1.1 	A bill for an act
1.2 	relating to taxation; individual income; property; allowing taxpayers to use federal 
1.3 	individual taxpayer identification numbers in claiming certain credits and for 
1.4 	homestead classification;amending Minnesota Statutes 2020, sections 273.124, 
1.5 	subdivision 13; 289A.08, subdivision 11; 290.06, subdivision 38; 290.067, 
1.6 	subdivision 1; 290.0671, subdivisions 1, 1a; 290.0674, by adding a subdivision.
1.7 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.8 	Section 1. Minnesota Statutes 2020, section 273.124, subdivision 13, is amended to read:
1.9 		Subd. 13.Homestead application. (a) A person who meets the homestead requirements 
1.10 	under subdivision 1 must file a homestead application with the county assessor to initially 
1.11 	obtain homestead classification.
1.12 	(b) The commissioner shall prescribe the content, format, and manner of the homestead 
1.13 	application required to be filed under this chapter pursuant to section 270C.30. The 
1.14 	application must clearly inform the taxpayer that this application must be signed by all 
1.15 	owners who occupy the property or by the qualifying relative and returned to the county 
1.16 	assessor in order for the property to receive homestead treatment.
1.17 	(c) Every property owner applying for homestead classification must furnish to the 
1.18 	county assessor the Social Security number or individual tax identification number of each 
1.19 	occupant who is listed as an owner of the property on the deed of record, the name and 
1.20 	address of each owner who does not occupy the property, and the name and Social Security 
1.21 	number or individual tax identification number of the spouse of each occupying owner. The 
1.22 	application must be signed by each owner who occupies the property and by each owner's 
1.23 	spouse who occupies the property, or, in the case of property that qualifies as a homestead 
1.24 	under subdivision 1, paragraph (c), by the qualifying relative.
2.1 	If a property owner occupies a homestead, the property owner's spouse may not claim 
2.2 	another property as a homestead unless the property owner and the property owner's spouse 
2.3 	file with the assessor an affidavit or other proof required by the assessor stating that the 
2.4 	property qualifies as a homestead under subdivision 1, paragraph (e).
2.5 	Owners or spouses occupying residences owned by their spouses and previously occupied 
2.6 	with the other spouse, either of whom fail to include the other spouse's name and Social 
2.7 	Security number or individual tax identification number on the homestead application or 
2.8 	provide the affidavits or other proof requested, will be deemed to have elected to receive 
2.9 	only partial homestead treatment of their residence. The remainder of the residence will be 
2.10 	classified as nonhomestead residential. When an owner or spouse's name and Social Security 
2.11 	number or individual tax identification number appear on homestead applications for two 
2.12 	separate residences and only one application is signed, the owner or spouse will be deemed 
2.13 	to have elected to homestead the residence for which the application was signed.
2.14 	(d) If residential real estate is occupied and used for purposes of a homestead by a relative 
2.15 	of the owner and qualifies for a homestead under subdivision 1, paragraph (c), in order for 
2.16 	the property to receive homestead status, a homestead application must be filed with the 
2.17 	assessor. The Social Security number or individual tax identification number of each relative 
2.18 	occupying the property and the name and Social Security number or individual tax 
2.19 	identification number of the spouse of a relative occupying the property shall be required 
2.20 	on the homestead application filed under this subdivision. If a different relative of the owner 
2.21 	subsequently occupies the property, the owner of the property must notify the assessor 
2.22 	within 30 days of the change in occupancy. The Social Security number or individual tax 
2.23 	identification number of a relative occupying the property or the spouse of a relative 
2.24 	occupying the property is private data on individuals as defined by section 13.02, subdivision 
2.25 	12, but may be disclosed to the commissioner of revenue, or, for the purposes of proceeding 
2.26 	under the Revenue Recapture Act to recover personal property taxes owing, to the county 
2.27 	treasurer.
2.28 	(e) The homestead application shall also notify the property owners that if the property 
2.29 	is granted homestead status for any assessment year, that same property shall remain 
2.30 	classified as homestead until the property is sold or transferred to another person, or the 
2.31 	owners, the spouse of the owner, or the relatives no longer use the property as their 
2.32 	homestead. Upon the sale or transfer of the homestead property, a certificate of value must 
2.33 	be timely filed with the county auditor as provided under section 272.115. Failure to notify 
2.34 	the assessor within 30 days that the property has been sold, transferred, or that the owner, 
2.35 	the spouse of the owner, or the relative is no longer occupying the property as a homestead, 
3.1 	shall result in the penalty provided under this subdivision and the property will lose its 
3.2 	current homestead status.
3.3 	(f) If a homestead application has not been filed with the county by December 15, the 
3.4 	assessor shall classify the property as nonhomestead for the current assessment year for 
3.5 	taxes payable in the following year, provided that the owner may be entitled to receive the 
3.6 	homestead classification by proper application under section 375.192.

3.7 	EFFECTIVE DATE. This section is effective for applications for homestead filed in 
3.8 	2021 and thereafter.

3.9 	Sec. 2. Minnesota Statutes 2020, section 289A.08, subdivision 11, is amended to read:
3.10 		Subd. 11.Information included in income tax return. (a) The return must state:
3.11 	(1) the name of the taxpayer, or taxpayers, if the return is a joint return, and the address 
3.12 	of the taxpayer in the same name or names and same address as the taxpayer has used in 
3.13 	making the taxpayer's income tax return to the United States;
3.14 	(2) the date or dates of birth of the taxpayer or taxpayers;
3.15 	(3)(i) the Social Security number of the taxpayer, or taxpayers, if a Social Security 
3.16 	number has been issued by the United States with respect to the taxpayers; or
3.17 	(ii) if a Social Security number has not been issued by the United States with respect to 
3.18 	the taxpayer or taxpayers, the individual tax identification number, as allowed under sections 
3.19 	290.06, subdivision 38; 290.067; 290.0671; and 290.0674; and
3.20 	(4) the amount of the taxable income of the taxpayer as it appears on the federal return 
3.21 	for the taxable year to which the Minnesota state return applies.
3.22 	(b) The taxpayer must attach to the taxpayer's Minnesota state income tax return a copy 
3.23 	of the federal income tax return that the taxpayer has filed or is about to file for the period.

3.24 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
3.25 	31, 2020.

3.26 	Sec. 3. Minnesota Statutes 2020, section 290.06, subdivision 38, is amended to read:
3.27 		Subd. 38.Beginning farmer management credit. (a) A taxpayer who is a beginning 
3.28 	farmer may take a credit against the tax due under this chapter for participation in a financial 
3.29 	management program according to section 41B.0391, subdivision 3.
4.1 	(b) The credit may be claimed only after approval and certification by the Rural Finance 
4.2 	Authority according to section 41B.0391.
4.3 	(c) The credit is limited to the liability for tax, as computed under this chapter, for the 
4.4 	taxable year. If the amount of the credit determined under this subdivision for any taxable 
4.5 	year exceeds this limitation, the excess is a beginning farmer management credit carryover 
4.6 	to each of the three succeeding taxable years. The entire amount of the excess unused credit 
4.7 	for the taxable year is carried first to the earliest of the taxable years to which the credit 
4.8 	may be carried and then to each successive year to which the credit may be carried. The 
4.9 	amount of the unused credit which may be added under this paragraph must not exceed the 
4.10 	taxpayer's liability for tax, less the beginning farmer management credit for the taxable 
4.11 	year.
4.12 	(d) For a part-year resident, the credit under this section must be allocated using the 
4.13 	percentage calculated in section 290.06, subdivision 2c, paragraph (e).
4.14 	(e) Notwithstanding the approval and certification by the Rural Finance Authority under 
4.15 	section 41B.0391, the commissioner may utilize any audit and examination powers under 
4.16 	chapter 270C or 289A to the extent necessary to verify that the taxpayer is eligible for the 
4.17 	credit and to assess for the amount of any improperly claimed credit.
4.18 	(f) A taxpayer who does not have a Social Security number may claim the credit under 
4.19 	this section if the taxpayer provides an individual taxpayer identification number.
4.20 	(g) This subdivision expires at the same time and on the same terms as section 41B.0391, 
4.21 	except that the expiration of this subdivision does not affect the commissioner of revenue's 
4.22 	authority to audit or power of examination and assessment for credits claimed under this 
4.23 	subdivision.

4.24 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
4.25 	31, 2020.

4.26 	Sec. 4. Minnesota Statutes 2020, section 290.067, subdivision 1, is amended to read:
4.27 		Subdivision 1.Amount of credit. (a) A taxpayer may take as a credit against the tax 
4.28 	due from the taxpayer and a spouse, if any, under this chapter an amount equal to the 
4.29 	dependent care credit for which the taxpayer is eligible pursuant to the provisions of section 
4.30 	21 of the Internal Revenue Code except that:
4.31 	(1) a taxpayer who does not have a Social Security number may claim the credit under 
4.32 	this section if the taxpayer provides an individual taxpayer identification number for the 
4.33 	taxpayer, taxpayer's spouse, and each qualifying individual; and
5.1 	(2) in determining whether the child qualified as a dependent, income received as a 
5.2 	Minnesota family investment program grant or allowance to or on behalf of the child must 
5.3 	not be taken into account in determining whether the child received more than half of the 
5.4 	child's support from the taxpayer.
5.5 	(b) If a child who has not attained the age of six years at the close of the taxable year is 
5.6 	cared for at a licensed family day care home operated by the child's parent, the taxpayer is 
5.7 	deemed to have paid employment-related expenses. If the child is 16 months old or younger 
5.8 	at the close of the taxable year, the amount of expenses deemed to have been paid equals 
5.9 	the maximum limit for one qualified individual under section 21(c) and (d) of the Internal 
5.10 	Revenue Code. If the child is older than 16 months of age but has not attained the age of 
5.11 	six years at the close of the taxable year, the amount of expenses deemed to have been paid 
5.12 	equals the amount the licensee would charge for the care of a child of the same age for the 
5.13 	same number of hours of care.
5.14 	(c) If a married couple:
5.15 	(1) has a child who has not attained the age of one year at the close of the taxable year;
5.16 	(2) files a joint tax return for the taxable year; and
5.17 	(3) does not participate in a dependent care assistance program as defined in section 129 
5.18 	of the Internal Revenue Code, in lieu of the actual employment related expenses paid for 
5.19 	that child under paragraph (a) or the deemed amount under paragraph (b), the lesser of (i) 
5.20 	the combined earned income of the couple or (ii) the amount of the maximum limit for one 
5.21 	qualified individual under section 21(c) and (d) of the Internal Revenue Code will be deemed 
5.22 	to be the employment related expense paid for that child. The earned income limitation of 
5.23 	section 21(d) of the Internal Revenue Code shall not apply to this deemed amount. These 
5.24 	deemed amounts apply regardless of whether any employment-related expenses have been 
5.25 	paid.
5.26 	(d) If the taxpayer is not required and does not file a federal individual income tax return 
5.27 	for the tax year, no credit is allowed for any amount paid to any person unless:
5.28 	(1) the name, address, and taxpayer identification number of the person are included on 
5.29 	the return claiming the credit; or
5.30 	(2) if the person is an organization described in section 501(c)(3) of the Internal Revenue 
5.31 	Code and exempt from tax under section 501(a) of the Internal Revenue Code, the name 
5.32 	and address of the person are included on the return claiming the credit.
6.1 	In the case of a failure to provide the information required under the preceding sentence, 
6.2 	the preceding sentence does not apply if it is shown that the taxpayer exercised due diligence 
6.3 	in attempting to provide the information required.
6.4 	(e) In the case of a nonresident, part-year resident, or a person who has earned income 
6.5 	not subject to tax under this chapter including earned income excluded pursuant to section 
6.6 	290.0132, subdivision 10, the credit determined under section 21 of the Internal Revenue 
6.7 	Code must be allocated based on the ratio by which the earned income of the claimant and 
6.8 	the claimant's spouse from Minnesota sources bears to the total earned income of the claimant 
6.9 	and the claimant's spouse.
6.10 	(f) For residents of Minnesota, the subtractions for military pay under section 290.0132, 
6.11 	subdivisions 11 and 12, are not considered "earned income not subject to tax under this 
6.12 	chapter."
6.13 	(g) For residents of Minnesota, the exclusion of combat pay under section 112 of the 
6.14 	Internal Revenue Code is not considered "earned income not subject to tax under this 
6.15 	chapter."
6.16 	(h) For taxpayers with federal adjusted gross income in excess of $52,230, the credit is 
6.17 	equal to the lesser of the credit otherwise calculated under this subdivision, or the amount 
6.18 	equal to $600 minus five percent of federal adjusted gross income in excess of $52,230 for 
6.19 	taxpayers with one qualified individual, or $1,200 minus five percent of federal adjusted 
6.20 	gross income in excess of $52,230 for taxpayers with two or more qualified individuals, 
6.21 	but in no case is the credit less than zero.

6.22 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
6.23 	31, 2020.

6.24 	Sec. 5. Minnesota Statutes 2020, section 290.0671, subdivision 1, is amended to read:
6.25 		Subdivision 1.Credit allowed. (a) An individual who is a resident of Minnesota is 
6.26 	allowed a credit against the tax imposed by this chapter equal to a percentage of earned 
6.27 	income. To receive a credit, a taxpayer must be eligible for a credit under section 32 of the 
6.28 	Internal Revenue Code, except that:
6.29 	(1) a taxpayer with no qualifying children who has attained the age of 21, but not attained 
6.30 	age 65 before the close of the taxable year and is otherwise eligible for a credit under section 
6.31 	32 of the Internal Revenue Code may also receive a credit; ~~and~~
6.32 	(2) a taxpayer who is otherwise eligible for a credit under section 32 of the Internal 
6.33 	Revenue Code remains eligible for the credit even if the taxpayer's earned income or adjusted 
7.1 	gross income exceeds the income limitation under section 32 of the Internal Revenue Code~~.~~; 
7.2 	and
7.3 	(3) a taxpayer who is otherwise eligible for a credit under section 32 of the Internal 
7.4 	Revenue Code remains eligible for the credit even if the requirements of section 32(m) of 
7.5 	the Internal Revenue Code are not met if the taxpayer provides an individual taxpayer 
7.6 	identification number.
7.7 	(b) For individuals with no qualifying children, the credit equals 3.9 percent of the first 
7.8 	$7,150 of earned income. The credit is reduced by 2.0 percent of earned income or adjusted 
7.9 	gross income, whichever is greater, in excess of the phaseout threshold, but in no case is 
7.10 	the credit less than zero.
7.11 	(c) For individuals with one qualifying child, the credit equals 9.35 percent of the first 
7.12 	$11,950 of earned income. The credit is reduced by 6.0 percent of earned income or adjusted 
7.13 	gross income, whichever is greater, in excess of the phaseout threshold, but in no case is 
7.14 	the credit less than zero.
7.15 	(d) For individuals with two qualifying children, the credit equals 11 percent of the first 
7.16 	$19,600 of earned income. The credit is reduced by 10.5 percent of earned income or adjusted 
7.17 	gross income, whichever is greater, in excess of the phaseout threshold, but in no case is 
7.18 	the credit less than zero.
7.19 	(e) For individuals with three or more qualifying children, the credit equals 12.5 percent 
7.20 	of the first $20,000 of earned income. The credit is reduced by 10.5 percent of earned income 
7.21 	or adjusted gross income, whichever is greater, in excess of the phaseout threshold, but in 
7.22 	no case is the credit less than zero.
7.23 	(f) For a part-year resident, the credit must be allocated based on the percentage calculated 
7.24 	under section 290.06, subdivision 2c, paragraph (e).
7.25 	(g) For a person who was a resident for the entire tax year and has earned income not 
7.26 	subject to tax under this chapter, including income excluded under section 290.0132, 
7.27 	subdivision 10, the credit must be allocated based on the ratio of federal adjusted gross 
7.28 	income reduced by the earned income not subject to tax under this chapter over federal 
7.29 	adjusted gross income. For purposes of this paragraph, the following clauses are not 
7.30 	considered "earned income not subject to tax under this chapter":
7.31 	(1) the subtractions for military pay under section 290.0132, subdivisions 11 and 12;
7.32 	(2) the exclusion of combat pay under section 112 of the Internal Revenue Code; and
8.1 	(3) income derived from an Indian reservation by an enrolled member of the reservation 
8.2 	while living on the reservation.
8.3 	(h) For the purposes of this section, the phaseout threshold equals:
8.4 	(1) $14,570 for married taxpayers filing joint returns with no qualifying children;
8.5 	(2) $8,730 for all other taxpayers with no qualifying children;
8.6 	(3) $28,610 for married taxpayers filing joint returns with one qualifying child;
8.7 	(4) $22,770 for all other taxpayers with one qualifying child;
8.8 	(5) $32,840 for married taxpayers filing joint returns with two qualifying children;
8.9 	(6) $27,000 for all other taxpayers with two qualifying children;
8.10 	(7) $33,140 for married taxpayers filing joint returns with three or more qualifying 
8.11 	children; and
8.12 	(8) $27,300 for all other taxpayers with three or more qualifying children.
8.13 	(i) The commissioner shall construct tables showing the amount of the credit at various 
8.14 	income levels and make them available to taxpayers. The tables shall follow the schedule 
8.15 	contained in this subdivision, except that the commissioner may graduate the transition 
8.16 	between income brackets.

8.17 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
8.18 	31, 2020.

8.19 	Sec. 6. Minnesota Statutes 2020, section 290.0671, subdivision 1a, is amended to read:
8.20 		Subd. 1a.Definitions. For purposes of this section, the terms "qualifying child," and 
8.21 	"earned income," have the meanings given in section 32(c) of the Internal Revenue Code, 
8.22 	except that the requirements of section 32(m) of the Internal Revenue Code do not apply 
8.23 	to the definition of a "qualifying child" if all other requirements are met and an individual 
8.24 	taxpayer identification number is provided, and the term "adjusted gross income" has the 
8.25 	meaning given in section 62 of the Internal Revenue Code.
8.26 	"Earned income of the lesser-earning spouse" has the meaning given in section 290.0675, 
8.27 	subdivision 1, paragraph (d).

8.28 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
8.29 	31, 2020.

9.1 	Sec. 7. Minnesota Statutes 2020, section 290.0674, is amended by adding a subdivision 
9.2 	to read:
9.3 		Subd. 4a.Claimants eligible. A taxpayer who does not have a Social Security number 
9.4 	may claim the credit under this section if the taxpayer provides an individual taxpayer 
9.5 	identification number.

9.6 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
9.7 	31, 2020.