SF 1247

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

A bill for an act
relating to taxation; providing an individual income
and corporate franchise tax credit for qualifying
investments in dairy operations; amending Minnesota
Statutes 2004, section 290.06, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2004, section 290.06, is
amended by adding a subdivision to read:

new text begin Subd. 32. new text end

new text begin Dairy investment credit. new text end

new text begin (a) A dairy
investment credit is allowed against the tax computed under this
section equal to the credit amount in the table, based on the
amount paid or incurred by the taxpayer, during the taxable
year, for qualifying expenditures:
new text end

new text begin Amount of
qualifying expenditures new text end new text begin Credit amount
new text end

new text begin up to $500,000 new text end new text begin ten percent of
qualifying expenditures
new text end

new text begin over $500,000, but not new text end new text begin $50,000, plus nine percent
more than $600,000 new text end new text begin of the amount of qualified
expenditures in excess of
$500,000
new text end

new text begin over $600,000 but not new text end new text begin $59,000, plus seven percent
more than $700,000 new text end new text begin of the amount of qualified
expenditures in excess of
$600,000
new text end

new text begin over $700,000, but not new text end new text begin $66,000, plus five percent
more than $800,000 new text end new text begin of the amount of qualified
expenditures in excess of
$700,000
new text end

new text begin over $800,000, but not new text end new text begin $71,000, plus three percent
more than $900,000 new text end new text begin of the amount of qualified
expenditures in excess of
$800,000
new text end

new text begin over $900,000, but not new text end new text begin $74,000, plus one percent
more than $1,000,000 new text end new text begin of the amount of qualified
expenditures in excess of
$900,000
new text end

new text begin $1,000,000 or more new text end new text begin $75,000
new text end

new text begin (b) "Qualifying expenditures" means for purposes of this
subdivision the amount spent for the acquisition, construction,
or improvement of buildings or facilities, or the acquisition of
equipment, for dairy animal housing, confinement, animal
feeding, milk production, and waste management, including the
following, if related to dairy animals:
new text end

new text begin (1) freestall barns;
new text end

new text begin (2) fences;
new text end

new text begin (3) watering facilities;
new text end

new text begin (4) feed storage and handling equipment;
new text end

new text begin (5) milking parlors;
new text end

new text begin (6) robotic equipment;
new text end

new text begin (7) scales;
new text end

new text begin (8) milk storage and cooling facilities;
new text end

new text begin (9) bulk tanks;
new text end

new text begin (10) manure pumping and storage facilities;
new text end

new text begin (11) digesters; and
new text end

new text begin (12) equipment used to produce energy.
new text end

new text begin Qualified expenditures exclude any amounts deducted under
section 162 of the Internal Revenue Code in computing federal
taxable income.
new text end

new text begin (c) The credit is limited to the liability for tax, as
computed under this section for the taxable year. If the amount
of the credit determined under this section for any taxable year
exceeds this limitation, the excess is a dairy investment credit
carryover to each of the 15 succeeding taxable years. The
entire amount of the excess unused credit for the taxable year
is carried first to the earliest of the taxable years to which
the credit may be carried and then to each successive year to
which the credit may be carried. The amount of the unused
credit which may be added under this paragraph shall not exceed
the taxpayer's liability for tax less the dairy investment
credit for the taxable year.
new text end

new text begin (d) For a partnership or S corporation, the maximum amount
of the credit applies to the entity, not the individual partner
or shareholder.
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