SF 2244

as introduced - 90th Legislature (2017 - 2018) Posted on 03/24/2017 09:20am

A bill for an act
relating to taxation; income; establishing a temporary refundable high school youth
skills training tax credit for employers.

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

Section 1. HIGH SCHOOL YOUTH SKILLS TRAINING CREDIT.

Subdivision 1.

Definitions.

(a) For the purposes of this section, the terms defined in this
subdivision have the meanings given them.

(b) "Commissioner" means the commissioner of revenue.

(c) "Employer" means a taxpayer under Minnesota Statutes, section 290.01, with
employees located in Minnesota.

(d) "Greater Minnesota" means the area of Minnesota located outside the metropolitan
area as defined in Minnesota Statutes, section 473.121, subdivision 2.

(e) "Student learner" means a secondary school student, age 16 or older, participating
in a youth skills program approved under Minnesota Statutes, section 175.46.

Subd. 2.

Tax credit allowed; appropriation.

(a) The commissioner may award credits
to a maximum of ten employers under this section. At least three of the awards must be
reserved for employers located in each of the following areas:

(1) greater Minnesota;

(2) the city of Minneapolis or the city of St. Paul; and

(3) areas outside of those identified in clause (1) or (2).

(b) An employer is allowed a credit against the taxes imposed by Minnesota Statutes,
chapter 290, equal to $2,000 per student learner employed. The employer must claim the
credit in the taxable year when the student learner completes the youth skills program.

(c) Credits allowed 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 income for the taxable year.

(d) If the amount of credit that the taxpayer is eligible to receive under this section
exceeds the taxpayer's tax liability under Minnesota Statutes, chapter 290, the commissioner
of revenue shall refund the excess to the taxpayer.

(e) An amount necessary to pay claims for refund provided in this section is appropriated
from the general fund to the commissioner of revenue.

(f) The commissioner of revenue may use any audit and examination powers under
Minnesota Statutes, chapter 270C or 289A, to the extent necessary to verify that the taxpayer
is eligible for the credit and to assess for the amount of any improperly claimed credit.

EFFECTIVE DATE.

This section is effective the day following final enactment and
credits are allowed for taxable years beginning after December 31, 2017, and before January
1, 2020.