1.1                          A bill for an act 
  1.2             relating to taxes; establishing a refundable child tax 
  1.3             credit; proposing coding for new law in Minnesota 
  1.4             Statutes, chapter 290. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  [290.0676] [CHILD TAX CREDIT.] 
  1.7      Subdivision 1.  [CREDIT ALLOWED.] (a) An individual is 
  1.8   allowed a credit against the tax imposed by this chapter equal 
  1.9   to $60 for each qualifying child of the taxpayer, as defined in 
  1.10  section 24(c) of the Internal Revenue Code.  
  1.11     (b) The amount of the credit is reduced by $5 for each 
  1.12  $1,000 or portion thereof of income over a threshold.  For 
  1.13  purposes of this section, "income" means modified adjusted gross 
  1.14  income as defined in section 24(b) of the Internal Revenue Code, 
  1.15  and "threshold" means the income threshold as defined in section 
  1.16  24(b)(2) of the Internal Revenue Code. 
  1.17     (c) For a nonresident or part-year resident, the credit 
  1.18  determined under this section must be allocated based on the 
  1.19  percentage calculated under section 290.06, subdivision 2c, 
  1.20  paragraph (e). 
  1.21     (d) The dollar amount of the credit in paragraph (a) is 
  1.22  increased to $70 for taxable years beginning after December 31, 
  1.23  2004, and before January 1, 2009; to $80 for taxable years 
  1.24  beginning after December 31, 2008, and before January 1, 2010; 
  1.25  and to $100 for taxable years beginning after December 31, 2009. 
  2.1      Subd. 2.  [CREDIT REFUNDABLE.] If the amount of credit 
  2.2   which the claimant is eligible to receive under this section 
  2.3   exceeds the claimant's tax liability under this chapter, the 
  2.4   commissioner shall refund the excess to the claimant. 
  2.5      <b>[EFFECTIVE DATE.]</b> This section is effective for taxable 
  2.6   years beginning after December 31, 2001.