SF 413

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/26/2021 09:39am

A bill for an act
relating to taxation; individual income and corporate franchise; providing a credit
for certain sponsors of veterans; proposing coding for new law in Minnesota
Statutes, chapter 290.

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

Section 1.

new text begin [290.0693] CREDIT FOR SPONSORS OF VETERANS.
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.
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new text begin (b) "Contribution" means the amount a sponsor pays for lodging and related services at
a qualified property for a qualified individual.
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new text begin (c) "Lodging and related services" means sleeping accommodations and accompanying
license to use qualified property by a qualified individual, other than the renting or leasing
of it for a continuous period of 30 days or more, under an enforceable written agreement
that may not be terminated without prior notice.
new text end

new text begin (d) "Qualified individual" means a veteran who has a service-related disability rating of
at least 30 percent.
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new text begin (e) "Qualified property" means a property located in Lake County, Minnesota, that was,
for property tax assessment year 2020, owned by the United States of America, Superior
National Forest, and leased to and operated by an organization exempt under section 501(c)(3)
of the Internal Revenue Code providing recreational opportunities to disabled military
veterans.
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new text begin (f) "Sponsor" means an individual or business that pays the cost, in whole or in part, of
lodging and related services at a qualified property for a qualified individual.
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new text begin (g) "Veteran" has the meaning given in section 197.447.
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new text begin Subd. 2. new text end

new text begin Credit allowed. new text end

new text begin (a) A sponsor is allowed a credit against the tax imposed by
this chapter. The credit may not exceed the sponsor's liability for tax under this chapter.
new text end

new text begin (b) The amount of the credit allowed equals 50 percent of each contribution made by a
sponsor on behalf of a qualified individual for the taxable year. The maximum credit is
$1,000 per contribution per qualified individual.
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).
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new text begin Subd. 3. new text end

new text begin Application for credit; allocation and limitation; rollover. new text end

new text begin (a) A sponsor
may apply to the commissioner for certification of the credit to be claimed under this section.
The commissioner must prescribe the form of the application. Applications for certification
must be made available on the commissioner's website by December 31 of the taxable year
for which the tax credit will be claimed.
new text end

new text begin (b) The commissioner must not allocate more than $250,000 in credits for each taxable
year. Claims must be placed in order of the date on which the application is filed. All
applications filed with the commissioner on the same day must be treated as having been
filed contemporaneously. If two or more applications are filed on the same day, and the
aggregate amount of credit allocation claims exceeds the aggregate limit of credits under
this section or the lesser amount of credits that remain unallocated on that day, then the
credits must be allocated among the sponsors who filed on that day on a pro rata basis with
respect to the amounts claimed.
new text end

new text begin (c) Any unallocated amounts for any taxable year must be added to the aggregate amount
of claims that may be authorized for payment for the following taxable year.
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new text begin Subd. 4. new text end

new text begin Sunset. new text end

new text begin This section expires for taxable years beginning after December 31,
2030.
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new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2020.
new text end