SF 2010

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

  1.1                          A bill for an act 
  1.2             relating to taxation; providing income tax credits for 
  1.3             expenditures for certain job training programs and for 
  1.4             post-secondary education; appropriating money; 
  1.5             proposing coding for new law in Minnesota Statutes, 
  1.6             chapter 290. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  [290.0675] [JOB TRAINING PROGRAM CREDIT.] 
  1.9      Subdivision 1.  [CREDIT ALLOWED.] (a) A credit is allowed 
  1.10  against the taxes imposed by section 290.06, subdivisions 1 and 
  1.11  2c, equal to 25 percent of costs incurred by an employer for a 
  1.12  qualified job training program. 
  1.13     (b) A credit is allowed only up to the dollar amount of 
  1.14  certificates issued under subdivision 4.  A taxpayer's 
  1.15  certificates must not exceed $10,000 in the aggregate for 
  1.16  calendar years 1999 through 2001. 
  1.17     Subd. 2.  [QUALIFIED JOB TRAINING PROGRAM.] (a) To qualify 
  1.18  for a credit under this section, a job training program must 
  1.19  provide for the training or retraining of the taxpayer's 
  1.20  employees.  Eligible training or retraining does not include 
  1.21  costs an employer incurs for training or retraining that allows 
  1.22  an employee to perform the employee's current duties and 
  1.23  responsibilities using technologies identical or substantially 
  1.24  similar to those currently used by the employee.  It must either 
  1.25  train the employee for a new position with duties and 
  1.26  responsibilities significantly different from those the employee 
  2.1   currently performs or retrain the employee to use technologies 
  2.2   substantially different from those the employee currently uses 
  2.3   to perform the employee's duties and responsibilities. 
  2.4      (1) Eligible costs include: 
  2.5      (i) costs for employees or outside vendors to provide 
  2.6   training or retraining to employees; 
  2.7      (ii) costs for instructional materials or equipment used 
  2.8   for training or retraining of employees; 
  2.9      (iii) costs for instructional facilities temporarily leased 
  2.10  or contracted for the sole purposes of providing training or 
  2.11  retraining to employees; 
  2.12     (iv) meal, transportation, or lodging costs the employer 
  2.13  incurs for an employee to receive training or retraining at a 
  2.14  facility described in item (iii); and 
  2.15     (v) tuition costs the employer incurs for employee training 
  2.16  or retraining. 
  2.17     (2) Costs for testing or screening of job applicants are 
  2.18  not an eligible cost. 
  2.19     (b) The program must be certified by the commissioner of 
  2.20  economic security as meeting the requirements of this 
  2.21  subdivision.  Employers must apply to the commissioner of 
  2.22  economic security on a form designated by the commissioner in 
  2.23  order to receive the credit.  The commissioner may require the 
  2.24  information the commissioner considers appropriate to determine 
  2.25  whether the proposed training or retraining meets the 
  2.26  requirements of paragraph (a).  The form must include the 
  2.27  estimated costs of the employer for providing employee training 
  2.28  and retraining.  The costs eligible for the credit may not 
  2.29  exceed the estimated costs. 
  2.30     Subd. 3.  [ISSUANCE OF CREDIT CERTIFICATES.] (a) Upon 
  2.31  application, the commissioner of economic security shall issue 
  2.32  certificates for employer job training programs, up to the 
  2.33  dollar amount available for the taxable year.  The certificates 
  2.34  must be in a dollar amount that: 
  2.35     (1) is no greater than the dollar amount of the credit 
  2.36  applied for; and 
  3.1      (2) reflects the commissioner of economic security's 
  3.2   estimate of the job training program's costs.  
  3.3      The commissioner of economic security shall issue the 
  3.4   certificates in the order in which applications are received 
  3.5   until the available authority has been issued. 
  3.6      (b) The total amount of credits under this section is 
  3.7   limited to $60,000,000 for the period of taxable years beginning 
  3.8   after December 31, 1998, and before January 1, 2002.  The 
  3.9   commissioner of economic security may issue no more than the 
  3.10  specified amount of certificates for taxable years beginning 
  3.11  during each of the following calendar years: 
  3.12       $20,000,000    .....     1999 
  3.13       $20,000,000    .....     2000 
  3.14       $20,000,000    .....     2001 
  3.15     Unused certificates for a taxable year carry over and may 
  3.16  be used for a later taxable year, regardless of when issued by 
  3.17  the commissioner of economic security. 
  3.18     Subd. 4.  [CREDIT TO BE REFUNDABLE.] The taxpayer may claim 
  3.19  the credit in the taxable year in which the eligible training 
  3.20  and retraining costs for which certificates were issued are 
  3.21  actually incurred.  If the credit for the taxable year exceeds 
  3.22  the liability for tax under this chapter for the taxable year, 
  3.23  the commissioner shall refund the excess to the taxpayer.  An 
  3.24  amount sufficient to pay the refunds authorized by this 
  3.25  subdivision is appropriated to the commissioner of revenue from 
  3.26  the general fund. 
  3.27     Subd. 5.  [MANNER OF CLAIMING.] The commissioner of revenue 
  3.28  shall prescribe the manner in which the credit may be claimed, 
  3.29  which may include only allowing the credit as a separately 
  3.30  processed claim for a refund. 
  3.31     Sec. 2.  [290.0676] [MINNESOTA HOPE AND LIFETIME LEARNING 
  3.32  CREDIT.] 
  3.33     An individual is allowed a credit against the tax imposed 
  3.34  by this chapter in an amount equal to 25 percent of the lesser 
  3.35  of: 
  3.36     (1) the qualified tuition and related expense as defined 
  4.1   under section 25A(f) of the Internal Revenue Code as adjusted 
  4.2   under section 25A(g)(2) of the Internal Revenue Code for the 
  4.3   taxpayer, the taxpayer's spouse and the taxpayer's dependent, to 
  4.4   the extent the expenses exceed the tax credits which the 
  4.5   taxpayer claimed under section 25A of the Internal Revenue Code 
  4.6   on the taxpayer's federal tax return; or 
  4.7      (2) $4,000 for each student for which the taxpayer can 
  4.8   claim a credit under section 25A of the Internal Revenue Code on 
  4.9   the taxpayer's federal tax return. 
  4.10     The amount eligible for the credit shall be prorated as 
  4.11  provided under sections 25A(d) and 25A(h)(2) of the Internal 
  4.12  Revenue Code.  If the credit for the taxable year exceeds the 
  4.13  liability for tax under this chapter for the taxable year, the 
  4.14  commissioner shall refund the excess to the taxpayer. 
  4.15     Sec. 3.  [EFFECTIVE DATE.] 
  4.16     Section 1 is effective for taxable years beginning after 
  4.17  December 31, 1998, and before January 1, 2002.  Section 2 is 
  4.18  effective for taxable years beginning after December 31, 1998, 
  4.19  and before January 1, 2001.