HF 2210

as introduced - 87th Legislature (2011 - 2012) Posted on 02/13/2012 11:52am

A bill for an act
relating to higher education; establishing an internship program; allowing a
tax credit; appropriating money; amending Minnesota Statutes 2010, section
290.06, by adding a subdivision; proposing coding for new law in Minnesota
Statutes, chapter 135A.

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

Section 1.

new text begin [135A.40] GREATER MINNESOTA INTERNSHIP PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Program established. new text end

new text begin (a) The Board of Trustees of the Minnesota
State Colleges and Universities shall and the Board of Regents of the University of
Minnesota is requested to establish a greater Minnesota internship program. As provided
in this section, the purpose of the program is to encourage greater Minnesota businesses to:
new text end

new text begin (1) employ and provide valuable experience to Minnesota students; and
new text end

new text begin (2) foster long-term relationships between the students and greater Minnesota
employers.
new text end

new text begin (b) The program is funded with the tax credit authorized by subdivision 4 and
section 290.06, subdivision 36. The Board of Trustees of the Minnesota State Colleges
and Universities and the Board of Regents of the University of Minnesota must designate
institutions and campuses to participate in the greater Minnesota internship program.
new text end

new text begin (c) For purposes of this section, "greater Minnesota" means the area located outside
of the metropolitan area, as defined in section 473.121, subdivision 2.
new text end

new text begin Subd. 2. new text end

new text begin Intern program qualification rules. new text end

new text begin (a) To qualify for a tax credit under
this section and section 290.06, subdivision 36, an employer must employ a student as part
of an internship program that meets the following qualifications:
new text end

new text begin (1) an intern must be an enrolled student in a participating institution or campus of
the Minnesota State Colleges and Universities or the University of Minnesota who has
been admitted to a major program that is closely related to the work experience performed
for the employer;
new text end

new text begin (2) an intern must be either a junior or senior at a participating state university or
a participating University of Minnesota campus, or a student enrolled in a participating
state college seeking a degree or a certification who has completed one-half of the credits
required for completion in a major field of study closely related to the work experience
performed for the employer;
new text end

new text begin (3) the internship must be taken for academic credit or count toward the completion
of a vocational technical education program;
new text end

new text begin (4) the participating institution or campus must certify that the internship is related
to the student's course of study;
new text end

new text begin (5) the intern must be supervised and evaluated by the taxpayer;
new text end

new text begin (6) the internship position must be located in greater Minnesota;
new text end

new text begin (7) the internship must last a minimum of 12 weeks; and
new text end

new text begin (8) the intern must be paid at least minimum wage for a minimum of 16 hours
per week.
new text end

new text begin (b) An internship clinical experience currently required for completion of an
academic program does not qualify for the tax credit under this section and section
290.06, subdivision 36.
new text end

new text begin Subd. 3. new text end

new text begin Employer qualification rules. new text end

new text begin (a) To qualify for the tax credit under this
section and section 290.06, subdivision 36, an employer must enter a written agreement
with the Board of Trustees of the Minnesota State Colleges and Universities or the Board
of Regents of the University of Minnesota agreeing that each intern for which a credit is
claimed:
new text end

new text begin (1) would not have been hired without the credit;
new text end

new text begin (2) did not work for the employer prior to entering the agreement;
new text end

new text begin (3) does not replace an existing employee;
new text end

new text begin (4) will not qualify for more than one credit of $1,250; and
new text end

new text begin (5) will be employed at a location in greater Minnesota.
new text end

new text begin (b) An employer participating in the program must certify to the Board of Trustees
or the Board of Regents its number of employees in a manner acceptable to the board to
verify that program internships have not been used to replace employees. In addition, the
employer must report upon completion of the program:
new text end

new text begin (1) the number of interns hired;
new text end

new text begin (2) the number of hours and weeks worked by interns; and
new text end

new text begin (3) the compensation paid to interns.
new text end

new text begin Subd. 4. new text end

new text begin Tax credit allowed; maximum limits. new text end

new text begin (a) The tax credit equals 40 percent
of the compensation paid to each qualifying intern, but not to exceed $1,250. No employer
must be allowed a credit for more than five interns in any taxable year.
new text end

new text begin (b) The total amount of credits authorized under this section is limited to $1,250,000
per taxable year. The Department of Revenue shall allocate these credits to employers
participating in the greater Minnesota internship program on a first-come, first-served
basis.
new text end

new text begin Subd. 5. new text end

new text begin Reports to the legislature. new text end

new text begin (a) By February 1, 2013, the Board of
Trustees of the Minnesota State Colleges and Universities and the Board of Regents of
the University of Minnesota, if a program is established, shall prepare a report to the
legislature on the program. The report must include at least the following:
new text end

new text begin (1) the number and dollar amount of credits allowed;
new text end

new text begin (2) the number of interns employed under the program; and
new text end

new text begin (3) the cost of administering the program.
new text end

new text begin (b) By February 1, 2014, the Board of Trustees and the Board of Regents, if a
program is established, shall prepare a report to the legislature with an analysis of the
effectiveness of the program in stimulating businesses to hire interns and in assisting
participating interns in finding permanent career positions. This report must include the
number of students who participated in the program who were subsequently employed
full time by the employer.
new text end

Sec. 2.

Minnesota Statutes 2010, section 290.06, is amended by adding a subdivision
to read:

new text begin Subd. 36. new text end

new text begin Greater Minnesota internship credit. new text end

new text begin (a) A taxpayer may take a credit
against the tax due under this chapter equal to the lesser of:
new text end

new text begin (1) 40 percent of the compensation paid to an intern qualifying under the program
established under section 135A.40, but not to exceed $1,250 per intern; or
new text end

new text begin (2) the amount certified by the Board of Trustees of the Minnesota State Colleges
and Universities or the Board of Regents of the University of Minnesota under section
135A.40 to the taxpayer.
new text end

new text begin (b) Credits allowed to a partnership, a limited liability company taxed as a
partnership, an S corporation, or multiple owners of property are passed through to the
partners, members, shareholders, or owners, respectively, pro rata to each partner, member,
shareholder, or owner based on their share of the entity's income for the taxable year.
new text end

new text begin (c) If the amount of credit which the taxpayer is eligible to receive under this
subdivision exceeds the taxpayer's tax liability under this chapter, the commissioner of
revenue shall refund the excess to the taxpayer.
new text end

new text begin (d) The amount necessary to pay claims for the refund provided in this subdivision
plus a one percent administrative fee for the Minnesota State Colleges and Universities and
the University of Minnesota, if a program is established at the university, is appropriated
from the general fund to the commissioner of revenue. The commissioner of revenue
shall allocate and transfer the amount of the administrative fee to the Board of Trustees
of the Minnesota State Colleges and Universities and to the Board of Regents of the
University of Minnesota.
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, 2011.
new text end