HF 2925

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to individual income tax; providing a home care credit; 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] MINNESOTA HOME CARE 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 $....... for each month during the tax year that the
individual provided assistance with instrumental activities of daily living for a qualified
person, in either the individual's home or the qualifying person's home. The assistance
must be provided in Minnesota for the individual to claim the credit. The maximum
credit in a tax year is $........ The commissioner may require claimants to certify that the
claimant and the qualifying person meet the requirements of this section. An individual
may claim only one credit in any tax year and only one credit may be claimed for each
qualifying person in any tax year.
new text end

new text begin (b) For a nonresident or part-year resident, the credit must be allocated based on the
percentage calculated under section 290.06, subdivision 2c, paragraph (e).
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given them.
new text end

new text begin (b) "Qualifying person" means an individual who:
new text end

new text begin (1) is the parent, stepparent, sibling, stepsibling, spouse, child, or stepchild of the
taxpayer; and
new text end

new text begin (2) either (i) has been screened by a county preadmission screening team and
determined by that team to be eligible for placement in a nursing facility; or (ii) is
determined to be disabled by a state medical review team or the federal Social Security
Administration.
new text end

new text begin (c) "Instrumental activities of daily living" means activities such as preparation of
meals, light housekeeping, personal laundry, handling money, and using the telephone.
Instrumental activities of daily living are associated with independent living and necessary
to support activities of daily living, including eating, transferring, dressing, bathing,
toileting, and ambulation.
new text end

new text begin (d) "Income" means federal adjusted gross income as defined in section 62 of the
Internal Revenue Code.
new text end

new text begin Subd. 3. new text end

new text begin Limitations. new text end

new text begin (a) The credit is reduced to $....... for any month in which a
qualifying person receives more than four hours per day on average of state-funded or
county-funded home care services under section 144A.43, subdivision 3, including, but
not limited to, those funded under chapters 256B and 256L.
new text end

new text begin (b) The credit after the reduction in paragraph (a) is reduced $....... for each $....... of
income over a threshold, but in no case is the credit less than zero. For married couples
filing joint returns the threshold is $........ For single and head of household filers the
threshold is $........ For married couples filing separate returns the threshold is $........
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 that a claimant is eligible
to receive under this section 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 of revenue from the general fund.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for tax years beginning after
December 31, 2005.
new text end