Bill Text: MN HF2859 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Individual income tax credit provided for the additional tax paid on early withdrawals from retirement accounts if used for long-term care expenses, and money appropriated.
Spectrum: Partisan Bill (Republican 10-0)
Status: (Introduced - Dead) 2014-03-10 - Introduction and first reading, referred to Taxes [HF2859 Detail]
Download: Minnesota-2013-HF2859-Introduced.html
1.2relating to taxation; individual income; providing a credit for the additional tax
1.3paid on early withdrawals from retirement accounts if used for long-term care
1.4expenses; appropriating money;proposing coding for new law in Minnesota
1.5Statutes, chapter 290.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. [290.0693] CREDIT FOR ADDITIONAL FEDERAL TAX ON
1.8RETIREMENT PLAN WITHDRAWALS USED FOR LONG-TERM CARE
1.9EXPENSES.
1.10 Subdivision 1. Definitions. (a) For purposes of this section, the following terms
1.11have the meanings given.
1.12(b) "Additional federal tax" means the tax imposed under section 72(t) of the Internal
1.13Revenue Code on early withdrawals from qualified retirement plans.
1.14(c) "Qualified long-term care expenses" means amounts paid for qualified long-term
1.15care services, as defined in section 7702B(c) of the Internal Revenue Code, plus amounts
1.16paid for a qualified long-term care insurance contract, as defined in section 7702B(b) of
1.17the Internal Revenue Code.
1.18(d) "Qualified retirement plans" has the meaning given in section 4974(c) of the
1.19Internal Revenue Code.
1.20 Subd. 2. Credit allowed. (a) An individual is allowed a credit against the tax due
1.21under this chapter equal to the additional federal tax paid during the taxable year on
1.22early withdrawals from qualified retirement plans, provided the withdrawals are used for
1.23qualified long-term care expenses.
1.24(b) For a nonresident or part-year resident, the credit must be allocated based on the
1.25percentage calculated under section 290.06, subdivision 2c, paragraph (e).
2.1 Subd. 3. Credit refundable; appropriation. (a) If the credit allowed under this
2.2section exceeds the individual's liability under this chapter, the commissioner shall refund
2.3the excess to the taxpayer.
2.4(b) An amount sufficient to pay the refunds required by this section is appropriated
2.5from the general fund to the commissioner.
2.6EFFECTIVE DATE.This section is effective for taxable years beginning after
2.7December 31, 2013.
1.3paid on early withdrawals from retirement accounts if used for long-term care
1.4expenses; appropriating money;proposing coding for new law in Minnesota
1.5Statutes, chapter 290.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. [290.0693] CREDIT FOR ADDITIONAL FEDERAL TAX ON
1.8RETIREMENT PLAN WITHDRAWALS USED FOR LONG-TERM CARE
1.9EXPENSES.
1.10 Subdivision 1. Definitions. (a) For purposes of this section, the following terms
1.11have the meanings given.
1.12(b) "Additional federal tax" means the tax imposed under section 72(t) of the Internal
1.13Revenue Code on early withdrawals from qualified retirement plans.
1.14(c) "Qualified long-term care expenses" means amounts paid for qualified long-term
1.15care services, as defined in section 7702B(c) of the Internal Revenue Code, plus amounts
1.16paid for a qualified long-term care insurance contract, as defined in section 7702B(b) of
1.17the Internal Revenue Code.
1.18(d) "Qualified retirement plans" has the meaning given in section 4974(c) of the
1.19Internal Revenue Code.
1.20 Subd. 2. Credit allowed. (a) An individual is allowed a credit against the tax due
1.21under this chapter equal to the additional federal tax paid during the taxable year on
1.22early withdrawals from qualified retirement plans, provided the withdrawals are used for
1.23qualified long-term care expenses.
1.24(b) For a nonresident or part-year resident, the credit must be allocated based on the
1.25percentage calculated under section 290.06, subdivision 2c, paragraph (e).
2.1 Subd. 3. Credit refundable; appropriation. (a) If the credit allowed under this
2.2section exceeds the individual's liability under this chapter, the commissioner shall refund
2.3the excess to the taxpayer.
2.4(b) An amount sufficient to pay the refunds required by this section is appropriated
2.5from the general fund to the commissioner.
2.6EFFECTIVE DATE.This section is effective for taxable years beginning after
2.7December 31, 2013.
