HF 2642

as introduced - 91st Legislature (2019 - 2020) Posted on 03/21/2019 02:31pm

A bill for an act
relating to financing of state government; repealing the section 529 plan income
tax subtraction; increasing funding for the state grant program; amending Minnesota
Statutes 2018, section 136A.121, by adding a subdivision; repealing Minnesota
Statutes 2018, section 290.0132, subdivision 23.

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

Section 1.

Minnesota Statutes 2018, section 136A.121, is amended by adding a subdivision
to read:

new text begin Subd. 3a. new text end

new text begin Dedication of revenue. new text end

new text begin (a) By June 30, 2020, and June 30 of each following
year, the commissioner of revenue must certify to the commissioner of management and
budget the estimated revenue increase in the taxable year ending on December 31 of the
prior year that resulted from the repeal of Minnesota Statutes 2018, section 290.0132,
subdivision 23, by section 2.
new text end

new text begin (b) The amount certified under paragraph (a) is appropriated from the general fund to
the commissioner of higher education in the fiscal year beginning on July 1 of the calendar
year in which the certification was made. The commissioner must use amounts appropriated
under this section to increase student grant awards through the state grant program under
this section.
new text end

Sec. 2. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2018, section 290.0132, subdivision 23, new text end new text begin is repealed.
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, 2018.
new text end

APPENDIX

Repealed Minnesota Statutes: 19-4787

290.0132 INDIVIDUALS; SUBTRACTIONS FROM FEDERAL TAXABLE INCOME.

Subd. 23.

Contributions to a section 529 plan.

(a) The amount equal to the contributions made during the taxable year to a qualified account is a subtraction.

(b) The definitions under section 290.0684 apply for the purposes of this subdivision.

(c) The subtraction under this subdivision must not exceed $3,000 for married couples filing joint returns and $1,500 for all other filers, and is limited to individuals who do not claim the credit under section 290.0684.