SF 2129

as introduced - 89th Legislature (2015 - 2016) Posted on 04/29/2015 08:28am

A bill for an act
relating to taxation; allowing a credit for historic structure rehabilitation.

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

Section 1. new text begin CREDIT FOR JOB TRAINING CENTER REHABILITATION.
new text end

new text begin (a) A taxpayer is allowed a credit against the tax due under Minnesota Statutes,
chapter 290, if the taxpayer rehabilitates and places in service in calendar year 2015 or
2016 an historic structure that once served as a medical care facility adjacent to a private
college and is located in Hennepin County. The credit equals 20 percent of the qualified
rehabilitation expenditures for the project.
new text end

new text begin (b) The taxpayer must notify the commissioner within six months of when the
project is placed in service, and must provide documentation that the project meets the
requirements of this section, in the form and manner prescribed by the commissioner. The
commissioner must issue a credit certificate to the developer upon verifying that the
project has been placed in service and meets the requirements of this section.
new text end

new text begin (c) The recipient of a credit certificate may assign the certificate to another taxpayer,
including an insurance company, which is then allowed the credit under this section. An
assignment is not valid unless the assignee notifies the commissioner within 30 days of
the date the assignment is made. The commissioner shall prescribe the forms necessary
for notifying the commissioner of the assignment of a credit certificate and for claiming
a credit by assignment. In lieu of the credit under paragraph (a), an insurance company
that is assigned a credit under this paragraph may claim the credit against the insurance
premiums tax imposed under chapter 297I.
new text end

new text begin (d) Credits granted to a partnership, a limited liability company taxed as a
partnership, 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 (e) If the amount of credit that a taxpayer is eligible to receive under this section
exceeds the taxpayer's liability for tax under Minnesota Statutes, chapter 290, the
commissioner shall refund the excess to the taxpayer. If the amount of credit assigned to
an insurance company exceeds the liability for tax under chapter 297I, the commissioner
shall refund the excess to the insurance company. An amount sufficient to pay the refunds
authorized under this section is appropriated to the commissioner from the general fund.
new text end

new text begin (f) For purposes of this section, the following terms have the meanings given:
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new text begin (1) "commissioner" means the commissioner of revenue;
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new text begin (2) "qualified rehabilitation expenditures" means amounts chargeable to capital
accounts but does not include the cost of acquiring the structure or enlarging the structure;
and
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new text begin (3) "project" means rehabilitation of a certified historic structure that is located
in Minnesota.
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, and before January 1, 2017, for projects placed in service in calendar
years 2015 and 2016.
new text end