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HF 3564

as introduced - 92nd Legislature (2021 - 2022) Posted on 02/17/2022 02:19pm

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 02/17/2022

Current Version - as introduced

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A bill for an act
relating to taxation; income and corporate franchise; establishing a workforce
training 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] WORKFORCE TRAINING CREDIT.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Eligible training expenses" means direct costs of training paid by an employer to
train an employee, including tuition or fees paid for instruction, instructor salaries, materials,
supplies, and textbooks but excluding costs associated with renting or otherwise securing
space. Training activities may be provided by the employer directly, by contract with a third
party, or by a postsecondary or other educational institution.
new text end

new text begin Subd. 2. new text end

new text begin Credit allowed. new text end

new text begin An employer is allowed a credit against the tax due under this
chapter equal to 50 percent of eligible training expenses, but is limited to $1,000 of eligible
training expenses per full-time employee per taxable year. The credit is additionally limited
to $200,000 per qualified employer. The credit may not exceed the liability for tax under
this chapter.
new text end

new text begin Subd. 3. new text end

new text begin Pass-through entities. new text end

new text begin Credits allowed to a partnership, a limited liability
company taxed as a partnership, or an S corporation are passed through pro rata to the
partners, members, or shareholders to each partner, member, or shareholder based on their
share of the entity's income for the taxable year.
new text end

new text begin Subd. 4. new text end

new text begin Ten year carryover. new text end

new text begin If the amount of the credit determined under this section
for any taxable year exceeds a taxpayer's liability for tax, the excess shall be a research
credit carryover to each of the ten succeeding taxable years. The entire amount of the excess
unused credit for the taxable year shall be carried first to the earliest of the taxable years to
which the credit may be carried and then to each successive year to which the credit may
be carried. The amount of the unused credit which may be added under this clause shall not
exceed the taxpayer's liability for tax less the workforce training credit for the taxable year.
new text end

new text begin Subd. 5. new text end

new text begin Sunset. new text end

new text begin This section expires for taxable years beginning after December 31,
2029, except any carryover credits earned in taxable years prior to this section's expiration
may be used in accordance with subdivision 4.
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, 2021.
new text end

Sec. 2. new text begin TAX EXPENDITURE PURPOSE STATEMENT.
new text end

new text begin (a) This section is intended to fulfill the requirements in Minnesota Statutes, section
3.192, paragraph (a).
new text end

new text begin (b) The purpose of the workforce training credit in section 1 is to encourage greater
private sector investment in innovative workforce training that will attract employees into
the workforce and increase their skills and productivity. The standard against which the
effectiveness of the credit may be measured is the rate at which credit recipients were able
to attract and retain workers.
new text end