<div class="xtend">
         <div class="xtend_ce"><a id="pl.1.1"></a><var>1.1</var>A bill for an act<br />
            		
         </div><a id="pl.1.2"></a><var>1.2</var>relating to taxation; individual income; conforming to the federal exclusion <br />
         		<a id="pl.1.3"></a><var>1.3</var>of health care coverage for dependents through age 26;amending Minnesota <br />
         		<a id="pl.1.4"></a><var>1.4</var>Statutes 2010, section 290.01, subdivision 19.<br />
         		<a id="pl.1.5"></a><var>1.5</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br />
         		<br />
         		<a id="bill.0.1.0"></a><a id="pl.1.6"></a><var>1.6</var>&nbsp;&nbsp;&nbsp;&nbsp;Section 1. Minnesota Statutes 2010, section 290.01, subdivision 19, is amended to read:<br />
         		<a id="pl.1.7"></a><var>1.7</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 19. <b>Net income.</b> The term "net income" means the federal taxable income, <br />
         		<a id="pl.1.8"></a><var>1.8</var>as defined in section 63 of the Internal Revenue Code of 1986, as amended through the <br />
         		<a id="pl.1.9"></a><var>1.9</var>date named in this subdivision, incorporating the federal effective dates of changes to the <br />
         		<a id="pl.1.10"></a><var>1.10</var>Internal Revenue Code and any elections made by the taxpayer in accordance with the <br />
         		<a id="pl.1.11"></a><var>1.11</var>Internal Revenue Code in determining federal taxable income for federal income tax <br />
         		<a id="pl.1.12"></a><var>1.12</var>purposes, and with the modifications provided in subdivisions 19a to 19f.<br />
         		<a id="pl.1.13"></a><var>1.13</var>&nbsp;&nbsp;&nbsp;&nbsp;In the case of a regulated investment company or a fund thereof, as defined in section <br />
         		<a id="pl.1.14"></a><var>1.14</var>851(a) or 851(g) of the Internal Revenue Code, federal taxable income means investment <br />
         		<a id="pl.1.15"></a><var>1.15</var>company taxable income as defined in section 852(b)(2) of the Internal Revenue Code, <br />
         		<a id="pl.1.16"></a><var>1.16</var>except that:<br />
         		<a id="pl.1.17"></a><var>1.17</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) the exclusion of net capital gain provided in section 852(b)(2)(A) of the Internal <br />
         		<a id="pl.1.18"></a><var>1.18</var>Revenue Code does not apply;<br />
         		<a id="pl.1.19"></a><var>1.19</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) the deduction for dividends paid under section 852(b)(2)(D) of the Internal <br />
         		<a id="pl.1.20"></a><var>1.20</var>Revenue Code must be applied by allowing a deduction for capital gain dividends and <br />
         		<a id="pl.1.21"></a><var>1.21</var>exempt-interest dividends as defined in sections 852(b)(3)(C) and 852(b)(5) of the Internal <br />
         		<a id="pl.1.22"></a><var>1.22</var>Revenue Code; and<br />
         		<a id="pl.2.1"></a><var>2.1</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) the deduction for dividends paid must also be applied in the amount of any <br />
         		<a id="pl.2.2"></a><var>2.2</var>undistributed capital gains which the regulated investment company elects to have treated <br />
         		<a id="pl.2.3"></a><var>2.3</var>as provided in section 852(b)(3)(D) of the Internal Revenue Code.<br />
         		<a id="pl.2.4"></a><var>2.4</var>&nbsp;&nbsp;&nbsp;&nbsp;The net income of a real estate investment trust as defined and limited by section <br />
         		<a id="pl.2.5"></a><var>2.5</var>856(a), (b), and (c) of the Internal Revenue Code means the real estate investment trust <br />
         		<a id="pl.2.6"></a><var>2.6</var>taxable income as defined in section 857(b)(2) of the Internal Revenue Code.<br />
         		<a id="pl.2.7"></a><var>2.7</var>&nbsp;&nbsp;&nbsp;&nbsp;The net income of a designated settlement fund as defined in section 468B(d) of <br />
         		<a id="pl.2.8"></a><var>2.8</var>the Internal Revenue Code means the gross income as defined in section 468B(b) of the <br />
         		<a id="pl.2.9"></a><var>2.9</var>Internal Revenue Code.<br />
         		<a id="pl.2.10"></a><var>2.10</var>&nbsp;&nbsp;&nbsp;&nbsp;The Internal Revenue Code of 1986, as amended through March 18, 2010, shall be <br />
         		<a id="pl.2.11"></a><var>2.11</var>in effect for taxable years beginning after December 31, 1996. The provisions of the <br />
         		<a id="pl.2.12"></a><var>2.12</var>act of January 22, 2010, Public Law 111-126, to accelerate the benefits for charitable <br />
         		<a id="pl.2.13"></a><var>2.13</var>cash contributions for the relief of victims of the Haitian earthquake, are effective at the <br />
         		<a id="pl.2.14"></a><var>2.14</var>same time it became effective for federal purposes and apply to the subtraction under <br />
         		<a id="pl.2.15"></a><var>2.15</var>subdivision 19b, clause (6). The provisions of (i) Title I, Subtitle A, Section 1001, of the <br />
         		<a id="pl.2.16"></a><var>2.16</var>act of March 23, 2010, Public Law 111-148, amending Part A, Subpart II of the Public <br />
         		<a id="pl.2.17"></a><var>2.17</var>Health Service Act by adding a new section 2714, extension of dependent coverage, as <br />
         		<a id="pl.2.18"></a><var>2.18</var>amended by Title II, Subtitle B, Section 2301, of the act of March 30, 2010, Public Law <br />
         		<a id="pl.2.19"></a><var>2.19</var>111-152; and of (ii) Title I, Subtitle A, Section 1004, paragraph (d), of the act of March <br />
         		<a id="pl.2.20"></a><var>2.20</var>30, 2010, Public Law 111-152, income definitions related to the extension of dependent <br />
         		<a id="pl.2.21"></a><var>2.21</var>coverage, are effective at the same time they became effective for federal purposes.<br />
         		<a id="pl.2.22"></a><var>2.22</var>&nbsp;&nbsp;&nbsp;&nbsp;Except as otherwise provided, references to the Internal Revenue Code in <br />
         		<a id="pl.2.23"></a><var>2.23</var>subdivisions 19 to 19f mean the code in effect for purposes of determining net income for <br />
         		<a id="pl.2.24"></a><var>2.24</var>the applicable year.<br />
         		<a id="pl.2.25"></a><var>2.25</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		
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