HF 845

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to taxation; individual income; repealing the
alternative minimum tax; amending Minnesota Statutes
2004, section 290.091, subdivision 6; repealing
Minnesota Statutes 2004, section 290.091, subdivisions
1, 2, 3, 4, 5, 6.

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

Section 1.

Minnesota Statutes 2004, section 290.091,
subdivision 6, is amended to read:

Subd. 6.

Credit for prior years' liability.

(a) A credit
is allowed against the tax imposed by this chapter on
individuals, trusts, and estates equal to the minimum tax credit
for the taxable year. The minimum tax credit equals the
adjusted net minimum tax for taxable years beginning after
December 31, 1988, reduced by the minimum tax credits allowed in
a prior taxable year. The credit may not exceed the excess (if
any) for the taxable year of

(1) the regular tax, over

(2) the greater of (i) the tentative alternative minimum
tax, or (ii) zero.

(b) The adjusted net minimum tax for a taxable year equals
the lesser of the net minimum tax or the excess (if any) of

(1) the tentative minimum tax, over

(2) 6.4 percent of the sum of

(i) adjusted gross income as defined in section 62 of the
Internal Revenue Code,

(ii) interest income as defined in section 290.01,
subdivision 19a, clause (1),

(iii) interest on specified private activity bonds, as
defined in section 57(a)(5) of the Internal Revenue Code, to the
extent not included under clause (ii),

(iv) depletion as defined in section 57(a)(1), determined
without regard to the last sentence of paragraph (1), of the
Internal Revenue Code, less

(v) the deductions allowed in computing alternative minimum
taxable income provided in subdivision 2, paragraph (a), clause
(2) of the first series of clauses and clauses (1), (2), and (3)
of the second series of clauses, and

(vi) the exemption amount determined under subdivision 3.

In the case of an individual who is not a Minnesota
resident for the entire year, adjusted net minimum tax must be
multiplied by the fraction defined in section 290.06,
subdivision 2c, paragraph (e). In the case of a trust or
estate, adjusted net minimum tax must be multiplied by the
fraction defined under subdivision 4, paragraph (b).

new text begin (c) For tax years beginning after December 31, 2004, and
before January 1, 2007, a credit is allowed against the tax
imposed by this chapter on individuals, trusts, and estates
equal to the minimum tax credit for the taxable year. The
minimum tax credit equals the adjusted net minimum tax for
taxable years beginning after December 31, 1988, and before
January 1, 2005, reduced by the minimum tax credits allowed in a
prior taxable year. The credit may not exceed the tax imposed
by this chapter after the allowance of the credits in sections
290.06, subdivisions 22, 22a, 28, 29, 30, and 31; 290.0672; and
290.0675.
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, 2004.
new text end

Sec. 2. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2004, section 290.091, subdivisions 1,
2, 3, 4, 5, and 6, are repealed.
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, 2004, except the repeal of
section 290.091, subdivision 6, is effective for taxable years
beginning after December 31, 2006.
new text end