Minnesota Legislature
SF 1175
as introduced - 88th Legislature (2013 - 2014) Posted on 03/22/2013 09:39am
Current Version - as introduced
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A bill for an act
relating to taxation; income and corporate franchise; modifying the historic
structure rehabilitation credit; amending Minnesota Statutes 2012, section
290.0681, subdivisions 1, 3, 4, 5, 10; Laws 2010, chapter 216, section 11.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2012, section 290.0681, subdivision 1, is amended to read:
Subdivision 1.
Definitions.
(a) For purposes of this section, the following terms
have the meanings given.
(b) "Account" means the historic credit administration account in the special
revenue fund.
(c) "Office" means the State Historic Preservation Office of the Minnesota Historical
Society.
(d) "Project" means rehabilitation of a certified historic structure, as defined in
section 47(c)(3)(A) of the Internal Revenue Code, that is located in Minnesota and is
allowed a federal credit deleted text begin under section 47(a)(2) of the Internal Revenue Codedeleted text end .
(e) "Society" means the Minnesota Historical Society.
new text begin
(f) "Federal credit" means the credit allowed under section 47(a)(2) of the Internal
Revenue Code.
new text end
new text begin
(g) "Placed in service" has the meaning used in section 47 of the Internal Revenue
Code.
new text end
new text begin
(h) "Qualified rehabilitation expenditures" has the meaning given in section 47 of
the Internal Revenue Code.
new text end
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.
Minnesota Statutes 2012, section 290.0681, subdivision 3, is amended to read:
Subd. 3.
Applications; allocations.
(a) To qualify for a credit or grant under this
section, the developer of a project must apply to the office before the rehabilitation
begins. The application must contain the information and be in the form prescribed by
the office. The office may collect a fee for application of deleted text begin up to $5,000deleted text end new text begin $.......new text end , based on
estimated qualified rehabilitation deleted text begin expensesdeleted text end new text begin expendituresnew text end , to offset costs associated with
personnel and administrative expenses related to administering the credit and preparing
the economic impact report in subdivision 9. Application fees are deposited in the
account. The application must indicate if the application is for a credit or a grant in lieu
of the credit or a combination of the two and designate the taxpayer qualifying for the
credit or the recipient of the grant.
(b) Upon approving an application for credit, the office shall issue allocation
certificates that:
(1) verify eligibility for the credit or grant;
(2) state the amount of credit or grant anticipated with the project, with the credit
amount equal to 100 percent and the grant amount equal to 90 percent of the federal
credit anticipated in the application;
(3) state that the credit or grant allowed may increase or decrease if the federal
credit the project receives at the time it is placed in service is different than the amount
anticipated at the time the allocation certificate is issued; and
(4) state the fiscal year in which the credit or grant is allocated, and that the taxpayer
or grant recipient is entitled to receive the credit or grant at the time the project is placed
in service, provided that date is within three calendar years following the issuance of
the allocation certificate.
(c) The office, in consultation with the commissioner deleted text begin of revenuedeleted text end , shall determine
if the project is eligible for a credit or a grant under this section new text begin and must notify the
developer in writing of its determinationnew text end . Eligibility for the credit is subject to review
and audit by the commissioner deleted text begin of revenuedeleted text end .
(d) The federal credit recapture and repayment requirements under section 50 of the
Internal Revenue Code do not apply to the credit allowed under this section.
new text begin
(e) Any decision of the office under paragraph (c) may be challenged as a contested
case under chapter 14. The contested case proceeding must be initiated within 45 days of
the date of written notification by the office.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 3.
Minnesota Statutes 2012, section 290.0681, subdivision 4, is amended to read:
Subd. 4.
Credit certificatesnew text begin ; grantsnew text end .
(a)(1) The developer of a project for which the
office has issued an allocation certificate must notify the office when the project is placed
in service. Upon verifying that the project has been placed in service, and was allowed a
federal credit, the office must issue a credit certificate to the taxpayer designated in the
application or must issue a grant to the recipient designated in the application. The credit
certificate must state the amount of the credit.
(2) The credit amount equals the federal credit allowed for the project.
(3) The grant amount equals 90 percent of the federal credit allowed for the project.
(b) The recipient of a credit certificate may assign the certificate to another taxpayer,
which is then allowed the credit under this section or section 297I.20, subdivision 3. new text begin An
assignment is not valid unless the assignee notifies the commissioner within 30 days of the
date that the assignment is made. new text end The commissioner shall prescribe the forms necessary
for new text begin notifying the commissioner of the assignment of a credit certificate and for new text end claiming
a credit by assignment.
new text begin
(c) Credits passed through to partners, members, shareholders, or owners pursuant to
subdivision 5 are not an assignment of a credit certificate under this subdivision.
new text end
new text begin
(d) A grant agreement between the office and the recipient of a grant may allow the
grant to be issued to another individual or entity.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 4.
Minnesota Statutes 2012, section 290.0681, subdivision 5, is amended to read:
Subd. 5.
Partnerships; multiple owners.
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 documentsnew text begin or any other executed
agreementnew text end , as of the last day of the taxable 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. 5.
Minnesota Statutes 2012, section 290.0681, subdivision 10, is amended to read:
Subd. 10.
Sunset.
This section expires after fiscal year deleted text begin 2015deleted text end new text begin 2021new text end , except that
the office's authority to issue credit certificates under subdivision 4 based on allocation
certificates that were issued before fiscal year deleted text begin 2016deleted text end new text begin 2022new text end remains in effect through deleted text begin 2018
deleted text end new text begin 2024new text end , and the reporting requirements in subdivision 9 remain in effect through the year
following the year in which all allocation certificates have either been canceled or resulted
in issuance of credit certificates, or deleted text begin 2019deleted text end new text begin 2025new text end , whichever is earlier.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 6.
Laws 2010, chapter 216, section 11, the effective date, is amended to read:
EFFECTIVE DATE.
This section is effective for taxable years beginning
after December 31, 2009, for certified historic structures for which qualified deleted text begin costs of
rehabilitation are first paid under construction contracts entered into after May 1, 2010
deleted text end new text begin rehabilitation expenditures are first paid by the developer or taxpayer after May 1, 2010,
for rehabilitation that occurs after May 1, 2010, provided that the application under
subdivision 3 is submitted before the project is placed in servicenew text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment
and applies retroactively for taxable years beginning after December 31, 2009, and for
certified historic structures placed in service after May 1, 2010, but the office may not
issue certificates allowed under the change to this section until July 1, 2013.
new text end