HF 2257

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to taxation; providing an individual income
and corporate franchise tax credit for the cost of
technical and engineering assistance for compliance
with feedlot environmental standards and permits;
amending Minnesota Statutes 2004, section 290.06, by
adding a subdivision.

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

Section 1.

Minnesota Statutes 2004, section 290.06, is
amended by adding a subdivision to read:

new text begin Subd. 32. new text end

new text begin Feedlot environmental compliance credit. new text end

new text begin (a) A
feedlot environmental compliance credit not exceeding the amount
specified in paragraph (c) is allowed against the tax computed
under this section.
new text end

new text begin (b) For purposes of this subdivision, "qualifying
expenditures" means the expenses incurred for technical
assistance and technical and engineering services to bring the
taxpayer's Minnesota feedlot operations into compliance with
federal, state, and local regulations and requirements. The
expenses must have been payable to a governmental agency or a
private entity contracted by the governmental agency to provide
engineering and technical assistance. Qualified expenditures do
not include any amounts deducted under section 162 of the
Internal Revenue Code in computing federal taxable income.
new text end

new text begin (c) In each taxable year a taxpayer is limited to a feedlot
environmental compliance credit of no more than $10,000 or the
cost of qualifying expenditures made or incurred during the
taxable year, whichever is less. A taxpayer is limited to a
maximum lifetime feedlot environmental compliance credit of
$20,000.
new text end

new text begin (d) The feedlot environmental compliance credit is limited
to the liability for tax, as computed under this section, for
the taxable year. If the amount of the credit determined under
this section for any taxable year exceeds the tax liability, the
excess is a feedlot environmental compliance credit carryover to
each of the 15 succeeding taxable years. The entire amount of
the excess unused credit for the taxable year is carried first
to the earliest of the taxable years to which the credit may be
carried and then to each successive year to which the credit may
be carried. The amount of the unused credit which may be added
under this paragraph shall not exceed the taxpayer's liability
for tax less the feedlot environmental compliance credit for the
taxable year.
new text end

new text begin (e) For a partnership or S corporation, the maximum amount
of the credit applies to the entity, not the individual partner
or shareholder.
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, 2005.
new text end