HF 3307

as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; individual income and corporate 
  1.3             franchise; modifying the job training credit; 
  1.4             modifying the income limit for participants; 
  1.5             increasing authorized credit amounts; making the 
  1.6             credit permanent; amending Minnesota Statutes 1998, 
  1.7             section 290.0673, subdivisions 1, 2, 3, 4, and 5; 
  1.8             repealing Minnesota Statutes 1998, section 290.0673, 
  1.9             subdivision 8. 
  1.10  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.11     Section 1.  Minnesota Statutes 1998, section 290.0673, 
  1.12  subdivision 1, is amended to read: 
  1.13     Subdivision 1.  [CREDIT ALLOWED.] (a) A credit is allowed 
  1.14  against the tax imposed by section 290.06, subdivision 1, equal 
  1.15  to the sum of: 
  1.16     (1) placement fees paid to a job training program upon 
  1.17  hiring a qualified graduate of the program; and 
  1.18     (2) retention fees paid to a job training program for 
  1.19  retention of a qualified graduate of the program. 
  1.20     (b) The maximum placement fee qualifying for a credit under 
  1.21  this section is $8,000 per qualified graduate in the year 
  1.22  hired.  The maximum retention fee qualifying for a credit under 
  1.23  this section is $6,000 $12,000 per qualified graduate retained 
  1.24  as an employee per year.  Only retention fees paid in the second 
  1.25  and third years more than one year after the qualified graduate 
  1.26  is hired qualify for the credit. 
  1.27     (c) A credit is allowed only up to the dollar amount of 
  2.1   certificates, issued under subdivision 4, and provided by the 
  2.2   job training program to the taxpayer. 
  2.3      Sec. 2.  Minnesota Statutes 1998, section 290.0673, 
  2.4   subdivision 2, is amended to read: 
  2.5      Subd. 2.  [QUALIFIED JOB TRAINING PROGRAM.] (a) To qualify 
  2.6   for credits under this section, a job training program must 
  2.7   satisfy the following requirements: 
  2.8      (1) It must be operated by a nonprofit corporation that 
  2.9   qualifies under section 501(c)(3) of the Internal Revenue Code. 
  2.10     (2) The organization must spend at least $5,000 per 
  2.11  graduate of the program. 
  2.12     (3) The program must provide education and training in: 
  2.13     (i) basic skills, such as reading, writing, mathematics, 
  2.14  and communications; 
  2.15     (ii) thinking skills, such as reasoning, creative thinking, 
  2.16  decision making, and problem solving; and 
  2.17     (iii) personal qualities, such as responsibility, 
  2.18  self-esteem, self-management, honesty, and integrity. 
  2.19     (4) The program must provide income supplements, when 
  2.20  needed, to participants for housing, counseling, tuition, and 
  2.21  other basic needs. 
  2.22     (5) The education and training course must last for at 
  2.23  least six months. 
  2.24     (6) Individuals served by the program must: 
  2.25     (i) be 18 years old or older; 
  2.26     (ii) have had federal, in either of the last two years, 
  2.27  adjusted gross income of no more than $15,000 per year in the 
  2.28  last two years; the maximum income of a very low-income family, 
  2.29  as that term is defined for purposes of public housing in United 
  2.30  States Code, title 42, section 1437a, subsection (b), for a 
  2.31  single individual; and 
  2.32     (iii) have assets of no more than $7,000 the asset limit 
  2.33  under paragraph (c), excluding the value of a homestead; and 
  2.34     (iv) not have been claimed as a dependent on the federal 
  2.35  tax return of another person in the previous taxable year. 
  2.36     (7) The program must charge placement and retention fees 
  3.1   that cumulatively exceed the amount of credit certificates 
  3.2   provided to the employer by at least 20 15 percent. 
  3.3      (b) The program must be certified by the commissioner of 
  3.4   children, families, and learning as meeting the requirements of 
  3.5   this subdivision. 
  3.6      (c) The asset limit for the program is $7,000 for calendar 
  3.7   years beginning before December 31, 2000.  The asset limit for a 
  3.8   calendar year beginning after December 31, 2000, is indexed for 
  3.9   inflation under the following formula: 
  3.10     $7,000 X (1 +((ci - bi)/bi)) 
  3.11     where ci equals the maximum income for a low-income family, 
  3.12  as that term is defined for the purposes of public housing in 
  3.13  United States Code, title 42, section 1437a, subsection (b), for 
  3.14  a single individual for the immediately previous calendar year; 
  3.15  and 
  3.16     where bi equals the same maximum income measure for 
  3.17  calendar year 1999. 
  3.18     Sec. 3.  Minnesota Statutes 1998, section 290.0673, 
  3.19  subdivision 3, is amended to read: 
  3.20     Subd. 3.  [QUALIFIED GRADUATE.] A qualified graduate is a 
  3.21  graduate of a job training program qualifying under subdivision 
  3.22  1, who is placed in a job in Minnesota that pays at least $9 per 
  3.23  hour or its equivalent.  To qualify for a credit under this 
  3.24  section for a retention fee, a job in which the graduate is 
  3.25  retained must pay at least $10 per hour at the end for the first 
  3.26  and second years year of employment and the annualized wages of 
  3.27  the job must exceed by 25 percent or more the graduate's 
  3.28  earnings in the year preceding the graduate's enrollment in the 
  3.29  job training program.  A business, other than the business that 
  3.30  originally hired the graduate, may pay a retention fee for the 
  3.31  graduate and qualify for the credit. 
  3.32     Sec. 4.  Minnesota Statutes 1998, section 290.0673, 
  3.33  subdivision 4, is amended to read: 
  3.34     Subd. 4.  [DUTIES OF PROGRAM.] (a) Each program certified 
  3.35  by the commissioner of children, families, and learning under 
  3.36  subdivision 2 must comply with the requirements of this 
  4.1   subdivision. 
  4.2      (b) Each program must maintain records for each graduate 
  4.3   for which the program provides a credit certificate to an 
  4.4   employer.  These records must include information sufficient to 
  4.5   verify the graduate's eligibility under this section, identify 
  4.6   the employer, describe the job including its compensation rate 
  4.7   and benefits, and determine the amount of placement and 
  4.8   retention fees received. 
  4.9      (c) Each program must report to the commissioner of 
  4.10  children, families, and learning by January 1, 1999, and by 
  4.11  January 1, 2001 of each odd-numbered year, on its use of the 
  4.12  credit.  Each report must include, at least, information on: 
  4.13     (1) the number of graduates placed; 
  4.14     (2) demographic information on the graduates; 
  4.15     (3) the types of position in which each graduate is placed, 
  4.16  including compensation information; 
  4.17     (4) the tenure of each graduate at the placed position or 
  4.18  in other jobs; 
  4.19     (5) the amount of employer fees paid to the program; 
  4.20     (6) the amount of money raised by the program from other 
  4.21  sources; and 
  4.22     (7) the types and sizes of employers with which graduates 
  4.23  have been placed and retained. 
  4.24     (d) The commissioner of children, families, and learning 
  4.25  shall compile and summarize this information and report to the 
  4.26  legislature by February 15, 1999, and February 15, 2001 of each 
  4.27  odd-numbered year.  
  4.28     Sec. 5.  Minnesota Statutes 1998, section 290.0673, 
  4.29  subdivision 5, is amended to read: 
  4.30     Subd. 5.  [ISSUANCE OF CREDIT CERTIFICATES.] (a) The total 
  4.31  amount of credits under this section is limited to 
  4.32  $1,200,000 $9,000,000 for taxable years beginning after December 
  4.33  31, 1996, and before January 1, 2002 2007.  The commissioner of 
  4.34  children, families, and learning may issue under paragraph (b) 
  4.35  no more than the specified amount of certificates for taxable 
  4.36  years beginning during each calendar year: 
  5.1          1997            $100,000
  5.2          1998            $200,000
  5.3          1999            $300,000
  5.4          2000            $300,000
  5.5          2001            $300,000 $600,000
  5.6          2002            $900,000
  5.7          2003            $1,100,000
  5.8          2004            $1,500,000
  5.9          2005            $1,800,000
  5.10         2006            $2,200,000
  5.11     For taxable years beginning after December 31, 2006, a 
  5.12  limit of $2,200,000 applies to each taxable year and the 
  5.13  commissioner of children, families, and learning may issue no 
  5.14  more than $2,200,000 certificates under paragraph (b) for a 
  5.15  taxable year. 
  5.16     Unused certificates for a taxable year carry over and may 
  5.17  be used for a later taxable year, regardless of when issued by 
  5.18  the commissioner of children, families, and learning. 
  5.19     (b) Upon application, the commissioner of children, 
  5.20  families, and learning shall issue certificates to job training 
  5.21  programs, certified under subdivision 2, up to the dollar amount 
  5.22  available for the taxable year.  The certificates must be in a 
  5.23  dollar amount that is no greater than the dollar amount applied 
  5.24  for, and reflects the commissioner of children, families, and 
  5.25  learning's estimate of the job training program's projected fees 
  5.26  for placements and retentions of qualifying graduates.  The 
  5.27  commissioner of children, families, and learning shall issue the 
  5.28  certificates in the order in which applications are received 
  5.29  until the available authority has been issued. 
  5.30     (c) To the extent available, the job training program must 
  5.31  provide to employers of its qualified graduates certificates 
  5.32  issued by the commissioner of children, families, and learning 
  5.33  under this subdivision. 
  5.34     Sec. 6.  [REPEALER.] 
  5.35     Minnesota Statutes 1998, section 290.0673, subdivision 8, 
  5.36  is repealed. 
  6.1      Sec. 7.  [EFFECTIVE DATE.] 
  6.2      Sections 1 to 6 are effective for taxable years beginning 
  6.3   after December 31, 1999.