HF 1944

1st Engrossment - 90th Legislature (2017 - 2018) Posted on 03/12/2018 04:32pm

A bill for an act
relating to taxation; income; establishing a temporary refundable high school youth
skills training tax credit for employers; requiring a report; appropriating money.

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

Section 1. new text begin HIGH SCHOOL YOUTH SKILLS TRAINING CREDIT.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the terms defined in this
subdivision have the meanings given them.
new text end

new text begin (b) "Commissioner" means the commissioner of revenue.
new text end

new text begin (c) "Student learner" means a secondary school student, age 16 or older, participating
in a youth skills program approved under Minnesota Statutes, section 175.46.
new text end

new text begin (d) "Employer" means a taxpayer under Minnesota Statutes, section 290.01, with
employees located in Minnesota.
new text end

new text begin (e) "Greater Minnesota" means the area of Minnesota located outside the metropolitan
area as defined in Minnesota Statutes, section 473.121, subdivision 2.
new text end

new text begin Subd. 2. new text end

new text begin Tax credit allowed; appropriation. new text end

new text begin (a) The commissioner may award credits
to a maximum of ten employers under this section. At least three of the awards must be
reserved for employers located in each of the following areas:
new text end

new text begin (1) greater Minnesota;
new text end

new text begin (2) the city of Minneapolis or the city of St. Paul; and
new text end

new text begin (3) areas outside of those identified in clause (1) or (2).
new text end

new text begin (b) Subject to the requirements in paragraph (c), an employer is allowed a credit against
the taxes imposed by Minnesota Statutes, chapter 290, equal to $2,000 per student learner
employed. The employer must claim the credit in the taxable year when the student learner
completes the youth skills program.
new text end

new text begin (c) For an employer to be eligible for the credits under paragraph (b):
new text end

new text begin (1) all student learners employed by the employer must complete, at least, the
Occupational Health and Safety Administration ten-hour class before beginning the workplace
portion of the program; and
new text end

new text begin (2) employers must supervise student learners at a ratio of at least one supervisor per
student learner.
new text end

new text begin (d) Credits allowed to a partnership, a limited liability company taxed as a partnership,
an 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 income for the taxable year.
new text end

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

new text begin (f) An amount necessary to pay claims for refund provided in this section is appropriated
from the general fund to the commissioner of revenue.
new text end

new text begin (g) The commissioner of revenue may use any audit and examination powers under
Minnesota Statutes, chapter 270C or 289A, to the extent necessary to verify that the taxpayer
is eligible for the credit and to assess for the amount of any improperly claimed credit.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
credits are allowed for taxable years beginning after December 31, 2017, and before January
1, 2020.
new text end