as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am
Engrossments | ||
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Introduction | Posted on 02/24/2005 |
A bill for an act
relating to taxation; income; allowing a refundable
credit for adoption expenses; appropriating money;
proposing coding for new law in Minnesota Statutes,
chapter 290.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
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(a) An individual is
allowed a credit against the tax imposed by this chapter equal
to the amount of Minnesota qualified adoption expenses.
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(b) Minnesota qualified adoption expenses for an eligible
child who is not a child with special needs equal 50 percent of
the following amounts paid or incurred:
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(1) the total qualified adoption expenses under section 23
of the Internal Revenue Code, determined using twice the dollar
limitation under section 23(b)(1) of the Internal Revenue Code;
minus
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(2) the amount of the federal credit allowed under section
23 of the Internal Revenue Code, determined without regard to
the limitation based on the amount of tax under section 23(b)(4)
of the Internal Revenue Code; and minus
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(3) the amount of the reduction of the federal credit under
the income limitation under section 23(b)(2) of the Internal
Revenue Code.
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(c) Minnesota qualified adoption expenses for a child with
special needs equals the greater of the following amounts:
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(1) the amount determined under paragraph (b), but
substituting a credit rate of 100 percent; or
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(2) one-half of the federal dollar limitation under section
23(b)(1) of the Internal Revenue Code, determined regardless of
the expenses paid.
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Unless
otherwise specifically provided, the definitions under section
23(d) of the Internal Revenue Code and the limitations on
allowable expenses under sections 23(b)(3) and 23(e) of the
Internal Revenue Code apply in determining the credit under this
section.
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For purposes of calculating the
credit under this section, expenses and credits are allowed in
the same taxable year as allowed under the federal credit under
section 23(a)(2) of the Internal Revenue Code.
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If the amount of the credit
exceeds the claimant's tax liability under this chapter, the
commissioner shall refund the excess to the claimant.
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refunds required by this section is appropriated to the
commissioner from the general fund.
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This section is effective for taxable
years beginning after December 31, 2004.
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