HF 2307

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/18/2021 04:17pm

A bill for an act
relating to taxation; individual income; establishing a temporary subtraction for
certain unemployment insurance benefits.

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

Section 1. new text begin TEMPORARY INDIVIDUAL INCOME TAX SUBTRACTION;
UNEMPLOYMENT INSURANCE BENEFITS.
new text end

new text begin (a) For the purposes of this section:
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new text begin (1) "subtraction" has the meaning given in Minnesota Statutes, section 290.0132;
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new text begin (2) "supplemental unemployment benefits" means:
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new text begin (i) federal pandemic unemployment compensation under section 2104 of the CARES
Act, United States Code, title 15, section 9023, as extended by section 203 of the Continued
Assistance for Unemployed Workers Act of 2020 under Public Law 116-260 and section
9013 of the American Rescue Plan Act of 2021 under Public Law 117-2; and
new text end

new text begin (ii) lost wage assistance payments under the federal Lost Wage Assistance Program,
authorized by the president in accordance with section 408(e)(2) and (f) of the Stafford Act,
United State Code, title 42, section 5174, subsection (e), paragraph (2), and subsection (f);
and
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new text begin (3) "unemployment compensation" has the meaning given in section 85(b) of the Internal
Revenue Code.
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new text begin (b) For taxable years beginning after December 31, 2020, and before January 1, 2022,
an individual taxpayer is allowed a subtraction equal to the amount of the taxpayer's
supplemental unemployment benefits.
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new text begin (c) For taxable years beginning after December 31, 2019, and before January 1, 2021,
an individual taxpayer with adjusted gross income that is less than $150,000 is allowed a
subtraction equal to the amount of unemployment compensation received in the taxable
year. The subtraction is limited to $10,200, except for a joint return the subtraction is limited
to $10,200 in unemployment compensation received by each spouse.
new text end

new text begin (d) For the purposes of paragraph (c), the adjusted gross income of the taxpayer must
be determined after the application of sections 86, 135, 137, 219, 221, 222, and 469 of the
Internal Revenue Code.
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new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for taxable years beginning
after December 31, 2019, and before January 1, 2022.
new text end