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HF 2067

as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 01:57am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to taxation; allowing a credit for employers who employ qualified
ex-felons; amending Minnesota Statutes 2008, section 290.06, by adding a
subdivision.

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

Section 1.

Minnesota Statutes 2008, section 290.06, is amended by adding a
subdivision to read:


new text begin Subd. 36. new text end

new text begin Work opportunity credit; ex-felons. new text end

new text begin (a) A qualified taxpayer is allowed
a credit against the tax imposed under this chapter for the employment of a qualified
ex-felon. The credit equals 30 percent of the qualified first-year wages paid to a qualified
ex-felon and 20 percent of the qualified second-year wages paid to a qualified ex-felon.
new text end

new text begin (b) For purposes of this section, the following terms have the meanings given:
new text end

new text begin (1) "qualified ex-felon" has the meaning given in section 51(d) of the Internal
Revenue Code;
new text end

new text begin (2) "qualified first-year wages" has the meaning given in section 51(b) of the Internal
Revenue Code, except that the $6,000 limitation is increased to $9,000;
new text end

new text begin (3) "qualified second-year wages" means wages, as defined in section 51(c) of the
Internal Revenue Code, paid to the qualified ex-felon for the one-year period beginning
immediately after the period covered by qualified first-year wages, but not to exceed a
maximum amount of $9,000; and
new text end

new text begin (4) "qualified taxpayer" means a corporation or individual that qualified for the
federal work opportunity credit under section 51 of the Internal Revenue Code for
employing the qualified ex-felon during the taxable year or during the prior taxable year,
in the case of qualified second-year wages.
new text end

new text begin (c) The credit is limited to the liability for tax under this section for the taxable year.
new text end

new text begin (d) If the amount of the credit under this subdivision for any taxable year exceeds
the limitations under paragraph (c), the excess is a credit carryover to each of the three
succeeding taxable years. The entire amount of the excess unused credit for the taxable
year must be carried first to the earliest of the taxable years to which the credit may be
carried. The amount of the unused credit that may be added under this paragraph may not
exceed the taxpayer's liability for tax, less the credit for the taxable year.
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, 2008.
new text end