SF 3024

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/21/2023 08:32am

A bill for an act
relating to taxation; individual income and corporate franchise; providing a credit
for investments in advanced manufacturing facilities; 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 [290.0687] MINNESOTA ADVANCED MANUFACTURING
INVESTMENT CREDIT.
new text end

new text begin Subdivision 1. 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) "Advanced manufacturing facility" means an advanced manufacturing facility, as
defined in section 48D(b)(3) of the Internal Revenue Code, that is located in Minnesota.
new text end

new text begin (c) "Eligible taxpayer" has the meaning given in section 48D(c) of the Internal Revenue
Code.
new text end

new text begin (d) "Federal credit" means the credit allowed under section 48D of the Internal Revenue
Code.
new text end

new text begin (e) "Qualified investment" means a qualified investment as defined under section
48D(b)(1) of the Internal Revenue Code.
new text end

new text begin (f) "Qualified property" means qualified property as defined in section 48D(b)(2) of the
Internal Revenue Code that is located in Minnesota.
new text end

new text begin Subd. 2. new text end

new text begin Credit allowed; advanced manufacturing facility. new text end

new text begin (a) An eligible taxpayer
is allowed a credit against the tax imposed under this chapter equal to not more than 100
percent of the credit allowed to the eligible taxpayer under section 48D of the Internal
Revenue Code for a qualified investment. The credit is payable in the year the qualified
property is placed in service by the eligible taxpayer. To qualify for the credit, the eligible
taxpayer must be allowed the federal credit and must comply with requirements for claiming
the credit under subdivision 5.
new text end

new text begin (b) A qualified investment eligible for a credit under this section for a taxable year must
not include the portion of the basis of any property that is attributable to qualified
rehabilitation expenditures as defined under section 290.0681, subdivision 1, paragraph (g).
new text end

new text begin Subd. 3. 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 liability for tax under this chapter, the commissioner shall
refund the excess to the taxpayer.
new text end

new text begin Subd. 4. new text end

new text begin Partnerships; multiple owners. new text end

new text begin Credits granted to a partnership, a limited
liability company taxed as a partnership, S corporation, or multiple owners of property are
passed through to the partners, members, shareholders, or owners, respectively, pro rata to
each partner, member, shareholder, or owner based on their share of the entity's assets or
as specially allocated in their organizational documents or any other executed agreement,
as of the last day of the taxable year.
new text end

new text begin Subd. 5. new text end

new text begin Manner of claiming. new text end

new text begin The commissioner shall prescribe the manner in which
the credit may be issued or claimed, which may include allowing the credit only as a
separately processed claim for refund.
new text end

new text begin Subd. 6. new text end

new text begin Application of provisions; sunset. new text end

new text begin (a) For property for which construction
began before January 1, 2023, this section applies only to the basis of qualified property
that is attributable to the construction, reconstruction, or erection of the property beginning
after August 8, 2022.
new text end

new text begin (b) This section expires for property for which construction begins after December 31,
2026.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for qualified property placed
in service after December 31, 2022, for which construction begins before January 1, 2027.
new text end