1.1                          A bill for an act
  1.2             relating to taxation; individual income; providing a 
  1.3             nonrefundable personal and dependent credit for the 
  1.4             1996 tax year; amending Minnesota Statutes 1996, 
  1.5             section 290.06, by adding a subdivision. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1996, section 290.06, is 
  1.8   amended by adding a subdivision to read: 
  1.9      Subd. 25.  [PERSONAL AND DEPENDENT CREDIT.] (a) For the tax 
  1.10  year beginning in 1996, a credit is allowed against the tax 
  1.11  imposed under this chapter on individuals.  The credit equals 
  1.12  $500 multiplied by the number of the taxpayer's personal and 
  1.13  dependent exemptions, as defined in sections 151 and 152 of the 
  1.14  Internal Revenue Code, and allowed on the taxpayer's federal 
  1.15  income tax return.  The maximum amount of the credit is $1,500.  
  1.16  In the case of married individuals filing separate returns, the 
  1.17  total credits for both returns may not exceed $1,500.  A 
  1.18  taxpayer claimed as a dependent on another taxpayer's federal 
  1.19  income tax return is not allowed a credit under this subdivision.
  1.20     (b) The credit is limited to the amount of the taxpayer's 
  1.21  tax liability.  For purposes of this subdivision, "tax liability"
  1.22  means the tax computed under subdivision 2c and sections 290.032 
  1.23  and 290.091, less the credits allowed under subdivision 22 and 
  1.24  section 290.091, subdivision 6, and before reduction by the 
  1.25  refundable credits allowed under this chapter. 
  2.1      (c) Notwithstanding any law to the contrary, the amount 
  2.2   refunded to the taxpayer because of this credit bears interest 
  2.3   from the later of (1) 90 days from the date the taxpayer files 
  2.4   the taxpayer's 1996 Minnesota individual income tax return, or 
  2.5   90 days from the date both taxpayers have filed their 1996 
  2.6   Minnesota income tax returns in the case of married individuals 
  2.7   filing separate returns, or (2) November 15, 1997. 
  2.8      Sec. 2.  [EFFECTIVE DATE.] 
  2.9      Section 1 is effective for the tax year beginning in 1996.