HF 79

1st Engrossment - 87th Legislature (2011 - 2012) Posted on 01/20/2011 03:07pm

A bill for an act
relating to taxes; individual income; conforming to the federal extension of the
exclusion of dependent health care coverage to adult children through age 26 for
tax year 2010; amending Minnesota Statutes 2010, section 290.01, subdivision
19.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2010, section 290.01, subdivision 19, is amended to read:

Subd. 19.

Net income.

The term "net income" means the federal taxable income,
as defined in section 63 of the Internal Revenue Code of 1986, as amended through the
date named in this subdivision, incorporating the federal effective dates of changes to the
Internal Revenue Code and any elections made by the taxpayer in accordance with the
Internal Revenue Code in determining federal taxable income for federal income tax
purposes, and with the modifications provided in subdivisions 19a to 19f.

In the case of a regulated investment company or a fund thereof, as defined in section
851(a) or 851(g) of the Internal Revenue Code, federal taxable income means investment
company taxable income as defined in section 852(b)(2) of the Internal Revenue Code,
except that:

(1) the exclusion of net capital gain provided in section 852(b)(2)(A) of the Internal
Revenue Code does not apply;

(2) the deduction for dividends paid under section 852(b)(2)(D) of the Internal
Revenue Code must be applied by allowing a deduction for capital gain dividends and
exempt-interest dividends as defined in sections 852(b)(3)(C) and 852(b)(5) of the Internal
Revenue Code; and

(3) the deduction for dividends paid must also be applied in the amount of any
undistributed capital gains which the regulated investment company elects to have treated
as provided in section 852(b)(3)(D) of the Internal Revenue Code.

The net income of a real estate investment trust as defined and limited by section
856(a), (b), and (c) of the Internal Revenue Code means the real estate investment trust
taxable income as defined in section 857(b)(2) of the Internal Revenue Code.

The net income of a designated settlement fund as defined in section 468B(d) of
the Internal Revenue Code means the gross income as defined in section 468B(b) of the
Internal Revenue Code.

The Internal Revenue Code of 1986, as amended through March 18, 2010, shall be
in effect for taxable years beginning after December 31, 1996. The provisions of the
act of January 22, 2010, Public Law 111-126, to accelerate the benefits for charitable
cash contributions for the relief of victims of the Haitian earthquake, are effective at the
same time it became effective for federal purposes and apply to the subtraction under
subdivision 19b, clause (6). new text begin For taxable years beginning after December 31, 2009, and
before January 1, 2011, the provisions of Title I, Subtitle A, Section 1004, paragraph
(d), of the act of March 30, 2010, Public Law 111-152, income definitions related to the
extension of dependent coverage, are effective at the same time they became effective
for federal purposes.
new text end

Except as otherwise provided, references to the Internal Revenue Code in
subdivisions 19 to 19f mean the code in effect for purposes of determining net income for
the applicable year.

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 CORRECTED FORM W-2 NOT REQUIRED.
new text end

new text begin Employers who have prepared and distributed form W-2, wage and tax statement,
for tax year 2010, that reported to employees the amount of health coverage provided to
adult children under age 27 includible in net income under prior law, are not required to
prepare and distribute corrected tax year 2010 form W-2.
new text end