HF 3473

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

A bill for an act
relating to taxes; providing for certain mortgage tax forgiveness; amending
Minnesota Statutes 2007 Supplement, sections 290.01, subdivisions 19, 31;
290A.03, subdivision 15.

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

Section 1.

Minnesota Statutes 2007 Supplement, section 290.01, subdivision 19,
is amended to read:

Subd. 19.

Net income.

The term "net income" means the federal taxable income,
as defined in section 63 of the Internal Revenue Code of 1986, as amended through the
date named in this subdivision, incorporating the federal effective dates of changes to the
Internal Revenue Code and any elections made by the taxpayer in accordance with the
Internal Revenue Code in determining federal taxable income for federal income tax
purposes, and with the modifications provided in subdivisions 19a to 19f.

In the case of a regulated investment company or a fund thereof, as defined in section
851(a) or 851(g) of the Internal Revenue Code, federal taxable income means investment
company taxable income as defined in section 852(b)(2) of the Internal Revenue Code,
except that:

(1) the exclusion of net capital gain provided in section 852(b)(2)(A) of the Internal
Revenue Code does not apply;

(2) the deduction for dividends paid under section 852(b)(2)(D) of the Internal
Revenue Code must be applied by allowing a deduction for capital gain dividends and
exempt-interest dividends as defined in sections 852(b)(3)(C) and 852(b)(5) of the Internal
Revenue Code; and

(3) the deduction for dividends paid must also be applied in the amount of any
undistributed capital gains which the regulated investment company elects to have treated
as provided in section 852(b)(3)(D) of the Internal Revenue Code.

The net income of a real estate investment trust as defined and limited by section
856(a), (b), and (c) of the Internal Revenue Code means the real estate investment trust
taxable income as defined in section 857(b)(2) of the Internal Revenue Code.

The net income of a designated settlement fund as defined in section 468B(d) of
the Internal Revenue Code means the gross income as defined in section 468B(b) of the
Internal Revenue Code.

The Internal Revenue Code of 1986, as amended through May 18, 2006, new text begin and by
section 2 of the Mortgage Forgiveness Debt Relief Act of 2007, Public Law 110-142, new text end shall
be in effect for taxable years beginning after December 31, 1996, and before January 1,
2006, and for taxable years beginning after December 31, 2006. The Internal Revenue
Code of 1986, as amended through December 31, 2006, is in effect for taxable years
beginning after December 31, 2005, and before January 1, 2007.

Except as otherwise provided, references to the Internal Revenue Code in
subdivisions 19 to 19f mean the code in effect for purposes of determining net income for
the applicable year.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and at the same time the changes were effective for federal purposes.
new text end

Sec. 2.

Minnesota Statutes 2007 Supplement, section 290.01, subdivision 31, is
amended to read:

Subd. 31.

Internal Revenue Code.

Unless specifically defined otherwise, for
taxable years beginning before January 1, 2006, and after December 31, 2006, "Internal
Revenue Code" means the Internal Revenue Code of 1986, as amended through May 18,
2006 new text begin , and by section 2 of the Mortgage Forgiveness Debt Relief Act of 2007, Public Law
110-142 new text end ; and for taxable years beginning after December 31, 2005, and before January 1,
2007, "Internal Revenue Code" means the Internal Revenue Code of 1986, as amended
through December 31, 2006.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and at the same time the changes were effective for federal purposes.
new text end

Sec. 3.

Minnesota Statutes 2007 Supplement, section 290A.03, subdivision 15, is
amended to read:

Subd. 15.

Internal Revenue Code.

For taxable years beginning before January
1, 2006, and after December 31, 2006, "Internal Revenue Code" means the Internal
Revenue Code of 1986, as amended through May 18, 2006 new text begin , and by section 2 of the
Mortgage Forgiveness Debt Relief Act of 2007, Public Law 110-142 new text end ; and for taxable years
beginning after December 31, 2005, and before January 1, 2007, "Internal Revenue Code"
means the Internal Revenue Code of 1986, as amended through December 31, 2006.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and at the same time the changes were effective for federal purposes.
new text end