SF 2992

as introduced - 89th Legislature (2015 - 2016) Posted on 03/22/2016 09:09am

A bill for an act
relating to taxes; individual income; modifying the credit for past military
service; amending Minnesota Statutes 2014, section 290.0677, subdivisions 1a, 2.

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

Section 1.

Minnesota Statutes 2014, section 290.0677, subdivision 1a, is amended to
read:

Subd. 1a.

Credit allowed; past military service.

(a) A qualified individual is
allowed a credit against the tax imposed under this chapter for past military service. The
credit equals $750. The credit allowed under this subdivision is reduced by ten percent
of adjusted gross income in excess of deleted text begin $30,000 deleted text end new text begin $50,000 new text end , but in no case is the credit less
than zero.

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2015.
new text end

Sec. 2.

Minnesota Statutes 2014, section 290.0677, subdivision 2, is amended to read:

Subd. 2.

Definitions.

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

(b) "Designated area" means a:

(1) combat zone designated by Executive Order from the President of the United
States;

(2) qualified hazardous duty area, designated in Public Law; or

(3) location certified by the U. S. Department of Defense as eligible for combat zone
tax benefits due to the location's direct support of military operations.

(c) "Active military service" means active duty service in any of the United States
armed forces, the National Guard, or reserves.

(d) "Qualified individual" means an individual who has:

(1) met one of the following criteria:

(i) has served at least 20 years in the military;

(ii) has a deleted text begin service-connected disability rating of 100 percent for a total and permanent
disability deleted text end new text begin compensable service-connected disability as adjudicated by the United States
Veterans Administration or by the retirement board of one of the several branches of
the armed forces new text end ; or

(iii) has been determined by the military to be eligible for compensation from a
pension or other retirement pay from the federal government for service in the military,
as computed under United States Code, title 10, sections 1401 to 1414, 1447 to 1455,
or 12733; and

(2) separated from military service before the end of the taxable year.

(e) "Adjusted gross income" has the meaning given in section 61 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, 2015.
new text end

Sec. 3. new text begin PURPOSE STATEMENT; TAX EXPENDITURES.
new text end

new text begin Subdivision 1. new text end

new text begin Authority. new text end

new text begin This section is intended to fulfill the requirement under
Minnesota Statutes, section 3.192, that a bill creating, renewing, or continuing a tax
expenditure provide a purpose for the tax expenditure and a standard or goal against
which its effectiveness may be measured.
new text end

new text begin Subd. 2. new text end

new text begin Credit for past military service. new text end

new text begin The provisions of section 1, extending
the credit for past military service to a higher income level and to all veterans with
a compensable service-connected disability, are intended to provide assistance and
recognition to lower-income and disabled Minnesota veterans. The standard against which
the effectiveness of the credit is to be measured is the number of veterans who claim the
credit as a percentage of all veterans who are eligible.
new text end