Bill Text: MN HF2850 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Historic structure rehabilitation tax credit modified.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2012-03-14 - Introduction and first reading, referred to Taxes [HF2850 Detail]
Download: Minnesota-2011-HF2850-Introduced.html
1.2relating to taxes; income and corporate franchise; modifying the historic structure
1.3rehabilitation credit;amending Minnesota Statutes 2010, section 290.0681,
1.4subdivisions 1, 3, 4, 5; Laws 2010, chapter 216, section 11.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2010, section 290.0681, subdivision 1, is amended to
1.7read:
1.8 Subdivision 1. Definitions. (a) For purposes of this section, the following terms
1.9have the meanings given.
1.10(b) "Account" means the historic credit administration account in the special
1.11revenue fund.
1.12(c) "Office" means the State Historic Preservation Office of the Minnesota Historical
1.13Society.
1.14(d) "Project" means rehabilitation of a certified historic structure, as defined in
1.15section 47(c)(3)(A) of the Internal Revenue Code, that is located in Minnesota and is
1.16allowed a federal credit under section 47(a)(2) of the Internal Revenue Code.
1.17(e) "Society" means the Minnesota Historical Society.
1.18(f) "Federal credit" means the credit allowed under section 47(a)(2) of the Internal
1.19Revenue Code.
1.20(g) "Placed in service" has the meaning given in section 47 of the Internal Revenue
1.21Code.
1.22(h) "Qualified rehabilitation expenditures" has the meaning given in section 47 of
1.23the Internal Revenue Code.
2.1EFFECTIVE DATE.This section is effective the day following final enactment
2.2and applies retroactively for taxable years beginning after December 31, 2009, and for
2.3certified historic structures placed in service after May 1, 2010.
2.4 Sec. 2. Minnesota Statutes 2010, section 290.0681, subdivision 3, is amended to read:
2.5 Subd. 3. Applications; allocations. (a) To qualify for a credit or grant under this
2.6section, the developer of a project must apply to the office before the rehabilitation begins.
2.7The application must contain the information and be in the form prescribed by the office.
2.8The office may collect a fee for application of up to $5,000, based on estimated qualified
2.9rehabilitationexpenses expenditures, to offset costs associated with personnel and
2.10administrative expenses related to administering the credit and preparing the economic
2.11impact report in subdivision 9. Application fees are deposited in the account. The
2.12application must indicate if the application is for a credit or a grant in lieu of the credit
2.13or a combination of the two and designate the taxpayer qualifying for the credit or the
2.14recipient of the grant.
2.15 (b) Upon approving an application for credit, the office shall issue allocation
2.16certificates that:
2.17 (1) verify eligibility for the credit or grant;
2.18 (2) state the amount of credit or grant anticipated with the project, with the credit
2.19amount equal to 100 percent and the grant amount equal to 90 percent of the federal
2.20credit anticipated in the application;
2.21 (3) state that the credit or grant allowed may increase or decrease if the federal
2.22credit the project receives at the time it is placed in service is different than the amount
2.23anticipated at the time the allocation certificate is issued; and
2.24 (4) state the fiscal year in which the credit or grant is allocated, and that the taxpayer
2.25or grant recipient is entitled to receive the credit or grant at the time the project is placed
2.26in service, provided that date is within three calendar years following the issuance of
2.27the allocation certificate.
2.28 (c) The office, in consultation with the commissionerof revenue, shall determine if
2.29the project is eligible for a credit or a grant under this section. Eligibility for the credit is
2.30subject to review and audit by the commissionerof revenue.
2.31 (d) The federal credit recapture and repayment requirements under section 50 of the
2.32Internal Revenue Code do not apply to the credit allowed under this section.
2.33(e) Any decision of the office or the society under this subdivision may be challenged
2.34as a contested case under chapter 14.
3.1EFFECTIVE DATE.This section is effective the day following final enactment
3.2and applies retroactively for taxable years beginning after December 31, 2009, and for
3.3certified historic structures placed in service after May 1, 2010.
3.4 Sec. 3. Minnesota Statutes 2010, section 290.0681, subdivision 4, is amended to read:
3.5 Subd. 4. Credit certificates; grants. (a)(1) The developer of a project for which the
3.6office has issued an allocation certificate must notify the office when the project is placed
3.7in service. Upon verifying that the project has been placed in service, and was allowed a
3.8federal credit, the office must issue a credit certificate to the taxpayer designated in the
3.9application or must issue a grant to the recipient designated in the application. The credit
3.10certificate must state the amount of the credit.
3.11(2) The credit amount equals the federal credit allowed for the project.
3.12(3) The grant amount equals 90 percent of the federal credit allowed for the project.
3.13(b) The recipient of a credit certificate may assign the certificate to another taxpayer,
3.14which is then allowed the credit under this section or section297I.20, subdivision 3 . The
3.15recipient may assign the credit certificate in whole or in part to one or more taxpayers. A
3.16recipient who assigns a credit must notify the commissioner. The transferee must be treated
3.17as the owner of the certificate. A credit certificate may be assigned to other taxpayers
3.18no more than three times without the consent of the commissioner. Any assignment of
3.19a credit certificate is only valid upon the transferee's notification of assignment to the
3.20commissioner. The commissioner shall prescribe the forms necessary for notifying the
3.21commissioner of the assignment of a credit and for claiming a credit by assignment.
3.22(c) The recipient of a grant may assign the grant to another individual or entity,
3.23which is then allowed the grant. The recipient who assigns a grant must notify the office.
3.24The transferee must be treated as the owner of the grant. A grant may be assigned to other
3.25individuals or entities no more than three times without the consent of the office. Any
3.26assignment of a grant is only valid upon the transferee's notification of assignment to
3.27the office. The office shall prescribe the forms necessary for notifying the office of the
3.28assignment of a grant and for payment of a grant by assignment.
3.29EFFECTIVE DATE.This section is effective the day following final enactment
3.30and applies retroactively for taxable years beginning after December 31, 2009, and for
3.31certified historic structures placed in service after May 1, 2010.
3.32 Sec. 4. Minnesota Statutes 2010, section 290.0681, subdivision 5, is amended to read:
3.33 Subd. 5. Partnerships; multiple owners. Credits granted to a partnership, a limited
3.34liability company taxed as a partnership, S corporation, or multiple owners of property
4.1are passed through to the partners, members, shareholders, or owners, respectively, pro
4.2rata to each partner, member, shareholder, or owner based on their share of the entity's
4.3assets or as specially allocated in their organizational documents or any other executed
4.4agreement, as of the last day of the taxable year.
4.5EFFECTIVE DATE.This section is effective the day following final enactment
4.6and applies retroactively for taxable years beginning after December 31, 2009, and for
4.7certified historic structures placed in service after May 1, 2010.
4.8 Sec. 5. Laws 2010, chapter 216, section 11, the effective date, is amended to read:
4.9EFFECTIVE DATE.This section is effective for taxable years beginning
4.10after December 31, 2009, for certified historic structuresfor which qualified costs of
4.11rehabilitation are first paid under construction contracts entered into placed in service
4.12after May 1, 2010.
4.13EFFECTIVE DATE.This section is effective the day following final enactment
4.14and applies retroactively for taxable years beginning after December 31, 2009, and for
4.15certified historic structures placed in service after May 1, 2010.
1.3rehabilitation credit;amending Minnesota Statutes 2010, section 290.0681,
1.4subdivisions 1, 3, 4, 5; Laws 2010, chapter 216, section 11.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2010, section 290.0681, subdivision 1, is amended to
1.7read:
1.8 Subdivision 1. Definitions. (a) For purposes of this section, the following terms
1.9have the meanings given.
1.10(b) "Account" means the historic credit administration account in the special
1.11revenue fund.
1.12(c) "Office" means the State Historic Preservation Office of the Minnesota Historical
1.13Society.
1.14(d) "Project" means rehabilitation of a certified historic structure, as defined in
1.15section 47(c)(3)(A) of the Internal Revenue Code, that is located in Minnesota and is
1.16allowed a federal credit under section 47(a)(2) of the Internal Revenue Code.
1.17(e) "Society" means the Minnesota Historical Society.
1.18(f) "Federal credit" means the credit allowed under section 47(a)(2) of the Internal
1.19Revenue Code.
1.20(g) "Placed in service" has the meaning given in section 47 of the Internal Revenue
1.21Code.
1.22(h) "Qualified rehabilitation expenditures" has the meaning given in section 47 of
1.23the Internal Revenue Code.
2.1EFFECTIVE DATE.This section is effective the day following final enactment
2.2and applies retroactively for taxable years beginning after December 31, 2009, and for
2.3certified historic structures placed in service after May 1, 2010.
2.4 Sec. 2. Minnesota Statutes 2010, section 290.0681, subdivision 3, is amended to read:
2.5 Subd. 3. Applications; allocations. (a) To qualify for a credit or grant under this
2.6section, the developer of a project must apply to the office before the rehabilitation begins.
2.7The application must contain the information and be in the form prescribed by the office.
2.8The office may collect a fee for application of up to $5,000, based on estimated qualified
2.9rehabilitation
2.10administrative expenses related to administering the credit and preparing the economic
2.11impact report in subdivision 9. Application fees are deposited in the account. The
2.12application must indicate if the application is for a credit or a grant in lieu of the credit
2.13or a combination of the two and designate the taxpayer qualifying for the credit or the
2.14recipient of the grant.
2.15 (b) Upon approving an application for credit, the office shall issue allocation
2.16certificates that:
2.17 (1) verify eligibility for the credit or grant;
2.18 (2) state the amount of credit or grant anticipated with the project, with the credit
2.19amount equal to 100 percent and the grant amount equal to 90 percent of the federal
2.20credit anticipated in the application;
2.21 (3) state that the credit or grant allowed may increase or decrease if the federal
2.22credit the project receives at the time it is placed in service is different than the amount
2.23anticipated at the time the allocation certificate is issued; and
2.24 (4) state the fiscal year in which the credit or grant is allocated, and that the taxpayer
2.25or grant recipient is entitled to receive the credit or grant at the time the project is placed
2.26in service, provided that date is within three calendar years following the issuance of
2.27the allocation certificate.
2.28 (c) The office, in consultation with the commissioner
2.29the project is eligible for a credit or a grant under this section. Eligibility for the credit is
2.30subject to review and audit by the commissioner
2.31 (d) The federal credit recapture and repayment requirements under section 50 of the
2.32Internal Revenue Code do not apply to the credit allowed under this section.
2.33(e) Any decision of the office or the society under this subdivision may be challenged
2.34as a contested case under chapter 14.
3.1EFFECTIVE DATE.This section is effective the day following final enactment
3.2and applies retroactively for taxable years beginning after December 31, 2009, and for
3.3certified historic structures placed in service after May 1, 2010.
3.4 Sec. 3. Minnesota Statutes 2010, section 290.0681, subdivision 4, is amended to read:
3.5 Subd. 4. Credit certificates; grants. (a)(1) The developer of a project for which the
3.6office has issued an allocation certificate must notify the office when the project is placed
3.7in service. Upon verifying that the project has been placed in service, and was allowed a
3.8federal credit, the office must issue a credit certificate to the taxpayer designated in the
3.9application or must issue a grant to the recipient designated in the application. The credit
3.10certificate must state the amount of the credit.
3.11(2) The credit amount equals the federal credit allowed for the project.
3.12(3) The grant amount equals 90 percent of the federal credit allowed for the project.
3.13(b) The recipient of a credit certificate may assign the certificate to another taxpayer,
3.14which is then allowed the credit under this section or section
3.15recipient may assign the credit certificate in whole or in part to one or more taxpayers. A
3.16recipient who assigns a credit must notify the commissioner. The transferee must be treated
3.17as the owner of the certificate. A credit certificate may be assigned to other taxpayers
3.18no more than three times without the consent of the commissioner. Any assignment of
3.19a credit certificate is only valid upon the transferee's notification of assignment to the
3.20commissioner. The commissioner shall prescribe the forms necessary for notifying the
3.21commissioner of the assignment of a credit and for claiming a credit by assignment.
3.22(c) The recipient of a grant may assign the grant to another individual or entity,
3.23which is then allowed the grant. The recipient who assigns a grant must notify the office.
3.24The transferee must be treated as the owner of the grant. A grant may be assigned to other
3.25individuals or entities no more than three times without the consent of the office. Any
3.26assignment of a grant is only valid upon the transferee's notification of assignment to
3.27the office. The office shall prescribe the forms necessary for notifying the office of the
3.28assignment of a grant and for payment of a grant by assignment.
3.29EFFECTIVE DATE.This section is effective the day following final enactment
3.30and applies retroactively for taxable years beginning after December 31, 2009, and for
3.31certified historic structures placed in service after May 1, 2010.
3.32 Sec. 4. Minnesota Statutes 2010, section 290.0681, subdivision 5, is amended to read:
3.33 Subd. 5. Partnerships; multiple owners. Credits granted to a partnership, a limited
3.34liability company taxed as a partnership, S corporation, or multiple owners of property
4.1are passed through to the partners, members, shareholders, or owners, respectively, pro
4.2rata to each partner, member, shareholder, or owner based on their share of the entity's
4.3assets or as specially allocated in their organizational documents or any other executed
4.4agreement, as of the last day of the taxable year.
4.5EFFECTIVE DATE.This section is effective the day following final enactment
4.6and applies retroactively for taxable years beginning after December 31, 2009, and for
4.7certified historic structures placed in service after May 1, 2010.
4.8 Sec. 5. Laws 2010, chapter 216, section 11, the effective date, is amended to read:
4.9EFFECTIVE DATE.This section is effective for taxable years beginning
4.10after December 31, 2009, for certified historic structures
4.11
4.12after May 1, 2010.
4.13EFFECTIVE DATE.This section is effective the day following final enactment
4.14and applies retroactively for taxable years beginning after December 31, 2009, and for
4.15certified historic structures placed in service after May 1, 2010.
