SF 5186

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/26/2024 08:44am

A bill for an act
relating to taxation; individual income; establishing a contingent health insurance
premium tax credit; amending Minnesota Statutes 2022, section 290.0122,
subdivision 6; Minnesota Statutes 2023 Supplement, section 62V.13, subdivision
3.

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

Section 1.

Minnesota Statutes 2023 Supplement, section 62V.13, subdivision 3, is amended
to read:

Subd. 3.

Outreach letter and special enrollment period.

(a) MNsure must provide a
written letter of the projected assessment under subdivision 2 to a taxpayer who indicates
to the commissioner of revenue that the taxpayer is interested in obtaining information on
access to health insurance.

(b) MNsure must allow a special enrollment period for taxpayers who receive the outreach
letter in paragraph (a) and are determined eligible to enroll in a qualified health plan through
MNsure new text begin or in the public option new text end . The triggering event for the special enrollment period is
the day the outreach letter under this subdivision is mailed to the taxpayer. An eligible
individual, and their dependents, have 65 days from the triggering event to select a qualifying
health plan new text begin or the public option new text end and coverage for the qualifying health plan new text begin or the public
option new text end is effective the first day of the month after plan selection.

(c) Taxpayers who have a member of the taxpayer's household currently enrolled in a
qualified health plan through MNsure new text begin or in the public option new text end are not eligible for the special
enrollment under paragraph (b).

(d) MNsure must provide information to the general public about the easy enrollment
health insurance outreach program and the special enrollment period described in this
subdivision.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2027, or upon federal approval,
whichever is later. The commissioner of commerce shall notify the revisor of statutes when
federal approval is obtained.
new text end

Sec. 2.

Minnesota Statutes 2022, section 290.0122, subdivision 6, is amended to read:

Subd. 6.

Medical expenses.

A taxpayer is allowed a deduction for medical expenses.
The deduction equals the amount allowed under section 213 of the Internal Revenue Code,
except that the threshold percentage of adjusted gross income in paragraph (a) is ten percent
regardless of the federal percentage for the taxable year. new text begin For taxable years beginning after
December 31, 2025, and before January 1, 2028, no deduction is allowed for amounts paid
for insurance premiums used to claim the credit under section 3.
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, 2025.
new text end

Sec. 3.

new text begin CONTINGENT HEALTH INSURANCE PREMIUM TAX 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) "Commissioner" means the commissioner of revenue.
new text end

new text begin (c) "Eligible taxpayer" means a taxpayer who:
new text end

new text begin (1) is not eligible for a premium tax credit under Code of Federal Regulations, title 26,
section 1.36B-2, due to having household income in excess of 400 percent of the federal
poverty guidelines for the taxpayer's family size for the taxable year; and
new text end

new text begin (2) has purchased a qualified health plan through MNsure.
new text end

new text begin (d) "MNsure" has the meaning given in Minnesota Statutes, section 62V.02, subdivision
8.
new text end

new text begin (e) "Premium" means the amount paid for a qualified health plan in a taxable year.
new text end

new text begin (f) "Qualified health plan" has the meaning given in Minnesota Statutes, section 62V.02,
subdivision 11.
new text end

new text begin Subd. 2. new text end

new text begin Credit allowed. new text end

new text begin (a) Except as provided in subdivision 4, for taxable years
beginning after December 31, 2025, and before January 1, 2028, an eligible taxpayer is
allowed a credit against the tax imposed by Minnesota Statutes, chapter 290, equal to 20
percent of the premiums paid for a qualified health plan purchased through MNsure.
new text end

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

new text begin Subd. 3. new text end

new text begin Credit refundable; method of claiming. new text end

new text begin (a) If the amount of the credit a
taxpayer is eligible to receive under this section exceeds the taxpayer's liability for tax under
Minnesota Statutes, chapter 290, the commissioner shall refund the excess to the taxpayer.
new text end

new text begin (b) The commissioner, in consultation with the chief executive officer of MNsure, shall
prescribe the form and manner in which the credit must be claimed.
new text end

new text begin Subd. 4. new text end

new text begin Credit contingent. new text end

new text begin A credit under this section is only allowed for a taxable
year described in subdivision 2 if the Minnesota premium security plan under Minnesota
Statutes, section 62E.23, or a substantially similar plan, is not funded at any level by the
legislature for that taxable year.
new text end

new text begin Subd. 5. new text end

new text begin Appeals. new text end

new text begin Eligibility for the credit is appealable to the commissioner of revenue.
new text end

new text begin Subd. 6. new text end

new text begin Appropriation. new text end

new text begin The amount necessary to pay the refunds under this section is
appropriated annually for the taxable years described in subdivision 2 to the commissioner
of revenue.
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, 2025, and before January 1, 2028.
new text end