HF 1083

as introduced - 89th Legislature (2015 - 2016) Posted on 02/19/2015 01:46pm

A bill for an act
relating to taxation; income; providing a credit for certain employer paid taxes;
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 [290.0693] CREDIT FOR CERTAIN EMPLOYER PAID TAXES.
new text end

new text begin Subdivision 1. new text end

new text begin Credit allowed. new text end

new text begin A taxpayer is allowed a credit against the tax
imposed under this chapter in an amount equal to the excess employer Social Security tax
paid by the taxpayer in a taxable year. For purposes of this section, "excess employer Social
Security tax" has the meaning given in section 45B(b)(1) of the Internal Revenue Code,
except that "the minimum wage rate applicable" means the wage rate under section 177.24.
new text end

new text begin Subd. 2. new text end

new text begin Limitations. new text end

new text begin (a) The amount used to claim the credit excludes any amount
used to determine the credit under section 45B of the Internal Revenue Code. The credit is
not allowed for any amount deducted for purposes of determining federal taxable income.
new text end

new text begin (b) The credit for a taxable year must not exceed the liability for tax. For purposes
of this section, "liability for tax" means the sum of the tax imposed under section 290.06,
subdivisions 1 and 2c, for the taxable year, reduced by the sum of the nonrefundable
credits allowed under this chapter. In the case of a unitary group filing a combined report,
the liability for tax includes all entities required to be included on the combined report
of the unitary business. If the amount of the credit allowed exceeds the liability for tax
of the taxpayer, but is allowed as a result of the liability for tax of other members of
the unitary group for the taxable year, the taxpayer must allocate the excess as a credit
to another member of the unitary group.
new text end

new text begin (c) In the case of a corporation which is a partner in a partnership, the credit allowed
for the taxable year shall not exceed the lesser of:
new text end

new text begin (1) the amount determined under paragraph (b) for the taxable year; or
new text end

new text begin (2) an amount, separately computed with respect to the corporation's interest in
the trade, business, or entity, equal to the amount of tax attributable to that portion of
taxable income which is allocable or apportionable to the corporation's interest in the
trade, business, or entity.
new text end

new text begin Subd. 3. new text end

new text begin Partnerships and S corporations. new text end

new text begin Credits allowed for a partnership, a
limited liability company taxed as a partnership, or an S corporation are passed through to
the partners, members, or shareholders, respectively, pro rata to each partner, member,
or shareholder based on their share of the entity's assets or as specially allocated in their
organizational documents, as of the last day of the taxable year.
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, 2014.
new text end