HF 2869

as introduced - 92nd Legislature (2021 - 2022) Posted on 01/31/2022 12:20pm

A bill for an act
relating to taxation; individual income and corporate franchise; establishing a
subtraction for certain federal grants provided to health care providers; amending
Minnesota Statutes 2020, sections 290.0132, by adding a subdivision; 290.0134,
by adding a subdivision.

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

Section 1.

Minnesota Statutes 2020, section 290.0132, is amended by adding a subdivision
to read:

new text begin Subd. 31. new text end

new text begin Provider relief fund grants. new text end

new text begin (a) The amount of a qualifying provider relief
fund grant is a subtraction.
new text end

new text begin (b) For a taxpayer that is a partner, member, or shareholder of an eligible health care
provider within the meaning of paragraph (c), clause (2), that is a partnership, limited liability
company, or S corporation, the amount under paragraph (a) is the taxpayer's pro rata share
of the subtraction and is determined based on the taxpayer's share of the entity's assets or
as specially allocated in their organizational documents or any other executed agreement,
as of the last day of the taxable year.
new text end

new text begin (c) For purposes of this subdivision and section 290.0134, subdivision 20, the following
terms have the meanings given:
new text end

new text begin (1) "gross revenues" has the meaning given in section 295.50, subdivision 3, except that
the exclusions for health care providers under section 295.50, subdivision 4, paragraph (b),
and for patient services under section 295.50, subdivision 9b, paragraph (b), do not apply
in the gross revenue calculation;
new text end

new text begin (2) "provider relief fund" means the fund established in Public Law 116-136, division
B, title VIII, in the third paragraph under the heading "Public Health and Social Services
Emergency Fund" to reimburse, through grants or other mechanisms, eligible health care
providers for health care related expenses or lost revenues that are attributable to coronavirus;
and
new text end

new text begin (3) "qualifying provider relief fund grant" means any amount received by an eligible
health care provider within the meaning of clause (2) from the provider relief fund, multiplied
by one of the following percentages based on a provider's gross revenues in a taxable year:
new text end

new text begin (i) for providers with revenues not over $3,000,000, the percentage is 100; and
new text end

new text begin (ii) for providers with revenues over $3,000,000, the percentage is 100 percent reduced
by one percent for each $5,000, or fraction thereof, by which the provider's gross revenues
exceed $3,000,000.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for taxable years beginning
after December 31, 2018.
new text end

Sec. 2.

Minnesota Statutes 2020, section 290.0134, is amended by adding a subdivision
to read:

new text begin Subd. 20. new text end

new text begin Provider relief fund grants. new text end

new text begin The amount of a qualifying provider relief fund
grant as defined in section 290.0132, subdivision 31, is a subtraction.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for taxable years beginning
after December 31, 2018.
new text end