HF 4612

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/24/2022 01:59pm

A bill for an act
relating to taxation; establishing bicycle commuting expense reimbursement credit;
amending Minnesota Statutes 2020, section 290.06, subdivision 28.

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

Section 1.

Minnesota Statutes 2020, section 290.06, subdivision 28, is amended to read:

Subd. 28.

Credit for transit passes new text begin and bicycle commuting expense
reimbursements new text end .

new text begin (a) new text end A taxpayer may take a credit against the tax due under this chapter
equal to 30 percent of the expense incurred by the taxpayer to provide transit passes, for
use in Minnesota, to employees of the taxpayer. As used in this subdivision, "transit pass"
has the meaning given in section 132(f)(5)(A) of the Internal Revenue Code. If the taxpayer
purchases the transit passes from the transit system operator, and resells them to the
employees, the credit is based on the amount of the difference between the price paid for
the passes by the employer and the amount charged to employees.

new text begin (b) A taxpayer may take a credit against the tax due under this chapter equal to 30 percent
of qualified bicycle commuting reimbursements paid to employees during the taxable year,
for use in Minnesota, within the meaning of section 132(f)(5)(F) of the Internal Revenue
Code and subject to the applicable monthly and annual limitations therein. This paragraph
applies only in years when the federal qualified transportation fringe benefit for qualified
bicycle commuting reimbursements is suspended under section 132(f)(8) of the Internal
Revenue Code.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2021.
new text end