HF 2793

as introduced - 89th Legislature (2015 - 2016) Posted on 04/07/2016 04:29pm

A bill for an act
relating to taxation; individual income; modifying and making permanent the
2014 reading tax credit; proposing coding for new law in Minnesota Statutes,
chapter 290.

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

Section 1.

new text begin [290.0693] READING CREDIT.
new text end

new text begin Subdivision 1. new text end

new text begin Reading credit. new text end

new text begin (a) A taxpayer is allowed a credit, up to $3,000,
against the tax imposed by chapter 290. The credit amount equals 75 percent of the amount
of eligible expenses paid by a taxpayer who is a parent or guardian of a qualifying child:
new text end

new text begin (1) who has been evaluated for determination of a specific learning disability under
Minnesota Rules, part 3525.1341, or by a licensed psychologist; and
new text end

new text begin (2) for whom the evaluation indicated a determination of dyslexia, a specific
learning disability, or a deficit in basic reading skills, reading comprehension, reading
fluency, or spelling.
new text end

new text begin (b) For purposes of this subdivision, the following definitions apply:
new text end

new text begin (1) "eligible expenses" means actual expenses, less the amount of expenses used to
claim the credit under section 290.0674, subdivision 1, paid by the taxpayer for tutoring,
instruction, treatment by an instructor, or an evaluation under paragraph (a), clause (1),
and not compensated by insurance, pretax account, or otherwise, for purposes of meeting
the academic standards required under section 120B.021;
new text end

new text begin (2) "instructor" means a person qualifying under section 120A.22, subdivision 10,
clauses (1) to (5), who is not a lineal ancestor or sibling of the qualifying child;
new text end

new text begin (3) "treatment" means instruction that:
new text end

new text begin (i) teaches language decoding skills in a systematic manner;
new text end

new text begin (ii) uses recognized diagnostic assessments to determine what intervention would be
most appropriate for individual students; and
new text end

new text begin (iii) employs a research-based method; and
new text end

new text begin (4) "qualifying child" has the meaning given in section 32(c)(3) of the Internal
Revenue Code.
new text end

new text begin (c) A taxpayer claiming the credit under this subdivision must provide documentation
of eligibility for the credit in a form and manner prescribed by the commissioner of
revenue in consultation with the commissioner of education. The documentation under
this paragraph must not disclose any information other than that necessary to prove
eligibility for the credit allowed under this subdivision.
new text end

new text begin (d) For a nonresident or part-year resident, the credit determined under this section
must be allocated based on the percentage calculated under section 290.06, subdivision
2c, paragraph (e).
new text end

new text begin (e) The amount used to claim the credit under this section must be excluded from
any amount subtracted from federal taxable income under section 290.01, subdivision
19b, clause (3).
new text end

new text begin Subd. 2. new text end

new text begin Assignment of refunds. new text end

new text begin The provisions of section 290.0679, except
for subdivision 1, paragraphs (a) and (b), apply to the assignment of refunds authorized
under this section. For purposes of assignment of refund under this section, "qualifying
taxpayer" means a taxpayer qualified to receive a credit under this section. In no case shall
any condition for assignment require disclosure of the specific findings of an evaluation
for a specific learning disability.
new text end

new text begin Subd. 3. new text end

new text begin Credit to be refundable. new text end

new text begin If the amount of total credits that the claimant is
eligible to receive under this section exceeds the claimant's tax liability under chapter 290,
the commissioner of revenue shall refund the excess to the claimant.
new text end

new text begin Subd. 4. new text end

new text begin Appropriation. new text end

new text begin An amount sufficient to pay the refunds authorized under
this section is appropriated to the commissioner of revenue from the general fund.
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, 2015.
new text end