HF 3679

as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; individual income; increasing 
  1.3             the working family tax credit; amending Minnesota 
  1.4             Statutes 2001 Supplement, section 290.0671, 
  1.5             subdivision 1. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 2001 Supplement, section 
  1.8   290.0671, subdivision 1, is amended to read: 
  1.9      Subdivision 1.  [CREDIT ALLOWED.] (a) An individual is 
  1.10  allowed a credit against the tax imposed by this chapter equal 
  1.11  to a percentage of earned income.  To receive a credit, a 
  1.12  taxpayer must be eligible for a credit under section 32 of the 
  1.13  Internal Revenue Code.  
  1.14     (b) For individuals with no qualifying children, the credit 
  1.15  equals 1.9125 2.35 percent of the first $4,620 of earned income. 
  1.16  The credit is reduced by 1.9125 2.35 percent of earned income or 
  1.17  modified adjusted gross income, whichever is greater, in excess 
  1.18  of $5,770, but in no case is the credit less than zero. 
  1.19     (c) For individuals with one qualifying child, the credit 
  1.20  equals 8.5 10.46 percent of the first $6,920 of earned income 
  1.21  and 8.5 10.46 percent of earned income over $12,080 but less 
  1.22  than $13,450.  The credit is reduced by 5.73 7.05 percent of 
  1.23  earned income or modified adjusted gross income, whichever is 
  1.24  greater, in excess of $15,080, but in no case is the credit less 
  1.25  than zero. 
  2.1      (d) For individuals with two or more qualifying children, 
  2.2   the credit equals ten 12.3 percent of the first $9,720 of earned 
  2.3   income and 20 24.6 percent of earned income over $14,860 but 
  2.4   less than $16,800.  The credit is reduced by 10.3 12.67 percent 
  2.5   of earned income or modified adjusted gross income, whichever is 
  2.6   greater, in excess of $17,890, but in no case is the credit less 
  2.7   than zero. 
  2.8      (e) For a nonresident or part-year resident, the credit 
  2.9   must be allocated based on the percentage calculated under 
  2.10  section 290.06, subdivision 2c, paragraph (e). 
  2.11     (f) For a person who was a resident for the entire tax year 
  2.12  and has earned income not subject to tax under this chapter, the 
  2.13  credit must be allocated based on the ratio of federal adjusted 
  2.14  gross income reduced by the earned income not subject to tax 
  2.15  under this chapter over federal adjusted gross income. 
  2.16     (g) For tax years beginning after December 31, 2001, and 
  2.17  before December 31, 2004, the $5,770 in paragraph (b) is 
  2.18  increased to $6,770, the $15,080 in paragraph (c) is increased 
  2.19  to $16,080, and the $17,890 in paragraph (d) is increased to 
  2.20  $18,890 for married taxpayers filing joint returns. 
  2.21     (h) For tax years beginning after December 31, 2004, and 
  2.22  before December 31, 2007, the $5,770 in paragraph (b) is 
  2.23  increased to $7,770, the $15,080 in paragraph (c) is increased 
  2.24  to $17,080, and the $17,890 in paragraph (d) is increased to 
  2.25  $19,890 for married taxpayers filing joint returns. 
  2.26     (i) For tax years beginning after December 31, 2007, and 
  2.27  before December 31, 2010, the $5,770 in paragraph (b) is 
  2.28  increased to $8,770, the $15,080 in paragraph (c) is increased 
  2.29  to $18,080 and the $17,890 in paragraph (d) is increased to 
  2.30  $20,890 for married taxpayers filing joint returns. 
  2.31     (j) The commissioner shall construct tables showing the 
  2.32  amount of the credit at various income levels and make them 
  2.33  available to taxpayers.  The tables shall follow the schedule 
  2.34  contained in this subdivision, except that the commissioner may 
  2.35  graduate the transition between income brackets. 
  2.36     [EFFECTIVE DATE.] This section is effective for taxable 
  3.1   years beginning after December 31, 2001.