SF 2007

1st Engrossment - 93rd Legislature (2023 - 2024) Posted on 06/13/2023 10:12am

A bill for an act
relating to taxation; income and corporate franchise; providing a credit to certain
sellers of manufactured home parks; 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 [290.0693] CREDIT FOR SALES OF MANUFACTURED HOME PARKS
TO COOPERATIVES.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following definitions
have the meanings given.
new text end

new text begin (b) "Qualified seller" means a taxpayer who sells qualified property to a manufactured
home park cooperative, a nonprofit organization organized under chapter 317A, or a
representative acting on behalf of residents as defined under section 327C.015, subdivision
13.
new text end

new text begin (c) "Qualified property" means a manufactured home park classified as 4c(5)(i) or
4c(5)(iii) under section 273.13, subdivision 25, that qualifies as section 1250 property, as
calculated under section 1250(a) of the Internal Revenue Code.
new text end

new text begin (d) "Manufactured home park cooperative" has the meaning given in section 273.124,
subdivision 3a.
new text end

new text begin Subd. 2. new text end

new text begin Credit allowed; carryforward. new text end

new text begin (a) A qualified seller is allowed a credit against
the tax imposed under this chapter. The credit equals five percent of the amount of the sale
price of the qualified property.
new text end

new text begin (b) If the amount of the credit under this section exceeds the taxpayer's liability for tax
under this chapter, the excess is a credit carryover to each of the five succeeding taxable
years. The entire amount of the excess unused credit for the taxable year must be 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 that
may be added under this paragraph may not exceed the taxpayer's liability for tax, less any
credit for the current taxable year.
new text end

new text begin (c) For nonresidents and part-year residents, the credit must be allocated based on the
percentage calculated under section 290.06, subdivision 2c, paragraph (e).
new text end

new text begin Subd. 3. new text end

new text begin Partnerships; multiple owners. new text end

new text begin Credits granted to a partnership, a limited
liability company taxed as a partnership, an 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 document,
as of the last day of the taxable year.
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, 2022.
new text end