HF 3987

as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; income tax; providing a credit 
  1.3             for adoption expenses; proposing coding for new law in 
  1.4             Minnesota Statutes, chapter 290. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  [290.0676] [ADOPTION CREDIT.] 
  1.7      Subdivision 1.  [CREDIT ALLOWED.] An individual is allowed 
  1.8   a credit against the tax imposed by this chapter equal to 25 
  1.9   percent of the credit allowed for the taxable year under section 
  1.10  23 of the Internal Revenue Code, but the credit in this section 
  1.11  is not allowed for amounts carried forward under section 23(c) 
  1.12  of the Internal Revenue Code. 
  1.13     Subd. 2.  [LIMITATION; CARRYFORWARD.] (a) The credit for 
  1.14  the taxable year may not exceed the liability for tax.  
  1.15  "Liability for tax" for purposes of this section means the tax 
  1.16  imposed under this chapter for the taxable year reduced by the 
  1.17  sum of the nonrefundable credits allowed under this chapter. 
  1.18     (b) If the amount of the credit determined under this 
  1.19  section for any taxable year exceeds the limitation under 
  1.20  paragraph (a), the excess is an adoption credit carryover to 
  1.21  each of the five succeeding taxable years.  The entire amount of 
  1.22  the excess unused credit may be carried to the succeeding 
  1.23  taxable year and then to each successive year to which the 
  1.24  credit may be carried.  The amount of unused credit which may be 
  1.25  added under this paragraph may not exceed the individual's 
  2.1   liability for tax less the adoption credit for the taxable year. 
  2.2      Sec. 2.  [EFFECTIVE DATE.] 
  2.3      Section 1 is effective for taxable years beginning after 
  2.4   December 31, 1999.