SF 49

as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 02:10am

A bill for an act
relating to taxation; income; creating a health insurance premium credit;
proposing coding for new law in Minnesota Statutes, chapter 290; repealing
Minnesota Statutes 2008, sections 62U.071; 275.76.

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

Section 1.

new text begin [290.0678] HEALTH INSURANCE PREMIUMS CREDIT.
new text end

new text begin Subdivision 1. new text end

new text begin Credit allowed. new text end

new text begin (a) An individual is allowed a credit against the
tax due under this chapter equal to 20 percent of the health insurance premiums paid
from a plan under section 125 of the Internal Revenue Code. The credit is allowed only
for premiums paid after the individual has not had coverage under a health care plan
for at least one year, and is allowed only for the first 12 months in which an individual
participates in the Section 125 Plan.
new text end

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

new text begin Subd. 2. new text end

new text begin Limitations. new text end

new text begin The credit is allowed only for individuals with household
income for the taxable year between:
new text end

new text begin (1) 275 percent and 300 percent of the federal poverty guidelines for the applicable
family size if the individual has dependents; or
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new text begin (2) 200 percent and 275 percent of the federal poverty guidelines for the applicable
family size if the individual has no dependents.
new text end

new text begin Subd. 3. new text end

new text begin Definitions. new text end

new text begin For purposes of this section, "household income" means
income as defined in section 290.067, subdivision 2a, and "dependent" has the meaning
given in section 152 of the Internal Revenue Code.
new text end

new text begin Subd. 4. new text end

new text begin Statement of premiums paid. new text end

new text begin Each employer must provide to each
employee a statement that shows the amount of health insurance premiums paid from the
Section 125 Plan for each month of the taxable year. The employer must provide the
statement to the employee at the same time as the annual written statement of wages paid
as required under section 289A.09, subdivision 2.
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, 2008, for premiums paid in January 2009 and thereafter.
new text end

Sec. 2. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2008, section 62U.071, new text end new text begin is repealed.
new text end

new text begin (b) new text end new text begin Minnesota Statutes 2008, section 275.76, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Paragraph (a) is effective the day following final enactment.
Paragraph (b) is effective retroactively from July 1, 2008.
new text end