SF 2064

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/16/2021 10:29am

A bill for an act
relating to taxation; income and corporate franchise; providing a credit to brewers,
liquor retailers, and wholesalers for certain unsalable product and purchases of
certain equipment.

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

Section 1. new text begin TEMPORARY TAX CREDIT FOR CERTAIN BREWERS, LIQUOR
RETAILERS, AND WHOLESALERS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "Closure or limited capacity" means:
new text end

new text begin (1) closed to ingress, egress, use, and occupancy by members of the public by Executive
Order 20-04, as extended, amended, and otherwise modified by any related executive order;
or
new text end

new text begin (2) subject to the requirements and limitations, including operating at reduced capacity,
of Executive Order 20-74, as extended, amended, and otherwise modified by any related
executive order.
new text end

new text begin (c) "COVID-19 regulation equipment" means any equipment that supports compliance
with limited capacity requirements, physical distancing, or with the Centers for Disease
Control and Prevention and the Minnesota Department of Health guidance on physical
distancing, to slow or prevent the spread of COVID-19, including but not limited to
subscriptions to reservation software to ensure limited capacity and physical distancing;
UV light upgrades to HVAC systems and similar enhanced ventilation safeguards; and tents,
umbrellas, and additional equipment to expand and make use of both outdoor and indoor
space.
new text end

new text begin (d) "Liquor spoilage" means:
new text end

new text begin (1) for a qualified brewer, the dollar amount of product purchased back from a liquor
wholesaler or liquor retailer, and the dollar amount of any product disposed of as unsalable,
due to closure or limited capacity;
new text end

new text begin (2) for a qualified retailer, the dollar amount of product returned without reimbursement
to a liquor wholesaler or manufacturer, and the dollar amount of any product disposed of
as unsalable, due to closure or limited capacity; and
new text end

new text begin (3) for a qualified wholesaler, the dollar amount of product purchased back from liquor
retailer, the dollar amount of product returned without reimbursement to a manufacturer,
and the dollar amount of any product disposed of as unsalable, due to closure or limited
capacity.
new text end

new text begin (e) "Protective equipment" means any item necessary to support compliance with the
Centers for Disease Control and Prevention and the Minnesota Department of Health
guidance on sanitation and personal protective equipment and physical distancing to slow
or prevent the spread of COVID-19, including but not limited to personal protective
equipment, including gloves, masks, and face shields; hygiene, sanitation, and cleaning
supplies; and items purchased to comply with limited capacity restrictions such as screening,
furniture, signs, and floor markings to enhance physical distancing.
new text end

new text begin (f) "Qualified brewer" means a brewer licensed under Minnesota Statutes, section
340A.301, subdivision 6, clauses (c), (d), (i), and (j).
new text end

new text begin (g) "Qualified retailer" means any on-sale liquor licensee under Minnesota Statutes,
chapter 340A, that was subject to closure or limited capacity.
new text end

new text begin (h) "Qualified wholesaler" means a wholesaler as defined in Minnesota Statutes, section
340A.101, subdivision 28.
new text end

new text begin (i) Except as otherwise provided in this subdivision, the definitions in Minnesota Statutes,
chapter 340A, apply to this section.
new text end

new text begin Subd. 2. new text end

new text begin Credit allowed. new text end

new text begin (a) A qualified brewer, qualified retailer, and qualified
wholesaler are allowed a credit, as calculated under paragraphs (b) and (c), against the tax
imposed under Minnesota Statutes, chapter 290. The credit must be claimed in a manner
prescribed by the commissioner of revenue.
new text end

new text begin (b) A qualified brewer, qualified retailer, or qualified wholesaler may take a credit equal
to the amount of liquor spoilage in the taxable year.
new text end

new text begin (c) A qualified brewer and a qualified retailer may take a credit equal to the amount of
the qualified brewer's or qualified retailer's purchases of protective equipment and COVID-19
regulation equipment in the taxable year.
new text end

new text begin (d) The amounts used to calculate the credit under this section may not be used to
calculate any other credit or subtraction under Minnesota Statutes, chapter 290.
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 agreement,
as of the last day of the taxable year.
new text end

new text begin Subd. 4. new text end

new text begin Credit refundable; appropriation; administration. new text end

new text begin (a) If a taxpayer's total
credit under this section exceeds the taxpayer's liability for tax under Minnesota Statutes,
chapter 290, the commissioner must refund the excess to the taxpayer. The amount necessary
to pay the refunds under this section is appropriated to the commissioner of revenue from
the general fund.
new text end

new text begin (b) The administrative provisions of Minnesota Statutes, chapters 270C, 289A, and 290,
apply to the credit under this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for taxable years beginning
after December 31, 2019, and before January 1, 2022.
new text end