1.1                          A bill for an act 
  1.2             relating to taxation; increasing the Minnesota working 
  1.3             family credit; amending Minnesota Statutes 1996, 
  1.4             section 290.0671, subdivision 1. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  Minnesota Statutes 1996, section 290.0671, 
  1.7   subdivision 1, is amended to read: 
  1.8      Subdivision 1.  [CREDIT ALLOWED.] An individual is allowed 
  1.9   a credit against the tax imposed by this chapter equal to 15 25 
  1.10  percent of the credit for which the individual is eligible under 
  1.11  section 32 of the Internal Revenue Code. 
  1.12     For a nonresident or part-year resident, the credit 
  1.13  determined under section 32 of the Internal Revenue Code must be 
  1.14  allocated based on the percentage calculated under section 
  1.15  290.06, subdivision 2c, paragraph (e). 
  1.16     For a person who was a resident for the entire tax year and 
  1.17  has earned income not subject to tax under this chapter, the 
  1.18  credit must be allocated based on the ratio of federal adjusted 
  1.19  gross income reduced by the earned income not subject to tax 
  1.20  under this chapter over federal adjusted gross income. 
  1.21     Sec. 2.  [EFFECTIVE DATE.] 
  1.22     Section 1 is effective for taxable years beginning after 
  1.23  December 31, 1996.