Minnesota Legislature
HF 4013
as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am
Bill Text Versions
| Engrossments | ||
|---|---|---|
| Introduction | Posted on 03/28/2006 |
Current Version - as introduced
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A bill for an act
relating to taxes; individual income; increasing the working family credit;
amending Minnesota Statutes 2005 Supplement, section 290.0671, subdivision 1.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2005 Supplement, section 290.0671, subdivision 1,
is amended to read:
Subdivision 1.
Credit allowed.
(a) An individual is allowed a credit against the tax
imposed by this chapter equal to a percentage of earned income. To receive a credit, a
taxpayer must be eligible for a credit under section 32 of the Internal Revenue Code.
(b) For individuals with no qualifying children, the credit equals deleted text begin 1.9125deleted text end new text begin 2.104
new text end percent of the first $4,620 of earned income. The credit is reduced by new text begin 2.104 new text end percent
of earned income or adjusted gross income, whichever is greater, in excess of $5,770,
but in no case is the credit less than zero.
(c) For individuals with one qualifying child, the credit equals deleted text begin 8.5deleted text end new text begin 9.35 new text end percent of
the first $6,920 of earned income and deleted text begin 8.5deleted text end new text begin 9.35 new text end percent of earned income over $12,080
but less than $13,450. The credit is reduced by deleted text begin 5.73deleted text end new text begin 6.3 new text end percent of earned income or
adjusted gross income, whichever is greater, in excess of $15,080, but in no case is the
credit less than zero.
(d) For individuals with two or more qualifying children, the credit equals deleted text begin tendeleted text end new text begin 11
new text end percent of the first $9,720 of earned income and deleted text begin 20deleted text end new text begin 22 new text end percent of earned income over
$14,860 but less than $16,800. The credit is reduced by deleted text begin 10.3deleted text end new text begin 11.3 new text end percent of earned
income or adjusted gross income, whichever is greater, in excess of $17,890, but in no
case is the credit less than zero.
(e) 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).
(f) For a person who was a resident for the entire tax year and has earned income
not subject to tax under this chapter, including income excluded under section 290.01,
subdivision 19b, clause (10) or (16), the credit must be allocated based on the ratio of
federal adjusted gross income reduced by the earned income not subject to tax under
this chapter over federal adjusted gross income. For purposes of this paragraph, the
subtractions for military pay under section 290.01, subdivision 19b, clauses (11) and (12),
are not considered "earned income not subject to tax under this chapter."
For the purposes of this paragraph, 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."
(g) For tax years beginning after December 31, 2001, and before December 31,
2004, the $5,770 in paragraph (b), the $15,080 in paragraph (c), and the $17,890 in
paragraph (d), after being adjusted for inflation under subdivision 7, are each increased by
$1,000 for married taxpayers filing joint returns.
(h) For tax years beginning after December 31, 2004, and before December 31,
2007, the $5,770 in paragraph (b), the $15,080 in paragraph (c), and the $17,890 in
paragraph (d), after being adjusted for inflation under subdivision 7, are each increased by
$2,000 for married taxpayers filing joint returns.
(i) For tax years beginning after December 31, 2007, and before December 31, 2010,
the $5,770 in paragraph (b), the $15,080 in paragraph (c), and the $17,890 in paragraph
(d), after being adjusted for inflation under subdivision 7, are each increased by $3,000 for
married taxpayers filing joint returns. For tax years beginning after December 31, 2008,
the $3,000 is adjusted annually for inflation under subdivision 7.
(j) The commissioner shall construct tables showing the amount of the credit at
various income levels and make them available to taxpayers. The tables shall follow
the schedule contained in this subdivision, except that the commissioner may graduate
the transition between income brackets.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after
December 31, 2005.
new text end