HF 2785

1st Engrossment - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; allowing a credit for gifts to 
  1.3             institutions of higher education; amending Minnesota 
  1.4             Statutes 1994, section 290.06, by adding a subdivision.
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  Minnesota Statutes 1994, section 290.06, is 
  1.7   amended by adding a subdivision to read: 
  1.8      Subd. 25.  [CREDIT FOR CONTRIBUTIONS TO HIGHER 
  1.9   EDUCATION.] (a) Subject to the applicable limitations provided 
  1.10  by this subdivision, individuals, estates, and trusts may take 
  1.11  as a credit against the tax due under this chapter, an amount, 
  1.12  equal to 50 percent of the aggregate amount of charitable 
  1.13  contributions made during the taxable year to a nonprofit 
  1.14  institution of higher education located within this state or a 
  1.15  nonprofit corporation, fund, foundation, trust, or association 
  1.16  organized and operated exclusively for the benefit of 
  1.17  institutions of higher education located within this state.  
  1.18     (b) The maximum amount allowable as a credit under this 
  1.19  subdivision for individuals in any taxable year shall not exceed 
  1.20  $500 for an individual and $1,000 for a married couple filing 
  1.21  jointly.  
  1.22     (c) The maximum amount allowable as a credit under this 
  1.23  subdivision for estates and trusts in any taxable year shall not 
  1.24  exceed the lesser of 20 percent of the tax due under this 
  1.25  chapter without regard to the credit under this subdivision, or 
  2.1   $25,000. 
  2.2      (d) If the amount of the credit determined under this 
  2.3   subdivision for any taxable year exceeds the limitations imposed 
  2.4   in this subdivision, the unused portion of the credit cannot be 
  2.5   carried to another taxable year.  
  2.6      (e) For the purpose of this subdivision, "institution of 
  2.7   higher education" means only a nonprofit educational institution 
  2.8   located within this state which meets all of the following 
  2.9   requirements:  
  2.10     (1) it maintains a regular faculty and curriculum and has a 
  2.11  regularly enrolled body of students in attendance at the place 
  2.12  where its educational activities are carried on; 
  2.13     (2) it regularly offers education above the 12th grade; 
  2.14     (3) it provides programs of study that meet the needs of 
  2.15  students for occupational, general, baccalaureate, or graduate 
  2.16  education; and 
  2.17     (4) it is recognized by the Minnesota higher education 
  2.18  services office as an eligible institution of higher education 
  2.19  for purposes of state financial aid under section 136A.101.  
  2.20     (f) For the purpose of this subdivision, "institution 
  2.21  organized and operated exclusively for the benefit of 
  2.22  institutions of higher education" means only nonprofit 
  2.23  corporations, funds, foundations, trusts, or associations 
  2.24  organized and operated exclusively for the benefit of 
  2.25  institutions of higher education located within this state which 
  2.26  are controlled or approved and reviewed by the governing board 
  2.27  of the institution benefiting from the charitable contribution. 
  2.28     Sec. 2.  [EFFECTIVE DATE.] 
  2.29     Section 1 is effective for taxable years beginning after 
  2.30  December 31, 1995.