HF 410

as introduced - 89th Legislature (2015 - 2016) Posted on 02/09/2015 03:52pm

A bill for an act
relating to taxation; individual income; allowing a tax credit for penalties
imposed under the Affordable Care Act; appropriating money; 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 [290.0661] AFFORDABLE CARE ACT PENALTY CREDIT.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms
have the meanings given.
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new text begin (b) "Affordable Care Act" means the provisions of Public Law 111-148 and Public
Law 111-152.
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new text begin (c) "Penalty" means the penalty assessed for the taxable year for failing to meet the
minimum essential coverage requirement of section 5000A of the Internal Revenue Code.
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new text begin (d) "Qualified individual" means an individual subject to a penalty for the taxable
year under the Affordable Care Act's requirement to maintain minimum essential coverage.
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new text begin Subd. 2. new text end

new text begin Credit allowed. new text end

new text begin (a) A qualified individual is allowed a credit against the
tax due under this chapter equal to the penalty paid by the individual for the taxable year.
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new text begin (b) For a nonresident or part-year resident, the credit must be allocated based on the
percentage calculated under section 290.06, subdivision 2c, paragraph (e).
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new text begin Subd. 3. new text end

new text begin Credit refundable; appropriation. new text end

new text begin (a) If the credit allowed under this
section exceeds the individual's liability under this chapter, the commissioner shall refund
the excess to the taxpayer.
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new text begin (b) An amount sufficient to pay the refunds required by this section is appropriated
from the general fund to the commissioner.
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new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2014.
new text end