SF 2523

as introduced - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; providing an income tax credit 
  1.3             for wage increases provided to certain employees; 
  1.4             amending Minnesota Statutes 1994, section 290.06, by 
  1.5             adding a subdivision. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1994, section 290.06, is 
  1.8   amended by adding a subdivision to read: 
  1.9      Subd. 25.  [CREDIT FOR WAGE INCREASES.] A taxpayer who pays 
  1.10  or incurs wages or salaries in this state as determined under 
  1.11  section 290.191, subdivision 12, may take a credit against the 
  1.12  tax due under this chapter as provided in this subdivision.  The 
  1.13  credit is equal to 50 percent of the qualified real wage 
  1.14  increase paid to each employee.  As used in this subdivision, a 
  1.15  "qualified real wage increase" is the amount by which (1) the 
  1.16  annualized wage or salary paid in the taxable year to an 
  1.17  employee exceeds (2) the annualized amount payable to that 
  1.18  employee in the previous taxable year, increased by the 
  1.19  percentage increase used for purposes of subdivision 2d, for the 
  1.20  previous taxable year.  The credit is limited in application to 
  1.21  the first $5,000 of qualified real wage increase for each 
  1.22  employee, and applies only to employees whose annualized 
  1.23  salaries in the preceding year did not exceed $40,000.  If the 
  1.24  credit provided under this subdivision exceeds the tax liability 
  1.25  of the corporation for the taxable year, the excess amount of 
  2.1   the credit may be carried over to each of the ten taxable years 
  2.2   succeeding the taxable year.  The entire amount of the credit 
  2.3   must be carried to the earliest taxable year to which the amount 
  2.4   may be carried, and any unused portion of the credit must be 
  2.5   carried to the following taxable year. 
  2.6      Sec. 2.  [EFFECTIVE DATE.] 
  2.7      Section 1 is effective for taxable years beginning after 
  2.8   December 31, 1995.