SF 1162

as introduced - 90th Legislature (2017 - 2018) Posted on 02/21/2017 08:48am

A bill for an act
relating to taxation; income; allowing a temporary refundable credit for historic
structure rehabilitation.

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

Section 1. new text begin CREDIT FOR JOB TRAINING CENTER REHABILITATION.
new text end

new text begin (a) A taxpayer is allowed a credit against the tax due under Minnesota Statutes, chapter
290, if the taxpayer rehabilitated and placed in service in calendar year 2015 a certified
historic structure that once served as a library, is located in a city of the first class, and was
placed on the National Register of Historic Places in 1977. The credit equals 20 percent of
the qualified rehabilitation expenditures for the project.
new text end

new text begin (b) The taxpayer must notify the commissioner within six months of when the project
is placed in service, and must provide documentation that the project meets the requirements
of this section, in the form and manner prescribed by the commissioner. The commissioner
must issue a credit certificate to the developer upon verifying that the project has been
placed in service and meets the requirements of this section.
new text end

new text begin (c) The recipient of a credit certificate may assign the certificate to another taxpayer,
including an insurance company, which is then allowed the credit under this section. An
assignment is not valid unless the assignee notifies the commissioner within 30 days of the
date the assignment is made. The commissioner shall prescribe the forms necessary for
notifying the commissioner of the assignment of a credit certificate and for claiming a credit
by assignment. In lieu of the credit under paragraph (a), an insurance company that is
assigned a credit under this paragraph may claim the credit against the insurance premiums
tax imposed under chapter 297I.
new text end

new text begin (d) Credits granted to a partnership, a limited liability company taxed as a partnership,
S corporation, or multiple owners of property are passed through to the partners, members,
shareholders, or owners, respectively, pro rata to each partner, member, shareholder, or
owner based on their share of the entity's assets or as specially allocated in their
organizational documents or any other executed agreement, as of the last day of the taxable
year.
new text end

new text begin (e) If the amount of credit that a taxpayer is eligible to receive under this section exceeds
the taxpayer's liability for tax under Minnesota Statutes, chapter 290, the commissioner
shall refund the excess to the taxpayer. If the amount of credit assigned to an insurance
company exceeds the liability for tax under chapter 297I, the commissioner shall refund
the excess to the insurance company. An amount sufficient to pay the refunds authorized
under this section is appropriated to the commissioner from the general fund.
new text end

new text begin (f) For purposes of this section, the following terms have the meanings given:
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new text begin (1) "certified historic structure" has the meaning given in section 47(c)(3)(A) of the
Internal Revenue Code;
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new text begin (2) "commissioner" means the commissioner of revenue;
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new text begin (3) "qualified rehabilitation expenditures" means amounts chargeable to capital accounts
but does not include the cost of acquiring the structure or enlarging the structure; and
new text end

new text begin (4) "project" means rehabilitation of a certified historic structure that is located in
Minnesota.
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, 2016, and before January 1, 2018, for projects placed in service in calendar year 2015.
new text end