SF 5189

Introduction - 94th Legislature (2025 - 2026)

Posted on 04/22/2026 09:02 a.m.

A bill for an act
relating to taxation; income, corporate franchise, and insurance premiums; providing
a credit for contributions to women's pregnancy centers; amending Minnesota
Statutes 2024, section 297I.20, by adding a subdivision; 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 [290.0696] CREDIT FOR CONTRIBUTIONS TO WOMEN'S
PREGNANCY CENTERS.
new text end

new text begin Subdivision 1. new text end

new text begin Credit allowed; limitation; carryforward. new text end

new text begin (a) A taxpayer is allowed a
credit against the tax imposed under this chapter equal to the amount of contributions made
by the taxpayer to a women's pregnancy center, up to $50,000.
new text end

new text begin (b) If the amount of the credit determined under this section for any taxable year exceeds
the liability for tax under this chapter, the excess is a credit carryover to the next taxable
year. The entire amount of the excess unused credit for the taxable year must be carried
first to the next taxable year. The amount of the unused credit that may be added under this
paragraph must not exceed the taxpayer's liability for tax less the credit for the taxable year.
new text end

new text begin (c) An eligible taxpayer claiming a credit under this section may not also claim the credit
under section 297I.20, subdivision 8, for the same contribution.
new text end

new text begin (d) For purposes of this section:
new text end

new text begin (1) "women's pregnancy center" means an organization that provides information,
referrals, and support to encourage and assist pregnant women in carrying their pregnancies
to term and in caring for their children after birth; and
new text end

new text begin (2) "contribution" means a charitable contribution allowable to the taxpayer as a deduction
under section 170 of the Internal Revenue Code, including the denial of the deduction under
the Internal Revenue Code, section 408(d)(8), except that the provisions of the Internal
Revenue Code, section 170(b)(1)(G), apply regardless of the taxable year.
new text end

new text begin (e) The credit may not be claimed for any amount used to claim:
new text end

new text begin (1) the itemized deduction under section 290.0122, subdivision 4; or
new text end

new text begin (2) the subtraction under section 290.0132, subdivision 7.
new text end

new text begin (f) For a nonresident or part-year resident, the credit under this section must be allocated
using the percentage calculated in section 290.06, subdivision 2c, paragraph (e).
new text end

new text begin Subd. 2. new text end

new text begin Partnerships; multiple owners. new text end

new text begin Credits granted or transferred to a partnership,
a limited liability company taxed as a partnership, an S corporation, or multiple owners of
property are passed through to the partners, members, shareholders, or owners, respectively,
pro rata to each partner, member, shareholder, or owner based on their share of the entity's
assets or as specially allocated in their organizational documents or any other executed
agreement, as of the last day of the taxable year.
new text end

new text begin Subd. 3. new text end

new text begin Commissioner to maintain list. new text end

new text begin The commissioner, in consultation with the
commissioner of health, must maintain a list of qualifying women's pregnancy centers to
which contributions are eligible for the credit under this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2025.
new text end

Sec. 2.

Minnesota Statutes 2024, section 297I.20, is amended by adding a subdivision to
read:

new text begin Subd. 8. new text end

new text begin Credit for contributions to women's pregnancy centers. new text end

new text begin A taxpayer may
claim a credit against the premiums tax imposed under this chapter equal to the amount of
credit calculated under section 290.0696, provided that the taxpayer is not also claiming a
credit under that section for the same contribution. If the amount of the credit exceeds the
taxpayer's liability for tax under this chapter, the excess is a credit carryover to the next
taxable year. The entire amount of the excess unused credit for the taxable year must be
carried first to the next taxable year. The amount of the unused credit that may be added
under this paragraph must not exceed the taxpayer's liability for tax less the credit for the
taxable year. This credit does not affect the calculation of fire state aid under section 477B.03
and police state aid under section 477C.03.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2025.
new text end