HF 3979

as introduced - 91st Legislature (2019 - 2020) Posted on 03/04/2020 04:34pm

A bill for an act
relating to taxation; individual income; creating an excess premium credit for
health insurance; 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 [290.0694] EXCESS PREMIUM 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 taxpayer" means a taxpayer that:
new text end

new text begin (1) has a modified adjusted gross income in excess of the income eligibility limit for the
MinnesotaCare program under section 256L.04; and
new text end

new text begin (2) is not eligible for a premium tax credit under Code of Federal Regulations, title 26,
section 1.36B-2, due to the taxpayer:
new text end

new text begin (i) having household income in excess of 400 percent of the federal poverty line for the
taxpayer's family size for the taxable year; or
new text end

new text begin (ii) declining coverage under an employer-sponsored health plan through a spouse's
employer that is deemed minimal essential coverage under Code of Federal Regulations,
title 26, section 1.36B-2, but only if the annual premium for the declined coverage the
employed spouse must pay for employee and dependent coverage exceeds the required
contribution percentage described in Code of Federal Regulations, title 26, section 1.36B-2.
new text end

new text begin (c) "Excess premium" means the annual amount paid by a taxpayer to purchase a plan
described in section 5000A(f)(1)(C) of the Internal Revenue Code in excess of 120 percent
of the statewide average premium for the metal level purchased by the taxpayer for that
year.
new text end

new text begin (d) "Gold plan" means a gold level plan as defined in defined in United States Code,
title 42, section 18022(d)(1)(C).
new text end

new text begin (e) "Metal level" means the level of coverage as defined in United States Code, title 42,
section 18022(d).
new text end

new text begin (f) "Silver plan" means a silver level plan as defined in United States Code, title 42,
section 18022(d)(1)(B).
new text end

new text begin (g) The commissioner may consult with the commissioner of human services in
administering this subdivision.
new text end

new text begin Subd. 2. new text end

new text begin Credit allowed. new text end

new text begin An eligible taxpayer is allowed an excess premium credit
against the tax due under this chapter. For a taxpayer that purchases a silver plan, the credit
equals 100 percent of the taxpayer's excess premium paid for the purchase of that plan,
subject to the limitations under subdivisions 2 and 3. For a taxpayer that purchases a gold
plan, the credit equals 75 percent of the taxpayer's excess premium paid for the purchase
of that plan, subject to the limitations under subdivisions 2 and 3.
new text end

new text begin Subd. 3. new text end

new text begin Maximum credit. new text end

new text begin The maximum credit allowed under this subdivision is
$10,000. For married couples filing a joint return, the maximum credit is reduced by ten
percent of federal adjusted gross income in excess of $150,000. For all other filers, the
maximum credit is reduced by 20 percent of federal adjusted gross income in excess of
$75,000. In no case is the credit less than zero.
new text end

new text begin Subd. 4. new text end

new text begin Part-year residents. new text end

new text begin For a nonresident or a part-year resident taxpayer, the
credit must be allocated based on the percentage calculated under section 290.06, subdivision
2c, paragraph (e).
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, 2019.
new text end