1.1 	A bill for an act
1.2 	relating to taxes; individual income; conforming to the federal extension of the 
1.3 	exclusion of dependent health care coverage to adult children through age 26 for 
1.4 	tax year 2010;amending Minnesota Statutes 2010, section 290.01, subdivision 
1.5 	19.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. Minnesota Statutes 2010, section 290.01, subdivision 19, is amended to read:
1.8 		Subd. 19.Net income. The term "net income" means the federal taxable income, 
1.9 	as defined in section 63 of the Internal Revenue Code of 1986, as amended through the 
1.10 	date named in this subdivision, incorporating the federal effective dates of changes to the 
1.11 	Internal Revenue Code and any elections made by the taxpayer in accordance with the 
1.12 	Internal Revenue Code in determining federal taxable income for federal income tax 
1.13 	purposes, and with the modifications provided in subdivisions 19a to 19f.
1.14 	In the case of a regulated investment company or a fund thereof, as defined in section 
1.15 	851(a) or 851(g) of the Internal Revenue Code, federal taxable income means investment 
1.16 	company taxable income as defined in section 852(b)(2) of the Internal Revenue Code, 
1.17 	except that:
1.18 	(1) the exclusion of net capital gain provided in section 852(b)(2)(A) of the Internal 
1.19 	Revenue Code does not apply;
1.20 	(2) the deduction for dividends paid under section 852(b)(2)(D) of the Internal 
1.21 	Revenue Code must be applied by allowing a deduction for capital gain dividends and 
1.22 	exempt-interest dividends as defined in sections 852(b)(3)(C) and 852(b)(5) of the Internal 
1.23 	Revenue Code; and
2.1 	(3) the deduction for dividends paid must also be applied in the amount of any 
2.2 	undistributed capital gains which the regulated investment company elects to have treated 
2.3 	as provided in section 852(b)(3)(D) of the Internal Revenue Code.
2.4 	The net income of a real estate investment trust as defined and limited by section 
2.5 	856(a), (b), and (c) of the Internal Revenue Code means the real estate investment trust 
2.6 	taxable income as defined in section 857(b)(2) of the Internal Revenue Code.
2.7 	The net income of a designated settlement fund as defined in section 468B(d) of 
2.8 	the Internal Revenue Code means the gross income as defined in section 468B(b) of the 
2.9 	Internal Revenue Code.
2.10 	The Internal Revenue Code of 1986, as amended through March 18, 2010, shall be 
2.11 	in effect for taxable years beginning after December 31, 1996. The provisions of the 
2.12 	act of January 22, 2010, Public Law 111-126, to accelerate the benefits for charitable 
2.13 	cash contributions for the relief of victims of the Haitian earthquake, are effective at the 
2.14 	same time it became effective for federal purposes and apply to the subtraction under 
2.15 	subdivision 19b, clause (6). For taxable years beginning after December 31, 2009, and 
2.16 	before January 1, 2011, the provisions of (i) Title I, Subtitle A, Section 1001, of the act of 
2.17 	March 23, 2010, Public Law 111-148, amending Part A, Subpart II of the Public Health 
2.18 	Service Act by adding a new section 2714, extension of dependent coverage, as amended 
2.19 	by Title II, Subtitle B, section 2301 of the act of March 30, 2010, Public Law 111-152; 
2.20 	and of (ii) Title I, Subtitle A, Section 1004, paragraph (d), of the act of March 30, 2010, 
2.21 	Public Law 111-152, income definitions related to the extension of dependent coverage, 
2.22 	are effective at the same time they became effective for federal purposes.
2.23 	Except as otherwise provided, references to the Internal Revenue Code in 
2.24 	subdivisions 19 to 19f mean the code in effect for purposes of determining net income for 
2.25 	the applicable year.

2.26 	EFFECTIVE DATE. This section is effective the day following final enactment.