SF 2845

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to taxation; income taxes; providing an income tax credit for health
insurance expenses; proposing coding for new law in Minnesota Statutes, chapter
290.

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

Section 1.

new text begin [290.0678] HEALTH INSURANCE AND MEDICAL EXPENSES
CREDITS.
new text end

new text begin Subdivision 1. new text end

new text begin Health insurance credit; credit allowed. new text end

new text begin A taxpayer is allowed a
credit against the tax due under this chapter equal to the amount paid for qualifying health
insurance expenses on behalf of a qualified beneficiary.
new text end

new text begin Subd. 2. new text end

new text begin Medical co-pay expenses credit; credit allowed. new text end

new text begin A taxpayer is allowed
a credit against the tax due under this chapter equal to the amount paid for qualifying
medical co-pay expenses on behalf of a qualified beneficiary.
new text end

new text begin Subd. 3. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Qualified beneficiary" means the taxpayer, the taxpayer's spouse, or the
taxpayer's dependent as claimed in that taxable year.
new text end

new text begin (c) "Qualifying health insurance expenses" means the amount paid by the taxpayer
in the taxable year as premiums for insurance covering medical care as defined under
section 213(d) of the Internal Revenue Code.
new text end

new text begin (d) "Qualifying medical co-pay expenses" means the amount paid by the taxpayer
in the taxable year to a medical practitioner for medical care as defined under section
213(d) of the Internal Revenue Code.
new text end

new text begin Subd. 4. new text end

new text begin Credit refundable. new text end

new text begin If the amount of credit that the taxpayer is eligible to
receive under this section exceeds the taxpayer's tax liability for tax under this chapter,
the commissioner shall refund the excess to the taxpayer.
new text end

new text begin Subd. 5. new text end

new text begin Appropriation. new text end

new text begin 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, 2007.
new text end