HF 1278

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

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:

Section 1.

new text begin [290.0676] ADOPTION CREDIT.
new text end

new text begin Subdivision 1. new text end

new text begin Credit allowed. new text end

new text begin (a) An individual is
allowed a credit against the tax imposed by this chapter equal
to the amount of Minnesota qualified adoption expenses.
new text end

new text begin (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:
new text end

new text begin (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
new text end

new text begin (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
new text end

new text begin (3) the amount of the reduction of the federal credit under
the income limitation under section 23(b)(2) of the Internal
Revenue Code.
new text end

new text begin (c) Minnesota qualified adoption expenses for a child with
special needs equals the greater of the following amounts:
new text end

new text begin (1) the amount determined under paragraph (b), but
substituting a credit rate of 100 percent; or
new text end

new text begin (2) one-half of the federal dollar limitation under section
23(b)(1) of the Internal Revenue Code, determined regardless of
the expenses paid.
new text end

new text begin Subd. 2. new text end

new text begin Federal definitions; limitations. new text end

new text begin 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.
new text end

new text begin Subd. 3. new text end

new text begin Taxable years. new text end

new text begin 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.
new text end

new text begin Subd. 4. new text end

new text begin Credit refundable. new text end

new text begin If the amount of the credit
exceeds the claimant's tax liability under this chapter, the
commissioner shall refund the excess to the claimant.
new text end

new text begin Subd. 5. new text end

new text begin Appropriation. new text end

new text begin An amount sufficient to pay the
refunds required by this section is appropriated to the
commissioner from the general fund.
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, 2004.
new text end