SF 1344

as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to income taxes; modifying the percentages 
  1.3             for the working family credit; amending Minnesota 
  1.4             Statutes 1998, section 290.0671, subdivision 1. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  Minnesota Statutes 1998, section 290.0671, 
  1.7   subdivision 1, is amended to read: 
  1.8      Subdivision 1.  [CREDIT ALLOWED.] (a) An individual is 
  1.9   allowed a credit against the tax imposed by this chapter equal 
  1.10  to a percentage of earned income.  To receive a credit, a 
  1.11  taxpayer must be eligible for a credit under section 32 of the 
  1.12  Internal Revenue Code.  
  1.13     (b) For individuals with no qualifying children, the credit 
  1.14  equals 1.1475 1.9 percent of the first $4,460 $4,540 of earned 
  1.15  income.  The credit is reduced by 1.1475 1.9 percent of earned 
  1.16  income or modified adjusted gross income, whichever is greater, 
  1.17  in excess of $5,570 $5,660, but in no case is the credit less 
  1.18  than zero. 
  1.19     (c) For individuals with one qualifying child, the credit 
  1.20  equals 6.8 8.5 percent of the first $6,680 $6,790 of earned 
  1.21  income and 8.5 percent of earned income over $11,650 $11,850 but 
  1.22  less than $12,990 $13,210.  The credit is reduced by 4.77 5.72 
  1.23  percent of earned income or modified adjusted gross income, 
  1.24  whichever is greater, in excess of $14,560 $14,810, but in no 
  1.25  case is the credit less than zero. 
  2.1      (d) For individuals with two or more qualifying children, 
  2.2   the credit equals eight ten percent of the first $9,390 $9,550 
  2.3   of earned income and 20 percent of earned income 
  2.4   over $14,350 $14,590 but less than $16,230 $16,500.  The credit 
  2.5   is reduced by 8.8 10.3 percent of earned income or modified 
  2.6   adjusted gross income, whichever is greater, in excess 
  2.7   of $17,280 $17,570, but in no case is the credit less than zero. 
  2.8      (e) For a nonresident or part-year resident, the credit 
  2.9   must be allocated based on the percentage calculated under 
  2.10  section 290.06, subdivision 2c, paragraph (e). 
  2.11     (f) For a person who was a resident for the entire tax year 
  2.12  and has earned income not subject to tax under this chapter, the 
  2.13  credit must be allocated based on the ratio of federal adjusted 
  2.14  gross income reduced by the earned income not subject to tax 
  2.15  under this chapter over federal adjusted gross income. 
  2.16     Sec. 2.  [EFFECTIVE DATE.] 
  2.17     Section 1 is effective for tax years beginning after 
  2.18  December 31, 1998.