SF 1796

as introduced - 90th Legislature (2017 - 2018) Posted on 03/07/2017 09:21am

A bill for an act
relating to taxation; individual income; allowing a refundable citizenship credit;
proposing coding for new law in Minnesota Statutes, chapter 290.

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

Section 1.

new text begin [290.0682] CITIZENSHIP CREDIT.
new text end

new text begin Subdivision 1. new text end

new text begin Credit allowed. new text end

new text begin An individual is allowed a credit against the tax imposed
by this chapter equal to qualified citizenship expenses paid for a qualified citizenship
applicant. The maximum credit per qualified citizenship applicant is $700.
new text end

new text begin Subd. 2. new text end

new text begin Limitations on credit. new text end

new text begin (a) The credit is not allowed if the sum of an individual's
income and the individual's spouse's income exceeds 200 percent of the federal poverty
guideline.
new text end

new text begin (b) For an individual who is not a Minnesota resident for the entire year, the credit must
be apportioned using the percentage calculated in section 290.06, subdivision 2c, paragraph
(e).
new text end

new text begin (c) The credit is not allowed to an individual who is eligible to be claimed as a dependent.
new text end

new text begin (d) The credit is not allowed for a qualified citizenship applicant who qualifies for a
federal waiver of qualified citizenship expenses.
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new text begin Subd. 3. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have the
meanings given.
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new text begin (b) "Dependent" has the meaning given in sections 151 and 152 of the Internal Revenue
Code.
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new text begin (c) "Federal poverty guideline" means the guideline most recently published in the
Federal Register, adjusted for family size.
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new text begin (d) "Income" has the meaning given in section 290.067, subdivision 2a.
new text end

new text begin (e) "Qualified citizenship expenses" means filing fees, including both application and
biometric fingerprint fees, paid to the United States Citizenship and Immigration Services
in connection with an N-400 naturalization application for a qualified citizenship applicant.
new text end

new text begin (f) "Qualified citizenship applicant" means the individual, the individual's spouse, or a
dependent of the individual.
new text end

new text begin Subd. 4. new text end

new text begin Credit refundable. new text end

new text begin If the amount of credit that the claimant is eligible to receive
under this section exceeds the claimant's liability for tax under this chapter, the commissioner
of revenue shall refund the excess to the claimant.
new text end

new text begin Subd. 5. new text end

new text begin Appropriation. new text end

new text begin An amount sufficient to pay the refunds required by this section
is appropriated from the general fund to the commissioner of revenue.
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.
new text end

Sec. 2. new text begin PURPOSE STATEMENT; TAX EXPENDITURES.
new text end

new text begin Subdivision 1. new text end

new text begin Authority. new text end

new text begin This section is intended to fulfill the requirement under
Minnesota Statutes, section 3.192, that a bill creating, renewing, or continuing a tax
expenditure provide a purpose for the tax expenditure and a standard or goal against which
its effectiveness may be measured.
new text end

new text begin Subd. 2. new text end

new text begin Citizenship credit. new text end

new text begin The purpose of this tax credit is to alleviate the burdensome
cost of citizenship for lower-income applicants. The effectiveness of this tax credit will be
measured by comparing the number of individuals applying for and becoming citizens after
enactment of the credit with the number who did so in the year before the credit is first
allowed.
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