HF 1668

as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; providing an individual income 
  1.3             and corporate franchise tax credit for qualifying 
  1.4             investments in dairy operations; amending Minnesota 
  1.5             Statutes 2002, section 290.06, by adding a subdivision.
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 2002, section 290.06, is 
  1.8   amended by adding a subdivision to read: 
  1.9      Subd. 29.  [DAIRY INVESTMENT CREDIT.] (a) A dairy 
  1.10  investment credit is allowed against the tax computed under this 
  1.11  section equal to the credit amount in the table, based on the 
  1.12  amount paid or incurred by the taxpayer, during the taxable 
  1.13  year, for qualifying expenditures: 
  1.14            Amount of   
  1.15     qualifying expenditures              Credit amount 
  1.16      up to $500,000                  ten percent of 
  1.17                                      qualifying expenditures 
  1.18      over $500,000, but not          $50,000, plus nine percent 
  1.19      more than $600,000              of the amount of qualified 
  1.20                                      expenditures in excess of 
  1.21                                      $500,000 
  1.22      over $600,000 but not           $59,000, plus seven percent 
  1.23      more than $700,000              of the amount of qualified 
  1.24                                      expenditures in excess of 
  1.25                                      $600,000 
  1.26      over $700,000, but not          $66,000, plus five percent 
  1.27      more than $800,000              of the amount of qualified 
  1.28                                      expenditures in excess of 
  1.29                                      $700,000 
  1.30      over $800,000, but not          $71,000, plus three percent 
  1.31      more than $900,000              of the amount of qualified 
  1.32                                      expenditures in excess of 
  2.1                                       $800,000 
  2.2       over $900,000, but not          $74,000, plus one percent 
  2.3       more than $1,000,000            of the amount of qualified 
  2.4                                       expenditures in excess of 
  2.5                                       $900,000 
  2.6       $1,000,000 or more              $75,000 
  2.7      (b) "Qualifying expenditures" means for purposes of this 
  2.8   subdivision the amount spent for the acquisition, construction, 
  2.9   or improvement of buildings or facilities, or the acquisition of 
  2.10  equipment, for dairy animal housing, confinement, animal 
  2.11  feeding, milk production, and waste management, including the 
  2.12  following, if related to dairy animals: 
  2.13     (1) freestall barns; 
  2.14     (2) fences; 
  2.15     (3) watering facilities; 
  2.16     (4) feed storage and handling equipment; 
  2.17     (5) milking parlors; 
  2.18     (6) robotic equipment; 
  2.19     (7) scales; 
  2.20     (8) milk storage and cooling facilities; 
  2.21     (9) bulk tanks; 
  2.22     (10) manure pumping and storage facilities; 
  2.23     (11) digesters; and 
  2.24     (12) equipment used to produce energy. 
  2.25  Qualified expenditures exclude any amounts deducted under 
  2.26  section 162 of the Internal Revenue Code in computing federal 
  2.27  taxable income. 
  2.28     (c) The credit is limited to the liability for tax, as 
  2.29  computed under this section for the taxable year.  If the amount 
  2.30  of the credit determined under this section for any taxable year 
  2.31  exceeds this limitation, the excess is a dairy investment credit 
  2.32  carryover to each of the 15 succeeding taxable years.  The 
  2.33  entire amount of the excess unused credit for the taxable year 
  2.34  is carried first to the earliest of the taxable years to which 
  2.35  the credit may be carried and then to each successive year to 
  2.36  which the credit may be carried.  The amount of the unused 
  2.37  credit which may be added under this paragraph shall not exceed 
  3.1   the taxpayer's liability for tax less the dairy investment 
  3.2   credit for the taxable year. 
  3.3      (d) For a partnership or S corporation, the maximum amount 
  3.4   of the credit applies to the entity, not the individual partner 
  3.5   or shareholder. 
  3.6      [EFFECTIVE DATE.] This section is effective for taxable 
  3.7   years beginning after December 31, 2003.