HF 3670

as introduced - 91st Legislature (2019 - 2020) Posted on 03/26/2020 01:12pm

A bill for an act
relating to taxation; individual income; excluding from gross income student loans
discharged in tax year 2018; amending Minnesota Statutes 2019 Supplement,
section 290.993.

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

Section 1.

Minnesota Statutes 2019 Supplement, section 290.993, is amended to read:

290.993 SPECIAL LIMITED ADJUSTMENT.

(a) For an individual income taxpayer subject to tax under section 290.06, subdivision
2c, or a partnership that elects to file a composite return under section 289A.08, subdivision
7, for taxable years beginning after December 31, 2017, and before January 1, 2019, the
following special rules apply:

(1) an individual income taxpayer may: (i) take the standard deduction; or (ii) make an
election under section 63(e) of the Internal Revenue Code to itemize, for Minnesota individual
income tax purposes, regardless of the choice made on their federal return; and

(2) there is an adjustment to tax equal to the difference between the tax calculated under
this chapter using the Internal Revenue Code as amended through December 16, 2016, and
the tax calculated under this chapter using the Internal Revenue Code amended through
December 31, 2018, before the application of credits. The end result must be zero additional
tax due or refund.

(b) The adjustment in paragraph (a), clause (2), does not apply to any changes due to
sections 11012, new text begin 11031, new text end 13101, 13201, 13202, 13203, 13204, 13205, 13207, 13301, 13302,
13303, 13313, 13502, 13503, 13801, 14101, 14102, 14211 through 14215, and 14501 of
Public Law 115-97; and section 40411 of Public Law 115-123.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for taxable years beginning
after December 31, 2017, and before January 1, 2019.
new text end