1.1 	A bill for an act
1.2 	relating to individual income taxation; allowing an adoption credit; proposing 
1.3 	coding for new law in Minnesota Statutes, chapter 290.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. [290.0678] ADOPTION CREDIT.
1.6 		Subdivision 1.Credit allowed. (a) An individual is allowed a credit for the taxable 
1.7 	year against the tax imposed under sections 290.06 and 290.091 equal to the lesser of:
1.8 	(1) $1,000; or
1.9 	(2) qualified adoption expenses as defined under section 23(d) and (e) of the Internal 
1.10 	Revenue Code, determined without regard to the income limit that applies under section 
1.11 	23 of the Internal Revenue Code.
1.12 	(b) The credit is limited to the liability for tax under sections 290.06 and 290.091 for 
1.13 	the taxable year. No carryover or carryback to another taxable year is allowed.
1.14 		Subd. 2.Taxable years. For purposes of calculating the credit under this section, 
1.15 	expenses and credits are deemed to apply to the same taxable year as allowed under the 
1.16 	federal credit under section 23(a)(2) of the Internal Revenue Code.

1.17 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
1.18 	December 31, 2006.