SF 2224

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to taxation; providing an income tax credit
for contributions to health savings accounts;
appropriating money; amending Minnesota Statutes 2004,
section 290.06, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2004, section 290.06, is
amended by adding a subdivision to read:

new text begin Subd. 32. new text end

new text begin Credit for contributions to health savings
accounts. new text end

new text begin (a) An individual may take a credit against the tax
imposed under this chapter equal to 25 percent of the
individual's contributions to a health savings account that
qualifies for a deduction under section 223 of the Internal
Revenue Code for the benefit of that individual and that
individual's family.
new text end

new text begin (b) For claimants with income not greater than $33,500, the
maximum credit allowed is $500. No credit is allowed for
contributions by individuals with income greater than $41,500.
The maximum credit is reduced by $1 for each $4 of household
income over $33,500, but in no case is the credit less than zero.
new text end

new text begin For purposes of this section, "income" has the meaning
given in section 290.067, subdivision 2a. In the case of a
married claimant, a credit is not allowed unless a joint income
tax return is filed.
new text end

new text begin (c) For a nonresident or part-year resident, the credit
determined under paragraph (a) and the maximum credit amount in
paragraph (b) must be allocated using the percentage calculated
in section 290.06, subdivision 2c, paragraph (e).
new text end

new text begin (d) The amount of the credit allowed must be reduced by the
amount of the taxpayer's liability under section 290.091,
determined before the credit allowed by this section is
subtracted from regular tax liability.
new text end

new text begin (e) If the amount of the credit that the claimant is
eligible to receive under this subdivision exceeds the
claimant's tax liability under this chapter, the commissioner
shall refund the excess to the claimant.
new text end

new text begin (f) An amount sufficient to pay the refunds required by
this section is appropriated to the commissioner from the
general fund.
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, 2004.
new text end