HF 3651

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to taxation; allowing a credit for certain dentistry material purchases;
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 [290.0685] CREDIT; DENTAL RESTORATIVE MATERIALS.
new text end

new text begin new text end

new text begin Subdivision 1. new text end

new text begin Credit allowed. new text end

new text begin (a) A credit is allowed against the tax imposed
under this chapter, including the taxes imposed under sections 290.091 and 290.0921,
equal to 25 percent of the amount paid or incurred during the taxable year for qualifying
dentistry materials.
new text end

new text begin (b) "Qualifying dentistry materials" means synthetic resins or other materials and
supplies used to make composites for use as an alternative to dental amalgam to fill
cavities in or restore human teeth. Qualifying dentistry materials do not include machinery
and equipment used to make or apply the composites.
new text end

new text begin Subd. 2. new text end

new text begin Limitations; carryover. new text end

new text begin (a) The credit in subdivision 1 is limited to the
sum of the liability for tax under sections 290.06, 290.091, and 290.0921 for the taxable
year, reduced by the sum of any other nonrefundable credits allowed under those sections.
new text end

new text begin (b) If a corporation is a partner in a partnership, the credit allowed for the taxable
year is limited to the lesser of:
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new text begin (1) the amount determined under paragraph (a) for the taxable year; or
new text end

new text begin (2) an amount, separately computed with respect to the corporation's interest in
the trade or business or entity, equal to the amount of tax attributable to the portion of
taxable income that is allocable or apportionable to the corporation's interest in the trade
or business or entity.
new text end

new text begin (c) If the amount of the credit under this section for any taxable year exceeds
the limitation under paragraphs (a) and (b), the excess is a carryover to each of the 15
succeeding taxable years. The entire amount of the excess unused credit for the taxable
year must 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 paragraph must not exceed the
taxpayer's liability for tax less the credit for the taxable year.
new text end

new text begin (d) A partnership must allocate the credit based on the income shares of its partners.
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, 2005, and applies to purchases made after June 30, 2006.
new text end