1.1 	A bill for an act
1.2 	relating to taxation; allowing a nonrefundable individual income tax credit for 
1.3 	certain home sales;amending Minnesota Statutes 2006, section 290.06, by 
1.4 	adding a subdivision.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2006, section 290.06, is amended by adding a 
1.7 	subdivision to read:
1.8 		Subd. 35.Credit for sale of home. (a) An individual is allowed a credit against 
1.9 	the tax due under this chapter equal to 25 percent of the loss on the sale of a home. The 
1.10 	maximum total credit allowed under this subdivision is $10,000, but the maximum that 
1.11 	may be used in any taxable year is $2,000.
1.12 	(b) For purposes of this subdivision, "loss on the sale of a home" means the extent to 
1.13 	which (i) the current year's estimated market value, as determined by the county assessor, 
1.14 	of a property for which the individual claimed homestead benefits under section 273.13, 
1.15 	subdivision 22, exceeds (ii) the sales price of the property, less any amounts paid by the 
1.16 	individual in fees and commissions related to the sale of the property.
1.17 	(c) If the credit allowed under this subdivision exceeds the lesser of (i) the tax 
1.18 	liability of the individual for the taxable year or (ii) $2,000, the excess amount of the 
1.19 	credit may be carried over to each of the ten taxable years succeeding the taxable year. 
1.20 	The entire amount of the credit must be carried to the earliest taxable year to which the 
1.21 	amount may be carried, but the maximum amount that is allowed in any taxable year is 
1.22 	$2,000. The unused portion of the credit must be carried to the following taxable year. 
1.23 	No credit may be carried to a taxable year more than ten years after the taxable year 
1.24 	in which the credit was initially allowed.

2.1 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
2.2 	December 31, 2007.