HF 1782

as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 01:54am

A bill for an act
relating to financing state government; taxes; individual income, corporate
franchise, property and sales and use; requiring certain additions; conforming
to federal section 179 expensing allowances; disallowing certain subtractions;
allowing certain nonrefundable credits; allowing a refundable Minnesota child
credit; appropriating money; repealing various credits; repealing individual
and corporate alternative minimum taxes; amending Minnesota Statutes 2008,
sections 275.025, subdivisions 1, 2; 290.01, subdivisions 5, 19, 19a, 19b,
19c, 19d, 29, 31, by adding subdivisions; 290.06, subdivision 2c, by adding
subdivisions; 290.0671, subdivision 1; 290.0922, subdivisions 1, 3, by adding
a subdivision; 290.17, subdivision 4; 290.191, subdivisions 2, 3; 469.315;
469.3192; proposing coding for new law in Minnesota Statutes, chapters 17; 290;
repealing Minnesota Statutes 2008, sections 272.02, subdivision 83; 290.06,
subdivisions 24, 28, 30, 31, 32, 33, 34; 290.067, subdivisions 1, 2, 2a, 2b, 3, 4;
290.0672; 290.0674; 290.0679; 290.068, subdivisions 1, 2, 3, 4, 5; 290.0802;
290.091; 290.0921, subdivisions 1, 2, 3, 3a, 4, 6, 7, 8; 290.191, subdivision 4;
290.491; 297A.68, subdivisions 38, 41; 469.316; 469.317; 469.321; 469.3215;
469.322; 469.323; 469.324; 469.325; 469.326; 469.327; 469.328; 469.329;
469.330; 469.331; 469.332; 469.333; 469.334; 469.335; 469.336; 469.337;
469.338; 469.339; 469.340; 469.341; Laws 2009, chapter 3, section 1.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [17.1195] BOVINE TUBERCULOSIS TESTING GRANTS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section the following terms
have the meanings given.
new text end

new text begin (b) "Commissioner" means the commissioner of agriculture.
new text end

new text begin (c) "Corporate owner of cattle" means an owner of cattle subject to tax under section
290.06, subdivision 1, and also a shareholder of an S corporation under section 290.9725.
new text end

new text begin Subd. 2. new text end

new text begin Bovine tuberculosis testing grants. new text end

new text begin (a) The commissioner is authorized to
make grants to owners of cattle in Minnesota to offset a portion of the cost of tuberculosis
testing performed on the cattle. For corporate owners of cattle, the grant equals 25 percent
of the tuberculosis testing expenses incurred during the calendar year. For all other
owners, the grant equals 50 percent of tuberculosis testing expenses incurred during the
calendar year.
new text end

new text begin (b) The commissioner may specify a time and manner for cattle owners to apply
for grants under this section, and may request supporting documentation of actual testing
expenses. Applications received by January 31 relating to testing expenses incurred in
the previous calendar year are eligible for grants. The commissioner must issue grants by
March 1.
new text end

new text begin (c) If applications for grants exceed the amount available for the fiscal year, the
commissioner must proportionally adjust all grant amounts so that the amount awarded for
the year does not exceed the amount available.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2008, section 275.025, subdivision 1, is amended to read:

Subdivision 1.

Levy amount.

The state general levy is levied against
commercial-industrial property and seasonal residential recreational property, as defined
in this section. The state general levy base amount is $592,000,000 for taxes payable in
2002. For taxes payable in subsequent years, the levy base amount is increased each year
by multiplying the levy base amount for the prior year by the sum of one plus the rate of
increase, if any, in the implicit price deflator for government consumption expenditures
and gross investment for state and local governments prepared by the Bureau of Economic
Analysts of the United States Department of Commerce for the 12-month period ending
March 31 of the year prior to the year the taxes are payable. The tax under this section is
not treated as a local tax rate under section 469.177 and is not the levy of a governmental
unit under chapters 276A and 473F.

new text begin In setting the rate, the commissioner shall exclude the tax capacity of property
described in section 473.625 from the tax base. new text end The commissioner shall increase or
decrease the preliminary or final rate for a year as necessary to account for errors and tax
base changes that affected a preliminary or final rate for either of the two preceding years.
Adjustments are allowed to the extent that the necessary information is available to the
commissioner at the time the rates for a year must be certified, and for the following
reasons:

(1) an erroneous report of taxable value by a local official;

(2) an erroneous calculation by the commissioner; and

(3) an increase or decrease in taxable value for commercial-industrial or seasonal
residential recreational property reported on the abstracts of tax lists submitted under
section 275.29 that was not reported on the abstracts of assessment submitted under
section 270C.89 for the same year.

The commissioner may, but need not, make adjustments if the total difference in the tax
levied for the year would be less than $100,000.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning for taxes payable in 2010.
new text end

Sec. 3.

Minnesota Statutes 2008, section 275.025, subdivision 2, is amended to read:

Subd. 2.

Commercial-industrial tax capacity.

For the purposes of this section,
"commercial-industrial tax capacity" means the tax capacity of all taxable property
classified as class 3 or class 5(1) under section 273.13, except for electric generation
attached machinery under class 3 deleted text begin and property described in section 473.625 deleted text end . County
commercial-industrial tax capacity amounts are not adjusted for the captured net tax
capacity of a tax increment financing district under section 469.177, subdivision 2, the
net tax capacity of transmission lines deducted from a local government's total net tax
capacity under section 273.425, or fiscal disparities contribution and distribution net
tax capacities under chapter 276A or 473F.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning for taxes payable in 2010.
new text end

Sec. 4.

Minnesota Statutes 2008, section 290.01, subdivision 5, is amended to read:

Subd. 5.

Domestic corporation.

The term "domestic" when applied to a corporation
means a corporation:

(1) created or organized in the United States, or under the laws of the United States
or of any state, the District of Columbia, or any political subdivision of any of the
foregoing but not including the Commonwealth of Puerto Rico, or any possession of
the United States;

(2) which qualifies as a DISC, as defined in section 992(a) of the Internal Revenue
Code; deleted text begin or
deleted text end

(3) which qualifies as a FSC, as defined in section 922 of the Internal Revenue Code deleted text begin . deleted text end new text begin ;
new text end

new text begin (4) which is incorporated in a tax haven;
new text end

new text begin (5) which is engaged in activity in a tax haven sufficient for the tax haven to impose
a net income tax under United States constitutional standards and section 290.015; or
new text end

new text begin (6) which has the average of its property, payroll, and sales factors, as defined under
section 290.191, within the 50 states of the United States and the District of Columbia of
20 percent or more.
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, 2008.
new text end

Sec. 5.

Minnesota Statutes 2008, section 290.01, is amended by adding a subdivision
to read:

new text begin Subd. 5c. new text end

new text begin Tax haven. new text end

new text begin (a) "Tax haven" means a foreign jurisdiction designated
under this subdivision.
new text end

new text begin (b) The commissioner may designate a foreign jurisdiction as a tax haven by
administrative rule if the jurisdiction:
new text end

new text begin (1) has no or nominal effective tax on the relevant income; and
new text end

new text begin (2)(A) has laws or practices that prevent effective exchange of information for tax
purposes with other governments on taxpayers benefiting for the tax regime;
new text end

new text begin (B) has a tax regime that lacks transparency. A tax regime lacks transparency if the
details of legislative, legal, or administrative provisions are not open and apparent or are
not consistently applied among similarly situated taxpayers, or if the information needed
by tax authorities to determine a taxpayer's correct tax liability, such as accounting records
and underlying documentation, is not adequately available;
new text end

new text begin (C) facilitates the establishment of foreign-owned entities without the need for a
local substantive presence or prohibits these entities from having any commercial impact
on the local economy;
new text end

new text begin (D) explicitly or implicitly excludes the jurisdiction's resident taxpayers from taking
advantage of the tax regime's benefits or prohibits enterprises that benefit from the regime
from operating in the jurisdiction's domestic markets; or
new text end

new text begin (E) has created a tax regime that is favorable for tax avoidance, based upon an
overall assessment of relevant factors, including whether the jurisdiction has a significant
untaxed offshore financial or other services sector relative to its overall economy.
new text end

new text begin (c) The following foreign jurisdictions are deemed to be tax havens, unless the
commissioner, by revenue notice, revokes the listing of a jurisdiction:
new text end

new text begin (1) Anguilla;
new text end

new text begin (2) Antigua and Barbuda;
new text end

new text begin (3) Aruba;
new text end

new text begin (4) Bahamas;
new text end

new text begin (5) Barbados;
new text end

new text begin (6) Belize;
new text end

new text begin (7) Bermuda;
new text end

new text begin (8) British Virgin Islands;
new text end

new text begin (9) Cayman Islands;
new text end

new text begin (10) Cook Islands;
new text end

new text begin (11) Dominica;
new text end

new text begin (12) Gibraltar;
new text end

new text begin (13) Grenada;
new text end

new text begin (14) Guernsey-Sark-Alderney;
new text end

new text begin (15) Isle of Man;
new text end

new text begin (16) Jersey;
new text end

new text begin (17) Latvia;
new text end

new text begin (18) Liechtenstein;
new text end

new text begin (19) Luxembourg;
new text end

new text begin (20) Nauru;
new text end

new text begin (21) Netherlands Antilles;
new text end

new text begin (22) Panama;
new text end

new text begin (23) Samoa;
new text end

new text begin (24) Saint Kitts and Nevis;
new text end

new text begin (25) Saint Lucia;
new text end

new text begin (26) Saint Vincent and Grenadines;
new text end

new text begin (27) Turks and Caicos; and
new text end

new text begin (28) Vanuatu.
new text end

new text begin (d) The commissioner shall revoke a foreign jurisdiction's listing under paragraph
(b) or (c), as applicable, if the United States enters into a tax treaty or other agreement
with the foreign jurisdiction that provides for prompt, obligatory, and automatic exchange
of information with the United States government relevant to enforcing the provisions of
federal tax laws and the treaty or other agreement was in effect for 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, 2008.
new text end

Sec. 6.

Minnesota Statutes 2008, section 290.01, subdivision 19, is amended to read:

Subd. 19.

Net income.

The term "net income" means the federal taxable income,
as defined in section 63 of the Internal Revenue Code of 1986, as amended through the
date named in this subdivision, incorporating the federal effective dates of changes to the
Internal Revenue Code and any elections made by the taxpayer in accordance with the
Internal Revenue Code in determining federal taxable income for federal income tax
purposes, and with the modifications provided in subdivisions 19a to 19f.

In the case of a regulated investment company or a fund thereof, as defined in section
851(a) or 851(g) of the Internal Revenue Code, federal taxable income means investment
company taxable income as defined in section 852(b)(2) of the Internal Revenue Code,
except that:

(1) the exclusion of net capital gain provided in section 852(b)(2)(A) of the Internal
Revenue Code does not apply;

(2) the deduction for dividends paid under section 852(b)(2)(D) of the Internal
Revenue Code must be applied by allowing a deduction for capital gain dividends and
exempt-interest dividends as defined in sections 852(b)(3)(C) and 852(b)(5) of the Internal
Revenue Code; and

(3) the deduction for dividends paid must also be applied in the amount of any
undistributed capital gains which the regulated investment company elects to have treated
as provided in section 852(b)(3)(D) of the Internal Revenue Code.

The net income of a real estate investment trust as defined and limited by section
856(a), (b), and (c) of the Internal Revenue Code means the real estate investment trust
taxable income as defined in section 857(b)(2) of the Internal Revenue Code.

The net income of a designated settlement fund as defined in section 468B(d) of
the Internal Revenue Code means the gross income as defined in section 468B(b) of the
Internal Revenue Code.

The Internal Revenue Code of 1986, as amended through February 13, 2008, shall
be in effect for taxable years beginning after December 31, 1996 new text begin , except section 179 of the
Internal Revenue Code, as amended through February 17, 2009, applies new text end .

Except as otherwise provided, references to the Internal Revenue Code in
subdivisions 19 to 19f mean the code in effect for purposes of determining net income for
the applicable year.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2008.
new text end

Sec. 7.

Minnesota Statutes 2008, section 290.01, subdivision 19a, is amended to read:

Subd. 19a.

Additions to federal taxable income.

For individuals, estates, and
trusts, there shall be added to federal taxable income:

(1)(i) interest income on obligations of any state deleted text begin other than Minnesota deleted text end or a political
or governmental subdivision, municipality, or governmental agency or instrumentality
of any state deleted text begin other than Minnesota deleted text end exempt from federal income taxes under the Internal
Revenue Code or any other federal statute new text begin , but excluding interest on such an obligation
issued and sold before July 1, 2009, by the state of Minnesota or a political or governmental
subdivision, municipality, or governmental agency or instrumentality of Minnesota new text end ; and

(ii) exempt-interest dividends as defined in section 852(b)(5) of the Internal Revenue
Code, except the portion of the exempt-interest dividends derived from interest income
on obligations of the state of Minnesota or its political or governmental subdivisions,
municipalities, governmental agencies or instrumentalities, but only if the portion of the
exempt-interest dividends from such Minnesota sources paid to all shareholders represents
95 percent or more of the exempt-interest dividends that are paid by the regulated
investment company as defined in section 851(a) of the Internal Revenue Code, or the fund
of the regulated investment company as defined in section 851(g) of the Internal Revenue
Code, making the payment new text begin and only to the extent the interest is paid on obligations issued
and sold before July 1, 2009 new text end ; and

(iii) for the purposes of items (i) and (ii), interest on obligations of an Indian tribal
government described in section 7871(c) of the Internal Revenue Code shall be treated as
interest income on obligations of the state in which the tribe is located;

(2) new text begin (i) new text end the amount of income or sales and use taxes paid or accrued within the taxable
year under this chapter and the amount of taxes based on net income paid or sales and
use taxes paid to any other state or to any province or territory of Canada, to the extent
allowed as a deduction under section 63(d) of the Internal Revenue Code deleted text begin , but the addition deleted text end new text begin ;
new text end

new text begin (ii) qualified residence interest, as defined in section 163(h) of the Internal Revenue
Code, to the extent allowed as a deduction under section 63(d) of the Internal Revenue
Code;
new text end

new text begin (iii) charitable contributions, as defined in section 170(c) of the Internal Revenue
Code, to the extent allowed as a deduction under section 170(a) of the Internal Revenue
Code; and
new text end

new text begin (iv) the sum of the additions made under items (i), (ii), and (iii) new text end may not be more
than the amount by which the itemized deductions as allowed under section 63(d) of the
Internal Revenue Code exceeds the amount of the standard deduction as defined in section
63(c) of the Internal Revenue Code. For the purpose of this paragraph, the disallowance of
itemized deductions under section 68 of the Internal Revenue Code of 1986, income or
sales and use tax deleted text begin is deleted text end new text begin , qualified residence interest, and charitable contributions are new text end the last
itemized deleted text begin deduction deleted text end new text begin deductions new text end disallowed;

(3) the capital gain amount of a lump-sum distribution to which the special tax under
section 1122(h)(3)(B)(ii) of the Tax Reform Act of 1986, Public Law 99-514, applies;

(4) the amount of income taxes paid or accrued within the taxable year under this
chapter and taxes based on net income paid to any other state or any province or territory
of Canada, to the extent allowed as a deduction in determining federal adjusted gross
income. For the purpose of this paragraph, income taxes do not include the taxes imposed
by sections 290.0922, subdivision 1, paragraph (b), 290.9727, 290.9728, and 290.9729;

(5) the amount of expense, interest, or taxes disallowed pursuant to section 290.10
other than expenses or interest used in computing net interest income for the subtraction
allowed under subdivision 19b, clause (1);

(6) the amount of a partner's pro rata share of net income which does not flow
through to the partner because the partnership elected to pay the tax on the income under
section 6242(a)(2) of the Internal Revenue Code;

(7) 80 percent of the depreciation deduction allowed under section 168(k) of the
Internal Revenue Code. For purposes of this clause, if the taxpayer has an activity that
in the taxable year generates a deduction for depreciation under section 168(k) and the
activity generates a loss for the taxable year that the taxpayer is not allowed to claim for
the taxable year, "the depreciation allowed under section 168(k)" for the taxable year is
limited to excess of the depreciation claimed by the activity under section 168(k) over the
amount of the loss from the activity that is not allowed in the taxable year. In succeeding
taxable years when the losses not allowed in the taxable year are allowed, the depreciation
under section 168(k) is allowed;

(8) new text begin for taxable years beginning before January 1, 2009, new text end 80 percent of the amount by
which the deduction allowed by section 179 of the Internal Revenue Code exceeds the
deduction allowable by section 179 of the Internal Revenue Code of 1986, as amended
through December 31, 2003;

(9) to the extent deducted in computing federal taxable income, the amount of the
deduction allowable under section 199 of the Internal Revenue Code;

(10) the exclusion allowed under section 139A of the Internal Revenue Code for
federal subsidies for prescription drug plans;

(11) the amount of expenses disallowed under section 290.10, subdivision 2;

(12) for taxable years beginning after December 31, 2006, and before January 1,
2008, the amount deducted for qualified tuition and related expenses under section 222 of
the Internal Revenue Code, to the extent deducted from gross income; and

(13) for taxable years beginning after December 31, 2006, and before January 1,
2008, the amount deducted for certain expenses of elementary and secondary school
teachers under section 62(a)(2)(D) of the Internal Revenue Code, to the extent deducted
from gross income.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2008.
new text end

Sec. 8.

Minnesota Statutes 2008, section 290.01, subdivision 19b, is amended to read:

Subd. 19b.

Subtractions from federal taxable income.

For individuals, estates,
and trusts, there shall be subtracted from federal taxable income:

(1) net interest income on obligations of any authority, commission, or
instrumentality of the United States to the extent includable in taxable income for federal
income tax purposes but exempt from state income tax under the laws of the United States;

(2) if included in federal taxable income, the amount of any overpayment of income
tax to Minnesota or to any other state, for any previous taxable year, whether the amount
is received as a refund or as a credit to another taxable year's income tax liability;

deleted text begin (3) the amount paid to others, less the amount used to claim the credit allowed under
section 290.0674, not to exceed $1,625 for each qualifying child in grades kindergarten
to 6 and $2,500 for each qualifying child in grades 7 to 12, for tuition, textbooks, and
transportation of each qualifying child in attending an elementary or secondary school
situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a
resident of this state may legally fulfill the state's compulsory attendance laws, which
is not operated for profit, and which adheres to the provisions of the Civil Rights Act
of 1964 and chapter 363A. For the purposes of this clause, "tuition" includes fees or
tuition as defined in section 290.0674, subdivision 1, clause (1). As used in this clause,
"textbooks" includes books and other instructional materials and equipment purchased
or leased for use in elementary and secondary schools in teaching only those subjects
legally and commonly taught in public elementary and secondary schools in this state.
Equipment expenses qualifying for deduction includes expenses as defined and limited in
section 290.0674, subdivision 1, clause (3). "Textbooks" does not include instructional
books and materials used in the teaching of religious tenets, doctrines, or worship, the
purpose of which is to instill such tenets, doctrines, or worship, nor does it include books
or materials for, or transportation to, extracurricular activities including sporting events,
musical or dramatic events, speech activities, driver's education, or similar programs. For
purposes of the subtraction provided by this clause, "qualifying child" has the meaning
given in section 32(c)(3) of the Internal Revenue Code;
deleted text end

deleted text begin (4) income as provided under section 290.0802;
deleted text end

deleted text begin (5) to the extent included in federal adjusted gross income, income realized on
disposition of property exempt from tax under section 290.491;
deleted text end

deleted text begin (6) to the extent not deducted or not deductible pursuant to section 408(d)(8)(E)
of the Internal Revenue Code in determining federal taxable income by an individual
who does not itemize deductions for federal income tax purposes for the taxable year, an
amount equal to 50 percent of the excess of charitable contributions over $500 allowable
as a deduction for the taxable year under section 170(a) of the Internal Revenue Code and
under the provisions of Public Law 109-1;
deleted text end

deleted text begin (7) for taxable years beginning before January 1, 2008, the amount of the federal
small ethanol producer credit allowed under section 40(a)(3) of the Internal Revenue Code
which is included in gross income under section 87 of the Internal Revenue Code;
deleted text end

deleted text begin (8) for individuals who are allowed a federal foreign tax credit for taxes that do not
qualify for a credit under section 290.06, subdivision 22, an amount equal to the carryover
of subnational foreign taxes for the taxable year, but not to exceed the total subnational
foreign taxes reported in claiming the foreign tax credit. For purposes of this clause,
"federal foreign tax credit" means the credit allowed under section 27 of the Internal
Revenue Code, and "carryover of subnational foreign taxes" equals the carryover allowed
under section 904(c) of the Internal Revenue Code minus national level foreign taxes to
the extent they exceed the federal foreign tax credit;
deleted text end

deleted text begin (9) deleted text end new text begin (3) new text end in each of the five tax years immediately following the tax year in which an
addition is required under subdivision 19a, clause (7), or 19c, clause (15), in the case
of a shareholder of a corporation that is an S corporation, an amount equal to one-fifth
of the delayed depreciation. For purposes of this clause, "delayed depreciation" means
the amount of the addition made by the taxpayer under subdivision 19a, clause (7), or
subdivision 19c, clause (15), in the case of a shareholder of an S corporation, minus the
positive value of any net operating loss under section 172 of the Internal Revenue Code
generated for the tax year of the addition. The resulting delayed depreciation cannot be
less than zero;

deleted text begin (10) job opportunity building zone income as provided under section 469.316;
deleted text end

deleted text begin (11) deleted text end new text begin (4) new text end to the extent included in federal taxable income, the amount of compensation
paid to members of the Minnesota National Guard or other reserve components of the
United States military for active service performed in Minnesota, excluding compensation
for services performed under the Active Guard Reserve (AGR) program. For purposes of
this clause, "active service" means (i) state active service as defined in section 190.05,
subdivision 5a, clause (1); (ii) federally funded state active service as defined in section
190.05, subdivision 5b; or (iii) federal active service as defined in section 190.05,
subdivision 5c, but "active service" excludes service performed in accordance with section
190.08, subdivision 3;

deleted text begin (12) deleted text end new text begin (5) new text end to the extent included in federal taxable income, the amount of compensation
paid to Minnesota residents who are members of the armed forces of the United States or
United Nations for active duty performed outside Minnesota under United States Code,
title 10, section 101(d); United States Code, title 32, section 101(12); or the authority of
the United Nations;

deleted text begin (13) an amount, not to exceed $10,000, equal to qualified expenses related to a
qualified donor's donation, while living, of one or more of the qualified donor's organs
to another person for human organ transplantation. For purposes of this clause, "organ"
means all or part of an individual's liver, pancreas, kidney, intestine, lung, or bone marrow;
"human organ transplantation" means the medical procedure by which transfer of a human
organ is made from the body of one person to the body of another person; "qualified
expenses" means unreimbursed expenses for both the individual and the qualified donor
for (i) travel, (ii) lodging, and (iii) lost wages net of sick pay, except that such expenses
may be subtracted under this clause only once; and "qualified donor" means the individual
or the individual's dependent, as defined in section 152 of the Internal Revenue Code. An
individual may claim the subtraction in this clause for each instance of organ donation for
transplantation during the taxable year in which the qualified expenses occur;
deleted text end

deleted text begin (14) deleted text end new text begin (6) new text end in each of the five tax years immediately following the tax year in which an
addition is required under subdivision 19a, clause (8), or 19c, clause (16), in the case of
a shareholder of a corporation that is an S corporation, an amount equal to one-fifth of
the addition made by the taxpayer under subdivision 19a, clause (8), or 19c, clause (16),
in the case of a shareholder of a corporation that is an S corporation, minus the positive
value of any net operating loss under section 172 of the Internal Revenue Code generated
for the tax year of the addition. If the net operating loss exceeds the addition for the tax
year, a subtraction is not allowed under this clause; new text begin and
new text end

deleted text begin (15) deleted text end new text begin (7) new text end to the extent included in federal taxable income, compensation paid to a
service member as defined in United States Code, title 10, section 101(a)(5), for military
service as defined in the Servicemembers Civil Relief Act, Public Law 108-189, section
101(2) deleted text begin ; deleted text end new text begin .
new text end

deleted text begin (16) international economic development zone income as provided under section
469.325; and
deleted text end

deleted text begin (17) to the extent included in federal taxable income, the amount of national service
educational awards received from the National Service Trust under United States Code,
title 42, sections 12601 to 12604, for service in an approved Americorps National Service
program.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2008.
new text end

Sec. 9.

Minnesota Statutes 2008, section 290.01, subdivision 19c, is amended to read:

Subd. 19c.

Corporations; additions to federal taxable income.

For corporations,
there shall be added to federal taxable income:

(1) the amount of any deduction taken for federal income tax purposes for income,
excise, or franchise taxes based on net income or related minimum taxes, including but not
limited to the tax imposed under section 290.0922, paid by the corporation to Minnesota,
another state, a political subdivision of another state, the District of Columbia, or any
foreign country or possession of the United States;

(2) interest not subject to federal tax upon obligations of: the United States, its
possessions, its agencies, or its instrumentalities; the state of Minnesota or any other
state, any of its political or governmental subdivisions, any of its municipalities, or any
of its governmental agencies or instrumentalities; the District of Columbia; or Indian
tribal governments;

(3) exempt-interest dividends received as defined in section 852(b)(5) of the Internal
Revenue Code;

(4) the amount of any net operating loss deduction taken for federal income tax
purposes under section 172 or 832(c)(10) of the Internal Revenue Code or operations loss
deduction under section 810 of the Internal Revenue Code;

(5) the amount of any special deductions taken for federal income tax purposes
under sections 241 to 247 and 965 of the Internal Revenue Code;

(6) losses from the business of mining, as defined in section 290.05, subdivision 1,
clause (a), that are not subject to Minnesota income tax;

(7) the amount of any capital losses deducted for federal income tax purposes under
sections 1211 and 1212 of the Internal Revenue Code;

(8) the exempt foreign trade income of a foreign sales corporation under sections
921(a) and 291 of the Internal Revenue Code;

(9) the amount of percentage depletion deducted under sections 611 through 614 and
291 of the Internal Revenue Code;

(10) for certified pollution control facilities placed in service in a taxable year
beginning before December 31, 1986, and for which amortization deductions were elected
under section 169 of the Internal Revenue Code of 1954, as amended through December
31, 1985, the amount of the amortization deduction allowed in computing federal taxable
income for those facilities;

(11) new text begin for taxable years beginning before January 1, 2009, new text end the amount of any deemed
dividend from a foreign operating corporation determined pursuant to section 290.17,
subdivision 4, paragraph (g). The deemed dividend shall be reduced by the amount of the
addition to income required by clauses (20), (21), (22), and (23);

(12) the amount of a partner's pro rata share of net income which does not flow
through to the partner because the partnership elected to pay the tax on the income under
section 6242(a)(2) of the Internal Revenue Code;

(13) the amount of net income excluded under section 114 of the Internal Revenue
Code;

(14) any increase in subpart F income, as defined in section 952(a) of the Internal
Revenue Code, for the taxable year when subpart F income is calculated without regard
to the provisions of section 103 of Public Law 109-222;

(15) 80 percent of the depreciation deduction allowed under section 168(k)(1)(A)
and (k)(4)(A) of the Internal Revenue Code. For purposes of this clause, if the taxpayer
has an activity that in the taxable year generates a deduction for depreciation under
section 168(k)(1)(A) and (k)(4)(A) and the activity generates a loss for the taxable year
that the taxpayer is not allowed to claim for the taxable year, "the depreciation allowed
under section 168(k)(1)(A) and (k)(4)(A)" for the taxable year is limited to excess of the
depreciation claimed by the activity under section 168(k)(1)(A) and (k)(4)(A) over the
amount of the loss from the activity that is not allowed in the taxable year. In succeeding
taxable years when the losses not allowed in the taxable year are allowed, the depreciation
under section 168(k)(1)(A) and (k)(4)(A) is allowed;

(16) new text begin for taxable years beginning before January 1, 2009, new text end 80 percent of the amount by
which the deduction allowed by section 179 of the Internal Revenue Code exceeds the
deduction allowable by section 179 of the Internal Revenue Code of 1986, as amended
through December 31, 2003;

(17) to the extent deducted in computing federal taxable income, the amount of the
deduction allowable under section 199 of the Internal Revenue Code;

(18) the exclusion allowed under section 139A of the Internal Revenue Code for
federal subsidies for prescription drug plans;

(19) the amount of expenses disallowed under section 290.10, subdivision 2;

(20) an amount equal to the interest and intangible expenses, losses, and costs paid,
accrued, or incurred by any member of the taxpayer's unitary group to or for the benefit
of a corporation that is a member of the taxpayer's unitary business group that qualifies
as a foreign operating corporation. For purposes of this clause, intangible expenses and
costs include:

(i) expenses, losses, and costs for, or related to, the direct or indirect acquisition,
use, maintenance or management, ownership, sale, exchange, or any other disposition of
intangible property;

(ii) losses incurred, directly or indirectly, from factoring transactions or discounting
transactions;

(iii) royalty, patent, technical, and copyright fees;

(iv) licensing fees; and

(v) other similar expenses and costs.

For purposes of this clause, "intangible property" includes stocks, bonds, patents, patent
applications, trade names, trademarks, service marks, copyrights, mask works, trade
secrets, and similar types of intangible assets.

This clause does not apply to any item of interest or intangible expenses or costs paid,
accrued, or incurred, directly or indirectly, to a foreign operating corporation with respect
to such item of income to the extent that the income to the foreign operating corporation
is income from sources without the United States as defined in subtitle A, chapter 1,
subchapter N, part 1, of the Internal Revenue Code;

(21) except as already included in the taxpayer's taxable income pursuant to clause
(20), any interest income and income generated from intangible property received or
accrued by a foreign operating corporation that is a member of the taxpayer's unitary
group. For purposes of this clause, income generated from intangible property includes:

(i) income related to the direct or indirect acquisition, use, maintenance or
management, ownership, sale, exchange, or any other disposition of intangible property;

(ii) income from factoring transactions or discounting transactions;

(iii) royalty, patent, technical, and copyright fees;

(iv) licensing fees; and

(v) other similar income.

For purposes of this clause, "intangible property" includes stocks, bonds, patents, patent
applications, trade names, trademarks, service marks, copyrights, mask works, trade
secrets, and similar types of intangible assets.

This clause does not apply to any item of interest or intangible income received or accrued
by a foreign operating corporation with respect to such item of income to the extent that
the income is income from sources without the United States as defined in subtitle A,
chapter 1, subchapter N, part 1, of the Internal Revenue Code;

(22) the dividends attributable to the income of a foreign operating corporation that
is a member of the taxpayer's unitary group in an amount that is equal to the dividends
paid deduction of a real estate investment trust under section 561(a) of the Internal
Revenue Code for amounts paid or accrued by the real estate investment trust to the
foreign operating corporation;

(23) the income of a foreign operating corporation that is a member of the taxpayer's
unitary group in an amount that is equal to gains derived from the sale of real or personal
property located in the United States; and

(24) for taxable years beginning after December 31, 2006, and before January 1,
2008, the additional amount allowed as a deduction for donation of computer technology
and equipment under section 170(e)(6) of the Internal Revenue Code, to the extent
deducted from taxable income.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2008.
new text end

Sec. 10.

Minnesota Statutes 2008, section 290.01, subdivision 19d, is amended to read:

Subd. 19d.

Corporations; modifications decreasing federal taxable income.

For
corporations, there shall be subtracted from federal taxable income after the increases
provided in subdivision 19c:

(1) the amount of foreign dividend gross-up added to gross income for federal
income tax purposes under section 78 of the Internal Revenue Code;

(2) the amount of salary expense not allowed for federal income tax purposes due to
claiming the work opportunity credit under section 51 of the Internal Revenue Code;

(3) any dividend (not including any distribution in liquidation) paid within the
taxable year by a national or state bank to the United States, or to any instrumentality of
the United States exempt from federal income taxes, on the preferred stock of the bank
owned by the United States or the instrumentality;

(4) amounts disallowed for intangible drilling costs due to differences between
this chapter and the Internal Revenue Code in taxable years beginning before January
1, 1987, as follows:

(i) to the extent the disallowed costs are represented by physical property, an amount
equal to the allowance for depreciation under Minnesota Statutes 1986, section 290.09,
subdivision 7, subject to the modifications contained in subdivision 19e; and

(ii) to the extent the disallowed costs are not represented by physical property, an
amount equal to the allowance for cost depletion under Minnesota Statutes 1986, section
290.09, subdivision 8;

(5) the deduction for capital losses pursuant to sections 1211 and 1212 of the
Internal Revenue Code, except that:

(i) for capital losses incurred in taxable years beginning after December 31, 1986,
capital loss carrybacks shall not be allowed;

(ii) for capital losses incurred in taxable years beginning after December 31, 1986,
a capital loss carryover to each of the 15 taxable years succeeding the loss year shall be
allowed;

(iii) for capital losses incurred in taxable years beginning before January 1, 1987, a
capital loss carryback to each of the three taxable years preceding the loss year, subject to
the provisions of Minnesota Statutes 1986, section 290.16, shall be allowed; and

(iv) for capital losses incurred in taxable years beginning before January 1, 1987,
a capital loss carryover to each of the five taxable years succeeding the loss year to the
extent such loss was not used in a prior taxable year and subject to the provisions of
Minnesota Statutes 1986, section 290.16, shall be allowed;

(6) an amount for interest and expenses relating to income not taxable for federal
income tax purposes, if (i) the income is taxable under this chapter and (ii) the interest and
expenses were disallowed as deductions under the provisions of section 171(a)(2), 265 or
291 of the Internal Revenue Code in computing federal taxable income;

(7) in the case of mines, oil and gas wells, other natural deposits, and timber for
which percentage depletion was disallowed pursuant to subdivision 19c, clause (9), a
reasonable allowance for depletion based on actual cost. In the case of leases the deduction
must be apportioned between the lessor and lessee in accordance with rules prescribed
by the commissioner. In the case of property held in trust, the allowable deduction must
be apportioned between the income beneficiaries and the trustee in accordance with the
pertinent provisions of the trust, or if there is no provision in the instrument, on the basis
of the trust's income allocable to each;

(8) for certified pollution control facilities placed in service in a taxable year
beginning before December 31, 1986, and for which amortization deductions were elected
under section 169 of the Internal Revenue Code of 1954, as amended through December
31, 1985, an amount equal to the allowance for depreciation under Minnesota Statutes
1986, section 290.09, subdivision 7;

(9) amounts included in federal taxable income that are due to refunds of income,
excise, or franchise taxes based on net income or related minimum taxes paid by the
corporation to Minnesota, another state, a political subdivision of another state, the
District of Columbia, or a foreign country or possession of the United States to the extent
that the taxes were added to federal taxable income under section 290.01, subdivision 19c,
clause (1), in a prior taxable year;

deleted text begin (10) 80 percent of royalties, fees, or other like income accrued or received from a
foreign operating corporation or a foreign corporation which is part of the same unitary
business as the receiving corporation, unless the income resulting from such payments or
accruals is income from sources within the United States as defined in subtitle A, chapter
1, subchapter N, part 1, of the Internal Revenue Code;
deleted text end

deleted text begin (11) deleted text end new text begin (10) new text end income or gains from the business of mining as defined in section 290.05,
subdivision 1, clause (a), that are not subject to Minnesota franchise tax;

deleted text begin (12) deleted text end new text begin (11) new text end the amount of disability access expenditures in the taxable year which are
not allowed to be deducted or capitalized under section 44(d)(7) of the Internal Revenue
Code;

deleted text begin (13) deleted text end new text begin (12) new text end the amount of qualified research expenses not allowed for federal income
tax purposes under section 280C(c) of the Internal Revenue Code deleted text begin , but only to the extent
that the amount exceeds the amount of the credit allowed under section 290.068 deleted text end ;

deleted text begin (14) deleted text end new text begin (13) new text end the amount of salary expenses not allowed for federal income tax purposes
due to claiming the Indian employment credit under section 45A(a) of the Internal
Revenue Code;

deleted text begin (15) deleted text end new text begin (14) new text end for taxable years beginning before January 1, 2008, the amount of the
federal small ethanol producer credit allowed under section 40(a)(3) of the Internal
Revenue Code which is included in gross income under section 87 of the Internal Revenue
Code;

deleted text begin (16) deleted text end new text begin (15) new text end for a corporation whose foreign sales corporation, as defined in section
922 of the Internal Revenue Code, constituted a foreign operating corporation during any
taxable year ending before January 1, 1995, and a return was filed by August 15, 1996,
claiming the deduction under section 290.21, subdivision 4, for income received from
the foreign operating corporation, an amount equal to 1.23 multiplied by the amount of
income excluded under section 114 of the Internal Revenue Code, provided the income is
not income of a foreign operating company;

deleted text begin (17) deleted text end new text begin (16) new text end any decrease in subpart F income, as defined in section 952(a) of the
Internal Revenue Code, for the taxable year when subpart F income is calculated without
regard to the provisions of section 103 of Public Law 109-222;

deleted text begin (18) deleted text end new text begin (17) new text end in each of the five tax years immediately following the tax year in which
an addition is required under subdivision 19c, clause (15), an amount equal to one-fifth
of the delayed depreciation. For purposes of this clause, "delayed depreciation" means
the amount of the addition made by the taxpayer under subdivision 19c, clause (15). The
resulting delayed depreciation cannot be less than zero; and

deleted text begin (19) deleted text end new text begin (18) new text end in each of the five tax years immediately following the tax year in which an
addition is required under subdivision 19c, clause (16), an amount equal to one-fifth of the
amount of the addition.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2008.
new text end

Sec. 11.

Minnesota Statutes 2008, section 290.01, subdivision 29, is amended to read:

Subd. 29.

Taxable income.

The term "taxable income" means:

(1) for individuals, estates, and trusts, the same as taxable net income;

(2) for corporations, the taxable net income less

(i) the net operating loss deduction under section 290.095; new text begin and
new text end

(ii) the dividends received deduction under section 290.21, subdivision 4; new text begin plus
new text end

(iii) deleted text begin the exemption for operating in a job opportunity building zone under section
469.317; deleted text end new text begin Minnesota development subsidies.
new text end

deleted text begin (iv) the exemption for operating in a biotechnology and health sciences industry
zone under section 469.337; and
deleted text end

deleted text begin (v) the exemption for operating in an international economic development zone
under section 469.326.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2009.
new text end

Sec. 12.

Minnesota Statutes 2008, section 290.01, subdivision 31, is amended to read:

Subd. 31.

Internal Revenue Code.

Unless specifically defined otherwise, "Internal
Revenue Code" means the Internal Revenue Code of 1986, as amended through February
13, 2008 new text begin , except section 179 of the Internal Revenue Code, as amended through February
17, 2009, applies new text end .

Sec. 13.

Minnesota Statutes 2008, section 290.01, is amended by adding a subdivision
to read:

new text begin Subd. 33. new text end

new text begin Minnesota development subsidies. new text end

new text begin (a) "Minnesota development
subsidies" means the greater of the following amounts:
new text end

new text begin (1) one-half of the amount deducted by the taxpayer in computing federal taxable
income for the taxable year, as property taxes, business expenses or otherwise, that is
attributable to property taxes paid by the taxpayer, either directly or indirectly through a
lease or otherwise, on property located in a tax increment financing district, as defined in
section 469.174, or that receives an abatement under sections 469.1813 to 469.1815, if the
owner of the property or a related party has entered a development or similar agreement
with respect to the increment district or derives a benefit from the abatement by its
property having access to or use of public improvements financed with the abatement or
otherwise; or
new text end

new text begin (2) the amount of payments received by the taxpayer under a development or similar
agreement that provides for payments or reimbursements from the proceeds of increments
from a tax increment financing district or from an abatement under sections 469.1813 to
469.1815, but excluding reimbursements under a development action response plan, as
defined in section 469.174, subdivision 17, to pay for its costs incurred to fund removal
or remedial actions.
new text end

new text begin (b) For purposes of this subdivision, "tax increment financing district" excludes:
new text end

new text begin (1) a housing district, as defined in section 469.174, subdivision 11;
new text end

new text begin (2) a soils condition district, as defined in section 469.174, subdivision 19; and
new text end

new text begin (3) a hazardous substance subdistrict, as defined in section 469.174, subdivision 23.
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, 2009.
new text end

Sec. 14.

Minnesota Statutes 2008, section 290.06, subdivision 2c, is amended to read:

Subd. 2c.

Schedules of rates for individuals, estates, and trusts.

(a) The income
taxes imposed by this chapter upon married individuals filing joint returns and surviving
spouses as defined in section 2(a) of the Internal Revenue Code must be computed by
applying to their taxable net income the following schedule of rates:

(1) On the first $25,680, deleted text begin 5.35 deleted text end new text begin five new text end percent;

(2) On all over $25,680, but not over $102,030, deleted text begin 7.05 deleted text end new text begin seven new text end percent;

(3) On all over $102,030, 7.85 percent.

Married individuals filing separate returns, estates, and trusts must compute their
income tax by applying the above rates to their taxable income, except that the income
brackets will be one-half of the above amounts.

(b) The income taxes imposed by this chapter upon unmarried individuals must be
computed by applying to taxable net income the following schedule of rates:

(1) On the first $17,570, deleted text begin 5.35 deleted text end new text begin five new text end percent;

(2) On all over $17,570, but not over $57,710, deleted text begin 7.05 deleted text end new text begin seven new text end percent;

(3) On all over $57,710, 7.85 percent.

(c) The income taxes imposed by this chapter upon unmarried individuals qualifying
as a head of household as defined in section 2(b) of the Internal Revenue Code must be
computed by applying to taxable net income the following schedule of rates:

(1) On the first $21,630, deleted text begin 5.35 deleted text end new text begin five new text end percent;

(2) On all over $21,630, but not over $86,910, deleted text begin 7.05 deleted text end new text begin seven new text end percent;

(3) On all over $86,910, 7.85 percent.

(d) In lieu of a tax computed according to the rates set forth in this subdivision, the
tax of any individual taxpayer whose taxable net income for the taxable year is less than
an amount determined by the commissioner must be computed in accordance with tables
prepared and issued by the commissioner of revenue based on income brackets of not
more than $100. The amount of tax for each bracket shall be computed at the rates set
forth in this subdivision, provided that the commissioner may disregard a fractional part of
a dollar unless it amounts to 50 cents or more, in which case it may be increased to $1.

(e) An individual who is not a Minnesota resident for the entire year must compute
the individual's Minnesota income tax as provided in this subdivision. After the
application of the nonrefundable credits provided in this chapter, the tax liability must
then be multiplied by a fraction in which:

(1) the numerator is the individual's Minnesota source federal adjusted gross income
as defined in section 62 of the Internal Revenue Code and increased by the additions
required under section 290.01, subdivision 19a, clauses (1), (5), (6), (7), (8), (9), (12),
and (13) and reduced by the Minnesota assignable portion of the subtraction for United
States government interest under section 290.01, subdivision 19b, clause (1), and the
subtractions under section 290.01, subdivision 19b, clauses deleted text begin (9), (10), (14), (15), and (16) deleted text end new text begin
(3), (6), and (7) new text end , after applying the allocation and assignability provisions of section
290.081, clause (a), or 290.17; and

(2) the denominator is the individual's federal adjusted gross income as defined in
section 62 of the Internal Revenue Code of 1986, increased by the amounts specified in
section 290.01, subdivision 19a, clauses (1), (5), (6), (7), (8), (9), (12), and (13) and
reduced by the amounts specified in section 290.01, subdivision 19b, clauses (1), deleted text begin (9),
(10), (14), (15), and (16) deleted text end new text begin (3), (6), and (7) 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, 2008.
new text end

Sec. 15.

Minnesota Statutes 2008, section 290.06, is amended by adding a subdivision
to read:

new text begin Subd. 36. new text end

new text begin Mortgage interest credit. new text end

new text begin (a) An individual is allowed a credit against
the tax imposed by this chapter equal to seven percent of the lesser of:
new text end

new text begin (1) $6,000; or
new text end

new text begin (2) qualified residence interest deduction for which the individual is eligible under
section 63(d) of the Internal Revenue Code, minus $4,000.
new text end

new text begin (b) For a nonresident or part-year resident, the credit must be allocated based on the
percentage calculated under section 290.06, subdivision 2c, paragraph (e).
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, 2008.
new text end

Sec. 16.

Minnesota Statutes 2008, section 290.06, is amended by adding a subdivision
to read:

new text begin Subd. 37. new text end

new text begin Charitable contributions credit. new text end

new text begin (a) An individual is allowed a credit
against the tax imposed by this chapter equal to eight percent of the amount by which
eligible charitable contributions exceed the greater of:
new text end

new text begin (1) two percent of the individual's adjusted gross income for the taxable year, or
new text end

new text begin (2) $500.
new text end

new text begin (b) For purposes of this subdivision "eligible charitable contributions" means the
lesser of:
new text end

new text begin (1) charitable contributions allowable as a deduction for the taxable year under
section 170(a) of the Internal Revenue Code; or
new text end

new text begin (2) 50 percent of the individual's adjusted gross income for the taxable year.
new text end

new text begin (c) For purposes of this subdivision "adjusted gross income" has the meaning given
in section 62 of the Internal Revenue Code.
new text end

new text begin (d) For a nonresident or part-year resident, the credit must be allocated based on the
percentage calculated under section 290.06, subdivision 2c, paragraph (e).
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, 2008.
new text end

Sec. 17.

Minnesota Statutes 2008, section 290.0671, subdivision 1, is amended to read:

Subdivision 1.

Credit allowed.

(a) An individual is allowed a credit against the tax
imposed by this chapter equal to a percentage of earned income. To receive a credit, a
taxpayer must be eligible for a credit under section 32 of the Internal Revenue Code.

(b) For individuals with no qualifying children, the credit equals 1.9125 percent of
the first $4,620 of earned income. The credit is reduced by 1.9125 percent of earned
income or adjusted gross income, whichever is greater, in excess of $5,770, but in no
case is the credit less than zero.

(c) For individuals with one qualifying child, the credit equals 8.5 percent of the first
$6,920 of earned income and 8.5 percent of earned income over $12,080 but less than
$13,450. The credit is reduced by 5.73 percent of earned income or adjusted gross income,
whichever is greater, in excess of $15,080, but in no case is the credit less than zero.

(d) For individuals with two or more qualifying children, the credit equals ten
percent of the first $9,720 of earned income and 20 percent of earned income over
$14,860 but less than $16,800. The credit is reduced by 10.3 percent of earned income
or adjusted gross income, whichever is greater, in excess of $17,890, but in no case is
the credit less than zero.

(e) For a nonresident or part-year resident, the credit must be allocated based on the
percentage calculated under section 290.06, subdivision 2c, paragraph (e).

(f) For a person who was a resident for the entire tax year and has earned income
not subject to tax under this chapter, deleted text begin including income excluded under section 290.01,
subdivision 19b, clause (10) or (16), deleted text end the credit must be allocated based on the ratio of
federal adjusted gross income reduced by the earned income not subject to tax under
this chapter over federal adjusted gross income. For purposes of this paragraph, the
subtractions for military pay under section 290.01, subdivision 19b, clauses deleted text begin (11) and (12) deleted text end new text begin
(4) and (5) new text end , are not considered "earned income not subject to tax under this chapter."

For the purposes of this paragraph, the exclusion of combat pay under section 112
of the Internal Revenue Code is not considered "earned income not subject to tax under
this chapter."

(g) For tax years beginning after December 31, 2001, and before December 31,
2004, the $5,770 in paragraph (b), the $15,080 in paragraph (c), and the $17,890 in
paragraph (d), after being adjusted for inflation under subdivision 7, are each increased by
$1,000 for married taxpayers filing joint returns.

(h) For tax years beginning after December 31, 2004, and before December 31,
2007, the $5,770 in paragraph (b), the $15,080 in paragraph (c), and the $17,890 in
paragraph (d), after being adjusted for inflation under subdivision 7, are each increased by
$2,000 for married taxpayers filing joint returns.

(i) For tax years beginning after December 31, 2007, and before December 31, 2010,
the $5,770 in paragraph (b), the $15,080 in paragraph (c), and the $17,890 in paragraph
(d), after being adjusted for inflation under subdivision 7, are each increased by $3,000 for
married taxpayers filing joint returns. For tax years beginning after December 31, 2008,
the $3,000 is adjusted annually for inflation under subdivision 7.

(j) The commissioner shall construct tables showing the amount of the credit at
various income levels and make them available to taxpayers. The tables shall follow
the schedule contained in this subdivision, except that the commissioner may graduate
the transition between income brackets.

Sec. 18.

new text begin [290.0682] MINNESOTA CHILD CREDIT.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section the following terms
have the meanings given.
new text end

new text begin (b) "Adjusted gross income" has the meaning given in section 62 of the Internal
Revenue Code.
new text end

new text begin (c) "Qualifying child" has the meaning given in section 24(c) of the Internal
Revenue Code.
new text end

new text begin Subd. 2. 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 lesser of:
new text end

new text begin (1) $200 for each qualifying child; or
new text end

new text begin (2) ten percent of adjusted gross income in excess of $14,000.
new text end

new text begin (b) The credit allowed in paragraph (a) is reduced by an amount equal to five percent
of adjusted gross income in excess of $28,000, but in no case is the credit less than zero.
new text end

new text begin (c) For a nonresident or part-year resident, the credit must be allocated based on the
percentage calculated under section 290.06, subdivision 2c, paragraph (e).
new text end

new text begin Subd. 3. new text end

new text begin Credit refundable. new text end

new text begin If the amount of credit that an individual is eligible
to receive under this section 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. 4. 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 Subd. 5. new text end

new text begin Inflation adjustment. new text end

new text begin The adjusted gross income floor in subdivision 2,
paragraph (a), clause (2), and the phaseout threshold in subdivision 2, paragraph (b),
must be adjusted for inflation. For tax years beginning after December 31, 2009, the
commissioner shall annually adjust the adjusted gross income floor and the phaseout
threshold by the percentage determined pursuant to section 1(f) of the Internal Revenue
Code, except that in section 1(f)(3)(B), the word "2008" shall be substituted for the word
"1992." For 2010, the commissioner shall then determine the percent change from the
12 months ending on August 31, 2008, to the 12 months ending on August 31, 2009,
and in each subsequent year, from the 12 months ending on August 31, 2008, to the 12
months ending on August 31 of the year preceding the taxable year. The adjusted gross
income floor and the phaseout threshold as adjusted for inflation must be rounded to
the nearest $10. If the amount ends in $5, the amount is rounded up to the nearest $10.
The determination of the commissioner under this subdivision is not a rule under the
Administrative Procedure Act.
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, 2008.
new text end

Sec. 19.

Minnesota Statutes 2008, section 290.0922, subdivision 1, is amended to read:

Subdivision 1.

Imposition.

(a) In addition to the tax imposed by this chapter without
regard to this section, the franchise tax imposed on a corporation required to file under
section 289A.08, subdivision 3, other than a corporation treated as an "S" corporation
under section 290.9725 for the taxable year includes a tax equal to the following amounts:

If the sum of the corporation's Minnesota property, payrolls, and sales or receipts is:						the tax equals:
		deleted text begin less than deleted text end	deleted text begin $ deleted text end	deleted text begin 500,000 deleted text end		deleted text begin $ deleted text end	deleted text begin 0 deleted text end
	deleted text begin $ deleted text end	deleted text begin 500,000 deleted text end to	deleted text begin $ deleted text end	deleted text begin 999,999 deleted text end		deleted text begin $ deleted text end	deleted text begin 100 deleted text end
	deleted text begin $ deleted text end	deleted text begin 1,000,000 to deleted text end	deleted text begin $ deleted text end	deleted text begin 4,999,999 deleted text end		deleted text begin $ deleted text end	deleted text begin 300 deleted text end
	deleted text begin $ deleted text end	deleted text begin 5,000,000 to deleted text end	deleted text begin $ deleted text end	deleted text begin 9,999,999 deleted text end		deleted text begin $ deleted text end	deleted text begin 1,000 deleted text end
	deleted text begin $ deleted text end	deleted text begin 10,000,000 to deleted text end	deleted text begin $ deleted text end	deleted text begin 19,999,999 deleted text end		deleted text begin $ deleted text end	deleted text begin 2,000 deleted text end
	deleted text begin $ deleted text end	deleted text begin 20,000,000 or more deleted text end				deleted text begin $ deleted text end	deleted text begin 5,000 deleted text end
		new text begin less than new text end	new text begin $ new text end	new text begin 830,000 new text end		new text begin $ new text end	new text begin 0 new text end
	new text begin $ new text end	new text begin 830,000 to new text end	new text begin $ new text end	new text begin 1,659,999 new text end		new text begin $ new text end	new text begin 170 new text end
	new text begin $ new text end	new text begin 1,660,000 to new text end	new text begin $ new text end	new text begin 8,319,999 new text end		new text begin $ new text end	new text begin 500 new text end
	new text begin $ new text end	new text begin 8,320,000 to new text end	new text begin $ new text end	new text begin 16,649,999 new text end		new text begin $ new text end	new text begin 1,660 new text end
	new text begin $ new text end	new text begin 16,650,000 to new text end	new text begin $ new text end	new text begin 33,299,999 new text end		new text begin $ new text end	new text begin 3,330 new text end
	new text begin $ new text end	new text begin 33,300,000 or more new text end				new text begin $ new text end	new text begin 8,320 new text end

(b) A tax is imposed for each taxable year on a corporation required to file a return
under section 289A.12, subdivision 3, that is treated as an "S" corporation under section
290.9725 and on a partnership required to file a return under section 289A.12, subdivision
3, other than a partnership that derives over 80 percent of its income from farming. The
tax imposed under this paragraph is due on or before the due date of the return for the
taxpayer due under section 289A.18, subdivision 1. The commissioner shall prescribe
the return to be used for payment of this tax. The tax under this paragraph is equal to
the following amounts:

If the sum of the S corporation's or partnership's Minnesota property, payrolls, and sales or receipts is:							the tax equals:
		deleted text begin less than deleted text end	deleted text begin $ deleted text end	deleted text begin 500,000 deleted text end		deleted text begin $ deleted text end	deleted text begin 0 deleted text end
	deleted text begin $ deleted text end	deleted text begin 500,000 to deleted text end	deleted text begin $ deleted text end	deleted text begin 999,999 deleted text end		deleted text begin $ deleted text end	deleted text begin 100 deleted text end
	deleted text begin $ deleted text end	deleted text begin 1,000,000 to deleted text end	deleted text begin $ deleted text end	deleted text begin 4,999,999 deleted text end		deleted text begin $ deleted text end	deleted text begin 300 deleted text end
	deleted text begin $ deleted text end	deleted text begin 5,000,000 to deleted text end	deleted text begin $ deleted text end	deleted text begin 9,999,999 deleted text end		deleted text begin $ deleted text end	deleted text begin 1,000 deleted text end
	deleted text begin $ deleted text end	deleted text begin 10,000,000 to deleted text end	deleted text begin $ deleted text end	deleted text begin 19,999,999 deleted text end		deleted text begin $ deleted text end	deleted text begin 2,000 deleted text end
	deleted text begin $ deleted text end	deleted text begin 20,000,000 or more deleted text end				deleted text begin $ deleted text end	deleted text begin 5,000 deleted text end
		new text begin less than new text end	new text begin $ new text end	new text begin 830,000 new text end		new text begin $ new text end	new text begin 0 new text end
	new text begin $ new text end	new text begin 830,000 to new text end	new text begin $ new text end	new text begin 1,659,999 new text end		new text begin $ new text end	new text begin 170 new text end
	new text begin $ new text end	new text begin 1,660,000 to new text end	new text begin $ new text end	new text begin 8,319,999 new text end		new text begin $ new text end	new text begin 500 new text end
	new text begin $ new text end	new text begin 8,320,000 to new text end	new text begin $ new text end	new text begin 16,649,999 new text end		new text begin $ new text end	new text begin 1,660 new text end
	new text begin $ new text end	new text begin 16,650,000 to new text end	new text begin $ new text end	new text begin 33,299,999 new text end		new text begin $ new text end	new text begin 3,330 new text end
	new text begin $ new text end	new text begin 33,300,000 or more new text end				new text begin $ new text end	new text begin 8,320 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, 2008.
new text end

Sec. 20.

Minnesota Statutes 2008, section 290.0922, subdivision 3, is amended to read:

Subd. 3.

Definitions.

(a) "Minnesota sales or receipts" means the total sales
apportioned to Minnesota pursuant to section 290.191, subdivision 5, the total receipts
attributed to Minnesota pursuant to section 290.191, subdivisions 6 to 8, and/or the
total sales or receipts apportioned or attributed to Minnesota pursuant to any other
apportionment formula applicable to the taxpayer.

(b) "Minnesota property" means total Minnesota tangible property as provided in
section 290.191, subdivisions 9 to 11, any other tangible property located in Minnesota deleted text begin ,
but does not include: (1) property located in a job opportunity building zone designated
under section 469.314, (2) property of a qualified business located in a biotechnology and
health sciences industry zone designated under section 469.334, or (3) for taxable years
beginning during the duration of the zone, property of a qualified business located in the
international economic development zone designated under section 469.322 deleted text end . Intangible
property shall not be included in Minnesota property for purposes of this section.
Taxpayers who do not utilize tangible property to apportion income shall nevertheless
include Minnesota property for purposes of this section. On a return for a short taxable
year, the amount of Minnesota property owned, as determined under section 290.191,
shall be included in Minnesota property based on a fraction in which the numerator is the
number of days in the short taxable year and the denominator is 365.

(c) "Minnesota payrolls" means total Minnesota payrolls as provided in section
290.191, subdivision 12 deleted text begin , but does not include: (1) job opportunity building zone payrolls
under section 469.310, subdivision 8, (2) biotechnology and health sciences industry zone
payrolls under section 469.330, subdivision 8, or (3) for taxable years beginning during
the duration of the zone, international economic development zone payrolls under section
469.321, subdivision 9 deleted text end . Taxpayers who do not utilize payrolls to apportion income shall
nevertheless include Minnesota payrolls for purposes of this section.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2009.
new text end

Sec. 21.

Minnesota Statutes 2008, section 290.0922, is amended by adding a
subdivision to read:

new text begin Subd. 5. new text end

new text begin Inflation adjustment. new text end

new text begin The commissioner shall adjust the dollar amounts
of both the fee and the property, payrolls, and sales or receipts thresholds in subdivision
1 by the percentage determined pursuant to the provisions of section 1(f) of the Internal
Revenue Code, except that in section 1(f)(3)(B) the word "2008" must be substituted for
the word "1992." For 2010, the commissioner shall then determine the percent change
from the 12 months ending on August 31, 2008, to the 12 months ending on August
31, 2009, and in each subsequent year, from the 12 months ending on August 31, 2008,
to the 12 months ending on August 31 of the year preceding the taxable year. The
determination of the commissioner pursuant to this subdivision is not a "rule" subject to
the Administrative Procedure Act contained in chapter 14. The fee amounts as adjusted
must be rounded to the nearest $10 amounts and the threshold amounts must be adjusted
to the nearest $10,000 amounts. For fee amounts that end in $5, the amount is rounded up
to the nearest $10 amount and for threshold amounts that end in $5,000, the amount is
rounded up to the nearest $10,000.
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, 2009.
new text end

Sec. 22.

Minnesota Statutes 2008, section 290.17, subdivision 4, is amended to read:

Subd. 4.

Unitary business principle.

(a) If a trade or business conducted wholly
within this state or partly within and partly without this state is part of a unitary business,
the entire income of the unitary business is subject to apportionment pursuant to section
290.191. Notwithstanding subdivision 2, paragraph (c), none of the income of a unitary
business is considered to be derived from any particular source and none may be allocated
to a particular place except as provided by the applicable apportionment formula. The
provisions of this subdivision do not apply to business income subject to subdivision 5,
income of an insurance company, or income of an investment company determined under
section 290.36.

(b) The term "unitary business" means business activities or operations which
result in a flow of value between them. The term may be applied within a single legal
entity or between multiple entities and without regard to whether each entity is a sole
proprietorship, a corporation, a partnership or a trust.

(c) Unity is presumed whenever there is unity of ownership, operation, and use,
evidenced by centralized management or executive force, centralized purchasing,
advertising, accounting, or other controlled interaction, but the absence of these
centralized activities will not necessarily evidence a nonunitary business. Unity is also
presumed when business activities or operations are of mutual benefit, dependent upon or
contributory to one another, either individually or as a group.

(d) Where a business operation conducted in Minnesota is owned by a business
entity that carries on business activity outside the state different in kind from that
conducted within this state, and the other business is conducted entirely outside the state, it
is presumed that the two business operations are unitary in nature, interrelated, connected,
and interdependent unless it can be shown to the contrary.

(e) Unity of ownership is not deemed to exist when a corporation is involved unless
that corporation is a member of a group of two or more business entities and more than 50
percent of the voting stock of each member of the group is directly or indirectly owned
by a common owner or by common owners, either corporate or noncorporate, or by one
or more of the member corporations of the group. For this purpose, the term "voting
stock" shall include membership interests of mutual insurance holding companies formed
under section 66A.40.

(f) The net income and apportionment factors under section 290.191 or 290.20 of
foreign corporations and other foreign entities which are part of a unitary business shall
not be included in the net income or the apportionment factors of the unitary business.
A foreign corporation or other foreign entity which is required to file a return under this
chapter shall file on a separate return basis. deleted text begin The net income and apportionment factors
under section 290.191 or 290.20 of foreign operating corporations shall not be included in
the net income or the apportionment factors of the unitary business except as provided in
paragraph (g).
deleted text end

deleted text begin (g) The adjusted net income of a foreign operating corporation shall be deemed to
be paid as a dividend on the last day of its taxable year to each shareholder thereof, in
proportion to each shareholder's ownership, with which such corporation is engaged in
a unitary business. Such deemed dividend shall be treated as a dividend under section
290.21, subdivision 4.
deleted text end

deleted text begin Dividends actually paid by a foreign operating corporation to a corporate shareholder
which is a member of the same unitary business as the foreign operating corporation shall
be eliminated from the net income of the unitary business in preparing a combined report
for the unitary business. The adjusted net income of a foreign operating corporation
shall be its net income adjusted as follows:
deleted text end

deleted text begin (1) any taxes paid or accrued to a foreign country, the commonwealth of Puerto
Rico, or a United States possession or political subdivision of any of the foregoing shall
be a deduction; and
deleted text end

deleted text begin (2) the subtraction from federal taxable income for payments received from foreign
corporations or foreign operating corporations under section 290.01, subdivision 19d,
clause (10), shall not be allowed.
deleted text end

deleted text begin If a foreign operating corporation incurs a net loss, neither income nor deduction
from that corporation shall be included in determining the net income of the unitary
business.
deleted text end

deleted text begin (h) deleted text end new text begin (g) new text end For purposes of determining the net income of a unitary business and the
factors to be used in the apportionment of net income pursuant to section 290.191 or
290.20, there must be included only the income and apportionment factors of domestic
corporations or other domestic entities deleted text begin other than foreign operating corporations deleted text end that are
determined to be part of the unitary business pursuant to this subdivision, notwithstanding
that foreign corporations or other foreign entities might be included in the unitary business.

deleted text begin (i) deleted text end new text begin (h) new text end Deductions for expenses, interest, or taxes otherwise allowable under
this chapter that are connected with or allocable against dividends deleted text begin , deemed dividends
described in paragraph (g), or royalties, fees, or other like income described in section
290.01, subdivision 19d, clause (10), deleted text end shall not be disallowed.

deleted text begin (j) deleted text end new text begin (i) new text end Each corporation or other entity, except a sole proprietorship, that is part of
a unitary business must file combined reports as the commissioner determines. On the
reports, all intercompany transactions between entities included pursuant to paragraph
deleted text begin (h) deleted text end new text begin (g) new text end must be eliminated and the entire net income of the unitary business determined in
accordance with this subdivision is apportioned among the entities by using each entity's
Minnesota factors for apportionment purposes in the numerators of the apportionment
formula and the total factors for apportionment purposes of all entities included pursuant
to paragraph deleted text begin (h) deleted text end new text begin (g) new text end in the denominators of the apportionment formula.

deleted text begin (k) deleted text end new text begin (j) new text end If a corporation has been divested from a unitary business and is included in a
combined report for a fractional part of the common accounting period of the combined
report:

(1) its income includable in the combined report is its income incurred for that part
of the year determined by proration or separate accounting; and

(2) its sales, property, and payroll included in the apportionment formula must
be prorated or accounted for separately.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable year beginning after
December 31, 2008.
new text end

Sec. 23.

Minnesota Statutes 2008, section 290.191, subdivision 2, is amended to read:

Subd. 2.

Apportionment formula of general application.

deleted text begin (a) deleted text end Except for those
trades or businesses required to use a different formula under subdivision 3 or section
290.36, and for those trades or businesses that receive permission to use some other
method under section 290.20 or under subdivision 4, a trade or business required to
apportion its net income must apportion its income to this state on the basis of the
deleted text begin percentage obtained by taking the sum of:
deleted text end

deleted text begin (1) the percent for the sales factor under paragraph (b) of the deleted text end percentage which
the sales made within this state in connection with the trade or business during the tax
period are of the total sales wherever made in connection with the trade or business during
the tax period deleted text begin ; deleted text end new text begin .
new text end

deleted text begin (2) the percent for the property factor under paragraph (b) of the percentage which
the total tangible property used by the taxpayer in this state in connection with the trade or
business during the tax period is of the total tangible property, wherever located, used by
the taxpayer in connection with the trade or business during the tax period; and
deleted text end

deleted text begin (3) the percent for the payroll factor under paragraph (b) of the percentage which
the taxpayer's total payrolls paid or incurred in this state or paid in respect to labor
performed in this state in connection with the trade or business during the tax period are
of the taxpayer's total payrolls paid or incurred in connection with the trade or business
during the tax period.
deleted text end

deleted text begin (b) For purposes of paragraph (a) and subdivision 3, the following percentages apply
for the taxable years specified:
deleted text end

deleted text begin Taxable years beginning during calendar year deleted text end			deleted text begin Sales factor percent deleted text end			deleted text begin Property factor percent deleted text end		deleted text begin Payroll factor percent deleted text end
deleted text begin 2007 deleted text end			deleted text begin 78 deleted text end			deleted text begin 11 deleted text end		deleted text begin 11 deleted text end
deleted text begin 2008 deleted text end			deleted text begin 81 deleted text end			deleted text begin 9.5 deleted text end		deleted text begin 9.5 deleted text end
deleted text begin 2009 deleted text end			deleted text begin 84 deleted text end			deleted text begin 8 deleted text end		deleted text begin 8 deleted text end
deleted text begin 2010 deleted text end			deleted text begin 87 deleted text end			deleted text begin 6.5 deleted text end		deleted text begin 6.5 deleted text end
deleted text begin 2011 deleted text end			deleted text begin 90 deleted text end			deleted text begin 5 deleted text end		deleted text begin 5 deleted text end
deleted text begin 2012 deleted text end			deleted text begin 93 deleted text end			deleted text begin 3.5 deleted text end		deleted text begin 3.5 deleted text end
deleted text begin 2013 deleted text end			deleted text begin 96 deleted text end			deleted text begin 2 deleted text end		deleted text begin 2 deleted text end
deleted text begin 2014 and later calendar years deleted text end			deleted text begin 100 deleted text end			deleted text begin 0 deleted text end		deleted text begin 0 deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2008.
new text end

Sec. 24.

Minnesota Statutes 2008, section 290.191, subdivision 3, is amended to read:

Subd. 3.

Apportionment formula for financial institutions.

Except for an
investment company required to apportion its income under section 290.36, a financial
institution that is required to apportion its net income must apportion its net income to this
state on the basis of the percentage deleted text begin obtained by taking the sum of:
deleted text end

deleted text begin (1) the percent for the sales factor under subdivision 2, paragraph (b), of the
percentage deleted text end which the receipts from within this state in connection with the trade or
business during the tax period are of the total receipts in connection with the trade or
business during the tax period, from wherever derived deleted text begin ; deleted text end new text begin .
new text end

deleted text begin (2) the percent for the property factor under subdivision 2, paragraph (b), of the
percentage which the sum of the total tangible property used by the taxpayer in this
state and the intangible property owned by the taxpayer and attributed to this state in
connection with the trade or business during the tax period is of the sum of the total
tangible property, wherever located, used by the taxpayer and the intangible property
owned by the taxpayer and attributed to all states in connection with the trade or business
during the tax period; and
deleted text end

deleted text begin (3) the percent for the payroll factor under subdivision 2, paragraph (b), of the
percentage which the taxpayer's total payrolls paid or incurred in this state or paid in
respect to labor performed in this state in connection with the trade or business during
the tax period are of the taxpayer's total payrolls paid or incurred in connection with
the trade or business during the tax period.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2008.
new text end

Sec. 25.

Minnesota Statutes 2008, section 469.315, is amended to read:

469.315 TAX INCENTIVES AVAILABLE IN ZONES.

Qualified businesses that operate in a job opportunity building zone, individuals who
invest in a qualified business that operates in a job opportunity building zone, and property
located in a job opportunity building zone qualify for:

deleted text begin (1) exemption from individual income taxes as provided under section 469.316;
deleted text end

deleted text begin (2) exemption from corporate franchise taxes as provided under section 469.317; deleted text end

deleted text begin (3) deleted text end new text begin (1) new text end exemption from the state sales and use tax and any local sales and use taxes
on qualifying purchases as provided in section 297A.68, subdivision 37;

deleted text begin (4) deleted text end new text begin (2) new text end exemption from the state sales tax on motor vehicles and any local sales tax
on motor vehicles as provided under section 297B.03;

deleted text begin (5) deleted text end new text begin (3) new text end exemption from the property tax as provided in section 272.02, subdivision
64;

deleted text begin (6) deleted text end new text begin (4) new text end exemption from the wind energy production tax under section 272.029,
subdivision 7; and

deleted text begin (7) deleted text end new text begin (5) new text end the jobs credit allowed under section 469.318.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2009.
new text end

Sec. 26.

Minnesota Statutes 2008, section 469.3192, is amended to read:

469.3192 PROHIBITION AGAINST AMENDMENTS TO BUSINESS
SUBSIDY AGREEMENT.

new text begin (a) new text end Except as authorized under section 469.3191 new text begin or under paragraph (b) and (c) new text end ,
under no circumstance shall terms of any agreement required as a condition for eligibility
for benefits listed under section 469.315 be amended to change job creation, job retention,
or wage goals included in the agreement.

new text begin (b) A business may elect to void a business subsidy agreement permitting it to
qualify for benefits listed under section 469.315 within 30 days after enactment of section
30, effective for obligations under the agreement that apply to periods after December 31,
2008. The authority to void an agreement expires 180 days after enactment of section 30.
new text end

new text begin (c) A business that does not elect to void an agreement under paragraph (b) may
negotiate a modified or new business subsidy agreement to reflect the state's repeal of the
benefits of the individual income and corporate franchise tax exemptions under sections
469.316 and 469.317.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 27. new text begin APPROPRIATION; BOVINE TUBERCULOSIS TESTING GRANTS.
new text end

new text begin $360,000 in fiscal year 2010 and $360,000 in fiscal year 2011 are appropriated from
the general fund to the commissioner of agriculture to make bovine tuberculosis testing
grants as provided in Minnesota Statutes, section 17.1195.
new text end

Sec. 28. new text begin REVISOR'S INSTRUCTION.
new text end

new text begin The revisor of statutes shall identify and correct internal cross-references to sections
that are affected by section 29. The revisor may make changes necessary to correct the
punctuation, grammar, or structure of the remaining text and preserve its meaning.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 29. new text begin REPEALER.
new text end

new text begin (a) Minnesota Statutes 2008, sections 290.06, subdivisions 33 and 34; 290.067,
subdivisions 1, 2, 2a, 2b, 3, and 4; 290.0672; 290.0674; 290.0679; 290.0802; 290.091;
290.0921, subdivisions 1, 2, 3, 3a, 4, 6, 7, and 8; 290.191, subdivision 4; and 290.491, new text end new text begin and
new text end new text begin Laws 2009, chapter 3, section 1, new text end new text begin are repealed.
new text end

new text begin (b) new text end new text begin Minnesota Statutes 2008, sections 272.02, subdivision 83; 290.06, subdivisions
24, 28, 30, 31, and 32; 290.068, subdivisions 1, 2, 3, 4, and 5; 297A.68, subdivisions 38
and 41; 469.316; 469.317; 469.321; 469.3215; 469.322; 469.323; 469.324; 469.325;
469.326; 469.327; 469.328; 469.329; 469.330; 469.331; 469.332; 469.333; 469.334;
469.335; 469.336; 469.337; 469.338; 469.339; 469.340; and 469.341, new text end new text begin are repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Paragraph (a) is effective for taxable years beginning after
December 31, 2008. Paragraph (b) is effective for taxable years beginning after December
31, 2009.
new text end