federal
credit under section 23(a)(2) of the Internal Revenue Code.
new text end

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 exceeds the claimant's tax
liability under this chapter, the commissioner shall refund the excess to the claimant.
new text end

new text begin Subd. 5. new text end

new text begin Appropriation. new text end

new text begin An amount sufficient to pay the refunds required by this
section is appropriated to the commissioner from the general fund.
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, 2006.
new text end