Minnesota Legislature
HF 2850
as introduced - 87th Legislature (2011 - 2012) Posted on 03/14/2012 11:36am
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A bill for an act
relating to taxes; income and corporate franchise; modifying the historic structure
rehabilitation credit; amending Minnesota Statutes 2010, section 290.0681,
subdivisions 1, 3, 4, 5; Laws 2010, chapter 216, section 11.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2010, section 290.0681, subdivision 1, is amended to
read:
Subdivision 1.
Definitions.
(a) For purposes of this section, the following terms
have the meanings given.
(b) "Account" means the historic credit administration account in the special
revenue fund.
(c) "Office" means the State Historic Preservation Office of the Minnesota Historical
Society.
(d) "Project" means rehabilitation of a certified historic structure, as defined in
section 47(c)(3)(A) of the Internal Revenue Code, that is located in Minnesota and is
allowed a federal credit under section 47(a)(2) of the Internal Revenue Code.
(e) "Society" means the Minnesota Historical Society.
new text begin
(f) "Federal credit" means the credit allowed under section 47(a)(2) of the Internal
Revenue Code.
new text end
new text begin
(g) "Placed in service" has the meaning given in section 47 of the Internal Revenue
Code.
new text end
new text begin
(h) "Qualified rehabilitation expenditures" has the meaning given in section 47 of
the Internal Revenue Code.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment
and applies retroactively for taxable years beginning after December 31, 2009, and for
certified historic structures placed in service after May 1, 2010.
new text end
Sec. 2.
Minnesota Statutes 2010, section 290.0681, subdivision 3, is amended to read:
Subd. 3.
Applications; allocations.
(a) To qualify for a credit or grant under this
section, the developer of a project must apply to the office before the rehabilitation begins.
The application must contain the information and be in the form prescribed by the office.
The office may collect a fee for application of up to $5,000, based on estimated qualified
rehabilitation deleted text begin expensesdeleted text end new text begin expendituresnew text end , to offset costs associated with personnel and
administrative expenses related to administering the credit and preparing the economic
impact report in subdivision 9. Application fees are deposited in the account. The
application must indicate if the application is for a credit or a grant in lieu of the credit
or a combination of the two and designate the taxpayer qualifying for the credit or the
recipient of the grant.
(b) Upon approving an application for credit, the office shall issue allocation
certificates that:
(1) verify eligibility for the credit or grant;
(2) state the amount of credit or grant anticipated with the project, with the credit
amount equal to 100 percent and the grant amount equal to 90 percent of the federal
credit anticipated in the application;
(3) state that the credit or grant allowed may increase or decrease if the federal
credit the project receives at the time it is placed in service is different than the amount
anticipated at the time the allocation certificate is issued; and
(4) state the fiscal year in which the credit or grant is allocated, and that the taxpayer
or grant recipient is entitled to receive the credit or grant at the time the project is placed
in service, provided that date is within three calendar years following the issuance of
the allocation certificate.
(c) The office, in consultation with the commissioner deleted text begin of revenuedeleted text end , shall determine if
the project is eligible for a credit or a grant under this section. Eligibility for the credit is
subject to review and audit by the commissioner deleted text begin of revenuedeleted text end .
(d) The federal credit recapture and repayment requirements under section 50 of the
Internal Revenue Code do not apply to the credit allowed under this section.
new text begin
(e) Any decision of the office or the society under this subdivision may be challenged
as a contested case under chapter 14.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment
and applies retroactively for taxable years beginning after December 31, 2009, and for
certified historic structures placed in service after May 1, 2010.
new text end
Sec. 3.
Minnesota Statutes 2010, section 290.0681, subdivision 4, is amended to read:
Subd. 4.
Credit certificatesnew text begin ; grantsnew text end .
(a)(1) The developer of a project for which the
office has issued an allocation certificate must notify the office when the project is placed
in service. Upon verifying that the project has been placed in service, and was allowed a
federal credit, the office must issue a credit certificate to the taxpayer designated in the
application or must issue a grant to the recipient designated in the application. The credit
certificate must state the amount of the credit.
(2) The credit amount equals the federal credit allowed for the project.
(3) The grant amount equals 90 percent of the federal credit allowed for the project.
(b) The recipient of a credit certificate may assign the certificate to another taxpayer,
which is then allowed the credit under this section or section 297I.20, subdivision 3. new text begin The
recipient may assign the credit certificate in whole or in part to one or more taxpayers. A
recipient who assigns a credit must notify the commissioner. The transferee must be treated
as the owner of the certificate. A credit certificate may be assigned to other taxpayers
no more than three times without the consent of the commissioner. Any assignment of
a credit certificate is only valid upon the transferee's notification of assignment to the
commissioner. new text end The commissioner shall prescribe the forms necessary for new text begin notifying the
commissioner of the assignment of a credit and for new text end claiming a credit by assignment.
new text begin
(c) The recipient of a grant may assign the grant to another individual or entity,
which is then allowed the grant. The recipient who assigns a grant must notify the office.
The transferee must be treated as the owner of the grant. A grant may be assigned to other
individuals or entities no more than three times without the consent of the office. Any
assignment of a grant is only valid upon the transferee's notification of assignment to
the office. The office shall prescribe the forms necessary for notifying the office of the
assignment of a grant and for payment of a grant by assignment.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment
and applies retroactively for taxable years beginning after December 31, 2009, and for
certified historic structures placed in service after May 1, 2010.
new text end
Sec. 4.
Minnesota Statutes 2010, section 290.0681, subdivision 5, is amended to read:
Subd. 5.
Partnerships; multiple owners.
Credits granted to a partnership, a limited
liability company taxed as a partnership, S corporation, or multiple owners of property
are passed through to the partners, members, shareholders, or owners, respectively, pro
rata to each partner, member, shareholder, or owner based on their share of the entity's
assets or as specially allocated in their organizational documentsnew text begin or any other executed
agreementnew text end , as of the last day of the taxable year.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment
and applies retroactively for taxable years beginning after December 31, 2009, and for
certified historic structures placed in service after May 1, 2010.
new text end
Sec. 5.
Laws 2010, chapter 216, section 11, the effective date, is amended to read:
EFFECTIVE DATE.
This section is effective for taxable years beginning
after December 31, 2009, for certified historic structures deleted text begin for which qualified costs of
rehabilitation are first paid under construction contracts entered intodeleted text end new text begin placed in servicenew text end
after May 1, 2010.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment
and applies retroactively for taxable years beginning after December 31, 2009, and for
certified historic structures placed in service after May 1, 2010.
new text end