Bill Text: MN HF428 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Marriage penalty relief federal extension conformed in the standard deduction.
Sponsorship: Partisan Bill (Republican 3)
Status: (Introduced - Dead) 2011-03-03 - Author added Scott [HF428 Detail]
Download: Minnesota-2011-HF428-Introduced.html
1.2relating to taxation; individual income; conforming to the federal extension of
1.3marriage penalty relief in the standard deduction;amending Minnesota Statutes
1.42010, section 290.01, subdivision 19.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2010, section 290.01, subdivision 19, is amended to read:
1.7 Subd. 19. Net income. The term "net income" means the federal taxable income,
1.8as defined in section 63 of the Internal Revenue Code of 1986, as amended through the
1.9date named in this subdivision, incorporating the federal effective dates of changes to the
1.10Internal Revenue Code and any elections made by the taxpayer in accordance with the
1.11Internal Revenue Code in determining federal taxable income for federal income tax
1.12purposes, and with the modifications provided in subdivisions 19a to 19f.
1.13 In the case of a regulated investment company or a fund thereof, as defined in section
1.14851(a) or 851(g) of the Internal Revenue Code, federal taxable income means investment
1.15company taxable income as defined in section 852(b)(2) of the Internal Revenue Code,
1.16except that:
1.17 (1) the exclusion of net capital gain provided in section 852(b)(2)(A) of the Internal
1.18Revenue Code does not apply;
1.19 (2) the deduction for dividends paid under section 852(b)(2)(D) of the Internal
1.20Revenue Code must be applied by allowing a deduction for capital gain dividends and
1.21exempt-interest dividends as defined in sections 852(b)(3)(C) and 852(b)(5) of the Internal
1.22Revenue Code; and
2.1 (3) the deduction for dividends paid must also be applied in the amount of any
2.2undistributed capital gains which the regulated investment company elects to have treated
2.3as 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
2.5856(a), (b), and (c) of the Internal Revenue Code means the real estate investment trust
2.6taxable 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
2.8the Internal Revenue Code means the gross income as defined in section 468B(b) of the
2.9Internal Revenue Code.
2.10 The Internal Revenue Code of 1986, as amended through March 18, 2010, shall be
2.11in effect for taxable years beginning after December 31, 1996. The provisions of the act
2.12of January 22, 2010, Public Law 111-126, to accelerate the benefits for charitable cash
2.13contributions for the relief of victims of the Haitian earthquake, are effective at the same
2.14time it became effective for federal purposes and apply to the subtraction under subdivision
2.1519b, clause (6). For taxable years beginning after December 31, 2009, the provisions of
2.16Title I, section 101, of the act of December 17, 2010, Public Law 111-312, temporary
2.17extension of 2001 tax relief, only as they apply to the provisions of Title III, section 301,
2.18of the act of June 7, 2001, Public Law 107-16, elimination of marriage penalty in standard
2.19deduction, are effective at the same time they became effective for federal purposes.
2.20 Except as otherwise provided, references to the Internal Revenue Code in
2.21subdivisions 19 to 19f mean the code in effect for purposes of determining net income for
2.22the applicable year.
2.23EFFECTIVE DATE.This section is effective the day following final enactment.
1.3marriage penalty relief in the standard deduction;amending Minnesota Statutes
1.42010, section 290.01, subdivision 19.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2010, section 290.01, subdivision 19, is amended to read:
1.7 Subd. 19. Net income. The term "net income" means the federal taxable income,
1.8as defined in section 63 of the Internal Revenue Code of 1986, as amended through the
1.9date named in this subdivision, incorporating the federal effective dates of changes to the
1.10Internal Revenue Code and any elections made by the taxpayer in accordance with the
1.11Internal Revenue Code in determining federal taxable income for federal income tax
1.12purposes, and with the modifications provided in subdivisions 19a to 19f.
1.13 In the case of a regulated investment company or a fund thereof, as defined in section
1.14851(a) or 851(g) of the Internal Revenue Code, federal taxable income means investment
1.15company taxable income as defined in section 852(b)(2) of the Internal Revenue Code,
1.16except that:
1.17 (1) the exclusion of net capital gain provided in section 852(b)(2)(A) of the Internal
1.18Revenue Code does not apply;
1.19 (2) the deduction for dividends paid under section 852(b)(2)(D) of the Internal
1.20Revenue Code must be applied by allowing a deduction for capital gain dividends and
1.21exempt-interest dividends as defined in sections 852(b)(3)(C) and 852(b)(5) of the Internal
1.22Revenue Code; and
2.1 (3) the deduction for dividends paid must also be applied in the amount of any
2.2undistributed capital gains which the regulated investment company elects to have treated
2.3as 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
2.5856(a), (b), and (c) of the Internal Revenue Code means the real estate investment trust
2.6taxable 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
2.8the Internal Revenue Code means the gross income as defined in section 468B(b) of the
2.9Internal Revenue Code.
2.10 The Internal Revenue Code of 1986, as amended through March 18, 2010, shall be
2.11in effect for taxable years beginning after December 31, 1996. The provisions of the act
2.12of January 22, 2010, Public Law 111-126, to accelerate the benefits for charitable cash
2.13contributions for the relief of victims of the Haitian earthquake, are effective at the same
2.14time it became effective for federal purposes and apply to the subtraction under subdivision
2.1519b, clause (6). For taxable years beginning after December 31, 2009, the provisions of
2.16Title I, section 101, of the act of December 17, 2010, Public Law 111-312, temporary
2.17extension of 2001 tax relief, only as they apply to the provisions of Title III, section 301,
2.18of the act of June 7, 2001, Public Law 107-16, elimination of marriage penalty in standard
2.19deduction, are effective at the same time they became effective for federal purposes.
2.20 Except as otherwise provided, references to the Internal Revenue Code in
2.21subdivisions 19 to 19f mean the code in effect for purposes of determining net income for
2.22the applicable year.
2.23EFFECTIVE DATE.This section is effective the day following final enactment.
