1.1                          A bill for an act
  1.2             relating to taxation; corporate income; making 
  1.3             technical and minor changes in the job training 
  1.4             credit; amending Minnesota Statutes 1997 Supplement, 
  1.5             section 290.0673, subdivisions 1, 2, and 6. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1997 Supplement, section 
  1.8   290.0673, subdivision 1, is amended to read: 
  1.9      Subdivision 1.  [CREDIT ALLOWED.] (a) A credit is allowed 
  1.10  against the tax imposed by section 290.06, subdivision 1, equal 
  1.11  to the sum of: 
  1.12     (1) placement fees incurred or paid to a job training 
  1.13  program upon hiring a qualified graduate of the program; and 
  1.14     (2) retention fees incurred or paid to a job training 
  1.15  program for retention of a qualified graduate of the program. 
  1.16     (b) The maximum placement fee qualifying for a credit under 
  1.17  this section is $8,000 per qualified graduate in the year 
  1.18  hired.  The maximum retention fee qualifying for a credit under 
  1.19  this section is $6,000 per qualified graduate retained as an 
  1.20  employee per year.  Only retention fees paid in the second and 
  1.21  third years after the qualified graduate is hired qualify for 
  1.22  the credit. 
  1.23     (c) A credit is allowed only up to the dollar amount of 
  1.24  certificates, issued under subdivision 4, and provided by the 
  1.25  job training program to the taxpayer. 
  2.1      Sec. 2.  Minnesota Statutes 1997 Supplement, section 
  2.2   290.0673, subdivision 2, is amended to read: 
  2.3      Subd. 2.  [QUALIFIED JOB TRAINING PROGRAM.] (a) To qualify 
  2.4   for credits under this section, a job training program must 
  2.5   satisfy the following requirements: 
  2.6      (1) It must be operated by a nonprofit corporation that 
  2.7   qualifies under section 501(c)(3) of the Internal Revenue Code. 
  2.8      (2) The organization must spend at least $5,000 per 
  2.9   graduate of the program. 
  2.10     (3) The program must provide education and training in: 
  2.11     (i) basic skills, such as reading, writing, mathematics, 
  2.12  and communications; 
  2.13     (ii) thinking skills, such as reasoning, creative thinking, 
  2.14  decision making, and problem solving; and 
  2.15     (iii) personal qualities, such as responsibility, 
  2.16  self-esteem, self-management, honesty, and integrity. 
  2.17     (4) The program must provide income supplements, when 
  2.18  needed, to participants for housing, counseling, tuition, and 
  2.19  other basic needs. 
  2.20     (5) The education and training course must last for at 
  2.21  least six months. 
  2.22     (6) Individuals served by the program must: 
  2.23     (i) be 18 years old or older; 
  2.24     (ii) have had federal adjusted gross income of no more than 
  2.25  $10,000 $15,000 per year in the last two years; 
  2.26     (iii) have assets of no more than $5,000 $7,000, excluding 
  2.27  the value of a homestead; and 
  2.28     (iv) not have been claimed as a dependent on the federal 
  2.29  tax return of another person in the previous taxable year. 
  2.30     (7) The program must charge placement and retention fees 
  2.31  that cumulatively exceed the amount of credit certificates 
  2.32  provided to the employer by at least 20 percent. 
  2.33     (b) The program must be certified by the commissioner of 
  2.34  children, families, and learning as meeting the requirements of 
  2.35  this subdivision. 
  2.36     Sec. 3.  Minnesota Statutes 1997 Supplement, section 
  3.1   290.0673, subdivision 6, is amended to read: 
  3.2      Subd. 6.  [NONREFUNDABLE.] The taxpayer must use the tax 
  3.3   credit for the taxable year in which the certificate is issued 
  3.4   to the employer.  The credit for the taxable year may not exceed 
  3.5   the liability for tax under section 290.06, subdivision 1, for 
  3.6   the taxable year and the two prior years, before reduction by 
  3.7   the nonrefundable credits allowed under this chapter. 
  3.8      Sec. 4.  [EFFECTIVE DATE.] 
  3.9      Sections 1 to 3 are effective for taxable years beginning 
  3.10  after December 31, 1996.