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HF 3569

as introduced - 90th Legislature (2017 - 2018) Posted on 03/14/2018 02:22pm

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 03/14/2018

Current Version - as introduced

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A bill for an act
relating to taxation; individual income and corporate franchise; updating certain
references for changes in federal law; conforming to section 179 expensing
allowances for farm machinery; amending Minnesota Statutes 2017 Supplement,
sections 290.01, subdivision 19; 290.0131, subdivision 10; 290.0133, subdivision
12.

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

Section 1.

Minnesota Statutes 2017 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 sections 290.0131 to 290.0136.

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 December 16, 2016, shall be
in effect for taxable years beginning after December 31, 1996.new text begin The provisions of section
13101 of the act to provide for reconciliation pursuant to titles II and V of the concurrent
resolution on the budget for fiscal year 2018, Public Law 115-97, increasing expensing
limitations for section 179 property are effective at the same time they became effective for
federal purposes.
new text end

Except as otherwise provided, references to the Internal Revenue Code in this subdivision
and sections 290.0131 to 290.0136 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.
new text end

Sec. 2.

Minnesota Statutes 2017 Supplement, section 290.0131, subdivision 10, is amended
to read:


Subd. 10.

Section 179 expensing.

80 percent of the amount by which the deduction
allowed under the dollar limits of section 179 of the Internal Revenue Code exceeds the
deduction allowable by section 179 of the Internal Revenue Code, as amended through
December 31, 2003, is an addition.new text begin The addition under this subdivision does not apply to
deductions of expenses paid or incurred for farm machinery, as defined in section 297A.61,
subdivision 12, placed in service in taxable years beginning after December 31, 2017.
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, 2017.
new text end

Sec. 3.

Minnesota Statutes 2017 Supplement, section 290.0133, subdivision 12, is amended
to read:


Subd. 12.

Section 179 expensing.

80 percent of the amount by which the deduction
allowed under the dollar limits of section 179 of the Internal Revenue Code exceeds the
deduction allowable by section 179 of the Internal Revenue Code, as amended through
December 31, 2003, is an addition.new text begin The addition under this subdivision does not apply to
deductions of expenses paid or incurred for farm machinery, as defined in section 297A.61,
subdivision 12, placed in service in taxable years beginning after December 31, 2017.
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, 2017.
new text end