HF 2177

as introduced - 91st Legislature (2019 - 2020) Posted on 03/07/2019 02:47pm

A bill for an act
relating to taxation; individual income; creating a health insurance premium credit;
proposing coding for new law in Minnesota Statutes, chapter 290.

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

Section 1.

new text begin [290.0687] HEALTH INSURANCE PREMIUM 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.
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new text begin (b) "Eligible taxpayer" means a taxpayer who:
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new text begin (1) has purchased a plan described in section 500A(f)(1)(C) of the Internal Revenue
Code;
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new text begin (2) has a modified adjusted gross income in excess of the income eligibility limit for the
MinnesotaCare program under section 256L.04; and
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new text begin (3) is not eligible for a premium tax credit under Code of Federal Regulations, title 26,
section 1.36B-2, due to:
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new text begin (i) household income in excess of 400 percent of the federal poverty line for the taxpayer's
family size for the taxable year; or
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new text begin (ii) access to an employer-sponsored health plan through a spouse's employer that is
deemed minimum essential coverage under Code of Federal Regulations, title 26, section
1.36B-2, where the annual premium the employee must pay for employee and dependent
coverage exceeds the required contribution percentage described in Code of Federal
Regulations, title 26, section 1.36B-2.
new text end

new text begin (c) "Modified adjusted gross income" has the meaning given in Code of Federal
Regulations, title 26, section 1.36B-1.
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new text begin (d) "Premium" means the amount paid for a health plan in a taxable year.
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new text begin Subd. 2. new text end

new text begin Credit allowed. new text end

new text begin (a) Subject to the phaseout and maximum in paragraph (b),
an eligible taxpayer is allowed a credit against the tax imposed by this chapter equal to:
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new text begin (1) the premium for a health plan described in section 5000A(f)(1)(C) of the Internal
Revenue Code, minus
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new text begin (2) 9.6 percent of the taxpayer's modified adjusted gross income in the taxable year.
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new text begin (b) For a nonresident or part-year resident taxpayer, the credit must be allocated based
on the percentage calculated under section 290.06, subdivision 2c, paragraph (e).
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new text begin Subd. 3. new text end

new text begin Credit refundable; method of claiming. new text end

new text begin (a) If the amount of credit that the
taxpayer is eligible to receive under this section exceeds the taxpayer's liability for tax under
this chapter, the commissioner shall refund the excess to the taxpayer.
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new text begin (b) The commissioner, in consultation with the chief executive officer of MNsure, shall
prescribe the form and manner in which the credit must be claimed.
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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 under this section is
appropriated to the commissioner from the general fund.
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new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2018.
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Sec. 2. new text begin TRANSFER.
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new text begin Notwithstanding Laws 2017, chapter 13, article 1, section 15, as amended by Laws 2017,
First Special Session chapter 6, article 5, section 10, any amount remaining on June 30,
2020, in the premium security account under section 62E.25, subdivision 1, shall be
transferred to the general fund.
new text end