HF 3314

as introduced - 92nd Legislature (2021 - 2022) Posted on 02/10/2022 02:07pm

A bill for an act
relating to taxation; individual income; establishing a temporary subtraction for
certain unemployment insurance benefits.

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

Section 1. new text begin TEMPORARY INDIVIDUAL INCOME TAX SUBTRACTION;
UNEMPLOYMENT COMPENSATION.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section the following terms have
the meanings given them.
new text end

new text begin (b) "Subtraction" has the meaning given in Minnesota Statutes, section 290.0132.
new text end

new text begin (c) "Unemployment compensation" has the meaning given in section 85(b) of the Internal
Revenue Code, but includes federal pandemic unemployment compensation under section
2104 of the CARES Act, United States Code, title 15, section 9023, as extended by section
203 of the Continued Assistance for Unemployed Workers Act of 2020 under Public Law
116-260 and section 9013 of the American Rescue Plan Act of 2021 under Public Law
117-2.
new text end

new text begin Subd. 2. new text end

new text begin Subtraction; income cap. new text end

new text begin (a) For taxable years beginning after December 31,
2020, and before January 1, 2022, an individual taxpayer with adjusted gross income that
is less than $150,000 is allowed a subtraction equal to the amount of the taxpayer's
unemployment compensation received in the taxable year. The subtraction is limited to
$10,200, except for a joint return the subtraction is limited to $10,200 in unemployment
compensation received by each spouse.
new text end

new text begin (b) For the purposes of paragraph (a), the adjusted gross income of the taxpayer must
be determined after the application of sections 86, 135, 137, 219, 221, 222, and 469 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, 2020, and before January 1, 2022.
new text end