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HF 428

as introduced - 87th Legislature (2011 - 2012) Posted on 02/09/2011 09:03am

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 02/09/2011

Current Version - as introduced

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A bill for an act
relating to taxation; individual income; conforming to the federal extension of
marriage penalty relief in the standard deduction; amending Minnesota Statutes
2010, section 290.01, subdivision 19.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2010, section 290.01, subdivision 19, is amended to read:


Subd. 19.

Net income.

The term "net income" means the federal taxable income,
as defined in section 63 of the Internal Revenue Code of 1986, as amended through the
date named in this subdivision, incorporating the federal effective dates of changes to the
Internal Revenue Code and any elections made by the taxpayer in accordance with the
Internal Revenue Code in determining federal taxable income for federal income tax
purposes, and with the modifications provided in subdivisions 19a to 19f.

In the case of a regulated investment company or a fund thereof, as defined in section
851(a) or 851(g) of the Internal Revenue Code, federal taxable income means investment
company taxable income as defined in section 852(b)(2) of the Internal Revenue Code,
except that:

(1) the exclusion of net capital gain provided in section 852(b)(2)(A) of the Internal
Revenue Code does not apply;

(2) the deduction for dividends paid under section 852(b)(2)(D) of the Internal
Revenue Code must be applied by allowing a deduction for capital gain dividends and
exempt-interest dividends as defined in sections 852(b)(3)(C) and 852(b)(5) of the Internal
Revenue Code; and

(3) the deduction for dividends paid must also be applied in the amount of any
undistributed capital gains which the regulated investment company elects to have treated
as provided in section 852(b)(3)(D) of the Internal Revenue Code.

The net income of a real estate investment trust as defined and limited by section
856(a), (b), and (c) of the Internal Revenue Code means the real estate investment trust
taxable income as defined in section 857(b)(2) of the Internal Revenue Code.

The net income of a designated settlement fund as defined in section 468B(d) of
the Internal Revenue Code means the gross income as defined in section 468B(b) of the
Internal Revenue Code.

The Internal Revenue Code of 1986, as amended through March 18, 2010, shall be
in effect for taxable years beginning after December 31, 1996. The provisions of the act
of January 22, 2010, Public Law 111-126, to accelerate the benefits for charitable cash
contributions for the relief of victims of the Haitian earthquake, are effective at the same
time it became effective for federal purposes and apply to the subtraction under subdivision
19b, clause (6).new text begin For taxable years beginning after December 31, 2009, the provisions of
Title I, section 101, of the act of December 17, 2010, Public Law 111-312, temporary
extension of 2001 tax relief, only as they apply to the provisions of Title III, section 301,
of the act of June 7, 2001, Public Law 107-16, elimination of marriage penalty in standard
deduction, are effective at the same time they became effective for federal purposes.
new text end

Except as otherwise provided, references to the Internal Revenue Code in
subdivisions 19 to 19f mean the code in effect for purposes of determining net income for
the applicable year.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end