1.1                          A bill for an act
  1.2             relating to taxation; providing an income tax credit 
  1.3             for certain expenses related to tobacco-related 
  1.4             illness; appropriating money; proposing coding for new 
  1.5             law in Minnesota Statutes, chapter 290. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  [290.0675] [CREDIT FOR CERTAIN MEDICAL 
  1.8   EQUIPMENT AND SUPPLIES.] 
  1.9      Subdivision 1.  [CREDIT ALLOWED.] An individual meeting the 
  1.10  requirements of subdivision 2 is allowed a credit against the 
  1.11  tax imposed by this chapter equal to the amount spent on medical 
  1.12  equipment and supplies necessary to treat or alleviate symptoms 
  1.13  of a tobacco-related illness.  For purposes of this section, 
  1.14  "medical equipment and supplies necessary to treat or alleviate 
  1.15  symptoms of a tobacco-related illness" include, but are not 
  1.16  limited to, inhalers, nebulizers, oxygen cylinders and oxygen 
  1.17  concentrators, and prescription drugs such as bronchodilator 
  1.18  drugs dispensed by or used in conjunction with medical equipment 
  1.19  and supplies. 
  1.20     Subd. 2.  [ELIGIBLE INDIVIDUAL.] In order to be eligible 
  1.21  for a credit under this section, an individual must: 
  1.22     (1) be ineligible for medical assistance or general 
  1.23  assistance medical care; 
  1.24     (2) not be enrolled in the MinnesotaCare program; and 
  1.25     (3) have an adjusted gross household income for the tax 
  2.1   year that does not exceed 175 percent of the federal poverty 
  2.2   guidelines based on family size. 
  2.3      Subd. 3.  [QUALIFYING MEDICAL EQUIPMENT AND SUPPLIES.] In 
  2.4   order to qualify for a credit under this section, medical 
  2.5   supplies and equipment must be prescribed or ordered by a 
  2.6   physician, and must not be covered under a health plan, as 
  2.7   defined in section 62Q.01, subdivision 3, or under the Medicare 
  2.8   program or a Medicare supplement plan. 
  2.9      Subd. 4.  [REQUIRED DOCUMENTATION.] An individual applying 
  2.10  for a credit must document, in the manner specified by the 
  2.11  commissioner, that the amount claimed as a credit was spent on 
  2.12  medical supplies and equipment necessary to treat or alleviate 
  2.13  symptoms of a tobacco-related illness, and shall submit this 
  2.14  documentation to the commissioner. 
  2.15     Subd. 5.  [CREDIT REFUNDABLE.] If the amount of credit 
  2.16  which the claimant is eligible to receive under this section 
  2.17  exceeds the claimant's tax liability under this chapter, the 
  2.18  commissioner shall refund the excess to the claimant. 
  2.19     Subd. 6.  [APPROPRIATION.] An amount sufficient to pay 
  2.20  refunds required by this section is appropriated to the 
  2.21  commissioner from the general fund. 
  2.22     Sec. 2.  [EFFECTIVE DATE.] 
  2.23     Section 1 is effective for tax years beginning after 
  2.24  December 31, 1999.