as introduced - 89th Legislature (2015 - 2016) Posted on 02/27/2015 09:13am
A bill for an act
relating to taxation; individual income; providing a credit for the additional tax
paid on early withdrawals from retirement accounts if used for long-term care
expenses; appropriating money; proposing coding for new law in Minnesota
Statutes, chapter 290.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
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(a) For purposes of this section, the following terms
have the meanings given.
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(b) "Additional federal tax" means the tax imposed under section 72(t) of the Internal
Revenue Code on early withdrawals from qualified retirement plans.
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(c) "Qualified long-term care expenses" means amounts paid for qualified long-term
care services, as defined in section 7702B(c) of the Internal Revenue Code, plus amounts
paid for a qualified long-term care insurance contract, as defined in section 7702B(b) of
the Internal Revenue Code.
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(d) "Qualified retirement plans" has the meaning given in section 4974(c) of the
Internal Revenue Code.
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(a) An individual is allowed a credit against the tax due
under this chapter equal to the additional federal tax paid during the taxable year on
early withdrawals from qualified retirement plans, provided the withdrawals are used for
qualified long-term care expenses.
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(b) 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).
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(a) If the credit allowed under this
section exceeds the individual's liability under this chapter, the commissioner shall refund
the excess to the taxpayer.
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(b) An amount sufficient to pay the refunds required by this section is appropriated
from the general fund to the commissioner.
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This section is effective for taxable years beginning after
December 31, 2014.
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