as introduced - 90th Legislature (2017 - 2018) Posted on 02/13/2017 01:27pm
Engrossments | ||
---|---|---|
Introduction | Posted on 02/09/2017 |
A bill for an act
relating to taxation; individual income; providing a refundable credit for the
additional tax paid on early withdrawals from retirement accounts if used for
long-term care expenses; proposing coding for new law in Minnesota Statutes,
chapter 290.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
new text begin
(a) For purposes of this section, the following terms have
the meanings given.
new text end
new text begin
(b) "Additional federal tax" means the tax imposed under section 72(t) of the Internal
Revenue Code on early withdrawals from qualified retirement plans.
new text end
new text begin
(c) "Qualified long-term care expenses" means amounts paid for qualified long-term
care services, as defined in section 7702B(c) of the Internal Revenue Code, plus amounts
paid for a qualified long-term care insurance contract, as defined in section 7702B(b) of the
Internal Revenue Code.
new text end
new text begin
(d) "Qualified retirement plans" has the meaning given in section 4974(c) of the Internal
Revenue Code.
new text end
new text begin
(a) An individual is allowed a credit against the tax due under
this chapter equal to the additional federal tax paid during the taxable year on early
withdrawals from qualified retirement plans, provided the withdrawals are used for qualified
long-term care expenses.
new text end
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).
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.
new text end
new text begin
(b) An amount sufficient to pay the refunds required by this section is appropriated from
the general fund to the commissioner.
new text end
new text begin
This section is effective for taxable years beginning after December
31, 2016.
new text end