1.1 	A bill for an act
1.2 	relating to taxation; providing credits for purchase or modification of vehicles to 
1.3 	accommodate people with disabilities, for modification or improvement to homes 
1.4 	of people with disabilities, and for family caregivers; appropriating money;
1.5 	proposing coding for new law in Minnesota Statutes, chapter 290.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. [290.0661] CREDIT FOR VEHICLES MODIFIED FOR PEOPLE 
1.8 	WITH DISABILITIES.
1.9 	(a) An individual is allowed a credit against the tax imposed by this chapter for 
1.10 	amounts paid during the tax year for the purchase or modification of a motor vehicle for 
1.11 	use by a qualifying person with disabilities.  For purposes of this section, "qualifying 
1.12 	person" means the taxpayer, the taxpayer's spouse, or the taxpayer's dependent as defined 
1.13 	in section 152 of the Internal Revenue Code. Amounts paid for purchase or modification 
1.14 	of a vehicle qualify for the credit only if they qualify for the medical expense deduction 
1.15 	provided in section 213 of the Internal Revenue Code, without regard to the income 
1.16 	threshold, and only to the extent the expenses are not reimbursed to the individual by 
1.17 	a federal, state, or local government program. The credit equals 25 percent of vehicle 
1.18 	modification or purchase expenses. The maximum credit allowed is $5,000.
1.19 	(b) For a nonresident or part-year resident, the credit determined under this section 
1.20 	must be allocated based on the percentage calculated under section 290.06, subdivision 
1.21 	2c, paragraph (e).

1.22 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
1.23 	December 31, 2007.

2.1 	Sec. 2. [290.0662] CREDIT FOR HOME MODIFICATIONS FOR PEOPLE 
2.2 	WITH DISABILITIES.
2.3 	(a) An individual is allowed a credit against the tax imposed by this chapter for 
2.4 	amounts paid during the tax year for modifications or improvements to a home to facilitate 
2.5 	its use by a qualifying person with disabilities.  For purposes of this section, "qualifying 
2.6 	person" means the taxpayer, the taxpayer's spouse, or the taxpayer's dependent as 
2.7 	defined in section 152 of the Internal Revenue Code. Amounts paid for modifications or 
2.8 	improvements to a home qualify for the credit only if they qualify for the medical expense 
2.9 	deduction provided in section 213 of the Internal Revenue Code, without regard to the 
2.10 	income threshold, and only to the extent the expenses are not reimbursed to the individual 
2.11 	by a federal, state, or local government program. The credit equals 25 percent of home 
2.12 	modification or improvement expenses. The maximum credit allowed is $5,000.
2.13 	(b) For a nonresident or part-year resident, the credit determined under this section 
2.14 	must be allocated based on the percentage calculated under section 290.06, subdivision 
2.15 	2c, paragraph (e).

2.16 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
2.17 	December 31, 2007.

2.18 	Sec. 3. [290.0663] FAMILY CAREGIVER CREDIT.
2.19 		Subdivision 1.Definitions. For purposes of this section, the definitions have the 
2.20 	meanings given.
2.21 		Subd. 2.Caregiver. "Caregiver" means an individual who provides unpaid 
2.22 	assistance on a daily basis that qualifies as personal care assistant services under section 
2.23 	256B.0655, subdivision 2, to a service recipient in either the individual's home or the 
2.24 	service recipient's home.
2.25 		Subd. 3.Service recipient. "Service recipient" means an individual who:
2.26 	(1) is the spouse, parent, stepparent, sibling, stepsibling, child, stepchild, 
2.27 	grandparent, or stepgrandparent of the caregiver;
2.28 	(2) does not reside in a setting licensed or registered by the commissioner of health 
2.29 	or human services; and 
2.30 	(3) has been screened by a county long-term care consultation team and determined 
2.31 	by that team to be eligible for placement in a nursing home.
2.32 		Subd. 4.Credit allowed. (a) An individual is allowed a credit against the tax 
2.33 	imposed by this chapter equal to $100 for each month during the tax year that the individual 
2.34 	is a caregiver for a service recipient.  The maximum credit in a tax year is $1,200.
3.1 	(b) The commissioner shall require individuals claiming the credit to certify that the 
3.2 	individual and the service recipient satisfy all the requirements of this section.
3.3 	(c) An individual may claim only one credit in any tax year. Only one credit may be 
3.4 	claimed for each service recipient in any tax year.
3.5 	(d) For a nonresident or part-year resident, the credit must be allocated based on the 
3.6 	percentage calculated under section 290.06, subdivision 2c, paragraph (e).
3.7 		Subd. 5.Credit limitations.  The credit in subdivision 4 is reduced to $50 for any 
3.8 	month in which a service recipient receives more than four hours per day on average of 
3.9 	federal, state, or county-funded home care services as specified in section 256B.0651, 
3.10 	subdivision 2.
3.11 		Subd. 6.Credit refundable. If the amount of the credit under this section exceeds 
3.12 	the individual's tax liability under this chapter, the commissioner shall refund the excess 
3.13 	amount to the claimant.
3.14 		Subd. 7.Appropriation. An amount sufficient to pay the refunds required by this 
3.15 	section is appropriated to the commissioner from the general fund.

3.16 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
3.17 	December 31, 2007.