SF 2103

as introduced - 89th Legislature (2015 - 2016) Posted on 04/22/2015 09:28am

A bill for an act
relating to taxation; individual income; establishing a credit for certain home
improvement expenses; 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] HOMEOWNER IMPROVEMENT CREDIT.
new text end

new text begin Subdivision 1. new text end

new text begin Credit allowed. new text end

new text begin (a) A resident individual is allowed a credit of up
to $10,000 against the tax imposed by this chapter in an amount equal to 20 percent of
the amount paid for improvements to the individual's property classified as a homestead,
provided that the house is at least 49 years old on the date the building permit for the
improvement is issued.
new text end

new text begin (b) For purposes of this section, the age of the house is the number of years since the
original year of its construction. In the case of a building that is relocated, the relocation
must be from a location within the state and the only improvements eligible for the credit
under this subdivision are:
new text end

new text begin (1) those for which building permits were issued to the property owner after the
building was relocated to its present site; and
new text end

new text begin (2) those undertaken during or after the year the building is initially occupied by the
property owner, excluding basic improvements that are necessary to install the building on
its foundation and connect it to utilities at its present site.
new text end

new text begin (c) The amount used to claim the credit excludes amounts used to claim any other
subtractions, credits, exclusions, or exemptions under this chapter, chapter 272, or chapter
273, and any amounts paid for homeowner's insurance premiums.
new text end

new text begin Subd. 2. new text end

new text begin Limitation; carryover. new text end

new text begin The credit for a taxable year shall not exceed
the taxpayer's liability for tax. For purposes of this section, "liability for tax" means
the sum of the tax imposed under section 290.06, subdivisions 1 and 2c, for the taxable
year reduced by the sum of the nonrefundable credits allowed under this chapter. If the
amount of the credit allowed exceeds the liability for tax of the taxpayer, the excess shall
be a carryover to each of the five succeeding taxable years. The entire amount of the
excess unused credit for the taxable year shall 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 which may be carried over under
this clause shall not exceed the taxpayer's liability for tax less the research credit under
section 290.068 for 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, 2014.
new text end