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Office of the Revisor of Statutes

Key: (1) language to be deleted (2) new language

                             CHAPTER 1-S.F.No. 218 
                  An act relating to taxation; accelerating the income 
                  tax charitable contribution deduction for relief of 
                  Indian Ocean tsunami victims; amending Minnesota 
                  Statutes 2004, section 290.01, subdivision 19. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 2004, section 290.01, 
        subdivision 19, is amended to read: 
           Subd. 19.  [NET INCOME.] The term "net income" means the 
        federal taxable income, as defined in section 63 of the Internal 
        Revenue Code of 1986, as amended through the date named in this 
        subdivision, incorporating any elections made by the taxpayer in 
        accordance with the Internal Revenue Code in determining federal 
        taxable income for federal income tax purposes, and with the 
        modifications provided in subdivisions 19a to 19f. 
           In the case of a regulated investment company or a fund 
        thereof, as defined in section 851(a) or 851(g) of the Internal 
        Revenue Code, federal taxable income means investment company 
        taxable income as defined in section 852(b)(2) of the Internal 
        Revenue Code, except that:  
           (1) the exclusion of net capital gain provided in section 
        852(b)(2)(A) of the Internal Revenue Code does not apply; 
           (2) the deduction for dividends paid under section 
        852(b)(2)(D) of the Internal Revenue Code must be applied by 
        allowing a deduction for capital gain dividends and 
        exempt-interest dividends as defined in sections 852(b)(3)(C) 
        and 852(b)(5) of the Internal Revenue Code; and 
           (3) the deduction for dividends paid must also be applied 
        in the amount of any undistributed capital gains which the 
        regulated investment company elects to have treated as provided 
        in section 852(b)(3)(D) of the Internal Revenue Code.  
           The net income of a real estate investment trust as defined 
        and limited by section 856(a), (b), and (c) of the Internal 
        Revenue Code means the real estate investment trust taxable 
        income as defined in section 857(b)(2) of the Internal Revenue 
        Code.  
           The net income of a designated settlement fund as defined 
        in section 468B(d) of the Internal Revenue Code means the gross 
        income as defined in section 468B(b) of the Internal Revenue 
        Code. 
           The provisions of sections 1113(a), 1117, 1206(a), 1313(a), 
        1402(a), 1403(a), 1443, 1450, 1501(a), 1605, 1611(a), 1612, 
        1616, 1617, 1704(l), and 1704(m) of the Small Business Job 
        Protection Act, Public Law 104-188, the provisions of Public Law 
        104-117, the provisions of sections 313(a) and (b)(1), 602(a), 
        913(b), 941, 961, 971, 1001(a) and (b), 1002, 1003, 1012, 1013, 
        1014, 1061, 1062, 1081, 1084(b), 1086, 1087, 1111(a), 1131(b) 
        and (c), 1211(b), 1213, 1530(c)(2), 1601(f)(5) and (h), and 
        1604(d)(1) of the Taxpayer Relief Act of 1997, Public Law 
        105-34, the provisions of section 6010 of the Internal Revenue 
        Service Restructuring and Reform Act of 1998, Public Law 
        105-206, the provisions of section 4003 of the Omnibus 
        Consolidated and Emergency Supplemental Appropriations Act, 
        1999, Public Law 105-277, and the provisions of section 318 of 
        the Consolidated Appropriation Act of 2001, Public Law 106-554, 
        shall become effective at the time they become effective for 
        federal purposes. 
           The Internal Revenue Code of 1986, as amended through 
        December 31, 1996, shall be in effect for taxable years 
        beginning after December 31, 1996. 
           The provisions of sections 202(a) and (b), 221(a), 225, 
        312, 313, 913(a), 934, 962, 1004, 1005, 1052, 1063, 1084(a) and 
        (c), 1089, 1112, 1171, 1204, 1271(a) and (b), 1305(a), 1306, 
        1307, 1308, 1309, 1501(b), 1502(b), 1504(a), 1505, 1527, 1528, 
        1530, 1601(d), (e), (f), and (i) and 1602(a), (b), (c), and (e) 
        of the Taxpayer Relief Act of 1997, Public Law 105-34, the 
        provisions of sections 6004, 6005, 6012, 6013, 6015, 6016, 7002, 
        and 7003 of the Internal Revenue Service Restructuring and 
        Reform Act of 1998, Public Law 105-206, the provisions of 
        section 3001 of the Omnibus Consolidated and Emergency 
        Supplemental Appropriations Act, 1999, Public Law 105-277, the 
        provisions of section 3001 of the Miscellaneous Trade and 
        Technical Corrections Act of 1999, Public Law 106-36, and the 
        provisions of section 316 of the Consolidated Appropriation Act 
        of 2001, Public Law 106-554, shall become effective at the time 
        they become effective for federal purposes. 
           The Internal Revenue Code of 1986, as amended through 
        December 31, 1997, shall be in effect for taxable years 
        beginning after December 31, 1997. 
           The provisions of sections 5002, 6009, 6011, and 7001 of 
        the Internal Revenue Service Restructuring and Reform Act of 
        1998, Public Law 105-206, the provisions of section 9010 of the 
        Transportation Equity Act for the 21st Century, Public Law 
        105-178, the provisions of sections 1004, 4002, and 5301 of the 
        Omnibus Consolidation and Emergency Supplemental Appropriations 
        Act, 1999, Public Law 105-277, the provision of section 303 of 
        the Ricky Ray Hemophilia Relief Fund Act of 1998, Public Law 
        105-369, the provisions of sections 532, 534, 536, 537, and 538 
        of the Ticket to Work and Work Incentives Improvement Act of 
        1999, Public Law 106-170, the provisions of the Installment Tax 
        Correction Act of 2000, Public Law 106-573, and the provisions 
        of section 309 of the Consolidated Appropriation Act of 2001, 
        Public Law 106-554, shall become effective at the time they 
        become effective for federal purposes. 
           The Internal Revenue Code of 1986, as amended through 
        December 31, 1998, shall be in effect for taxable years 
        beginning after December 31, 1998.  
           The provisions of the FSC Repeal and Extraterritorial 
        Income Exclusion Act of 2000, Public Law 106-519, and the 
        provision of section 412 of the Job Creation and Worker 
        Assistance Act of 2002, Public Law 107-147, shall become 
        effective at the time it became effective for federal purposes. 
           The Internal Revenue Code of 1986, as amended through 
        December 31, 1999, shall be in effect for taxable years 
        beginning after December 31, 1999.  The provisions of sections 
        306 and 401 of the Consolidated Appropriation Act of 2001, 
        Public Law 106-554, and the provision of section 632(b)(2)(A) of 
        the Economic Growth and Tax Relief Reconciliation Act of 2001, 
        Public Law 107-16, and provisions of sections 101 and 402 of the 
        Job Creation and Worker Assistance Act of 2002, Public Law 
        107-147, shall become effective at the same time it became 
        effective for federal purposes. 
           The Internal Revenue Code of 1986, as amended through 
        December 31, 2000, shall be in effect for taxable years 
        beginning after December 31, 2000.  The provisions of sections 
        659a and 671 of the Economic Growth and Tax Relief 
        Reconciliation Act of 2001, Public Law 107-16, the provisions of 
        sections 104, 105, and 111 of the Victims of Terrorism Tax 
        Relief Act of 2001, Public Law 107-134, and the provisions of 
        sections 201, 403, 413, and 606 of the Job Creation and Worker 
        Assistance Act of 2002, Public Law 107-147, shall become 
        effective at the same time it became effective for federal 
        purposes. 
           The Internal Revenue Code of 1986, as amended through March 
        15, 2002, shall be in effect for taxable years beginning after 
        December 31, 2001. 
           The provisions of sections 101 and 102 of the Victims of 
        Terrorism Tax Relief Act of 2001, Public Law 107-134, shall 
        become effective at the same time it becomes effective for 
        federal purposes. 
           The Internal Revenue Code of 1986, as amended through June 
        15, 2003, shall be in effect for taxable years beginning after 
        December 31, 2002.  The provisions of section 201 of the Jobs 
        and Growth Tax Relief and Reconciliation Act of 2003, H.R. 2, if 
        it is enacted into law, are effective at the same time it became 
        effective for federal purposes.  The provisions of the Act of 
        January 7, 2005, Public Law 109-1, to accelerate the income tax 
        benefits for charitable cash contributions for the relief of 
        victims of the Indian Ocean tsunami, are effective at the same 
        time it became effective for federal purposes and apply to the 
        subtraction under subdivision 19b, clause (7). 
           Except as otherwise provided, references to the Internal 
        Revenue Code in subdivisions 19a to 19g mean the code in effect 
        for purposes of determining net income for the applicable year. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Presented to the governor January 25, 2005 
           Signed by the governor January 27, 2005, 1:50 p.m.