HF 2089

as introduced - 91st Legislature (2019 - 2020) Posted on 03/07/2019 02:46pm

A bill for an act
relating to taxation; individual income and corporate franchise; providing a credit
for employers of reservists; proposing coding for new law in Minnesota Statutes,
chapter 290.

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

Section 1.

new text begin [290.0683] CREDIT FOR EMPLOYERS OF RESERVISTS.
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new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this subdivision, the following terms
have the meanings given.
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new text begin (b) "Day of service" means a day that the qualifying employee missed work to serve in
the uniformed service in the taxable year while employed by the eligible employer.
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new text begin (c) "Eligible employer" has the meaning given in section 45S(c)(1) of the Internal
Revenue Code.
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new text begin (d) "Qualifying employee" means an employee who:
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new text begin (1) is not a part-time employee, as defined in section 4980E(d)(4)(B) of the Internal
Revenue Code; and
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new text begin (2) is a qualified reservist.
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new text begin (e) "Qualified reservist" means an individual who, at any time during the taxable year,
is a member of the National Guard or reserve component of the armed forces, as defined in
United States Code, title 10, section 10101. Qualified reservist does not include a member
of the Individual Ready Reserve.
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new text begin (f) "Reservist credit amount" means $500 plus:
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new text begin (1) $1,500 for each qualifying employee who serves more than 30 days of service and
fewer than 90 days of service during the taxable year;
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new text begin (2) $2,500 for each qualifying employee who serves 90 or more days of service and
fewer than 180 days of service during the taxable year; and
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new text begin (3) $5,000 for each qualifying employee who serves 180 or more days of service during
the taxable year.
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new text begin Subd. 2. new text end

new text begin Credit allowed. new text end

new text begin An eligible employer may claim a credit that equals the reservist
credit amount for each qualifying employee for the taxable year. If the credit exceeds the
tax imposed under this chapter, the excess is a credit carryover to each of the five succeeding
taxable years. The entire amount of the excess unused credit must be carried first to the
earliest taxable year to which the amount may be carried. The unused portion of the credit
must be carried to the following taxable year. No credit may be carried to a taxable year
more than five years after the taxable year in which the credit was earned.
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new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2018.
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