SF 2547

as introduced - 92nd Legislature (2021 - 2022) Posted on 05/15/2021 09:02am

A bill for an act
relating to taxation; individual income and corporate franchise; providing for
conformity of federal paycheck protection program loan treatment and exclusion
of certain unemployment compensation.

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

Section 1. new text begin EXCLUSION FROM GROSS INCOME FOR CERTAIN FORGIVEN
PPP LOANS.
new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin This section applies for the purpose of calculating:
new text end

new text begin (1) net income, as defined in Minnesota Statutes, section 290.01, subdivision 19;
new text end

new text begin (2) income, as defined in Minnesota Statutes, section 290.0674, subdivision 2a;
new text end

new text begin (3) alternative minimum taxable income, as defined in Minnesota Statutes, section
290.091, subdivision 2;
new text end

new text begin (4) alternative minimum taxable income, as defined in Minnesota Statutes, section
290.0921, subdivision 3; and
new text end

new text begin (5) income, as defined in Minnesota Statutes, section 290A.03, subdivision 3.
new text end

new text begin Subd. 2. new text end

new text begin Adopting federal changes related to the paycheck protection
program. new text end

new text begin "Internal Revenue Code" has the meaning given in Minnesota Statutes, section
290.01, subdivision 31, as amended through the date specified in that subdivision, but
including the following amendments:
new text end

new text begin (1) the exclusion from gross income under section 1106 of Public Law 116-136;
new text end

new text begin (2) section 276 of Public Law 116-260; and
new text end

new text begin (3) all modifications to the Internal Revenue Code in Public Laws 116-142 and 116-147.
new text end

new text begin Subd. 3. new text end

new text begin No denial of deduction. new text end

new text begin Notwithstanding Minnesota Statutes, section 290.10,
the commissioner of revenue must not deny a taxpayer a deduction that is allowed under
section 276 of the COVID-related Tax Relief Act of 2020 in Public Law 116-260.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively at the same time the
provisions of federal law specified in subdivision 2, clauses (1) to (3), were effective for
federal purposes.
new text end

Sec. 2. new text begin TEMPORARY INDIVIDUAL INCOME TAX SUBTRACTION;
UNEMPLOYMENT INSURANCE BENEFITS.
new text end

new text begin (a) For the purposes of this section:
new text end

new text begin (1) "subtraction" has the meaning given in Minnesota Statutes, section 290.0132; and
new text end

new text begin (2) "unemployment compensation" has the meaning given in section 85(b) of the Internal
Revenue Code.
new text end

new text begin (b) For taxable years beginning after December 31, 2019, and before January 1, 2021,
an individual taxpayer with adjusted gross income that is less than $150,000 is allowed a
subtraction equal to the amount of unemployment compensation received in the taxable
year. The subtraction is limited to $10,200, except for a joint return the subtraction is limited
to $10,200 in unemployment compensation received by each spouse.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for taxable years beginning
after December 31, 2019, and before January 1, 2021.
new text end