HF 3816

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

A bill for an act
relating to taxation; providing a tax credit for certain mattress manufacturers that
meet flame retardant standards; 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 [290.0681] MATTRESS MANUFACTURERS CREDIT.
new text end

new text begin Subdivision 1. new text end

new text begin Credit allowed; PBDE-free mattresses. new text end

new text begin (a) A manufacturer is
allowed a credit against the taxes imposed under this chapter, including the taxes imposed
under sections 290.091 and 290.0921, for the taxable year equal to:
new text end

new text begin (1) ten percent of its gross receipts for the taxable year from sales of qualifying
mattresses that meet the Consumer Product Safety Commission's flammability standard
under Code of Federal Regulations, title 16, part 1632, as in effect on March 1, 2006; or
new text end

new text begin (2) 20 percent of its gross receipts for the taxable year from sales of qualifying
mattresses that meet the Consumer Product Safety Commission's open flame flammability
standard for mattresses as approved by the commission on February 16, 2006, and as
may be amended or modified in the future.
new text end

new text begin (b) For purposes of this section, "qualifying mattress" means a mattress that was
manufactured in the state of Minnesota and that does not use polybrominated diphenyl
ethers as flame retardants or otherwise in its construction. "Polybrominated diphenyl
ethers" means chemical forms that consist of diphenyl ethers bound with bromine atoms.
Polybrominated diphenyl ethers include, but are not limited to, the three primary forms of
the commercial mixtures known as pentabromodiphenylether, octabromodiphenylether,
and decabromodiphenylether.
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 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:
new text end

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 clause 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 gross receipts from qualifying mattresses received
after June 30, 2006.
new text end