Engrossments
Introduction		Posted on 01/05/2017
1st Engrossment		Posted on 03/27/2017
2nd Engrossment		Posted on 03/28/2017
3rd Engrossment		Posted on 03/30/2017
4th Engrossment		Posted on 05/16/2017

Unofficial Engrossments
1st Unofficial Engrossment		Posted on 04/04/2017

Conference Committee Reports
CCR-HF0004A		Posted on 05/09/2017

Section 1.

Minnesota Statutes 2016, section 13.4967, is amended by adding a subdivision
to read:

new text begin Subd. 9. new text end

new text begin Minnesota housing credit. new text end

new text begin Data related to Minnesota housing tax credit
certifications and allocations are classified in section 462A.39.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

new text begin [41B.0391] BEGINNING FARMER PROGRAM; TAX CREDITS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "Agricultural assets" means agricultural land, livestock, facilities, buildings, and
machinery used for farming in Minnesota.
new text end

new text begin (c) "Beginning farmer" means a resident of Minnesota who:
new text end

new text begin (1) is seeking entry, or has entered within the last ten years, into farming;
new text end

new text begin (2) intends to farm land located within the state borders of Minnesota;
new text end

new text begin (3) is not and whose spouse is not a family member of the owner of the agricultural
assets from whom the beginning farmer is seeking to purchase or rent agricultural assets;
new text end

new text begin (4) is not and whose spouse is not a family member of a partner, member, shareholder,
or trustee of the owner of agricultural assets from whom the beginning farmer is seeking to
purchase or rent agricultural assets; and
new text end

new text begin (5) meets the following eligibility requirements as determined by the authority:
new text end

new text begin (i) has a net worth that does not exceed the limit provided under section 41B.03,
subdivision 3, paragraph (a), clause (2);
new text end

new text begin (ii) provides the majority of the day-to-day physical labor and management of the farm;
new text end

new text begin (iii) has, by the judgment of the authority, adequate farming experience or demonstrates
knowledge in the type of farming for which the beginning farmer seeks assistance from the
authority;
new text end

new text begin (iv) demonstrates to the authority a profit potential by submitting projected earnings
statements;
new text end

new text begin (v) asserts to the satisfaction of the authority that farming will be a significant source
of income for the beginning farmer;
new text end

new text begin (vi) participates in a financial management program approved by the authority or the
commissioner of agriculture; and
new text end

new text begin (vii) has other qualifications as specified by the authority.
new text end

new text begin (d) "Family member" means a family member within the meaning of the Internal Revenue
Code, section 267(c)(4).
new text end

new text begin (e) "Farm product" means plants and animals useful to humans and includes, but is not
limited to, forage and sod crops, oilseeds, grain and feed crops, dairy and dairy products,
poultry and poultry products, livestock, fruits, and vegetables.
new text end

new text begin (f) "Farming" means the active use, management, and operation of real and personal
property for the production of a farm product.
new text end

new text begin (g) "Owner of agricultural assets" means an individual, trust, or pass-through entity that
is the owner in fee of agricultural land or has legal title to any other agricultural asset. Owner
of agricultural assets does not mean an equipment dealer, livestock dealer defined in section
17A.03, subdivision 7, or comparable entity that is engaged in the business of selling
agricultural assets for profit and that is not engaged in farming as its primary business
activity.
new text end

new text begin (h) "Share rent agreement" means a rental agreement in which the principal consideration
given to the owner of agricultural assets is a predetermined portion of the production of
farm products produced from the rented agricultural assets and which provides for sharing
production costs or risk of loss, or both.
new text end

new text begin Subd. 2. new text end

new text begin Tax credit for owners of agricultural assets. new text end

new text begin (a) An owner of agricultural
assets may take a credit against the tax due under chapter 290 for the sale or rental of
agricultural assets to a beginning farmer. An owner of agricultural assets may take a credit
equal to:
new text end

new text begin (1) five percent of the sale price of the agricultural asset;
new text end

new text begin (2) ten percent of the gross rental income in each of the first, second, and third years of
a rental agreement; or
new text end

new text begin (3) 15 percent of the cash equivalent of the gross rental income in each of the first,
second, and third years of a share rent agreement.
new text end

new text begin (b) A qualifying rental agreement includes cash rent of agricultural assets or a share rent
agreement. The agricultural asset must be rented at prevailing community rates as determined
by the authority. The credit may be claimed only after approval and certification by the
authority.
new text end

new text begin (c) An owner of agricultural assets or beginning farmer may terminate a rental agreement,
including a share rent agreement, for reasonable cause upon approval of the authority. If a
rental agreement is terminated without the fault of the owner of agricultural assets, the tax
credits shall not be retroactively disallowed. If an agreement is terminated with fault by the
owner of agricultural assets, any prior tax credits claimed under this subdivision by the
owner of agricultural assets shall be disallowed and must be repaid to the commissioner of
revenue.
new text end

new text begin (d) The credit is limited to the liability for tax as computed under chapter 290 for the
taxable year. If the amount of the credit determined under this section for any taxable year
exceeds this limitation, the excess is a beginning farmer incentive credit carryover according
to section 290.06, subdivision 37.
new text end

new text begin Subd. 3. new text end

new text begin Beginning farmer management tax credit. new text end

new text begin (a) A beginning farmer may take
a credit against the tax due under chapter 290 for participating in a financial management
program approved by the authority. The credit is equal to 100 percent of the cost of
participating in the program. The credit is available for up to three years while the farmer
is in the program. The authority shall maintain a list of approved financial management
programs and establish a procedure for approving equivalent programs that are not on the
list.
new text end

new text begin (b) The credit is limited to the liability for tax as computed under chapter 290 for the
taxable year. If the amount of the credit determined under this section for any taxable year
exceeds this limitation, the excess is a beginning farmer management credit carryover
according to section 290.06, subdivision 38.
new text end

new text begin Subd. 4. new text end

new text begin Authority duties. new text end

new text begin The authority shall:
new text end

new text begin (1) approve and certify beginning farmers as eligible for the program under this section;
new text end

new text begin (2) approve and certify owners of agricultural assets as eligible for the tax credit under
subdivision 2;
new text end

new text begin (3) provide necessary and reasonable assistance and support to beginning farmers for
qualification and participation in financial management programs approved by the authority;
and
new text end

new text begin (4) refer beginning farmers to agencies and organizations that may provide additional
pertinent information and assistance.
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, 2016.
new text end

Sec. 3.

Minnesota Statutes 2016, section 289A.10, subdivision 1, is amended to read:

Subdivision 1.

Return required.

In the case of a decedent who has an interest in property
with a situs in Minnesota, the personal representative must submit a Minnesota estate tax
return to the commissioner, on a form prescribed by the commissioner, ifdeleted text begin :
deleted text end

deleted text begin (1)deleted text end a federal estate tax return is required to be fileddeleted text begin ; ordeleted text end new text begin .
new text end

deleted text begin (2) the sum of the federal gross estate and federal adjusted taxable gifts, as defined in
section 2001(b) of the Internal Revenue Code, made within three years of the date of the
decedent's death exceeds $1,200,000 for estates of decedents dying in 2014; $1,400,000 for
estates of decedents dying in 2015; $1,600,000 for estates of decedents dying in 2016;
$1,800,000 for estates of decedents dying in 2017; and $2,000,000 for estates of decedents
dying in 2018 and thereafter.
deleted text end

The return must contain a computation of the Minnesota estate tax due. The return must
be signed by the personal representative.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for estates of decedents
dying after December 31, 2016.
new text end

Sec. 4.

Minnesota Statutes 2016, section 290.01, subdivision 7, is amended to read:

Subd. 7.

Resident.

(a) The term "resident" means any individual domiciled in Minnesota,
except that an individual is not a "resident" for the period of time that the individual is a
"qualified individual" as defined in section 911(d)(1) of the Internal Revenue Code, if the
qualified individual notifies the county within three months of moving out of the country
that homestead status be revoked for the Minnesota residence of the qualified individual,
and the property is not classified as a homestead while the individual remains a qualified
individual.

(b) "Resident" also means any individual domiciled outside the state who maintains a
place of abode in the state and spends in the aggregate more than one-half of the tax year
in Minnesota, unless:

(1) the individual or the spouse of the individual is in the armed forces of the United
States; or

(2) the individual is covered under the reciprocity provisions in section 290.081.

For purposes of this subdivision, presence within the state for any part of a calendar day
constitutes a day spent in the state. new text begin A day does not qualify as a Minnesota day if the taxpayer
traveled from a place outside of Minnesota primarily for and essential to obtaining medical
care, as defined in Internal Revenue Code, section 213(d)(1)(A), in Minnesota for the
taxpayer, spouse, or a dependent of the taxpayer and the travel expense is allowed under
section 213(d)(1)(B) of the Internal Revenue Code, and is claimed by the taxpayer as a
deductible expense. new text end Individuals shall keep adequate records to substantiate the days spent
outside the state.

The term "abode" means a dwelling maintained by an individual, whether or not owned
by the individual and whether or not occupied by the individual, and includes a dwelling
place owned or leased by the individual's spouse.

(c) new text begin In determining where an individual is domiciled, new text end neither the commissioner nor any
court shall considernew text begin :
new text end

new text begin (1)new text end charitable contributions made by deleted text begin andeleted text end new text begin thenew text end individual within or without the state deleted text begin in
determining if the individual is domiciled in Minnesota.deleted text end new text begin ;
new text end

new text begin (2) the location of the individual's attorney, certified public accountant, or financial
adviser; or
new text end

new text begin (3) the place of business of a financial institution at which the individual applies for any
new type of credit or at which the individual opens or maintains any type of account.
new text end

new text begin (d) For purposes of this subdivision, the following terms have the meanings given them:
new text end

new text begin (1) "financial adviser" means:
new text end

new text begin (i) an individual or business entity engaged in business as a certified financial planner,
registered investment adviser, licensed insurance producer or agent, or registered securities
broker-dealer representative; or
new text end

new text begin (ii) a financial institution providing services related to trust or estate administration,
investment management, or financial planning; and
new text end

new text begin (2) "financial institution" means a financial institution as defined in section 47.015,
subdivision 1; a state or nationally chartered credit union; or a registered broker-dealer
under the Securities and Exchange Act of 1934.
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, 2016, except the amendment to paragraph (b) is effective for taxable years beginning
after December 31, 2017.
new text end

Sec. 5.

Minnesota Statutes 2016, section 290.0131, is amended by adding a subdivision
to read:

new text begin Subd. 14. new text end

new text begin Equity and opportunity donations to qualified foundations. new text end

new text begin The amount
of the deduction under section 170 of the Internal Revenue Code that represents contributions
to a qualified foundation under section 290.0693 is an addition.
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, 2017.
new text end

Sec. 6.

Minnesota Statutes 2016, section 290.0131, is amended by adding a subdivision
to read:

new text begin Subd. 15. new text end

new text begin First-time home buyer savings account. new text end

new text begin The amount for a first-time home
buyer savings account required by section 462D.06, subdivision 2, is an addition.
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, 2016.
new text end

Sec. 7.

Minnesota Statutes 2016, section 290.0132, subdivision 4, is amended to read:

Subd. 4.

Education expenses.

(a) Subject to the limits in paragraph (b), the following
amounts paid to others for deleted text begin each qualifying child are a subtraction:deleted text end new text begin education-related expenses,
as defined in section 290.0674, subdivision 1, less any amount used to claim the credit under
section 290.0674, are a subtraction.
new text end

deleted text begin (1) education-related expenses; plus
deleted text end

deleted text begin (2) tuition and fees paid to attend a school described in section 290.0674, subdivision
1, clause (4), that are not included in education-related expenses; less
deleted text end

deleted text begin (3) any amount used to claim the credit under section 290.0674.
deleted text end

(b) The maximum subtraction allowed under this subdivision is:

(1) $1,625 for each qualifying child in new text begin a prekindergarten educational program or in
new text end kindergarten through grade 6; and

(2) $2,500 for each qualifying child in grades 7 through 12.

(c) The definitions in section 290.0674, subdivision 1, apply to this subdivision.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2016.
new text end

Sec. 8.

Minnesota Statutes 2016, section 290.0132, subdivision 14, is amended to read:

Subd. 14.

Section 179 expensing.

deleted text begin In each of the five taxable years immediately following
the taxable year in which an addition is required under section 290.0131, subdivision 10,
or 290.0133, subdivision 12, for a shareholder of a corporation that is an S corporation, an
amount equal to one-fifth of the addition made by the taxpayer under section 290.0131,
subdivision 10, or 290.0133, subdivision 12, for a shareholder of a corporation that is an S
corporation, minus the positive value of any net operating loss under section 172 of the
Internal Revenue Code generated for the taxable year of the addition, is a subtraction. If the
net operating loss exceeds the addition for the taxable year, a subtraction is not allowed
under this subdivision. deleted text end new text begin The current year section 179 allowance under section 290.0804,
subdivision 1, is a subtraction.
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, 2016.
new text end

Sec. 9.

Minnesota Statutes 2016, section 290.0132, is amended by adding a subdivision
to read:

new text begin Subd. 23. new text end

new text begin Contributions to 529 plan. new text end

new text begin (a) The amount equal to the contributions made
during the taxable year to one or more accounts in plans qualifying under section 529 of
the Internal Revenue Code, reduced by any withdrawals from accounts during the taxable
year, is a subtraction.
new text end

new text begin (b) The subtraction under this subdivision does not include amounts rolled over from
other college savings plan accounts.
new text end

new text begin (c) The subtraction under this subdivision must not exceed $3,000 for married couples
filing joint returns and $1,500 for all other filers, and is limited to individuals who do not
claim the credit under section 290.0684.
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, 2016.
new text end

Sec. 10.

Minnesota Statutes 2016, section 290.0132, is amended by adding a subdivision
to read:

new text begin Subd. 24. new text end

new text begin Social Security benefits. new text end

new text begin The amount of Social Security benefits, as provided
in section 290.0803, is a subtraction.
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, 2016.
new text end

Sec. 11.

Minnesota Statutes 2016, section 290.0132, is amended by adding a subdivision
to read:

new text begin Subd. 25. new text end

new text begin Discharge of indebtedness; education loans. new text end

new text begin (a) The amount equal to the
discharge of indebtedness of the taxpayer is a subtraction if:
new text end

new text begin (1) the indebtedness discharged is a qualified education loan;
new text end

new text begin (2) the taxpayer incurred the indebtedness to pay for qualified higher education expenses
related to attending a graduate degree program; and
new text end

new text begin (3) the indebtedness was discharged under section 136A.1791, or following the taxpayer's
completion of an income-driven repayment plan.
new text end

new text begin (b) For the purposes of this subdivision, "qualified education loan" and "qualified higher
education expenses" have the meanings given in section 221 of the Internal Revenue Code.
new text end

new text begin (c) For purposes of this subdivision, "income-driven repayment plan" means a payment
plan established by the United States Department of Education that sets monthly student
loan payments based on income and family size under United States Code, title 20, section
1087e, or similar authority and specifically includes, but is not limited to:
new text end

new text begin (1) the income-based repayment plan under United States Code, title 20, section 1098e;
new text end

new text begin (2) the income contingent repayment plan established under United States Code, title
20, section 1087e, subsection (e); and
new text end

new text begin (3) the PAYE program or REPAYE program established by the Department of Education
under administrative regulations.
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, 2016.
new text end

Sec. 12.

Minnesota Statutes 2016, section 290.0132, is amended by adding a subdivision
to read:

new text begin Subd. 26. new text end

new text begin Carryover section 179 allowance. new text end

new text begin The carryover section 179 allowance under
section 290.0804, subdivision 2, is a subtraction.
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, 2016.
new text end

Sec. 13.

Minnesota Statutes 2016, section 290.0132, is amended by adding a subdivision
to read:

new text begin Subd. 27. new text end

new text begin First-time home buyer savings account. new text end

new text begin (a) The amount for contributions
to and earnings on a first-time home buyer savings account allowed by section 462D.06,
subdivision 1, is a subtraction.
new text end

new text begin (b) The subtraction allowed under this subdivision for a taxable year is limited to $7,500,
or $15,000 for married joint filers. For a taxpayer whose adjusted gross income, as defined
in section 62 of the Internal Revenue Code, for the taxable year exceeds $125,000, or
$250,000 for married joint filers, the maximum subtraction is reduced $1 for each $4 of
adjusted gross income in excess of that threshold.
new text end

new text begin (c) The adjusted gross income thresholds under paragraph (b) are annually adjusted for
inflation. Effective for taxable year 2018, the commissioner shall adjust the dollar amount
of the income thresholds at which the maximum credit begins to be reduced under paragraph
(b) by the percentage determined under section 1(f) of the Internal Revenue Code, except
that in section 1(f)(3)(B) the word "2016" is substituted for the word "1992." For 2018, the
commissioner shall then determine the percent change from the 12 months ending on August
31, 2016, to the 12 months ending on August 31, 2017, and in each subsequent year, from
the 12 months ending on August 31, 2016, to the 12 months ending on August 31 of the
year preceding the taxable year. The determination of the commissioner under this
subdivision is not a "rule" and is not subject to the Administrative Procedure Act in chapter
14. The threshold amount as adjusted must be rounded to the nearest $100 amount. If the
amount ends in $50, the amount is rounded up to the nearest $100 amount.
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, 2016.
new text end

Sec. 14.

Minnesota Statutes 2016, section 290.0133, is amended by adding a subdivision
to read:

new text begin Subd. 15. new text end

new text begin Equity and opportunity donations to qualified foundations. new text end

new text begin The amount
of the deduction under section 170 of the Internal Revenue Code that represents contributions
to a qualified foundation under section 290.0693 is an addition.
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, 2017.
new text end

Sec. 15.

new text begin [290.016] CONFORMITY TO FEDERAL TAX EXTENDERS BY
ADMINISTRATIVE ACTION.
new text end

new text begin Subdivision 1. new text end

new text begin Legislative purpose. new text end

new text begin (a) The legislature intends this section to provide
an ongoing mechanism for conforming the Minnesota individual income and corporate
franchise taxes and the property tax refund and homestead credit refund programs to federal
tax legislation enacted after the legislature has adjourned that extends existing provisions
of federal law, if the provisions affect a taxable year that ends before the legislature is
scheduled to reconvene in regular session. Congress has regularly enacted changes of that
type that affect computation of Minnesota tax through its links to federal law. The federal
changes consist mainly of extending provisions that reduce revenues and are scheduled to
expire. Because Minnesota law is linked to federal law as of a specific date, taxpayers and
the Department of Revenue must assume that Minnesota law does not include the effect of
these federal changes even though the legislature regularly adopts most of the federal
provisions retroactively in the next legislative session. This situation undermines compliance
and administration of Minnesota taxes, causing delay, uncertainty, and added costs. This
section provides an administrative mechanism to conform to most of these federal changes.
The legislature's intent is to conform to the federal tax extenders, including minor
modifications of them, and to set aside the necessary state budget resources to do so.
new text end

new text begin (b) By expressing its intent regarding specific federal provisions and indicating how to
treat each federal extender provision, the legislature is exercising its legislative power and
is not delegating to Congress or the commissioner the authority to determine Minnesota tax
law. The legislature believes that this section is consistent with the Minnesota Supreme
Court's ruling in the case of Wallace v. Commissioner of Taxation, 289 Minn. 220 (1971).
new text end

new text begin Subd. 2. new text end

new text begin Federal tax conformity account established; transfer. new text end

new text begin (a) A federal tax
conformity account is established in the general fund. Money in the account is available for
transfer to the general fund to offset the reduction in general fund revenues resulting from
conforming Minnesota tax law to federal law under this section.
new text end

new text begin (b) $35,000,000 is transferred from the general fund to the federal tax conformity account,
effective July 1, 2017.
new text end

new text begin (c) Each year, within ten days after receiving notice of the amount from the commissioner,
the commissioner of management and budget shall transfer from the account to the general
fund the amount the commissioner determines is required under subdivision 4.
new text end

new text begin Subd. 3. new text end

new text begin Eligible federal tax preferences. new text end

new text begin For purposes of this section and section
290.01, the term "eligible federal tax preferences" means any of the following items that
are not in effect under the Internal Revenue Code for future taxable years beginning after
December 31, 2016:
new text end

new text begin (1) discharge of qualified principal residence indebtedness under section 108(a)(1)(E)
of the Internal Revenue Code;
new text end

new text begin (2) mortgage insurance premiums treated as qualified residence interest under section
163(h)(3)(E) of the Internal Revenue Code;
new text end

new text begin (3) qualified tuition and related expenses under section 222 of the Internal Revenue
Code;
new text end

new text begin (4) reversion of the ten percent adjusted gross income threshold used in determining the
itemized deductions of the expenses of medical care under section 213 of the Internal
Revenue Code to 7.5 percent, without regard to whether the reversion applies to all
individuals or is limited to individuals who have attained the age of 65;
new text end

new text begin (5) classification of certain race horses as three-year property under section
168(e)(3)(A)(i) and (ii) of the Internal Revenue Code;
new text end

new text begin (6) the seven-year recovery period for motorsports entertainment complexes under
section 168(i)(15) of the Internal Revenue Code;
new text end

new text begin (7) the accelerated depreciation for business property on an Indian reservation under
section 168(j) of the Internal Revenue Code;
new text end

new text begin (8) the election to expense mine safety equipment under section 179E of the Internal
Revenue Code;
new text end

new text begin (9) the special expensing rules for certain film and television productions under section
181 of the Internal Revenue Code;
new text end

new text begin (10) the special allowance for second-generation biofuel plant property under section
168(l) of the Internal Revenue Code;
new text end

new text begin (11) the energy efficient commercial buildings deduction under section 179D of the
Internal Revenue Code;
new text end

new text begin (12) the five-year recovery period for property described in section 168(e)(3)(B)(vi)(I)
of the Internal Revenue Code and qualifying for an energy credit under section 48(a)(3)(A)
of the Internal Revenue Code; and
new text end

new text begin (13) the amount of the additional section 179 allowance in an empowerment zone under
section 1397A of the Internal Revenue Code.
new text end

new text begin Subd. 4. new text end

new text begin Designation of qualifying federal conformity items. new text end

new text begin (a) If, after final
adjournment of a regular session of the legislature, Congress enacts a law that extends one
or more of the eligible federal tax preferences to taxable years beginning during the calendar
year in which the legislature adjourned, the commissioner shall prepare a list of qualifying
federal conformity items and publish it on the Department of Revenue's Web site within 30
days following enactment of the law. In preparing the list, the commissioner shall estimate
the change in revenue resulting from allowing the eligible federal tax preferences, including
the effect of subdivision 6, for the current and succeeding fiscal year only. The commissioner
shall not include an item on the list of qualifying federal conformity items if the commissioner
estimates that its inclusion would reduce general fund revenues for the current and succeeding
fiscal year by more than the balance in the federal tax conformity account.
new text end

new text begin (b) The commissioner shall consider the provisions of subdivision 6 as the first item to
include on the list of qualifying conformity items. The commissioner shall apply the following
priorities in determining which additional items to include:
new text end

new text begin (1) the effect of all eligible federal tax preferences on computation of federal adjusted
gross income under this chapter and household income under chapter 290A, is the first
priority;
new text end

new text begin (2) the effect of the federal law on computation of Minnesota tax credits is the second
priority;
new text end

new text begin (3) the items in subdivision 3, clauses (5) to (13), in that order, are the third priority;
and
new text end

new text begin (4) the items in subdivision 3, clauses (1) to (4), in that order, are the last priority.
new text end

new text begin (c) In determining whether to include an eligible federal tax preference on the list of
qualifying federal conformity items, the commissioner may include items in which
nonmaterial changes were made in the federal law extending allowance of the eligible federal
tax preferences, compared to the provision that was in effect for the prior federal taxable
year. For purposes of this determination, nonmaterial changes are limited to changes that
are estimated to increase or decrease Minnesota tax revenues by no more than $1,000,000
for the affected eligible federal tax preference item for the taxable year.
new text end

new text begin (d) Within ten days after the commissioner's final determination of qualifying federal
conformity items under this subdivision, the commissioner shall notify the commissioner
of management and budget, in writing, of the amounts of the federal tax conformity account
transfers under subdivision 2.
new text end

new text begin Subd. 5. new text end

new text begin Provisions in effect. new text end

new text begin (a) For purposes of determining tax and credits under this
chapter, including the taxes under sections 290.091 and 290.0921, and household income
under chapter 290A, qualifying federal conformity items and bonus depreciation rules under
subdivision 6 apply for the designated taxable year and the provisions of this chapter apply
as if the definition of the Internal Revenue Code under section 290.01, subdivision 31,
included the amendments to the qualifying federal conformity items.
new text end

new text begin (b) The commissioner shall administer the taxes under this chapter and refunds under
chapter 290A as if Minnesota had conformed to the federal definitions of net income,
adjusted gross income, and tax credits that affect computation of Minnesota tax or refunds
resulting from extension of the qualifying federal conformity items.
new text end

new text begin (c) For purposes of this subdivision and subdivision 6, "designated taxable year" means
a taxable year that begins during a calendar year in which an eligible federal tax preference
is enacted after the legislature adjourned its regular session and is effective for taxable years
beginning during that calendar year.
new text end

new text begin Subd. 6. new text end

new text begin Bonus depreciation; 80 percent rule applies. new text end

new text begin If, following final adjournment
of a regular session of the legislature, Congress enacts a law that extends application of the
depreciation special allowances under section 168(k) of the Internal Revenue Code to taxable
years beginning during the same calendar year, the allowance must be determined using
the rules under sections 290.0131, subdivision 9, and 290.0133, subdivision 11, for the
designated taxable year; and the rules under sections 290.0132, subdivision 9, and 290.0134,
subdivision 13, for the five tax years immediately following the designated taxable year.
new text end

new text begin Subd. 7. new text end

new text begin Forms preparation. new text end

new text begin If the provisions of subdivisions 3 and 4 apply to a taxable
year, the commissioner shall prepare forms and instructions that reflect the qualifying federal
conformity items and bonus depreciation rules under subdivision 6, if applicable, for the
taxable year consistent with the provisions of this section.
new text end

new text begin Subd. 8. new text end

new text begin Draft legislation. new text end

new text begin For a taxable year for which the commissioner publishes a
list of qualifying federal conformity items under this section, the commissioner shall provide
the chairs and ranking minority members of the legislative committees with jurisdiction
over taxes with draft legislation that would conform Minnesota Statutes to the qualifying
federal conformity items and any other conformity items that the commissioner recommends
be adopted, including application to taxable years beyond those to which this section applies.
The draft legislation is intended to make the statutes consistent with application of the
designated qualifying federal conformity items under this section for the convenience of
members of the public. Failure to pass the draft legislation does not affect computation of
Minnesota tax liability for the affected taxable years under this section.
new text end

new text begin Subd. 9. new text end

new text begin Administrative Procedure Act. new text end

new text begin Designation of qualifying federal conformity
items or any other action of the commissioner under this section is not a rule and is not
subject to the Administrative Procedure Act under chapter 14, including section 14.386.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 16.

Minnesota Statutes 2016, section 290.06, is amended by adding a subdivision to
read:

new text begin Subd. 2g. new text end

new text begin First-time home buyer savings account. new text end

new text begin In addition to the tax computed
under subdivision 2c, an additional amount of tax applies equal to the additional tax computed
for the taxable year for the account holder of a first-time home buyer account under section
462D.06, subdivision 3.
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, 2016.
new text end

Sec. 17.

Minnesota Statutes 2016, section 290.06, subdivision 22, is amended to read:

Subd. 22.

Credit for taxes paid to another state.

(a) A taxpayer who is liable for taxes
based on net income to another state, as provided in paragraphs (b) through (f), upon income
allocated or apportioned to Minnesota, is entitled to a credit for the tax paid to another state
if the tax is actually paid in the taxable year or a subsequent taxable year. A taxpayer who
is a resident of this state pursuant to section 290.01, subdivision 7, paragraph (b), and who
is subject to income tax as a resident in the state of the individual's domicile is not allowed
this credit unless the state of domicile does not allow a similar credit.

(b) For an individual, estate, or trust, the credit is determined by multiplying the tax
payable under this chapter by the ratio derived by dividing the income subject to tax in the
other state that is also subject to tax in Minnesota while a resident of Minnesota by the
taxpayer's federal adjusted gross income, as defined in section 62 of the Internal Revenue
Code, modified by the addition required by section 290.0131, subdivision 2, and the
subtraction allowed by section 290.0132, subdivision 2, to the extent the income is allocated
or assigned to Minnesota under sections 290.081 and 290.17.

(c) If the taxpayer is an athletic team that apportions all of its income under section
290.17, subdivision 5, the credit is determined by multiplying the tax payable under this
chapter by the ratio derived from dividing the total net income subject to tax in the other
state by the taxpayer's Minnesota taxable income.

(d)new text begin (1)new text end The credit determined under paragraph (b) or (c) shall not exceed the amount of
tax so paid to the other state on the gross income earned within the other state subject to
tax under this chapterdeleted text begin , nor shalldeleted text end new text begin ; and
new text end

new text begin (2)new text end the allowance of the credit new text begin does not new text end reduce the taxes paid under this chapter to an
amount less than what would be assessed if deleted text begin such income amount wasdeleted text end new text begin the gross income
earned within the other state werenew text end excluded from taxable net income.

(e) In the case of the tax assessed on a lump-sum distribution under section 290.032, the
credit allowed under paragraph (a) is the tax assessed by the other state on the lump-sum
distribution that is also subject to tax under section 290.032, and shall not exceed the tax
assessed under section 290.032. To the extent the total lump-sum distribution defined in
section 290.032, subdivision 1, includes lump-sum distributions received in prior years or
is all or in part an annuity contract, the reduction to the tax on the lump-sum distribution
allowed under section 290.032, subdivision 2, includes tax paid to another state that is
properly apportioned to that distribution.

(f) If a Minnesota resident reported an item of income to Minnesota and is assessed tax
in such other state on that same income after the Minnesota statute of limitations has expired,
the taxpayer shall receive a credit for that year under paragraph (a), notwithstanding any
statute of limitations to the contrary. The claim for the credit must be submitted within one
year from the date the taxes were paid to the other state. The taxpayer must submit sufficient
proof to show entitlement to a credit.

(g) For the purposes of this subdivision, a resident shareholder of a corporation treated
as an "S" corporation under section 290.9725, must be considered to have paid a tax imposed
on the shareholder in an amount equal to the shareholder's pro rata share of any net income
tax paid by the S corporation to another state. For the purposes of the preceding sentence,
the term "net income tax" means any tax imposed on or measured by a corporation's net
income.

(h) For the purposes of this subdivision, a resident partner of an entity taxed as a
partnership under the Internal Revenue Code must be considered to have paid a tax imposed
on the partner in an amount equal to the partner's pro rata share of any net income tax paid
by the partnership to another state. For purposes of the preceding sentence, the term "net
income" tax means any tax imposed on or measured by a partnership's net income.

(i) For the purposes of this subdivision, "another state":

(1) includes:

(i) the District of Columbia; and

(ii) a province or territory of Canada; but

(2) excludes Puerto Rico and the several territories organized by Congress.

(j) The limitations on the credit in paragraphs (b), (c), and (d), are imposed on a state
by state basis.

(k) For a tax imposed by a province or territory of Canada, the tax for purposes of this
subdivision is the excess of the tax over the amount of the foreign tax credit allowed under
section 27 of the Internal Revenue Code. In determining the amount of the foreign tax credit
allowed, the net income taxes imposed by Canada on the income are deducted first. Any
remaining amount of the allowable foreign tax credit reduces the provincial or territorial
tax that qualifies for the credit under this subdivision.

new text begin (l) If the amount of the credit which a qualifying individual is eligible to receive under
this section for tax paid to a qualifying state, disregarding the limitation in paragraph (d),
clause (2), exceeds the tax due under this chapter, the commissioner shall refund the excess
to the individual. An amount sufficient to pay the refunds required by this section is
appropriated to the commissioner from the general fund.
new text end

new text begin For purposes of this paragraph, "qualifying individual" means a Minnesota resident under
section 290.01, subdivision 7, paragraph (a), who received compensation during the taxable
year for the performance of personal or professional services within a qualifying state, and
"qualifying state" means a state with which an agreement under section 290.081 is not in
effect for the taxable year but was in effect for a taxable year beginning before January 1,
2010.
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, 2016.
new text end

Sec. 18.

Minnesota Statutes 2016, section 290.06, is amended by adding a subdivision to
read:

new text begin Subd. 37. new text end

new text begin Beginning farmer incentive credit. new text end

new text begin (a) A beginning farmer incentive credit
is allowed against the tax due under this chapter for the sale or rental of agricultural assets
to a beginning farmer according to section 41B.0391, subdivision 2.
new text end

new text begin (b) The credit may be claimed only after approval and certification by the Rural Finance
Authority according to section 41B.0391.
new text end

new text begin (c) The credit is limited to the liability for tax, as computed under this chapter, for the
taxable year. If the amount of the credit determined under this subdivision for any taxable
year exceeds this limitation, the excess is a beginning farmer incentive credit carryover to
each of the 15 succeeding taxable years. The entire amount of the excess unused credit for
the taxable year is 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 beginning farmer incentive credit for the taxable year.
new text end

new text begin (d) Credits allowed to a partnership, a limited liability company taxed as a partnership,
an S corporation, or multiple owners of property are passed through to the partners, members,
shareholders, or owners, respectively, pro rata to each based on the partner's, member's,
shareholder's, or owner's share of the entity's assets or as specially allocated in the
organizational documents or any other executed agreement, as of the last day of the taxable
year.
new text end

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

new text begin (f) Notwithstanding the approval and certification by the Rural Finance Authority under
section 41B.0391, the commissioner may utilize any audit and examination powers under
chapter 270C or 289A to the extent necessary to verify that the taxpayer is eligible for the
credit and to assess for the amount of any improperly claimed credit.
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, 2016.
new text end

Sec. 19.

Minnesota Statutes 2016, section 290.06, is amended by adding a subdivision to
read:

new text begin Subd. 38. new text end

new text begin Beginning farmer management credit. new text end

new text begin (a) A taxpayer who is a beginning
farmer may take a credit against the tax due under this chapter for participation in a financial
management program according to section 41B.0391, subdivision 3.
new text end

new text begin (b) The credit may be claimed only after approval and certification by the Rural Finance
Authority according to section 41B.0391.
new text end

new text begin (c) The credit is limited to the liability for tax, as computed under this chapter, for the
taxable year. If the amount of the credit determined under this subdivision for any taxable
year exceeds this limitation, the excess is a beginning farmer management credit carryover
to each of the three succeeding taxable years. The entire amount of the excess unused credit
for the taxable year is 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 beginning farmer management credit for the taxable
year.
new text end

new text begin (d) For a part-year resident, the credit under this section must be allocated using the
percentage calculated in section 290.06, subdivision 2c, paragraph (e).
new text end

new text begin (e) Notwithstanding the approval and certification by the Rural Finance Authority under
section 41B.0391, the commissioner may utilize any audit and examination powers under
chapter 270C or 289A to the extent necessary to verify that the taxpayer is eligible for the
credit and to assess for the amount of any improperly claimed credit.
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, 2016.
new text end

Sec. 20.

Minnesota Statutes 2016, section 290.067, subdivision 1, is amended to read:

Subdivision 1.

Amount of credit.

(a) A taxpayer may take as a credit against the tax
due from the taxpayer and a spouse, if any, under this chapter an amount equal to the
dependent care credit for which the taxpayer is eligible pursuant to the provisions of section
21 of the Internal Revenue Code deleted text begin subject to the limitations provided in subdivision 2deleted text end except
that in determining whether the child qualified as a dependent, income received as a
Minnesota family investment program grant or allowance to or on behalf of the child must
not be taken into account in determining whether the child received more than half of the
child's support from the taxpayer, and the provisions of section 32(b)(1)(D) of the Internal
Revenue Code do not apply.

(b) If a child who has not attained the age of six years at the close of the taxable year is
cared for at a licensed family day care home operated by the child's parent, the taxpayer is
deemed to have paid employment-related expenses. If the child is 16 months old or younger
at the close of the taxable year, the amount of expenses deemed to have been paid equals
the maximum limit for one qualified individual under section 21(c) and (d) of the Internal
Revenue Code. If the child is older than 16 months of age but has not attained the age of
six years at the close of the taxable year, the amount of expenses deemed to have been paid
equals the amount the licensee would charge for the care of a child of the same age for the
same number of hours of care.

(c) If a married couple:

(1) has a child who has not attained the age of one year at the close of the taxable year;

(2) files a joint tax return for the taxable year; and

(3) does not participate in a dependent care assistance program as defined in section 129
of the Internal Revenue Code, in lieu of the actual employment related expenses paid for
that child under paragraph (a) or the deemed amount under paragraph (b), the lesser of (i)
the combined earned income of the couple or (ii) the amount of the maximum limit for one
qualified individual under section 21(c) and (d) of the Internal Revenue Code will be deemed
to be the employment related expense paid for that child. The earned income limitation of
section 21(d) of the Internal Revenue Code shall not apply to this deemed amount. These
deemed amounts apply regardless of whether any employment-related expenses have been
paid.

(d) If the taxpayer is not required and does not file a federal individual income tax return
for the tax year, no credit is allowed for any amount paid to any person unless:

(1) the name, address, and taxpayer identification number of the person are included on
the return claiming the credit; or

(2) if the person is an organization described in section 501(c)(3) of the Internal Revenue
Code and exempt from tax under section 501(a) of the Internal Revenue Code, the name
and address of the person are included on the return claiming the credit.

In the case of a failure to provide the information required under the preceding sentence,
the preceding sentence does not apply if it is shown that the taxpayer exercised due diligence
in attempting to provide the information required.

(e) In the case of a nonresident, part-year resident, or a person who has earned income
not subject to tax under this chapter including earned income excluded pursuant to section
290.0132, subdivision 10, the credit determined under section 21 of the Internal Revenue
Code must be allocated based on the ratio by which the earned income of the claimant and
the claimant's spouse from Minnesota sources bears to the total earned income of the claimant
and the claimant's spouse.

(f) For residents of Minnesota, the subtractions for military pay under section 290.0132,
subdivisions 11 and 12, are not considered "earned income not subject to tax under this
chapter."

(g) For residents of Minnesota, the exclusion of combat pay under section 112 of the
Internal Revenue Code is not considered "earned income not subject to tax under this
chapter."

new text begin (h) For taxpayers with federal adjusted gross income in excess of $50,000, the credit is
equal to the lesser of the credit otherwise calculated under this subdivision, or the amount
equal to $600 minus five percent of federal adjusted gross income in excess of $50,000 for
taxpayers with one qualified individual, or $1,200 minus five percent of federal adjusted
gross income in excess of $50,000 for taxpayers with two or more qualified individuals,
but in no case is the credit less than zero.
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, 2016.
new text end

Sec. 21.

Minnesota Statutes 2016, section 290.067, subdivision 2b, is amended to read:

Subd. 2b.

Inflation adjustment.

The commissioner shall adjust the dollar amount of
the income threshold at which the maximum credit begins to be reduced under subdivision
deleted text begin 2deleted text end new text begin 1new text end by the percentage determined pursuant to the provisions of section 1(f) of the Internal
Revenue Code, except that in section 1(f)(3)(B) the word deleted text begin "1999"deleted text end new text begin "2016"new text end shall be substituted
for the word "1992." For deleted text begin 2001deleted text end new text begin 2018new text end , the commissioner shall then determine the percent
change from the 12 months ending on August 31, deleted text begin 1999deleted text end new text begin 2016new text end , to the 12 months ending on
August 31, deleted text begin 2000deleted text end new text begin 2017new text end , and in each subsequent year, from the 12 months ending on August
31, deleted text begin 1999deleted text end new text begin 2016new text end , to the 12 months ending on August 31 of the year preceding the taxable
year. The determination of the commissioner pursuant to this subdivision must not be
considered a "rule" and is not subject to the Administrative Procedure Act contained in
chapter 14. The threshold amount as adjusted must be rounded to the nearest $10 amount.
If the amount ends in $5, the amount is rounded up to the nearest $10 amount.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2016.
new text end

Sec. 22.

Minnesota Statutes 2016, section 290.0674, subdivision 1, is amended to read:

Subdivision 1.

Credit allowed.

An individual is allowed a credit against the tax imposed
by this chapter in an amount equal to 75 percent of the amount paid for education-related
expenses for a qualifying childnew text begin in a prekindergarten educational program ornew text end in kindergarten
through grade 12. For purposes of this section, "education-related expenses" means:

(1) fees or tuition for instruction by an instructor under section 120A.22, subdivision
10, clause (1), (2), (3), (4), or (5), or a member of the Minnesota Music Teachers Association,
and who is not a lineal ancestor or sibling of the dependent for instruction outside the regular
school day or school year, including tutoring, driver's education offered as part of school
curriculum, regardless of whether it is taken from a public or private entity or summer
camps, in grade or age appropriate curricula that supplement curricula and instruction
available during the regular school year, that assists a dependent to improve knowledge of
core curriculum areas or to expand knowledge and skills under the required academic
standards under section 120B.021, subdivision 1, and the elective standard under section
120B.022, subdivision 1, clause (2), and that do not include the teaching of religious tenets,
doctrines, or worship, the purpose of which is to instill such tenets, doctrines, or worship;

(2) expenses for textbooks, including books and other instructional materials and
equipment purchased or leased for use in elementary and secondary schools in teaching
only those subjects legally and commonly taught in public elementary and secondary schools
in this state. "Textbooks" does not include instructional books and materials used in the
teaching of religious tenets, doctrines, or worship, the purpose of which is to instill such
tenets, doctrines, or worship, nor does it include books or materials for extracurricular
activities including sporting events, musical or dramatic events, speech activities, driver's
education, or similar programs;

(3) a maximum expense of $200 per family for personal computer hardware, excluding
single purpose processors, and educational software that assists a dependent to improve
knowledge of core curriculum areas or to expand knowledge and skills under the required
academic standards under section 120B.021, subdivision 1, and the elective standard under
section 120B.022, subdivision 1, clause (2), purchased for use in the taxpayer's home and
not used in a trade or business regardless of whether the computer is required by the
dependent's school; deleted text begin and
deleted text end

(4) the amount paid to others for new text begin tuition andnew text end transportation of a qualifying child attending
an elementary or secondary school situated in Minnesota, North Dakota, South Dakota,
Iowa, or Wisconsin, wherein a resident of this state may legally fulfill the state's compulsory
attendance laws, which is not operated for profit, and which adheres to the provisions of
the Civil Rights Act of 1964 and chapter 363A. Amounts under this clause exclude any
expense the taxpayer incurred in using the taxpayer's or the qualifying child's vehicledeleted text begin .deleted text end new text begin ; and
new text end

new text begin (5) fees charged for enrollment in a prekindergarten educational program, to the extent
not used to claim the credit under section 290.067.
new text end

For purposes of this section, "qualifying child" has the meaning given in section 32(c)(3)
of the Internal Revenue Codenew text begin , but is limited to children who have attained at least the age
of three during the taxable yearnew text end .

new text begin For purposes of this section, "prekindergarten educational program" means:
new text end

new text begin (1) prekindergarten programs established by a school district under chapter 124D;
new text end

new text begin (2) preschools, nursery schools, and early childhood development programs licensed by
the Department of Human Services and accredited by the National Association for the
Education of Young Children or National Early Childhood Program Accreditation;
new text end

new text begin (3) Montessori programs affiliated with or accredited by the American Montessori
Society or American Montessori International; and
new text end

new text begin (4) child care programs provided by family day care providers holding a current early
childhood development credential approved by the commissioner of human services.
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, 2016.
new text end

Sec. 23.

Minnesota Statutes 2016, section 290.0674, subdivision 2, is amended to read:

Subd. 2.

Limitations.

(a) For claimants with income not greater than deleted text begin $33,500deleted text end new text begin $42,000new text end ,
the maximum credit allowed for a family is deleted text begin $1,000deleted text end new text begin $1,500new text end multiplied by the number of
qualifying children in new text begin a prekindergarten educational program or in new text end kindergarten through
grade 12 in the family. The maximum credit deleted text begin for families with one qualifying child in
kindergarten through grade 12deleted text end is reduced by $1 for each deleted text begin $4deleted text end new text begin $10new text end of household income over
deleted text begin $33,500, and the maximum credit for families with two or more qualifying children in
kindergarten through grade 12 is reduced by $2 for each $4 of household income over
$33,500deleted text end new text begin $42,000new text end , but in no case is the credit less than zero.

For purposes of this section "income" has the meaning given in section 290.067,
subdivision 2a. In the case of a married claimant, a credit is not allowed unless a joint income
tax return is filed.

(b) For a nonresident or part-year resident, the credit determined under subdivision 1
and the maximum credit amount in paragraph (a) must be allocated using the percentage
calculated in section 290.06, subdivision 2c, paragraph (e).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2016.
new text end

Sec. 24.

Minnesota Statutes 2016, section 290.0674, is amended by adding a subdivision
to read:

new text begin Subd. 6. new text end

new text begin Inflation adjustment. new text end

new text begin The income threshold at which the maximum credit
begins to be reduced in subdivision 2 must be adjusted for inflation. The commissioner shall
adjust the income threshold by the percentage determined pursuant to the provisions of
section 1(f) of the Internal Revenue Code, except that in section 1(f)(3)(B), the word "2016"
shall be substituted for the word "1992." For 2018, the commissioner shall then determine
the percent change from the 12 months ending on August 31, 2016, to the 12 months ending
on August 31, 2017, and in each subsequent year, from the 12 months ending August 31,
2016, to the 12 months ending on August 31 of the year preceding the taxable year. The
income threshold as adjusted for inflation must be rounded to the nearest $10 amount. If
the amount ends in $5, the amount is rounded up to the nearest $10 amount. The
determination of the commissioner under this subdivision is not a rule under the
Administrative Procedure Act.
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, 2016.
new text end

Sec. 25.

Minnesota Statutes 2016, section 290.068, subdivision 1, is amended to read:

Subdivision 1.

Credit allowed.

A corporation, partners in a partnership, or shareholders
in a corporation treated as an "S" corporation under section 290.9725 are allowed a credit
against the tax computed under this chapter for the taxable year equal to:

(a) ten percent of the first $2,000,000 of the excess (if any) of

(1) the qualified research expenses for the taxable year, over

(2) the base amount; and

(b) deleted text begin 2.5deleted text end new text begin fournew text end percent on all of such excess expenses over $2,000,000.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2016.
new text end

Sec. 26.

Minnesota Statutes 2016, section 290.068, subdivision 2, is amended to read:

Subd. 2.

Definitions.

For purposes of this section, the following terms have the meanings
given.

(a) "Qualified research expenses" means (i) qualified research expenses and basic research
payments as defined in section 41(b) and (e) of the Internal Revenue Code, except it does
not include expenses incurred for qualified research or basic research conducted outside
the state of Minnesota pursuant to section 41(d) and (e) of the Internal Revenue Code; and
(ii) contributions to a nonprofit corporation established and operated pursuant to the
provisions of chapter 317A for the purpose of promoting the establishment and expansion
of business in this state, provided the contributions are invested by the nonprofit corporation
for the purpose of providing funds for small, technologically innovative enterprises in
Minnesota during the early stages of their development.

(b) "Qualified research" means qualified research as defined in section 41(d) of the
Internal Revenue Code, except that the term does not include qualified research conducted
outside the state of Minnesota.

(c) "Base amount" means base amount as defined in section 41(c) of the Internal Revenue
Code, except that the average annual gross receipts must be calculated using Minnesota
sales or receipts under section 290.191 and the definitions contained in clauses (a) and (b)
shall apply.

new text begin (d) "Liability for tax" means the liability for tax under this chapter, other than the tax
under section 290.0922, reduced by the sum of the nonrefundable credits allowed under
this chapter, but excluding any carryover credit under subdivision 3.
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, 2016.
new text end

Sec. 27.

Minnesota Statutes 2016, section 290.068, subdivision 3, is amended to read:

Subd. 3.

Limitation; carryover.

(a) new text begin Except as provided in subdivision 6a, new text end the credit deleted text begin for
a taxable year beginning before January 1, 2010, and after December 31, 2012,deleted text end shall not
exceed the liability for tax. new text begin For a person subject to tax under section 290.06, subdivision 1,
new text end "liability for tax"deleted text begin for purposes of this section means the sum of the tax imposed under section
290.06, subdivisions 1 and 2c, for the taxable year reduced by the sum of the nonrefundable
credits allowed under this chapter,deleted text end new text begin includes the liability for taxnew text end on all of the entities required
to be included on the combined report of the unitary business. If the amount of the credit
allowed exceeds the liability for tax of the taxpayer, but is allowed as a result of the liability
for tax of other members of the unitary group for the taxable year, the taxpayer must allocate
the excess as a research credit to another member of the unitary group.

(b) In the case of a corporation which is a partner in a partnership, the credit allowed
for the taxable year shall not exceed the lesser of the amount determined under paragraph
(a) for the taxable year or 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 that
portion of taxable income which is allocable or apportionable to the corporation's interest
in the trade or business or entity.

(c) If the amount of the credit determined under this section for any taxable year exceeds
the limitation under paragraph (a) or (b), including amounts new text begin allowed as a refund under
subdivision 6a, or new text end allocated to other members of the unitary group, the excess shall be a
research credit carryover to each of the 15 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 research credit for the taxable year.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2016.
new text end

Sec. 28.

Minnesota Statutes 2016, section 290.068, subdivision 6a, is amended to read:

Subd. 6a.

Credit to be refundable.

new text begin (a) new text end If the amount of credit allowed in this section
for qualified research expenses incurred in taxable years beginning after December 31,
2009, and before January 1, 2013, exceeds the taxpayer's tax liability under this chapter,
the commissioner shall refund the excess amount. The credit allowed for qualified research
expenses incurred in taxable years beginning after December 31, 2009, and before January
1, 2013, must be used before any research credit earned under subdivision 3.

new text begin (b) The provisions of this paragraph apply to taxable years beginning after December
31, 2016. A taxpayer is allowed a refund equal to the least of the following:
new text end

new text begin (1) $100,000;
new text end

new text begin (2) the sum of the maximum refundable limits allocated to the taxpayer as a shareholder
of an S corporation and as a partner of a partnership under paragraph (c) for the taxable
year; or
new text end

new text begin (3) the excess of the amount of the credit allowed under this section for qualified research
expenses incurred in the taxable year over the taxpayer's liability for tax, including after
satisfying the tax liabilities of any other member of the unitary group under subdivision 3,
paragraph (a).
new text end

new text begin (c) For an S corporation or partnership, a maximum refundable limit of $100,000 applies
at the entity level. The S corporation or partnership must allocate its maximum refundable
limit to each of its shareholders or members for the taxable year. The allocation may be
made in any manner provided in the organizational documents or any other executed
agreement as of the last day of the taxable year. If no provision is made in those documents
or by agreement, the allocation must be made in the same manner provided in subdivision
4 for allocation of the credit. Within 60 days after the close of the taxable year, the S
corporation or partnership must report to each shareholder or partner the allocated share of
the maximum refundable limit for each shareholder or partner. The commissioner may
require reporting, including the time and manner for reporting, of the allocated amounts to
the commissioner.
new text end

new text begin (d) The excess of the amount allowed as a refund under this subdivision to the taxpayer
is a carryover under subdivision 3.
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, 2016.
new text end

Sec. 29.

new text begin [290.0682] STUDENT LOAN CREDIT.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "Adjusted gross income" means federal adjusted gross income as defined in section
62 of the Internal Revenue Code.
new text end

new text begin (c) "Earned income" has the meaning given in section 32(c) of the Internal Revenue
Code.
new text end

new text begin (d) "Eligible individual" means a resident individual with one or more qualified education
loans related to an undergraduate or graduate degree program at a postsecondary educational
institution.
new text end

new text begin (e) "Eligible loan payments" means the amount the eligible individual paid during the
taxable year in principal and interest on qualified education loans.
new text end

new text begin (f) "Postsecondary educational institution" means a public or nonprofit postsecondary
institution eligible for state student aid under section 136A.103 or, if the institution is not
located in this state, a public or nonprofit postsecondary institution participating in the
federal Pell Grant program under title IV of the Higher Education Act of 1965, Public Law
89-329, as amended.
new text end

new text begin (g) "Qualified education loan" has the meaning given in section 221 of the Internal
Revenue Code, but is limited to indebtedness incurred on behalf of the eligible individual.
new text end

new text begin Subd. 2. new text end

new text begin Credit allowed. new text end

new text begin (a) An eligible individual is allowed a credit against the tax
due under this chapter.
new text end

new text begin (b) The credit for an eligible individual equals the least of:
new text end

new text begin (1) eligible loan payments minus ten percent of an amount equal to adjusted gross income
in excess of $10,000, but in no case less than zero;
new text end

new text begin (2) the earned income for the taxable year of the eligible individual, if any;
new text end

new text begin (3) the sum of:
new text end

new text begin (i) the interest portion of eligible loan payments made during the taxable year; and
new text end

new text begin (ii) ten percent of the original loan amount of all qualified education loans of the eligible
individual; or
new text end

new text begin (4) $750.
new text end

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

new text begin (d) In the case of a married couple, each spouse is eligible for the credit in this section.
new text end

new text begin Subd. 3. new text end

new text begin Credit refundable. new text end

new text begin If the amount of credit that an individual is eligible to
receive under this section exceeds the individual's tax liability under this chapter, the
commissioner shall refund the excess to the individual.
new text end

new text begin Subd. 4. new text end

new text begin Appropriation. new text end

new text begin An amount sufficient to pay the refunds required by this section
is appropriated to the commissioner from the general fund.
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, 2016.
new text end

Sec. 30.

new text begin [290.0683] MINNESOTA HOUSING TAX CREDIT.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For purposes of this section:
new text end

new text begin (1) "entity" means a partnership, limited liability company taxed as a partnership, S
corporation, or property with multiple owners;
new text end

new text begin (2) "entity member" means a partner, member, shareholder, or owner;
new text end

new text begin (3) "taxpayer" means a taxpayer as defined in section 290.01, subdivision 6, or a taxpayer
as defined in section 297I.01, subdivision 16; and
new text end

new text begin (4) terms defined in section 462A.39 have the meanings given in that section.
new text end

new text begin Subd. 2. new text end

new text begin Credit allowed. new text end

new text begin (a) A taxpayer is allowed a credit against the taxes imposed
under this chapter and chapter 297I. The credit equals the amount allocated to the taxpayer
and indicated on the eligibility statement issued to the taxpayer under section 462A.39,
subdivision 3. The taxpayer may claim the amount allocated in the year in which the credit
is allocated and in each of the five following taxable years.
new text end

new text begin (b) A taxpayer eligible for the credit must submit to the commissioner a copy of the
eligibility statement issued by the agency or suballocator with respect to the qualified
Minnesota project, a copy of the project owner's tax return that must be filed as required
under chapter 289A, and any other information required by the commissioner.
new text end

new text begin (c) Credits granted to an entity are passed through to the entity members based on each
entity member's share of the entity's assets or as specially allocated in the organizational
documents as of the last day of the taxable year in which the eligibility statement was issued.
If a Minnesota housing tax credit is allowed to an entity with multiple tiers of ownership,
the credit is passed through to entity members pro rata or as specially allocated in the
organizational documents as of the last day of the taxable year in which the eligibility
statement was issued at each ownership tier.
new text end

new text begin Subd. 3. new text end

new text begin Limitations; carryover. new text end

new text begin (a) A credit allowed under this section may not exceed
liability for tax under this chapter and chapter 297I.
new text end

new text begin (b) If the amount of the credit under this section exceeds the limitation under paragraph
(a), the excess is a credit carryover to each of the 11 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.
new text end

new text begin (c) Credits under this subdivision apply against liability after any net operating loss
carryover incorporated in the calculation of federal taxable income.
new text end

new text begin Subd. 4. new text end

new text begin Audit powers. new text end

new text begin Notwithstanding the eligibility statement issued by the agency
or a suballocator under section 462A.38, the commissioner may utilize any audit and
examination powers under chapter 270C or 289A to the extent necessary to verify that the
taxpayer is eligible for the credit and to assess for the amount of any improperly claimed
credit and that the owner is in compliance with the compliance agreement.
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, 2016.
new text end

Sec. 31.

new text begin [290.0684] SECTION 529 COLLEGE SAVINGS PLAN CREDIT.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "Federal adjusted gross income" has the meaning given under section 62(a) of the
Internal Revenue Code.
new text end

new text begin (c) "Qualified higher education expenses" has the meaning given in section 529 of the
Internal Revenue Code.
new text end

new text begin Subd. 2. new text end

new text begin Credit allowed. new text end

new text begin (a) A credit is allowed to a resident individual against the tax
imposed by this chapter. The credit is not allowed to an individual who is eligible to be
claimed as a dependent, as defined in sections 151 and 152 of the Internal Revenue Code.
new text end

new text begin (b) The amount of the credit allowed equals 50 percent of the amount contributed in a
taxable year to one or more accounts in plans qualifying under section 529 of the Internal
Revenue Code, reduced by any withdrawals from accounts made during the taxable year.
The maximum credit is $500, subject to the phaseout in paragraphs (c) and (d). In no case
is the credit less than zero.
new text end

new text begin (c) For individual filers, the maximum credit is reduced by two percent of adjusted gross
income in excess of $75,000.
new text end

new text begin (d) For married couples filing a joint return, the maximum credit is phased out as follows:
new text end

new text begin (1) for married couples with adjusted gross income in excess of $75,000, but not more
than $100,000, the maximum credit is reduced by one percent of adjusted gross income in
excess of $75,000;
new text end

new text begin (2) for married couples with adjusted gross income in excess of $100,000, but not more
than $135,000, the maximum credit is $250; and
new text end

new text begin (3) for married couples with adjusted gross income in excess of $135,000, the maximum
credit is $250, reduced by one percent of adjusted gross income in excess of $135,000.
new text end

new text begin (e) The income thresholds in paragraphs (c) and (d) used to calculate the maximum
credit must be adjusted for inflation. The commissioner shall adjust the income thresholds
by the percentage determined under the provisions of section 1(f) of the Internal Revenue
Code, except that in section 1(f)(3)(B) the word "2016" is substituted for the word "1992."
For 2018, the commissioner shall then determine the percent change from the 12 months
ending on August 31, 2016, to the 12 months ending on August 31, 2017, and in each
subsequent year, from the 12 months ending on August 31, 2016, to the 12 months ending
on August 31 of the year preceding the taxable year. The income thresholds as adjusted for
inflation must be rounded to the nearest $10 amount. If the amount ends in $5, the amount
is rounded up to the nearest $10 amount. The determination of the commissioner under this
subdivision is not subject to chapter 14, including section 14.386.
new text end

new text begin Subd. 3. new text end

new text begin Credit refundable. new text end

new text begin If the amount of credit that an individual is eligible to
receive under this section exceeds the individual's tax liability under this chapter, the
commissioner shall refund the excess to the individual.
new text end

new text begin Subd. 4. new text end

new text begin Allocation. new text end

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

new text begin Subd. 5. new text end

new text begin Revocation. new text end

new text begin If an individual makes a withdrawal of contributions for a purpose
other than to pay for qualified higher education expenses, then:
new text end

new text begin (1) contributions used to claim the credit are considered to be the first contributions
withdrawn; and
new text end

new text begin (2) any credit allowed for the contributions is revoked and must be repaid by the
individual in the taxable year in which the withdrawal is made.
new text end

new text begin Subd. 6. new text end

new text begin Appropriation. new text end

new text begin An amount sufficient to pay the refunds required by this section
is appropriated to the commissioner from the general fund.
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, 2016.
new text end

Sec. 32.

Minnesota Statutes 2016, section 290.0685, subdivision 1, is amended to read:

Subdivision 1.

Credit allowed.

(a) An new text begin eligible new text end individual is allowed a credit against the
tax imposed by this chapter equal to $2,000 for each birth for which a certificate of birth
resulting in stillbirth has been issued under section 144.2151. The credit under this section
is allowed only in the taxable year in which the stillbirth occurred deleted text begin and if the child would
have been a dependent of the taxpayer as defined in section 152 of the Internal Revenue
Codedeleted text end .

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

new text begin (c) For purposes of this section, "eligible individual" means:
new text end

new text begin (1) the individual who gave birth to the child and who is also listed as a parent on the
certificate of birth resulting in stillbirth; or
new text end

new text begin (2) if no individual meets the requirements of clause (1), then the first parent listed on
the certificate of birth resulting in stillbirth.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for taxable years beginning
after December 31, 2015.
new text end

Sec. 33.

new text begin [290.0686] CREDIT FOR ATTAINING MASTER'S DEGREE IN
TEACHER'S LICENSURE FIELD.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "Master's degree program" means a graduate-level program at an accredited university
leading to a master of arts or science degree in a core content area directly related to a
qualified teacher's licensure field. The master's degree program may not include pedagogy
or a pedagogy component. To be eligible under this credit, a licensed elementary school
teacher must pursue and complete a master's degree program in a core content area in which
the teacher provides direct classroom instruction.
new text end

new text begin (c) "Qualified teacher" means a person who:
new text end

new text begin (1) holds a teaching license issued by the licensing division in the Department of
Education on behalf of the Minnesota Board of Teaching both when the teacher begins the
master's degree program and when the teacher completes the master's degree program;
new text end

new text begin (2) began a master's degree program after June 30, 2017; and
new text end

new text begin (3) completes the master's degree program during the taxable year.
new text end

new text begin (d) "Core content area" means the academic subject of reading, English or language arts,
mathematics, science, foreign languages, civics and government, economics, arts, history,
or geography.
new text end

new text begin Subd. 2. new text end

new text begin Credit allowed. new text end

new text begin (a) An individual who is a qualified teacher is allowed a credit
against the tax imposed under this chapter. The credit equals the lesser of $2,500 or the
amount the individual paid for tuition, fees, books, and instructional materials necessary to
completing the master's degree program and for which the individual did not receive
reimbursement from an employer or scholarship.
new text end

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

new text begin (c) A qualified teacher may claim the credit in this section only one time for each master's
degree program completed in a core content area.
new text end

new text begin Subd. 3. new text end

new text begin Credit refundable. new text end

new text begin (a) If the amount of the credit for which an individual is
eligible exceeds the individual's liability for tax under this chapter, the commissioner shall
refund the excess to the individual.
new text end

new text begin (b) The amount necessary to pay the refunds required by this section is appropriated to
the commissioner from the general fund.
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, 2016.
new text end

Sec. 34.

new text begin [290.0687] EMPLOYEE CREDIT FOR CERTAIN EMPLOYER-PROVIDED
FITNESS FACILITY EXPENSES.
new text end

new text begin Subdivision 1. new text end

new text begin Credit allowed. new text end

new text begin (a) An individual is allowed a credit against the tax
imposed by this chapter for employer-provided fitness facility expenses. The credit equals
$2.50 for each qualifying month, and the maximum credit is $30. In the case of a married
couple filing a joint return, each spouse is eligible for the credit in this section. The credit
may not exceed the liability for tax under this chapter.
new text end

new text begin (b) The credit is allowed to an individual whose employer either:
new text end

new text begin (1) pays a portion of any fees, dues, or membership expenses on behalf of the employee
to a fitness facility; or
new text end

new text begin (2) reimburses the employee for direct payment of fees, dues, or membership expenses
made by the employee to a fitness facility.
new text end

new text begin (c) For purposes of this section, "qualifying month" means a month in which an individual
uses the fitness facility for the preservation, maintenance, encouragement, or development
of physical fitness on at least eight days.
new text end

new text begin (d) For purposes of this section, "fitness facility" means a facility located in the state
that:
new text end

new text begin (1) provides instruction in a program of physical exercise; offers facilities for the
preservation, maintenance, encouragement, or development of physical fitness; or is the
site of such a program of a state or local government;
new text end

new text begin (2) is not a private club owned and operated by its members;
new text end

new text begin (3) does not offer hunting, sailing, horseback riding, or outdoor golf facilities;
new text end

new text begin (4) does not have an overall function and purpose that makes the fitness facility incidental;
new text end

new text begin (5) is compliant with antidiscrimination laws under chapter 363A and applicable federal
antidiscrimination laws; and
new text end

new text begin (6) is located off the employer's premises.
new text end

new text begin (e) The commissioner shall prescribe the form and manner in which eligibility for the
credit is determined.
new text end

new text begin Subd. 2. new text end

new text begin Limitation. new text end

new text begin The credit under this section applies only if the employer's payment
of fees, dues, or membership expenses to a fitness facility is available on substantially the
same terms to each member of a group of employees defined under a reasonable classification
by the employer, but no classification may include only highly compensated employees, as
defined under section 414(q) of the Internal Revenue Code, or any other group that includes
only executives, directors, or other managerial employees.
new text end

new text begin Subd. 3. new text end

new text begin Nonresidents and part-year residents. new text end

new text begin For a nonresident or part-year resident,
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, 2017.
new text end

Sec. 35.

new text begin [290.0693] EQUITY AND OPPORTUNITY IN EDUCATION TAX CREDIT.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "Eligible student" means a student who:
new text end

new text begin (1) resides in Minnesota;
new text end

new text begin (2) is a member of a household that has total annual income during the year prior to
initial receipt of a qualified scholarship, without consideration of the benefits under this
program that does not exceed an amount equal to two times the income standard used to
qualify for a reduced-price meal under the National School Lunch Program; and
new text end

new text begin (3) meets one of the following criteria:
new text end

new text begin (i) attended a school, as defined in section 120A.22, subdivision 4, in the semester
preceding initial receipt of a qualified scholarship;
new text end

new text begin (ii) is younger than age seven and not enrolled in kindergarten or first grade in the
semester preceding initial receipt of a qualified scholarship;
new text end

new text begin (iii) previously received a qualified scholarship under this section; or
new text end

new text begin (iv) lived in Minnesota for less than a year prior to initial receipt of a qualified
scholarship.
new text end

new text begin (c) "Equity and opportunity in education donation" means a donation to a qualified
foundation that awards qualified scholarships or makes qualified grants or to a qualified
public school foundation.
new text end

new text begin (d) "Household" means household as used to determine eligibility under the National
School Lunch Program.
new text end

new text begin (e) "National School Lunch Program" means the program in United States Code, title
42, section 1758.
new text end

new text begin (f) "Qualified charter school" means a charter elementary or secondary school in
Minnesota at which at least 30 percent of students qualify for a free or reduced-price meal
under the National School Lunch Program.
new text end

new text begin (g) "Qualified foundation" means a nonprofit organization granted an exemption from
the federal income tax under section 501(c)(3) of the Internal Revenue Code that has been
approved as a qualified foundation by the commissioner of revenue under subdivision 5.
new text end

new text begin (h) "Qualified grant" means a grant from a qualified foundation to a qualified charter
school for use in support of the school's mission of educating students in academics, arts,
or athletics, including transportation.
new text end

new text begin (i) "Qualified public school foundation" means a qualified foundation formed for the
primary purpose of supporting one or more public schools or school districts in Minnesota
at which at least 30 percent of students qualify for a free or reduced-price meal under the
National School Lunch Program.
new text end

new text begin (j) "Qualified scholarship" means a payment from a qualified foundation to or on behalf
of the parent or guardian of an eligible student for payment of tuition for enrollment in
grades kindergarten through 12 at a qualified school. A qualified scholarship must not
exceed an amount greater than 70 percent of the state average general education revenue
under section 126C.10, subdivision 1, per pupil unit.
new text end

new text begin (k) "Qualified school" means a school operated in Minnesota that is a nonpublic
elementary or secondary school in Minnesota wherein a resident may legally fulfill the
state's compulsory attendance laws that is not operated for profit, and that adheres to the
provisions of United States Code, title 42, section 1981, and chapter 363A.
new text end

new text begin (l) "Total annual income" means the income measure used to determine eligibility under
the National School Lunch Program.
new text end

new text begin Subd. 2. new text end

new text begin Credit allowed. new text end

new text begin (a) An individual or corporate taxpayer who has been issued
a credit certificate under subdivision 3 is allowed a credit against the tax due under this
chapter equal to 70 percent of the amount of the equity and opportunity donation made
during the taxable year to the qualified foundation, including a qualified public school
foundation, designated on the taxpayer's credit certificate. No credit is allowed if the taxpayer
designates a specific child as the beneficiary of the contribution. No credit is allowed to a
taxpayer for an equity and opportunity in education donation made before the taxpayer was
issued a credit certificate as provided in subdivision 3.
new text end

new text begin (b) The maximum annual credit allowed is:
new text end

new text begin (1) $21,000 for married joint filers for a one-year donation of $30,000;
new text end

new text begin (2) $10,500 for other individual filers for a one-year donation of $15,000; and
new text end

new text begin (3) $105,000 for corporate filers for a one-year donation of $150,000.
new text end

new text begin (c) A taxpayer must provide a copy of the receipt provided by the qualified foundation
when claiming the credit for the donation if requested by the commissioner.
new text end

new text begin (d) The credit is limited to the liability for tax under this chapter, including the tax
imposed by sections 290.0921 and 290.0922.
new text end

new text begin (e) If the amount of the credit under this subdivision for any taxable year exceeds the
limitations under paragraph (d), the excess is a credit carryover to each of the five 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. The
amount of the unused credit that may be added under this paragraph may not exceed the
taxpayer's liability for tax, less the credit for the taxable year. No credit may be carried to
a taxable year more than five years after the taxable year in which the credit was earned.
new text end

new text begin Subd. 3. new text end

new text begin Application for credit certificate. new text end

new text begin (a) The commissioner must make applications
for tax credits for 2018 available on the department's Web site by January 1, 2018.
Applications for subsequent years must be made available by January 1 of the taxable year.
new text end

new text begin (b) A taxpayer must apply to the commissioner for an equity and opportunity in education
tax credit certificate. The application must be in the form and manner specified by the
commissioner. The application must designate the qualified foundation to which the taxpayer
intends to make a donation, and if the donation is for the purpose of awarding qualified
scholarships, awarding qualified grants, or to a qualified public school foundation. The
commissioner must begin accepting applications for a taxable year on January 1. The
commissioner must issue tax credit certificates under this section on a first-come, first-served
basis until the maximum statewide credit amounts have been reached. The certificates must
list the qualified foundation, or the qualified public school foundation, the taxpayer designated
on the application, and if the donation is to be used for awarding qualified scholarships,
awarding qualified grants, or making expenditures in support of one or more public schools
or school districts.
new text end

new text begin (c) The maximum statewide credit amount for tax credits for donations to qualified
foundations for the purpose of awarding qualified scholarships is $27,000,000 for taxable
years beginning after December 31, 2017, and before January 1, 2019, and $13,500,000 per
taxable year for taxable years beginning after December 31, 2018.
new text end

new text begin (d) The maximum statewide credit amount for donations to qualified foundations for
the purpose of awarding qualified grants and for donations to qualified public school
foundations is $3,000,000 for taxable years beginning after December 31, 2017, and before
January 1, 2019, and $1,500,000 per taxable year for taxable years beginning after December
31, 2018.
new text end

new text begin (e) Any portion of a taxable year's credits for which a tax credit certificate is not issued
does not cancel and may be carried forward to subsequent taxable years.
new text end

new text begin (f) The commissioner must not issue a tax credit certificate for an amount greater than
the limits in subdivision 2.
new text end

new text begin (g) The commissioner must not issue a credit certificate for an application that designates
a qualified foundation that the commissioner has barred from participation as provided in
subdivision 5.
new text end

new text begin Subd. 4. new text end

new text begin Responsibilities of qualified foundations. new text end

new text begin (a) An entity that is eligible to be
a qualified foundation must apply to the commissioner by September 15 of the year preceding
the year in which it will first receive donations that qualify for a credit under this section.
The application must be in the form and manner prescribed by the commissioner. The
application must:
new text end

new text begin (1) demonstrate to the commissioner that the entity is exempt from the federal income
tax as an organization described in section 501(c)(3) of the Internal Revenue Code;
new text end

new text begin (2) demonstrate the entity's financial accountability by submitting its most recent audited
financial statement prepared by a certified public accountant firm licensed under chapter
326A using the Statements on Auditing Standards issued by the Audit Standards Board of
the American Institute of Certified Public Accountants; and
new text end

new text begin (3) specify if the entity intends to award qualified scholarships, award qualified grants,
or if the entity is a qualified public school foundation. An entity may award both qualified
scholarships and qualified grants.
new text end

new text begin (b) A qualified foundation must provide to taxpayers who make donations or
commitments to donate a receipt or verification on a form approved by the commissioner.
new text end

new text begin (c) A qualified foundation that awards qualified scholarships must:
new text end

new text begin (1) award qualified scholarships to eligible students;
new text end

new text begin (2) not restrict the availability of scholarships to students of one qualified school;
new text end

new text begin (3) not charge a fee of any kind for a child to be considered for a scholarship; and
new text end

new text begin (4) require a qualified school receiving payment of tuition through a scholarship funded
by contributions qualifying for the tax credit under this section to sign an agreement that it
will not use different admissions standards for a student with a qualified scholarship.
new text end

new text begin (d) A qualified foundation that awards qualified scholarships must, in each year it awards
qualified scholarships to eligible students to enroll in a qualified school, obtain from the
qualified school documentation that the school:
new text end

new text begin (i) complies with all health and safety laws or codes that apply to nonpublic schools;
new text end

new text begin (ii) holds a valid occupancy permit if required by its municipality;
new text end

new text begin (iii) certifies that it adheres to the provisions of chapter 363A and United States Code,
title 42, section 1981; and
new text end

new text begin (iv) provides academic accountability to parents of students in the program by regularly
reporting to the parents on the student's progress.
new text end

new text begin A qualified foundation must make the documentation available to the commissioner on
request.
new text end

new text begin (e) A qualified foundation must, by June 1 of each year following a year in which it
receives donations, provide the following information to the commissioner:
new text end

new text begin (1) financial information that demonstrates the financial viability of the qualified
foundation, if it is to receive donations of $150,000 or more during the year;
new text end

new text begin (2) documentation that it has conducted criminal background checks on all of its
employees and board members and has excluded from employment or governance any
individuals who might reasonably pose a risk to the appropriate use of contributed funds;
new text end

new text begin (3) consistent with paragraph (f), document that it has used amounts received as donations
to provide qualified scholarships, to make qualified grants, or to make expenditures in
support of one or more public schools or school districts, as specified on the tax credit
certificates issued for the donations, within one calendar year of the calendar year in which
it received the donation;
new text end

new text begin (4) if the qualified foundation awards qualified scholarships, a list of qualified schools
that enrolled eligible students to whom the qualified foundation awarded qualified
scholarships;
new text end

new text begin (5) if the qualified foundation makes qualified grants, a list of qualified charter schools
to which the qualified foundation made qualified grants;
new text end

new text begin (6) if the qualified foundation is a qualified public school foundation, a list of expenditures
made in support of the mission of one or more public schools or school districts of educating
students in academics, arts, or athletics, including transportation; and
new text end

new text begin (7) the following information prepared by a certified public accountant regarding
donations received in the previous calendar year:
new text end

new text begin (i) the total number and total dollar amount of donations received from taxpayers;
new text end

new text begin (ii) the dollar amount of donations used for administrative expenses, as allowed by
paragraph (f);
new text end

new text begin (iii) if the qualified foundation awarded qualified scholarships, the total number and
dollar amount of qualified scholarships awarded;
new text end

new text begin (iv) if the qualified foundation made qualified grants, the total number and dollar amount
of qualified grants made; and
new text end

new text begin (v) if the qualified foundation is a qualified public school foundation, the total number
and dollar amount of expenditures made in support of the mission of one or more public
schools or school districts of educating students in academics, arts, or athletics, including
transportation.
new text end

new text begin (f) The foundation may use up to five percent of the amounts received as donations for
reasonable administrative expenses, including but not limited to fund-raising, scholarship
tracking, and reporting requirements.
new text end

new text begin Subd. 5. new text end

new text begin Responsibilities of commissioner. new text end

new text begin (a) The commissioner must make
applications for an entity to be approved as a qualified foundation for a taxable year available
on the department's Web site by August 1 of the year preceding the taxable year. The
commissioner must approve an application that provides the documentation required in
subdivision 4, paragraph (a), clauses (1) to (3), within 60 days of receiving the application.
The commissioner must notify a foundation that provides incomplete documentation and
the foundation may resubmit its application within 30 days.
new text end

new text begin (b) By November 15 of each year, the commissioner must post on the department's Web
site the names and addresses of qualified foundations for the next taxable year. For each
qualified foundation, the list must indicate if the foundation intends to award qualified
scholarships, award qualified grants, or is a qualified public school foundation. The
commissioner must regularly update the names and addresses of any qualified foundations
that have been barred from participating in the program.
new text end

new text begin (c) The commissioner must prescribe a standardized format for a receipt to be issued by
a qualified foundation to a taxpayer to indicate the amount of a donation received and of a
commitment to make a donation.
new text end

new text begin (d) The commissioner must prescribe a standardized format for qualified foundations
to report the information required under subdivision 4, paragraph (e).
new text end

new text begin (e) The commissioner may conduct either a financial review or audit of a qualified
foundation upon finding evidence of fraud or intentional misreporting. If the commissioner
determines that the qualified foundation committed fraud or intentionally misreported
information, the qualified foundation is barred from further program participation.
new text end

new text begin (f) If a qualified foundation fails to submit the documentation required under subdivision
4, paragraph (e), by June 1, the commissioner must notify the qualified foundation by July
1. A qualified foundation that fails to submit the required information by August 1 is barred
from participation for the next taxable year.
new text end

new text begin (g) If a qualified foundation fails to comply with the requirements of subdivision 4,
paragraph (e), the commissioner must by September 1 notify the qualified foundation that
it has until November 1 to document that it has remedied its noncompliance. A qualified
foundation that fails to document that it has remedied its noncompliance by November 1 is
barred from participation for the next taxable year.
new text end

new text begin (h) A qualified foundation barred under paragraph (f) or (g) may become eligible to
participate by submitting the required information in future years.
new text end

new text begin (i) Determinations of the commissioner under this subdivision are not considered rules
and are not subject to the Administrative Procedures Act in chapter 14.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment for
donations made and credits allowed in taxable years beginning after December 31, 2017.
new text end

Sec. 36.

new text begin [290.0803] SOCIAL SECURITY SUBTRACTION.
new text end

new text begin (a) An individual is allowed a subtraction from federal taxable income equal to Social
Security benefits to the extent included in federal taxable income. The subtraction under
this section is reduced by the amount of provisional income over a threshold amount, but
in no case is the subtraction less than zero. For married couples filing joint returns and
surviving spouses the threshold is $72,000. For all other filers the threshold is $56,000.
new text end

new text begin (b) For purposes of this section, "provisional income" means modified adjusted gross
income, as defined in section 86(b)(2) of the Internal Revenue Code, plus one-half of the
amount of Social Security benefits received during the taxable year.
new text end

new text begin (c) Notwithstanding the thresholds provided in paragraph (a), for taxable years beginning
after December 31, 2016, and before January 1, 2019, the threshold for married couples
filing joint returns and surviving spouses is $61,000 and the threshold for all other filers is
$46,500.
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, 2016.
new text end

Sec. 37.

new text begin [290.0804] SECTION 179 SUBTRACTION.
new text end

new text begin Subdivision 1. new text end

new text begin Current year section 179 allowance. new text end

new text begin (a) In each of the five taxable
years immediately following the taxable year in which an addition is required under section
290.0131, subdivision 10, or its predecessor provisions, the current year allowance equals
one-fifth of the addition made by the taxpayer under section 290.0131, subdivision 10.
new text end

new text begin (b) For a shareholder of an S corporation, the current year allowance is reduced by the
positive value of any net operating loss under section 172 of the Internal Revenue Code
generated for the taxable year of the addition and, if the net operating loss exceeds the
addition for the taxable year, the current year allowance is zero.
new text end

new text begin (c) A taxpayer is allowed a current year section 179 allowance subtraction from federal
taxable income under section 290.0132, subdivision 14, as determined under this subdivision.
new text end

new text begin Subd. 2. new text end

new text begin Carryover section 179 allowance. new text end

new text begin (a) For purposes of this subdivision, the
current year allowance under subdivision 1 is the last modification allowed under section
290.0132 in determining net income. If the amount allowed under subdivision 1 exceeds
net income computed without regard to the current year allowance, then the excess is a
carryover allowance in each of the ten succeeding taxable years. The entire amount of the
carryover allowance is carried first to the earliest taxable year to which the carryover may
be carried, and then to each succeeding year to which the carryover may be carried.
new text end

new text begin (b) If applying paragraph (a) to a taxable year beginning after December 31, 2013, and
before January 1, 2017, would result in a carryover allowance in that year, the taxpayer may
use the resulting amount as a carryover allowance starting in a taxable year beginning after
December 31, 2016, and the first year of the ten-year period under paragraph (a) is taxable
year 2017.
new text end

new text begin (c) A taxpayer is allowed a carryover section 179 allowance subtraction under section
290.0132, subdivision 26, as determined under this subdivision.
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, 2016.
new text end

Sec. 38.

Minnesota Statutes 2016, section 290.091, subdivision 2, is amended to read:

Subd. 2.

Definitions.

For purposes of the tax imposed by this section, the following
terms have the meanings given:

(a) "Alternative minimum taxable income" means the sum of the following for the taxable
year:

(1) the taxpayer's federal alternative minimum taxable income as defined in section
55(b)(2) of the Internal Revenue Code;

(2) the taxpayer's itemized deductions allowed in computing federal alternative minimum
taxable income, but excluding:

(i) the charitable contribution deduction under section 170 of the Internal Revenue Code;

(ii) the medical expense deduction;

(iii) the casualty, theft, and disaster loss deduction; and

(iv) the impairment-related work expenses of a disabled person;

(3) for depletion allowances computed under section 613A(c) of the Internal Revenue
Code, with respect to each property (as defined in section 614 of the Internal Revenue Code),
to the extent not included in federal alternative minimum taxable income, the excess of the
deduction for depletion allowable under section 611 of the Internal Revenue Code for the
taxable year over the adjusted basis of the property at the end of the taxable year (determined
without regard to the depletion deduction for the taxable year);

(4) to the extent not included in federal alternative minimum taxable income, the amount
of the tax preference for intangible drilling cost under section 57(a)(2) of the Internal Revenue
Code determined without regard to subparagraph (E);

(5) to the extent not included in federal alternative minimum taxable income, the amount
of interest income as provided by section 290.0131, subdivision 2; and

(6) the amount of addition required by section 290.0131, subdivisions 9 to 11;

less the sum of the amounts determined under the following:

(1) interest income as defined in section 290.0132, subdivision 2;

(2) an overpayment of state income tax as provided by section 290.0132, subdivision 3,
to the extent included in federal alternative minimum taxable income;

(3) the amount of investment interest paid or accrued within the taxable year on
indebtedness to the extent that the amount does not exceed net investment income, as defined
in section 163(d)(4) of the Internal Revenue Code. Interest does not include amounts deducted
in computing federal adjusted gross income;

(4) amounts subtracted from federal taxable income as provided by section 290.0132,
subdivisions 7, 9 to 15, 17, deleted text begin anddeleted text end 21new text begin , and 24 to 27new text end ; and

(5) the amount of the net operating loss allowed under section 290.095, subdivision 11,
paragraph (c).

In the case of an estate or trust, alternative minimum taxable income must be computed
as provided in section 59(c) of the Internal Revenue Code.

(b) "Investment interest" means investment interest as defined in section 163(d)(3) of
the Internal Revenue Code.

(c) "Net minimum tax" means the minimum tax imposed by this section.

(d) "Regular tax" means the tax that would be imposed under this chapter (without regard
to this section and section 290.032), reduced by the sum of the nonrefundable credits allowed
under this chapter.

(e) "Tentative minimum tax" equals 6.75 percent of alternative minimum taxable income
after subtracting the exemption amount determined under subdivision 3.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2016.
new text end

Sec. 39.

Minnesota Statutes 2016, section 291.005, subdivision 1, as amended by Laws
2017, chapter 1, section 8, is amended to read:

Subdivision 1.

Scope.

Unless the context otherwise clearly requires, the following terms
used in this chapter shall have the following meanings:

(1) "Commissioner" means the commissioner of revenue or any person to whom the
commissioner has delegated functions under this chapter.

(2) "Federal gross estate" means the gross estate of a decedent as required to be valued
and otherwise determined for federal estate tax purposes under the Internal Revenue Code,
increased by the value of any property in which the decedent had a qualifying income interest
for life and for which an election was made under section 291.03, subdivision 1d, for
Minnesota estate tax purposes, but was not made for federal estate tax purposes.

(3) "Internal Revenue Code" means the United States Internal Revenue Code of 1986,
as amended through December 16, 2016.

(4) "Minnesota gross estate" means the federal gross estate of a decedent after (a)
excluding therefrom any property included in the estate which has its situs outside Minnesota,
and (b) including any property omitted from the federal gross estate which is includable in
the estate, has its situs in Minnesota, and was not disclosed to federal taxing authorities.

(5) "Nonresident decedent" means an individual whose domicile at the time of death
was not in Minnesota.

(6) "Personal representative" means the executor, administrator or other person appointed
by the court to administer and dispose of the property of the decedent. If there is no executor,
administrator or other person appointed, qualified, and acting within this state, then any
person in actual or constructive possession of any property having a situs in this state which
is included in the federal gross estate of the decedent shall be deemed to be a personal
representative to the extent of the property and the Minnesota estate tax due with respect
to the property.

(7) "Resident decedent" means an individual whose domicile at the time of death was
in Minnesota.new text begin The provisions of section 290.01, subdivision 7, paragraphs (c) and (d), apply
to determinations of domicile under this chapter.
new text end

(8) "Situs of property" means, with respect to:

(i) real property, the state or country in which it is located;

(ii) tangible personal property, the state or country in which it was normally kept or
located at the time of the decedent's death or for a gift of tangible personal property within
three years of death, the state or country in which it was normally kept or located when the
gift was executed;

(iii) a qualified work of art, as defined in section 2503(g)(2) of the Internal Revenue
Code, owned by a nonresident decedent and that is normally kept or located in this state
because it is on loan to an organization, qualifying as exempt from taxation under section
501(c)(3) of the Internal Revenue Code, that is located in Minnesota, the situs of the art is
deemed to be outside of Minnesota, notwithstanding the provisions of item (ii); and

(iv) intangible personal property, the state or country in which the decedent was domiciled
at death or for a gift of intangible personal property within three years of death, the state or
country in which the decedent was domiciled when the gift was executed.

For a nonresident decedent with an ownership interest in a pass-through entity with
assets that include real or tangible personal property, situs of the real or tangible personal
property, including qualified works of art, is determined as if the pass-through entity does
not exist and the real or tangible personal property is personally owned by the decedent. If
the pass-through entity is owned by a person or persons in addition to the decedent, ownership
of the property is attributed to the decedent in proportion to the decedent's capital ownership
share of the pass-through entity.

(9) "Pass-through entity" includes the following:

(i) an entity electing S corporation status under section 1362 of the Internal Revenue
Code;

(ii) an entity taxed as a partnership under subchapter K of the Internal Revenue Code;

(iii) a single-member limited liability company or similar entity, regardless of whether
it is taxed as an association or is disregarded for federal income tax purposes under Code
of Federal Regulations, title 26, section 301.7701-3; or

(iv) a trust to the extent the property is includible in the decedent's federal gross estate;
but excludes

(v) an entity whose ownership interest securities are traded on an exchange regulated
by the Securities and Exchange Commission as a national securities exchange under section
6 of the Securities Exchange Act, United States Code, title 15, section 78f.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for estates of decedents
dying after December 31, 2016.
new text end

Sec. 40.

Minnesota Statutes 2016, section 291.016, subdivision 3, is amended to read:

Subd. 3.

Subtraction.

The deleted text begin value of qualified small business property under section
291.03, subdivision 9, and the value of qualified farm property under section 291.03,
subdivision 10, or the result of $5,000,000 minus the amount for the year of death listed in
clauses (1) to (5), whichever is less,deleted text end new text begin decedent's applicable federal exclusion amount under
section 2010(c)(2) of the Internal Revenue Codenew text end may be subtracted in computing the
Minnesota taxable estate but must not reduce the Minnesota taxable estate to less than zerodeleted text begin :deleted text end new text begin .
new text end

deleted text begin (1) $1,200,000 for estates of decedents dying in 2014;
deleted text end

deleted text begin (2) $1,400,000 for estates of decedents dying in 2015;
deleted text end

deleted text begin (3) $1,600,000 for estates of decedents dying in 2016;
deleted text end

deleted text begin (4) $1,800,000 for estates of decedents dying in 2017; and
deleted text end

deleted text begin (5) $2,000,000 for estates of decedents dying in 2018 and thereafter.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for estates of decedents
dying after December 31, 2016.
new text end

Sec. 41.

Minnesota Statutes 2016, section 291.03, subdivision 1, is amended to read:

Subdivision 1.

Tax amount.

The tax imposed must be computed by applying to the
Minnesota taxable estate the following schedule of rates and then the resulting amount
multiplied by a fraction, not greater than one, the numerator of which is the value of the
Minnesota gross estate plus the value of gifts under section 291.016, subdivision 2, clause
(3), with a Minnesota situs, and the denominator of which is the federal gross estate plus
the value of gifts under section 291.016, subdivision 2, clause (3):

deleted text begin (a) For estates of decedents dying in 2014:
deleted text end

deleted text begin Amount of Minnesota Taxable Estate deleted text end	deleted text begin Rate of Tax deleted text end
deleted text begin Not over $1,200,000 deleted text end	deleted text begin None deleted text end
deleted text begin Over $1,200,000 but not over $1,400,000 deleted text end	deleted text begin nine percent of the excess over $1,200,000 deleted text end
deleted text begin Over $1,400,000 but not over $3,600,000 deleted text end	deleted text begin $18,000 plus ten percent of the excess over $1,400,000 deleted text end
deleted text begin Over $3,600,000 but not over $4,100,000 deleted text end	deleted text begin $238,000 plus 10.4 percent of the excess over $3,600,000 deleted text end
deleted text begin Over $4,100,000 but not over $5,100,000 deleted text end	deleted text begin $290,000 plus 11.2 percent of the excess over $4,100,000 deleted text end
deleted text begin Over $5,100,000 but not over $6,100,000 deleted text end	deleted text begin $402,000 plus 12 percent of the excess over $5,100,000 deleted text end
deleted text begin Over $6,100,000 but not over $7,100,000 deleted text end	deleted text begin $522,000 plus 12.8 percent of the excess over $6,100,000 deleted text end
deleted text begin Over $7,100,000 but not over $8,100,000 deleted text end	deleted text begin $650,000 plus 13.6 percent of the excess over $7,100,000 deleted text end
deleted text begin Over $8,100,000 but not over $9,100,000 deleted text end	deleted text begin $786,000 plus 14.4 percent of the excess over $8,100,000 deleted text end
deleted text begin Over $9,100,000 but not over $10,100,000 deleted text end	deleted text begin $930,000 plus 15.2 percent of the excess over $9,100,000 deleted text end
deleted text begin Over $10,100,000 deleted text end	deleted text begin $1,082,000 plus 16 percent of the excess over $10,100,000 deleted text end

deleted text begin (b) For estates of decedents dying in 2015:
deleted text end

deleted text begin Amount of Minnesota Taxable Estate deleted text end	deleted text begin Rate of Tax deleted text end
deleted text begin Not over $1,400,000 deleted text end	deleted text begin None deleted text end
deleted text begin Over $1,400,000 but not over $3,600,000 deleted text end	deleted text begin ten percent of the excess over $1,400,000 deleted text end
deleted text begin Over $3,600,000 but not over $6,100,000 deleted text end	deleted text begin $220,000 plus 12 percent of the excess over $3,600,000 deleted text end
deleted text begin Over $6,100,000 but not over $7,100,000 deleted text end	deleted text begin $520,000 plus 12.8 percent of the excess over $6,100,000 deleted text end
deleted text begin Over $7,100,000 but not over $8,100,000 deleted text end	deleted text begin $648,000 plus 13.6 percent of the excess over $7,100,000 deleted text end
deleted text begin Over $8,100,000 but not over $9,100,000 deleted text end	deleted text begin $784,000 plus 14.4 percent of the excess over $8,100,000 deleted text end
deleted text begin Over $9,100,000 but not over $10,100,000 deleted text end	deleted text begin $928,000 plus 15.2 percent of the excess over $9,100,000 deleted text end
deleted text begin Over $10,100,000 deleted text end	deleted text begin $1,080,000 plus 16 percent of the excess over $10,100,000 deleted text end

deleted text begin (c) For estates of decedents dying in 2016:
deleted text end

deleted text begin Amount of Minnesota Taxable Estate deleted text end	deleted text begin Rate of Tax deleted text end
deleted text begin Not over $1,600,000 deleted text end	deleted text begin None deleted text end
deleted text begin Over $1,600,000 but not over $2,600,000 deleted text end	deleted text begin ten percent of the excess over $1,600,000 deleted text end
deleted text begin Over $2,600,000 but not over $6,100,000 deleted text end	deleted text begin $100,000 plus 12 percent of the excess over $2,600,000 deleted text end
deleted text begin Over $6,100,000 but not over $7,100,000 deleted text end	deleted text begin $520,000 plus 12.8 percent of the excess over $6,100,000 deleted text end
deleted text begin Over $7,100,000 but not over $8,100,000 deleted text end	deleted text begin $648,000 plus 13.6 percent of the excess over $7,100,000 deleted text end
deleted text begin Over $8,100,000 but not over $9,100,000 deleted text end	deleted text begin $784,000 plus 14.4 percent of the excess over $8,100,000 deleted text end
deleted text begin Over $9,100,000 but not over $10,100,000 deleted text end	deleted text begin $928,000 plus 15.2 percent of the excess over $9,100,000 deleted text end
deleted text begin Over $10,100,000 deleted text end	deleted text begin $1,080,000 plus 16 percent of the excess over $10,100,000 deleted text end

deleted text begin (d)deleted text end For estates of decedents dying in 2017new text begin and thereafternew text end :

deleted text begin Amount of Minnesota Taxable Estate deleted text end	deleted text begin Rate of Tax deleted text end
deleted text begin Not over $1,800,000 deleted text end	deleted text begin None deleted text end
deleted text begin Over $1,800,000 but not over $2,100,000 deleted text end	deleted text begin ten percent of the excess over $1,800,000 deleted text end
deleted text begin Over $2,100,000 but not over $5,100,000 deleted text end	deleted text begin $30,000 plus 12 percent of the excess over $2,100,000 deleted text end
deleted text begin Over $5,100,000 but not over $7,100,000 deleted text end	deleted text begin $390,000 plus 12.8 percent of the excess over $5,100,000 deleted text end
deleted text begin Over $7,100,000 but not over $8,100,000 deleted text end	deleted text begin $646,000 plus 13.6 percent of the excess over $7,100,000 deleted text end
deleted text begin Over $8,100,000 but not over $9,100,000 deleted text end	deleted text begin $782,000 plus 14.4 percent of the excess over $8,100,000 deleted text end
deleted text begin Over $9,100,000 but not over $10,100,000 deleted text end	deleted text begin $926,000 plus 15.2 percent of the excess over $9,100,000 deleted text end
deleted text begin Over $10,100,000 deleted text end	deleted text begin $1,078,000 plus 16 percent of the excess over $10,100,000 deleted text end

deleted text begin (e) For estates of decedents dying in 2018 and thereafter:
deleted text end

Amount of Minnesota Taxable Estate	Rate of Tax
Not over deleted text begin $2,000,000deleted text end new text begin $7,100,000 new text end	deleted text begin None deleted text end new text begin 13 percent new text end
deleted text begin Over $2,000,000 but not over $2,600,000 deleted text end	deleted text begin ten percent of the excess over $2,000,000 deleted text end
deleted text begin Over $2,600,000 but not over $7,100,000 deleted text end	deleted text begin $60,000 plus 13 percent of the excess over $2,600,000 deleted text end
Over $7,100,000 but not over $8,100,000	deleted text begin $645,000deleted text end new text begin $923,000new text end plus 13.6 percent of the excess over $7,100,000
Over $8,100,000 but not over $9,100,000	deleted text begin $781,000deleted text end new text begin $1,059,000new text end plus 14.4 percent of the excess over $8,100,000
Over $9,100,000 but not over $10,100,000	deleted text begin $925,000deleted text end new text begin $1,203,000new text end plus 15.2 percent of the excess over $9,100,000
Over $10,100,000	deleted text begin $1,077,000deleted text end new text begin $1,355,000new text end plus 16 percent of the excess over $10,100,000

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for estates of decedents
dying after December 31, 2016.
new text end

Sec. 42.

Minnesota Statutes 2016, section 297I.20, is amended by adding a subdivision
to read:

new text begin Subd. 4. new text end

new text begin Minnesota housing tax credit. new text end

new text begin An insurance company may claim a credit
against the premiums tax imposed under this chapter equal to the amount indicated on the
eligibility statement issued to the company under section 462A.39, subdivision 3. If the
amount of the credit exceeds the liability for tax under this chapter, the excess is a credit
carryover to each of the 11 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.
This credit does not affect the calculation of police and fire aid under section 69.021.
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, 2016.
new text end

Sec. 43.

new text begin [462A.39] MINNESOTA HOUSING TAX CREDIT.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "Compliance agreement" means an agreement:
new text end

new text begin (1) between the owner of a qualified Minnesota project and the agency or suballocator;
new text end

new text begin (2) that is recorded as an affordable housing restriction on the real property on which
the qualified Minnesota project is located; and
new text end

new text begin (3) that requires the project to be operated under the requirements of this section for the
compliance period.
new text end

new text begin The agreement may be subordinated to the lien of a bank or other institutional lender
providing financing to the qualified Minnesota project upon the request of the bank or
lender.
new text end

new text begin (c) "Compliance period" means the 15-year period beginning with the first taxable year
a credit is allowed under this section.
new text end

new text begin (d) "Eligibility statement" means a statement issued by the agency or suballocator to the
owner certifying that a project is a qualified Minnesota project and documenting allocation
of the Minnesota housing tax credit. The eligibility statement must specify the annual amount
of the credit allocated to the project for the taxable year and for the five following taxable
years and be in a form prescribed by the commissioner of the agency, in consultation with
the commissioner of revenue.
new text end

new text begin (e) "Federal low-income housing tax credit" means the federal tax credit provided in
section 42 of the Internal Revenue Code.
new text end

new text begin (f) "Greater Minnesota" means the area of Minnesota located outside of the metropolitan
area as defined in section 473.121, subdivision 2.
new text end

new text begin (g) "Internal Revenue Code" has the meaning given in section 290.01, subdivision 31.
new text end

new text begin (h) "Minnesota credit period" means the six taxable years beginning in the taxable year
in which a credit is allocated under subdivision 2.
new text end

new text begin (i) "Owner" means the owner of a qualified Minnesota project.
new text end

new text begin (j) "Qualified Minnesota project" means a low-income housing project that is:
new text end

new text begin (1) located in Minnesota;
new text end

new text begin (2) financed with tax-exempt bonds pursuant to section 42(i)(2) of the Internal Revenue
Code;
new text end

new text begin (3) determined by the agency to be eligible for a federal low-income housing tax credit
without regard to whether or not a federal low-income housing credit is allocated to the
project; and
new text end

new text begin (4) a project for which the owner has entered into a compliance agreement with the
agency or the suballocator that is enforceable by state and local agencies.
new text end

new text begin (k) "Suballocator" means an allocating agency, other than the agency, of low-income
federal housing credits and credits under this section as provided in section 462A.222.
new text end

new text begin (l) "Taxpayer" has the meaning given in section 290.0683, subdivision 1.
new text end

new text begin (m) Terms not otherwise defined in this subdivision have the meanings given in section
42 of the Internal Revenue Code.
new text end

new text begin Subd. 2. new text end

new text begin Minnesota housing tax credit; allocation. new text end

new text begin (a) The agency and all suballocators
may annually allocate credits during a four-year period beginning January 1, 2017, and
ending December 31, 2020. The amount of credits that may be allocated each year is the
sum of:
new text end

new text begin (1) $7,000,000; and
new text end

new text begin (2) any unused tax credits, if any, for the preceding calendar years.
new text end

new text begin (b) The agency shall allocate credits only to qualified Minnesota projects that the agency
determines:
new text end

new text begin (1) are eligible for the federal low-income housing tax credit; and
new text end

new text begin (2) are not financially feasible without the credit.
new text end

new text begin (c) The agency must allocate 50 percent of the total amount allocated to qualified
Minnesota projects in greater Minnesota.
new text end

new text begin (d) The agency may not allocate more than one credit to any one qualified Minnesota
project.
new text end

new text begin (e) The allocation to any one qualified Minnesota project equals one-sixth of the total
federal low-income housing tax credit allowable over the ten-year federal credit period,
without regard to whether the project was allowed a federal low-income housing tax credit.
new text end

new text begin Subd. 3. new text end

new text begin Credit allowed. new text end

new text begin When the agency or a suballocator allocates a credit amount
to the owner of a project, the agency or suballocator must issue an eligibility statement to
the owner. The owner may claim the amount allocated in each year of the Minnesota credit
period.
new text end

new text begin Subd. 4. new text end

new text begin Credit duration. new text end

new text begin Except for unused credits carried forward under section
290.0683, the agency may allocate a credit and issue an eligibility statement to a taxpayer
for a Minnesota housing tax credit for a project one time, with the credit allowed in each
year of the Minnesota credit period.
new text end

new text begin Subd. 5. new text end

new text begin Recapture; repayment. new text end

new text begin (a) If within the Minnesota credit period the agency
or suballocator finds that a qualified project issued an eligibility statement is not meeting
the terms of the compliance agreement, the owner must repay the following percentage of
the credit awarded to the project by the agency or the suballocator:
new text end

new text begin Year of the new text end		new text begin Percentage of credit required new text end
new text begin compliance period: new text end		new text begin to be repaid: new text end
	new text begin First new text end	new text begin 100 percent new text end
	new text begin Second new text end	new text begin 83 percent new text end
	new text begin Third new text end	new text begin 66 percent new text end
	new text begin Fourth new text end	new text begin 49 percent new text end
	new text begin Fifth new text end	new text begin 32 percent new text end
	new text begin Sixth and later new text end	new text begin 16 percent new text end

new text begin (b) No holder of the credit other than the owner is responsible for repayment of the
credit.
new text end

new text begin (c) Amounts repaid under this subdivision are credited to the general fund.
new text end

new text begin Subd. 6. new text end

new text begin Data privacy. new text end

new text begin Data related to Minnesota housing tax credits are nonpublic
data, or private data on individuals, as defined in section 13.02, subdivision 9 or 12, except
that for each eligibility statement issued under subdivision 3 the location of the qualified
Minnesota housing project is public.
new text end

new text begin Subd. 7. new text end

new text begin Report. new text end

new text begin (a) By January 15 of each year following a year in which the agency
allocates a credit under this section, the agency shall submit a written report to the chairs
and ranking minority members of the legislative committees with jurisdiction over housing
and taxes, in compliance with sections 3.195 and 3.197, on the success and efficiency of
the Minnesota housing tax credit program.
new text end

new text begin (b) The report must:
new text end

new text begin (1) specify the number of qualified Minnesota projects that were allocated tax credits
in the year and the total number of housing units supported in each project;
new text end

new text begin (2) provide descriptive information about each qualified Minnesota housing project that
was allocated credits, including:
new text end

new text begin (i) the geographic location of the project; and
new text end

new text begin (ii) demographic information about residents intended to be served by the project,
including household type, income levels, and rents or set-asides; and
new text end

new text begin (3) provide housing market and demographic information that demonstrates how the
qualified Minnesota projects that were allocated tax credits address the need for affordable
housing in the communities they serve as well as information about any remaining disparities
in affordability of housing in those communities.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment with
credit allocations allowed for taxable years beginning after December 31, 2016.
new text end

Sec. 44.

new text begin [462D.01] CITATION.
new text end

new text begin This chapter may be cited as the "First-Time Home Buyer Savings Account Act."
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 45.

new text begin [462D.02] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For purposes of this chapter, the following terms have the
meanings given.
new text end

new text begin Subd. 2. new text end

new text begin Account holder. new text end

new text begin "Account holder" means an individual who establishes,
individually or jointly with one or more other individuals, a first-time home buyer savings
account.
new text end

new text begin Subd. 3. new text end

new text begin Allowable closing costs. new text end

new text begin "Allowable closing costs" means a disbursement listed
on a settlement statement for the purchase of a single-family residence in Minnesota by a
qualified beneficiary.
new text end

new text begin Subd. 4. new text end

new text begin Commissioner. new text end

new text begin "Commissioner" means the commissioner of revenue.
new text end

new text begin Subd. 5. new text end

new text begin Eligible costs. new text end

new text begin "Eligible costs" means the down payment and allowable closing
costs for the purchase of a single-family residence in Minnesota by a qualified beneficiary.
Eligible costs include paying for the cost of construction of or financing the construction
of a single-family residence.
new text end

new text begin Subd. 6. new text end

new text begin Financial institution. new text end

new text begin "Financial institution" means a bank, bank and trust,
trust company with banking powers, savings bank, savings association, or credit union,
organized under the laws of this state, any other state, or the United States; an industrial
loan and thrift under chapter 53 or the laws of another state and authorized to accept deposits;
or a money market mutual fund registered under the federal Investment Company Act of
1940 and regulated under rule 2a-7, promulgated by the Securities and Exchange Commission
under that act.
new text end

new text begin Subd. 7. new text end

new text begin First-time home buyer. new text end

new text begin "First-time home buyer" means an individual, and if
married, the individual's spouse, who has no present ownership interest in a principal
residence during the three-year period ending on the earlier of:
new text end

new text begin (1) the date of the purchase of the single-family residence funded, in part, with proceeds
from the first-time home buyer savings account; or
new text end

new text begin (2) the close of the taxable year for which a subtraction is claimed under sections
290.0132 and 462D.06.
new text end

new text begin Subd. 8. new text end

new text begin First-time home buyer savings account. new text end

new text begin "First-time home buyer savings
account" or "account" means an account with a financial institution that an account holder
designates as a first-time home buyer savings account, as provided in section 462D.03, to
pay or reimburse eligible costs for the purchase of a single-family residence by a qualified
beneficiary.
new text end

new text begin Subd. 9. new text end

new text begin Internal Revenue Code. new text end

new text begin "Internal Revenue Code" has the meaning given in
section 290.01.
new text end

new text begin Subd. 10. new text end

new text begin Principal residence. new text end

new text begin "Principal residence" has the meaning given in section
121 of the Internal Revenue Code.
new text end

new text begin Subd. 11. new text end

new text begin Qualified beneficiary. new text end

new text begin "Qualified beneficiary" means a first-time home buyer
who is a Minnesota resident and is designated as the qualified beneficiary of a first-time
home buyer savings account by the account holder.
new text end

new text begin Subd. 12. new text end

new text begin Single-family residence. new text end

new text begin "Single-family residence" means a single-family
residence located in this state and owned and occupied by or to be occupied by a qualified
beneficiary as the qualified beneficiary's principal residence, which may include a
manufactured home, trailer, mobile home, condominium unit, townhome, or cooperative.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 46.

new text begin [462D.03] ESTABLISHMENT OF ACCOUNTS.
new text end

new text begin Subdivision 1. new text end

new text begin Accounts established. new text end

new text begin An individual may open an account with a financial
institution and designate the account as a first-time home buyer savings account to be used
to pay or reimburse the designated qualified beneficiary's eligible costs.
new text end

new text begin Subd. 2. new text end

new text begin Designation of qualified beneficiary. new text end

new text begin (a) The account holder must designate
a first-time home buyer as the qualified beneficiary of the account by April 15 of the year
following the taxable year in which the account was established. The account holder may
be the qualified beneficiary. The account holder may change the designated qualified
beneficiary at any time, but no more than one qualified beneficiary may be designated for
an account at any one time. For purposes of the one beneficiary restriction, a married couple
qualifies as one beneficiary. Changing the designated qualified beneficiary of an account
does not affect computation of the ten-year period under section 462D.06, subdivision 2.
new text end

new text begin (b) The commissioner shall establish a process for account holders to notify the state
that permits recording of the account, the account holder or holders, any transfers under
section 462D.04, subdivision 2, and the designated qualified beneficiary for each account.
This may be done upon filing the account holder's income tax return or in any other way
the commissioner determines to be appropriate.
new text end

new text begin Subd. 3. new text end

new text begin Joint account holders. new text end

new text begin An individual may jointly own a first-time home buyer
account with another person if the joint account holders file a married joint income tax
return.
new text end

new text begin Subd. 4. new text end

new text begin Multiple accounts. new text end

new text begin (a) An individual may be the account holder of more than
one first-time home buyer savings account, but must not hold or own multiple accounts that
designate the same qualified beneficiary.
new text end

new text begin (b) An individual may be designated as the qualified beneficiary on more than one
first-time home buyer savings account.
new text end

new text begin Subd. 5. new text end

new text begin Contributions. new text end

new text begin Only cash may be contributed to a first-time home buyer savings
account. Individuals other than the account holder may contribute to an account. No limitation
applies to the amount of contributions that may be made to or retained in a first-time home
buyer savings account.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 47.

new text begin [462D.04] ACCOUNT HOLDER RESPONSIBILITIES.
new text end

new text begin Subdivision 1. new text end

new text begin Expenses; reporting. new text end

new text begin The account holder must:
new text end

new text begin (1) not use funds in a first-time home buyer savings account to pay expenses of
administering the account, except that a service fee may be deducted from the account by
the financial institution in which the account is held; and
new text end

new text begin (2) submit to the commissioner, in the form and manner required by the commissioner:
new text end

new text begin (i) detailed information regarding the first-time home buyer savings account, including
a list of transactions for the account during the taxable year and the Form 1099 issued by
the financial institution for the account for the taxable year; and
new text end

new text begin (ii) upon withdrawal of funds from the account, a detailed account of the eligible costs
for which the account funds were expended and a statement of the amount of funds remaining
in the account, if any.
new text end

new text begin Subd. 2. new text end

new text begin Transfers. new text end

new text begin An account holder may withdraw funds, in whole or part, from a
first-time home buyer savings account and deposit the funds in another first-time home
buyer savings account held by a different financial institution or the same financial institution.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 48.

new text begin [462D.05] FINANCIAL INSTITUTIONS.
new text end

new text begin (a) A financial institution is not required to take any action to ensure compliance with
this chapter, including to:
new text end

new text begin (1) designate an account, designate qualified beneficiaries, or modify the financial
institution's account contracts or systems in any way;
new text end

new text begin (2) track the use of money withdrawn from a first-time home buyer savings account;
new text end

new text begin (3) allocate funds in a first-time home buyer savings account among joint account holders
or multiple qualified beneficiaries; or
new text end

new text begin (4) report any information to the commissioner or any other government that is not
otherwise required by law.
new text end

new text begin (b) A financial institution is not responsible or liable for:
new text end

new text begin (1) determining or ensuring that an account satisfies the requirements of this chapter or
that its funds are used for eligible costs; or
new text end

new text begin (2) reporting or remitting taxes or penalties related to the use of a first-time home buyer
savings account.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 49.

new text begin [462D.06] SUBTRACTION; ADDITION; ADDITIONAL TAX.
new text end

new text begin Subdivision 1. new text end

new text begin Subtraction. new text end

new text begin (a) An account holder is allowed a subtraction from federal
taxable income equal to the sum of:
new text end

new text begin (1) the amount the individual contributed to a first-time home buyer savings account
during the taxable year not to exceed $5,000, or $10,000 for a married couple filing a joint
return; and
new text end

new text begin (2) interest or dividends earned on the first-time home buyer savings account during the
taxable year.
new text end

new text begin (b) The subtraction under paragraph (a) is allowed each year in which a contribution is
made for the ten taxable years including and following the taxable year in which the account
was established. The total subtraction for all taxable years and for all first-time home buyer
accounts established by the individual for a qualified beneficiary is limited to $50,000. No
person other than the account holder who deposits funds in a first-time home buyer savings
account is allowed a subtraction under this section.
new text end

new text begin Subd. 2. new text end

new text begin Addition. new text end

new text begin (a) An account holder must add to federal taxable income the sum
of the following amounts:
new text end

new text begin (1) any amount withdrawn from a first-time home buyer savings account during the
taxable year and used neither to pay eligible costs nor for a transfer permitted under section
462D.04, subdivision 2; and
new text end

new text begin (2) any amount remaining in the first-time home buyer savings account at the close of
the tenth taxable year after the taxable year in which the account was established.
new text end

new text begin (b) For an account that received a transfer under section 462D.04, subdivision 2, the
ten-year period under paragraph (a), clause (2), ends at the close of the earliest taxable year
that applies to either account under that clause.
new text end

new text begin Subd. 3. new text end

new text begin Additional tax. new text end

new text begin The account holder is liable for an additional tax equal to ten
percent of the addition under subdivision 2 for the taxable year. This amount must be added
to the amount due under section 290.06. The tax under this subdivision does not apply to:
new text end

new text begin (1) a withdrawal because of the account holder's or designated qualified beneficiary's
death or disability; and
new text end

new text begin (2) a disbursement of assets of the account under federal bankruptcy law.
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, 2016.
new text end

Sec. 50. new text begin RECAPTURE TAX; EMINENT DOMAIN.
new text end

new text begin The tax under Minnesota Statutes, section 291.03, subdivision 11, does not apply to
acquisition of title or possession of the qualified property by a federal, state, or local
government unit, or any other entity with the power of eminent domain for a public purpose,
as defined in Minnesota Statutes, section 117.025, subdivision 11, within the three-year
holding period.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for estates of decedents
dying after June 30, 2011, and before January 1, 2017.
new text end

Sec. 51. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2016, sections 289A.10, subdivision 1a; 289A.12, subdivision
18; 289A.18, subdivision 3a; 289A.20, subdivision 3a; and 291.03, subdivisions 8, 9, 10,
and 11, new text end new text begin are repealed.
new text end

new text begin (b) new text end new text begin Minnesota Statutes 2016, section 290.067, subdivision 2, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Paragraph (a) is effective retroactively for estates of decedents
dying after December 31, 2016. Paragraph (b) is effective for taxable years beginning after
December 31, 2016.
new text end

HF 4

Bill Text Versions

ARTICLE 1

INDIVIDUAL INCOME, CORPORATE, FRANCHISE, AND ESTATE TAXES

Section 1.

new text begin Subd. 9. new text end

new text begin Minnesota housing credit. new text end

new text begin EFFECTIVE DATE. new text end

Sec. 2.

new text begin [41B.0391] BEGINNING FARMER PROGRAM; TAX CREDITS. new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin Subd. 2. new text end

new text begin Tax credit for owners of agricultural assets. new text end

new text begin Subd. 3. new text end

new text begin Beginning farmer management tax credit. new text end

new text begin Subd. 4. new text end

new text begin Authority duties. new text end

new text begin EFFECTIVE DATE. new text end

Sec. 3.

Subdivision 1.

Return required.

new text begin EFFECTIVE DATE. new text end

Sec. 4.

Subd. 7.

Resident.

new text begin EFFECTIVE DATE. new text end

Sec. 5.

new text begin Subd. 14. new text end

new text begin Equity and opportunity donations to qualified foundations. new text end

new text begin EFFECTIVE DATE. new text end

Sec. 6.

new text begin Subd. 15. new text end

new text begin First-time home buyer savings account. new text end

new text begin EFFECTIVE DATE. new text end

Sec. 7.

Subd. 4.

Education expenses.

new text begin EFFECTIVE DATE. new text end

Sec. 8.

Subd. 14.

Section 179 expensing.

new text begin EFFECTIVE DATE. new text end

Sec. 9.

new text begin Subd. 23. new text end

new text begin Contributions to 529 plan. new text end

new text begin EFFECTIVE DATE. new text end

Sec. 10.

new text begin Subd. 24. new text end

new text begin Social Security benefits. new text end

new text begin EFFECTIVE DATE. new text end

Sec. 11.

new text begin Subd. 25. new text end

new text begin Discharge of indebtedness; education loans. new text end

new text begin EFFECTIVE DATE. new text end

Sec. 12.

new text begin Subd. 26. new text end

new text begin Carryover section 179 allowance. new text end

new text begin EFFECTIVE DATE. new text end

Sec. 13.

new text begin Subd. 27. new text end

new text begin First-time home buyer savings account. new text end

new text begin EFFECTIVE DATE. new text end

Sec. 14.

new text begin Subd. 15. new text end

new text begin Equity and opportunity donations to qualified foundations. new text end

new text begin EFFECTIVE DATE. new text end

Sec. 15.

new text begin [290.016] CONFORMITY TO FEDERAL TAX EXTENDERS BY ADMINISTRATIVE ACTION. new text end

new text begin Subdivision 1. new text end

new text begin Legislative purpose. new text end

new text begin Subd. 2. new text end

new text begin Federal tax conformity account established; transfer. new text end

new text begin Subd. 3. new text end

new text begin Eligible federal tax preferences. new text end

new text begin Subd. 4. new text end

new text begin Designation of qualifying federal conformity items. new text end

new text begin Subd. 5. new text end

new text begin Provisions in effect. new text end

new text begin Subd. 6. new text end

new text begin [41B.0391] BEGINNING FARMER PROGRAM; TAX CREDITS.
new text end

new text begin [290.016] CONFORMITY TO FEDERAL TAX EXTENDERS BY
ADMINISTRATIVE ACTION.
new text end

new text begin [290.0682] STUDENT LOAN CREDIT.
new text end