HF 780

as introduced - 89th Legislature (2015 - 2016) Posted on 02/18/2015 02:17pm

A bill for an act
relating to taxation; individual income; providing a tax credit for modification
or improvements to homes of people with disabilities; appropriating money;
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 [290.0661] CREDIT FOR DISABLED ACCESSIBILITY HOME
MODIFICATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms
have the meanings given.
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new text begin (b) "Accommodate" means to make a residence accessible for a qualified person in a
manner that is necessary because:
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new text begin (1) the qualified person has a disability; or
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new text begin (2) the qualified person is age 65 or older and has a disability or another physical
limitation.
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new text begin (c) "Federal poverty guidelines" means the federal poverty guidelines published by
the United States Department of Health and Human Services most recently before the first
day of the calendar year in which the taxable year began.
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new text begin (d) "Medical provider" means a physician, licensed under chapter 147, or a primary
care provider as defined in section 148.171, subdivision 17a.
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new text begin (e) "Qualified modifications or improvements" means modifications or improvements
to the taxpayer's principal residence, as used in section 121 of the Internal Revenue Code
and located in this state, to accommodate a qualified person and must:
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new text begin (1) consist of one or more of the following:
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new text begin (i) no-step exterior entrances;
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new text begin (ii) exterior or interior ramps;
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new text begin (iii) stairway lifts;
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new text begin (iv) elevators;
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new text begin (v) lifts;
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new text begin (vi) handrails;
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new text begin (vii) grab bars or reinforcement of grab bars;
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new text begin (viii) door hardware;
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new text begin (ix) widening exterior doors to more than 36 inches;
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new text begin (x) widening interior doors to more than 32 inches;
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new text begin (xi) widening hallways to more than 36 inches;
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new text begin (xii) fire or smoke alarms;
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new text begin (xiii) alerting devices;
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new text begin (xiv) moving electrical service, including but not limited to outlets and switches;
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new text begin (xv) environmental controls, including but not limited to heating and cooling
equipment;
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new text begin (xvi) bathroom modifications, including but not limited to accessible toilets,
bathtubs, showers, plumbing, and fixtures;
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new text begin (xvii) kitchen modifications, including but not limited to accessible countertops,
cabinets, appliances, plumbing, and fixtures; or
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new text begin (xviii) bedroom modifications, including but not limited to relocation to an
accessible space in the home;
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new text begin (2) be certified by a medical provider as necessary to accommodate the qualified
person's use of the residence;
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new text begin (3) consist of improvements or attachments to real property; and
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new text begin (4) not be the construction of a new residence or an addition to a residence that
expands its living area beyond the items enumerated in clause (1).
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new text begin (f) "Qualified person" means a taxpayer, the taxpayer's spouse, or the taxpayer's
dependents, as defined in section 152 of the Internal Revenue Code, who has attained
the age of 65 before the close of the taxable year or who has a disability, as defined in
section 363A.03, subdivision 12.
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new text begin Subd. 2. new text end

new text begin Credit allowed. new text end

new text begin (a) A credit is allowed against the tax imposed under this
chapter on individuals equal to the lesser of:
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new text begin (1) the amount paid during the taxable year for qualified modifications or
improvements to a residence to accommodate its use by a qualified person multiplied by
the applicable percentage under paragraph (b); or
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new text begin (2) $9,000.
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new text begin (b) The applicable percentage for a taxpayer must be determined based on the
taxpayer's income, as defined in section 290.067, subdivision 2a, relative to the federal
poverty guidelines as provided in the following table with family size to be determined
by the number of the taxpayer's and spouse's personal and dependent exemptions, but
not to exceed four, for the taxable year:
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new text begin Income relative to federal poverty guideline new text end	new text begin Applicable percentage new text end
new text begin Less than 200 percent new text end	new text begin 100 percent new text end
new text begin 200 percent or more, but less than 250 percent new text end	new text begin 90 percent new text end
new text begin 250 percent or more, but less than 300 percent new text end	new text begin 80 percent new text end
new text begin 300 percent or more, but less than 350 percent new text end	new text begin 70 percent new text end
new text begin 350 percent or more, but less than 400 percent new text end	new text begin 60 percent new text end
new text begin 400 percent or more, but less than 450 percent new text end	new text begin 50 percent new text end
new text begin Over 450 percent new text end	new text begin not eligible, except as provided under paragraph (c) new text end

new text begin (c) For taxpayers with incomes greater than 450 percent of the federal poverty
guideline, the maximum allowable credit is reduced by an amount equal to 25 percent of
the taxpayer's income over 450 percent of the federal poverty guideline amount.
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new text begin (d) The credit under this section does not apply to any amounts for which
reimbursement is received under any other federal, state, or local government program or
from a private entity, such as an insurance company or in settlement of a claim or lawsuit.
The taxpayer or spouse must not claim this tax credit for a taxable year following a taxable
year in which the taxpayer or spouse claimed the credit under this section.
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new text begin Subd. 3. new text end

new text begin Credit refundable. new text end

new text begin If the amount of credit that the individual is eligible to
receive under subdivision 2 exceeds the individual's tax liability under this chapter, the
commissioner shall refund the excess to the individual.
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new text begin Subd. 4. new text end

new text begin Appropriation. new text end

new text begin An amount sufficient to pay the refunds required by this
section is appropriated to the commissioner from the general fund.
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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, 2014.
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