SF 2928

as introduced - 88th Legislature (2013 - 2014) Posted on 03/31/2014 08:34am

A bill for an act
relating to taxation; individual income; establishing tax credits for certain
home care providers and parents or guardians of children with disabilities;
appropriating money; amending Minnesota Statutes 2012, sections 256B.0911,
subdivision 3; 290.0674, subdivisions 1, 2, 4, by adding a subdivision; proposing
coding for new law in Minnesota Statutes, chapter 290.

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

Section 1.

Minnesota Statutes 2012, section 256B.0911, subdivision 3, is amended to
read:

Subd. 3.

Long-term care consultation team.

(a) A long-term care consultation
team shall be established by the county board of commissioners. Two or more counties
may collaborate to establish a joint local consultation team or teams.

(b) Certified assessors must be part of a multidisciplinary long-term care consultation
team of professionals that includes public health nurses, social workers, and other
professionals as defined in subdivision 2b, paragraph (b). The team is responsible for
providing long-term care consultation services to all persons located in the county who
request the services, regardless of eligibility for Minnesota health care programs.

(c) The commissioner shall allow arrangements and make recommendations that
encourage counties and tribes to collaborate to establish joint local long-term care
consultation teams to ensure that long-term care consultations are done within the
timelines and parameters of the service. This includes integrated service models as
required in subdivision 1, paragraph (b).

(d) Tribes and health plans under contract with the commissioner must provide
long-term care consultation services as specified in the contract.

(e) The lead agency must provide the commissioner with an administrative contact
for communication purposes.

new text begin (f) For applicants for a credit under section 290.0682, the team must certify in
accordance with procedures established by the commissioner that the care provided by
the caregiver:
new text end

new text begin (1) qualifies as personal care assistant services under section 256B.0625, subdivision
19a;
new text end

new text begin (2) is needed and provided in person on a daily basis; and
new text end

new text begin (3) is appropriate based on the service recipient's needs and is likely to delay or
avoid transferring the person to an out-of-home placement.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2015.
new text end

Sec. 2.

Minnesota Statutes 2012, section 290.0674, subdivision 1, is amended to read:

Subdivision 1.

Credit allowed.

An individual is allowed a credit against the
tax imposed by this chapter in an amount equal to 75 percent of the amount paid for
education-related expenses new text begin , less the amount of expenses used to claim the credit under
subdivision 1a, new text end for a qualifying child in kindergarten through grade 12. For purposes of
this section, "education-related expenses" means:

(1) fees or tuition for instruction by an instructor under section 120A.22, subdivision
10, clause (1), (2), (3), (4), or (5), or a member of the Minnesota Music Teachers
Association, and who is not a lineal ancestor or sibling of the dependent for instruction
outside the regular school day or school year, including tutoring, driver's education
offered as part of school curriculum, regardless of whether it is taken from a public or
private entity or summer camps, in grade or age appropriate curricula that supplement
curricula and instruction available during the regular school year, that assists a dependent
to improve knowledge of core curriculum areas or to expand knowledge and skills under
the required academic standards under section 120B.021, subdivision 1, and the elective
standard under section 120B.022, subdivision 1, clause (2), and that do not include the
teaching of religious tenets, doctrines, or worship, the purpose of which is to instill such
tenets, doctrines, or worship;

(2) expenses for textbooks, including books and other instructional materials and
equipment purchased or leased for use in elementary and secondary schools in teaching
only those subjects legally and commonly taught in public elementary and secondary
schools in this state. "Textbooks" does not include instructional books and materials
used in the teaching of religious tenets, doctrines, or worship, the purpose of which is
to instill such tenets, doctrines, or worship, nor does it include books or materials for
extracurricular activities including sporting events, musical or dramatic events, speech
activities, driver's education, or similar programs;

(3) a maximum expense of $200 per family for personal computer hardware,
excluding single purpose processors, and educational software that assists a dependent to
improve knowledge of core curriculum areas or to expand knowledge and skills under
the required academic standards under section 120B.021, subdivision 1, and the elective
standard under section 120B.022, subdivision 1, clause (2), purchased for use in the
taxpayer's home and not used in a trade or business regardless of whether the computer is
required by the dependent's school; and

(4) the amount paid to others for transportation of a qualifying child attending an
elementary or secondary school situated in Minnesota, North Dakota, South Dakota, Iowa,
or Wisconsin, wherein a resident of this state may legally fulfill the state's compulsory
attendance laws, which is not operated for profit, and which adheres to the provisions of
the Civil Rights Act of 1964 and chapter 363A.

For purposes of this section, "qualifying child" has the meaning given in section
32(c)(3) of the Internal Revenue Code.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2013.
new text end

Sec. 3.

Minnesota Statutes 2012, section 290.0674, is amended by adding a subdivision
to read:

new text begin Subd. 1a. new text end

new text begin Credit allowed for parents or guardians of students with disabilities.
new text end

new text begin (a) An individual is allowed a credit against the tax imposed by this chapter in an
amount equal to 75 percent of the amount paid for tutoring expenses not compensated
by insurance, pretax account, or otherwise, paid by a parent or guardian of a student in
kindergarten through grade 12 for whom a Minnesota individualized education program is
in effect pursuant to section 125A.08. The parent or guardian claiming the credit must be
a member of the student's individual education program team and must have claimed the
student as a dependent for all or part of the tax year. An individual claiming the credit
under this subdivision must provide documentation of eligibility for the credit in a form
and manner prescribed by the commissioner.
new text end

new text begin (b) For the purposes of this subdivision, eligible expenses for tutoring are the same
as provided in subdivision 1, clause (1).
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, 2013.
new text end

Sec. 4.

Minnesota Statutes 2012, section 290.0674, subdivision 2, is amended to read:

Subd. 2.

Limitations.

(a) new text begin (1) new text end For claimants with income not greater than $33,500,
the maximum credit allowed new text begin under subdivision 1 new text end for a family is $1,000 multiplied by
the number of qualifying children in kindergarten through grade 12 in the family. The
maximum credit new text begin under subdivision 1 new text end for families with one qualifying child in kindergarten
through grade 12 is reduced by $1 for each $4 of household income over $33,500, and the
maximum credit new text begin under subdivision 1 new text end for families with two or more qualifying children in
kindergarten through grade 12 is reduced by $2 for each $4 of household income over
$33,500, but in no case is the credit new text begin under subdivision 1 new text end less than zero new text begin ; and
new text end

new text begin (2) for claimants with income not greater than 300 percent of the federal poverty
guideline, the maximum credit allowed under subdivision 1a for a family is $2,000. The
credit under subdivision 1a is reduced by $100 for every $1,000 of household income over
300 percent of the federal poverty guideline new text end .

new text begin (b) new text end 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.

deleted text begin (b) deleted text end new text begin (c) new text end For a nonresident or part-year resident, the credit determined under
subdivision 1 and the maximum credit amount in paragraph (a) new text begin and the credit determined
under subdivision 1a new text end must be allocated using the percentage calculated in section 290.06,
subdivision 2c, paragraph (e).

new text begin 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, 2013.
new text end

Sec. 5.

Minnesota Statutes 2012, section 290.0674, subdivision 4, is amended to read:

Subd. 4.

Credit to be refundable.

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2013.
new text end

Sec. 6.

new text begin [290.0682] MINNESOTA HOME CAREGIVER CREDIT.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin The terms used in this section have the following
meanings given unless otherwise provided for by text.
new text end

new text begin Subd. 2. new text end

new text begin Caregiver. new text end

new text begin "Caregiver" means an individual who provides unpaid
assistance on a daily basis that qualifies as personal care assistant services under section
256B.0625, subdivision 19a, to a service recipient in either the individual's principal
residence or the service recipient's principal residence.
new text end

new text begin Subd. 3. new text end

new text begin Service recipient. new text end

new text begin "Service recipient" means an individual who:
new text end

new text begin (1) is the spouse, parent, stepparent, sibling, stepsibling, child, stepchild,
grandparent, or stepgrandparent of the taxpayer;
new text end

new text begin (2) does not reside in a setting licensed or registered by the commissioners of health
or human services; and
new text end

new text begin (3) has been screened by a county long-term care consultation team and determined
by that team to be eligible for placement in a nursing home or other long-term care facility.
new text end

new text begin Subd. 4. new text end

new text begin Credit allowed. new text end

new text begin (a) An individual is allowed a credit against the tax
imposed by this chapter equal to $200 for each month during the tax year that the individual
is a caregiver for a service recipient. The maximum credit in a tax year shall be $2,400.
new text end

new text begin (b) An individual claiming the credit must certify to the commissioner that the
individual and the service recipient satisfy all the requirements of this section.
new text end

new text begin (c) Only one credit may be claimed for each service recipient in any tax year.
new text end

new text begin (d) For a nonresident or part-year resident, the credit must be allocated based on the
percentage calculated under section 290.06, subdivision 2c, paragraph (e).
new text end

new text begin Subd. 5. new text end

new text begin Credit limitations. new text end

new text begin (a) For claimants with income not greater than 300
percent of the federal poverty guideline, the credit under subdivision 4 is reduced by $100
for every $1,000 of household income over 300 percent of the federal poverty guideline.
new text end

new text begin (b) Eligibility for the credit in subdivision 4 is limited to persons who have been
certified by a long-term care consultation team under section 256B.0911, subdivision 3,
paragraph (e).
new text end

new text begin (c) The credit in subdivision 4 is reduced to $100 for any month in which a
service recipient receives more than four hours per day on average of federal, state, or
county-funded home care services as specified in section 256B.0651, subdivision 2.
new text end

new text begin Subd. 6. new text end

new text begin Credit refundable. new text end

new text begin If the amount of the credit under this section exceeds
the individual's tax liability under this chapter, the commissioner shall refund the excess
amount to the claimant.
new text end

new text begin Subd. 7. new text end

new text begin Caregiver training. new text end

new text begin For each year in which a credit is claimed under this
section, the caregiver must participate in at least eight hours of (1) caregiver training,
education, or counseling, or (2) caregiver support group sessions.
new text end

new text begin Subd. 8. new text end

new text begin Appropriation. new text end

new text begin The amount necessary to pay the refunds under this
chapter is appropriated annually to the commissioner.
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, 2013.
new text end