HF 4616

as introduced - 91st Legislature (2019 - 2020) Posted on 04/30/2020 09:42am

A bill for an act
relating to taxation; provider taxes; establishing a credit for certain
COVID-19-related purchases.

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

Section 1. new text begin CREDIT AGAINST TAXES DUE.
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new text begin Subdivision 1. new text end

new text begin Credit allowed. new text end

new text begin Notwithstanding Minnesota Statutes, section 295.52, a
qualifying taxpayer may claim a credit against the taxes imposed under Minnesota Statutes,
section 295.52, subdivisions 1 to 4, against gross revenues received after December 31,
2019, and before January 1, 2021, for qualifying expenses as defined in this section.
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new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following definitions apply.
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new text begin (b) "Qualifying taxpayer" means a taxpayer:
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new text begin (1) subject to the taxes imposed under Minnesota Statutes, section 295.52; and
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new text begin (2) for the period beginning March 13, 2020, and ending upon the expiration of any
executive order that relates to the infectious disease known as COVID-19, has not applied
for and received any state or federal funds through grant or loan programs that have been
established for the purpose of responding to COVID-19.
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new text begin (c) "Qualifying expenses" means expenses paid or incurred between March 13, 2020,
and the expiration of any executive order that relates to the infectious disease known as
COVID-19 for the following items or purposes that are not reimbursed through insurance
or any other payment:
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new text begin (1) purchasing consumable protective or treatment supplies and equipment to protect or
treat staff, visitors, or patients;
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new text begin (2) research costs to advance testing and treatment for COVID-19;
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new text begin (3) implementation costs for screening and testing procedures;
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new text begin (4) establishment and operation of temporary sites to provide testing services, to provide
treatment beds, or to isolate or quarantine affected individuals;
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new text begin (5) staff training and orientation;
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new text begin (6) temporary information technology and systems costs to support patient triage,
screening, and telemedicine activities;
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new text begin (7) purchasing replacement parts or filters for medical equipment that are necessary for
the equipment's operation;
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new text begin (8) specialty cleaning supplies for facilities and equipment; and
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new text begin (9) expenses related to the isolation or quarantine of staff.
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new text begin Subd. 3. new text end

new text begin Method of claiming credit; limitation. new text end

new text begin (a) The credit under subdivision 1
must be claimed on the return required under Minnesota Statutes, section 295.55, subdivision
5, due March 15, 2021, for calendar year 2020. The credit must be claimed in the form and
manner prescribed by the commissioner.
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new text begin (b) Beginning with estimated payments required under Minnesota Statutes, section
295.55, subdivisions 2 and 3, due in June 2020 and ending with the last estimated payment
for calendar year 2020 due in January 2021, the commissioner shall provide a form to
calculate any offset of estimated payments resulting from the credit under subdivision 1.
The provisions of Minnesota Statutes, section 295.55, subdivisions 2, paragraph (c), and 3,
paragraph (c), do not apply to underpayments of estimated taxes due June 15, 2020, to
January 15, 2021.
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new text begin (c) If the taxpayer's estimated payments for calendar year 2020 exceed the taxpayer's
actual tax liability after applying the credit, the excess must be refunded to the taxpayer,
but the credit allowed under this section must not reduce the taxpayer's tax liability to less
than zero.
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new text begin (d) An amount sufficient to pay refunds authorized under paragraph (c) is appropriated
from the health care access fund.
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new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for taxes due on gross
receipts received between December 31, 2019, and January 1, 2021.
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