HF 1643

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to taxation; providing a tax credit to certain scrap metal dealers;
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 [290.0681] SCRAP METAL DEALER CREDIT.
new text end

new text begin Subdivision 1. new text end

new text begin Credit allowed. new text end

new text begin A scrap metal dealer as defined in section 325E.21
is allowed a credit against the income or franchise tax computed under section 290.06,
subdivision 1 or 2c, as applicable, for the taxable year equal to ..... percent of qualifying
expenditures.
new text end

new text begin Subd. 2. new text end

new text begin Qualifying expenditures. new text end

new text begin "Qualifying expenditures" means the
acquisition costs associated with the purchase or acquisition of automated reporting
computer hardware and software and video surveillance equipment, as required under
section 325E.21.
new text end

new text begin Subd. 3. new text end

new text begin Limitation; carryover. new text end

new text begin (a) The credit for the taxable year shall not exceed
the liability for tax. For purposes of this section, "liability for tax" means the tax imposed
under this chapter for the taxable year reduced by the sum of the nonrefundable credits
allowed under this chapter.
new text end

new text begin (b) If the amount of the credit determined under this section for any taxable year
exceeds the limitation under paragraph (a), the excess shall be a replacement credit
carryover to each of the .... succeeding taxable years. The entire amount of the excess
unused credit for the taxable year shall be carried first to the earliest of the taxable years to
which the credit may be carried and then to each successive year to which the credit may
be carried. The amount of the unused credit which may be added under this paragraph
shall not exceed the taxpayer's liability for tax less the credit allowed for the taxable year.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective only if 2007 H.F. No. 457 or 2007
S.F. No. 443 is enacted during the 2007 regular legislative session.
new text end