Bill Text: MN SF1115 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Employee and employer fitness center fees and membership expenses income tax subtraction
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2013-03-07 - Referred to Taxes [SF1115 Detail]
Download: Minnesota-2013-SF1115-Introduced.html
1.2relating to taxation; income and corporate franchise; adding a subtraction;
1.3amending Minnesota Statutes 2012, section 290.01, subdivisions 19b, 19d.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes 2012, section 290.01, subdivision 19b, is amended to read:
1.6 Subd. 19b. Subtractions from federal taxable income. For individuals, estates,
1.7and trusts, there shall be subtracted from federal taxable income:
1.8 (1) net interest income on obligations of any authority, commission, or
1.9instrumentality of the United States to the extent includable in taxable income for federal
1.10income tax purposes but exempt from state income tax under the laws of the United States;
1.11 (2) if included in federal taxable income, the amount of any overpayment of income
1.12tax to Minnesota or to any other state, for any previous taxable year, whether the amount
1.13is received as a refund or as a credit to another taxable year's income tax liability;
1.14 (3) the amount paid to others, less the amount used to claim the credit allowed under
1.15section290.0674 , not to exceed $1,625 for each qualifying child in grades kindergarten
1.16to 6 and $2,500 for each qualifying child in grades 7 to 12, for tuition, textbooks, and
1.17transportation of each qualifying child in attending an elementary or secondary school
1.18situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a
1.19resident of this state may legally fulfill the state's compulsory attendance laws, which
1.20is not operated for profit, and which adheres to the provisions of the Civil Rights Act
1.21of 1964 and chapter 363A. For the purposes of this clause, "tuition" includes fees or
1.22tuition as defined in section290.0674, subdivision 1 , clause (1). As used in this clause,
1.23"textbooks" includes books and other instructional materials and equipment purchased
1.24or leased for use in elementary and secondary schools in teaching only those subjects
2.1legally and commonly taught in public elementary and secondary schools in this state.
2.2Equipment expenses qualifying for deduction includes expenses as defined and limited in
2.3section290.0674, subdivision 1 , clause (3). "Textbooks" does not include instructional
2.4books and materials used in the teaching of religious tenets, doctrines, or worship, the
2.5purpose of which is to instill such tenets, doctrines, or worship, nor does it include books
2.6or materials for, or transportation to, extracurricular activities including sporting events,
2.7musical or dramatic events, speech activities, driver's education, or similar programs. No
2.8deduction is permitted for any expense the taxpayer incurred in using the taxpayer's or
2.9the qualifying child's vehicle to provide such transportation for a qualifying child. For
2.10purposes of the subtraction provided by this clause, "qualifying child" has the meaning
2.11given in section 32(c)(3) of the Internal Revenue Code;
2.12 (4) income as provided under section290.0802 ;
2.13 (5) to the extent included in federal adjusted gross income, income realized on
2.14disposition of property exempt from tax under section290.491 ;
2.15 (6) to the extent not deducted or not deductible pursuant to section 408(d)(8)(E)
2.16of the Internal Revenue Code in determining federal taxable income by an individual
2.17who does not itemize deductions for federal income tax purposes for the taxable year, an
2.18amount equal to 50 percent of the excess of charitable contributions over $500 allowable
2.19as a deduction for the taxable year under section 170(a) of the Internal Revenue Code,
2.20under the provisions of Public Law 109-1 and Public Law 111-126;
2.21 (7) for individuals who are allowed a federal foreign tax credit for taxes that do not
2.22qualify for a credit under section290.06, subdivision 22 , an amount equal to the carryover
2.23of subnational foreign taxes for the taxable year, but not to exceed the total subnational
2.24foreign taxes reported in claiming the foreign tax credit. For purposes of this clause,
2.25"federal foreign tax credit" means the credit allowed under section 27 of the Internal
2.26Revenue Code, and "carryover of subnational foreign taxes" equals the carryover allowed
2.27under section 904(c) of the Internal Revenue Code minus national level foreign taxes to
2.28the extent they exceed the federal foreign tax credit;
2.29 (8) in each of the five tax years immediately following the tax year in which an
2.30addition is required under subdivision 19a, clause (7), or 19c, clause (15), in the case of a
2.31shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the
2.32delayed depreciation. For purposes of this clause, "delayed depreciation" means the amount
2.33of the addition made by the taxpayer under subdivision 19a, clause (7), or subdivision 19c,
2.34clause (15), in the case of a shareholder of an S corporation, minus the positive value of
2.35any net operating loss under section 172 of the Internal Revenue Code generated for the
2.36tax year of the addition. The resulting delayed depreciation cannot be less than zero;
3.1 (9) job opportunity building zone income as provided under section469.316 ;
3.2 (10) to the extent included in federal taxable income, the amount of compensation
3.3paid to members of the Minnesota National Guard or other reserve components of the
3.4United States military for active service, excluding compensation for services performed
3.5under the Active Guard Reserve (AGR) program. For purposes of this clause, "active
3.6service" means (i) state active service as defined in section190.05, subdivision 5a , clause
3.7(1); or (ii) federally funded state active service as defined in section190.05, subdivision
3.85b , but "active service" excludes service performed in accordance with section
190.08,
3.9subdivision 3 ;
3.10 (11) to the extent included in federal taxable income, the amount of compensation
3.11paid to Minnesota residents who are members of the armed forces of the United States
3.12or United Nations for active duty performed under United States Code, title 10; or the
3.13authority of the United Nations;
3.14 (12) an amount, not to exceed $10,000, equal to qualified expenses related to a
3.15qualified donor's donation, while living, of one or more of the qualified donor's organs
3.16to another person for human organ transplantation. For purposes of this clause, "organ"
3.17means all or part of an individual's liver, pancreas, kidney, intestine, lung, or bone marrow;
3.18"human organ transplantation" means the medical procedure by which transfer of a human
3.19organ is made from the body of one person to the body of another person; "qualified
3.20expenses" means unreimbursed expenses for both the individual and the qualified donor
3.21for (i) travel, (ii) lodging, and (iii) lost wages net of sick pay, except that such expenses
3.22may be subtracted under this clause only once; and "qualified donor" means the individual
3.23or the individual's dependent, as defined in section 152 of the Internal Revenue Code. An
3.24individual may claim the subtraction in this clause for each instance of organ donation for
3.25transplantation during the taxable year in which the qualified expenses occur;
3.26 (13) in each of the five tax years immediately following the tax year in which an
3.27addition is required under subdivision 19a, clause (8), or 19c, clause (16), in the case of a
3.28shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the
3.29addition made by the taxpayer under subdivision 19a, clause (8), or 19c, clause (16), in the
3.30case of a shareholder of a corporation that is an S corporation, minus the positive value of
3.31any net operating loss under section 172 of the Internal Revenue Code generated for the
3.32tax year of the addition. If the net operating loss exceeds the addition for the tax year, a
3.33subtraction is not allowed under this clause;
3.34 (14) to the extent included in the federal taxable income of a nonresident of
3.35Minnesota, compensation paid to a service member as defined in United States Code, title
4.110, section 101(a)(5), for military service as defined in the Servicemembers Civil Relief
4.2Act, Public Law 108-189, section 101(2);
4.3 (15) to the extent included in federal taxable income, the amount of national service
4.4educational awards received from the National Service Trust under United States Code,
4.5title 42, sections 12601 to 12604, for service in an approved Americorps National Service
4.6program;
4.7(16) to the extent included in federal taxable income, discharge of indebtedness
4.8income resulting from reacquisition of business indebtedness included in federal taxable
4.9income under section 108(i) of the Internal Revenue Code. This subtraction applies only
4.10to the extent that the income was included in net income in a prior year as a result of the
4.11addition under section290.01, subdivision 19a , clause (16); and
4.12(17) the amount of the net operating loss allowed under section290.095, subdivision
4.1311 , paragraph (c).; and
4.14(18)(i) for employees, the value of the use of an on-premises facility provided by an
4.15employer to its employees, or the value of any fees, dues, or membership expenses paid by
4.16an employer on behalf of its employees to a fitness facility, as defined in item (iii). In the
4.17case of employers filing under this subdivision that are S corporations, sole proprietors, or
4.18partnerships, the value of any fees, dues, or membership expenses paid by the employer
4.19on behalf of its employees to a fitness facility, as defined in item (iii). The subtraction
4.20under this clause shall not exceed $600 per employee per calendar year;
4.21(ii) the subtraction under this clause applies only if the use of on-premises fitness
4.22facilities or the payment of fees, dues, or membership expenses to a fitness facility are
4.23available on substantially the same terms to each member of a group of employees defined
4.24under a reasonable classification by the employer, but no classification may include only
4.25highly compensated employees, as defined under section 414(q) of the Internal Revenue
4.26Code, or any other group that includes only executives, directors, or other managerial
4.27employees; and
4.28(iii) for purposes of this clause, "fitness facility" means a facility located in the state:
4.29(A) that provides instruction in a program of physical exercise; offers facilities for
4.30the preservation, maintenance, encouragement, or development of physical fitness; or is
4.31the site of such a program of a state or local government;
4.32(B) that is not a private club owned and operated by its members;
4.33(C) that does not offer golf, hunting, sailing, or horseback riding facilities;
4.34(D) whose fitness facility is not incidental to its overall function and purpose; and
4.35(E) that is compliant with antidiscrimination laws under chapter 363A and applicable
4.36federal antidiscrimination laws.
5.1EFFECTIVE DATE.This section is effective for taxable years beginning after
5.2December 31, 2012.
5.3 Sec. 2. Minnesota Statutes 2012, section 290.01, subdivision 19d, is amended to read:
5.4 Subd. 19d. Corporations; modifications decreasing federal taxable income. For
5.5corporations, there shall be subtracted from federal taxable income after the increases
5.6provided in subdivision 19c:
5.7 (1) the amount of foreign dividend gross-up added to gross income for federal
5.8income tax purposes under section 78 of the Internal Revenue Code;
5.9 (2) the amount of salary expense not allowed for federal income tax purposes due to
5.10claiming the work opportunity credit under section 51 of the Internal Revenue Code;
5.11 (3) any dividend (not including any distribution in liquidation) paid within the
5.12taxable year by a national or state bank to the United States, or to any instrumentality of
5.13the United States exempt from federal income taxes, on the preferred stock of the bank
5.14owned by the United States or the instrumentality;
5.15 (4) amounts disallowed for intangible drilling costs due to differences between
5.16this chapter and the Internal Revenue Code in taxable years beginning before January
5.171, 1987, as follows:
5.18 (i) to the extent the disallowed costs are represented by physical property, an amount
5.19equal to the allowance for depreciation under Minnesota Statutes 1986, section290.09,
5.20subdivision 7 , subject to the modifications contained in subdivision 19e; and
5.21 (ii) to the extent the disallowed costs are not represented by physical property, an
5.22amount equal to the allowance for cost depletion under Minnesota Statutes 1986, section
5.23290.09, subdivision 8
;
5.24 (5) the deduction for capital losses pursuant to sections 1211 and 1212 of the
5.25Internal Revenue Code, except that:
5.26 (i) for capital losses incurred in taxable years beginning after December 31, 1986,
5.27capital loss carrybacks shall not be allowed;
5.28 (ii) for capital losses incurred in taxable years beginning after December 31, 1986,
5.29a capital loss carryover to each of the 15 taxable years succeeding the loss year shall be
5.30allowed;
5.31 (iii) for capital losses incurred in taxable years beginning before January 1, 1987, a
5.32capital loss carryback to each of the three taxable years preceding the loss year, subject to
5.33the provisions of Minnesota Statutes 1986, section290.16 , shall be allowed; and
5.34 (iv) for capital losses incurred in taxable years beginning before January 1, 1987,
5.35a capital loss carryover to each of the five taxable years succeeding the loss year to the
6.1extent such loss was not used in a prior taxable year and subject to the provisions of
6.2Minnesota Statutes 1986, section290.16 , shall be allowed;
6.3 (6) an amount for interest and expenses relating to income not taxable for federal
6.4income tax purposes, if (i) the income is taxable under this chapter and (ii) the interest and
6.5expenses were disallowed as deductions under the provisions of section 171(a)(2), 265 or
6.6291 of the Internal Revenue Code in computing federal taxable income;
6.7 (7) in the case of mines, oil and gas wells, other natural deposits, and timber for
6.8which percentage depletion was disallowed pursuant to subdivision 19c, clause (9), a
6.9reasonable allowance for depletion based on actual cost. In the case of leases the deduction
6.10must be apportioned between the lessor and lessee in accordance with rules prescribed
6.11by the commissioner. In the case of property held in trust, the allowable deduction must
6.12be apportioned between the income beneficiaries and the trustee in accordance with the
6.13pertinent provisions of the trust, or if there is no provision in the instrument, on the basis
6.14of the trust's income allocable to each;
6.15 (8) for certified pollution control facilities placed in service in a taxable year
6.16beginning before December 31, 1986, and for which amortization deductions were elected
6.17under section 169 of the Internal Revenue Code of 1954, as amended through December
6.1831, 1985, an amount equal to the allowance for depreciation under Minnesota Statutes
6.191986, section290.09, subdivision 7 ;
6.20 (9) amounts included in federal taxable income that are due to refunds of income,
6.21excise, or franchise taxes based on net income or related minimum taxes paid by the
6.22corporation to Minnesota, another state, a political subdivision of another state, the
6.23District of Columbia, or a foreign country or possession of the United States to the extent
6.24that the taxes were added to federal taxable income under section290.01, subdivision 19c ,
6.25clause (1), in a prior taxable year;
6.26 (10) 80 percent of royalties, fees, or other like income accrued or received from a
6.27foreign operating corporation or a foreign corporation which is part of the same unitary
6.28business as the receiving corporation, unless the income resulting from such payments or
6.29accruals is income from sources within the United States as defined in subtitle A, chapter
6.301, subchapter N, part 1, of the Internal Revenue Code;
6.31 (11) income or gains from the business of mining as defined in section290.05,
6.32subdivision 1 , clause (a), that are not subject to Minnesota franchise tax;
6.33 (12) the amount of disability access expenditures in the taxable year which are not
6.34allowed to be deducted or capitalized under section 44(d)(7) of the Internal Revenue Code;
7.1 (13) the amount of qualified research expenses not allowed for federal income tax
7.2purposes under section 280C(c) of the Internal Revenue Code, but only to the extent that
7.3the amount exceeds the amount of the credit allowed under section290.068 ;
7.4 (14) the amount of salary expenses not allowed for federal income tax purposes due to
7.5claiming the Indian employment credit under section 45A(a) of the Internal Revenue Code;
7.6 (15) for a corporation whose foreign sales corporation, as defined in section 922
7.7of the Internal Revenue Code, constituted a foreign operating corporation during any
7.8taxable year ending before January 1, 1995, and a return was filed by August 15, 1996,
7.9claiming the deduction under section290.21, subdivision 4 , for income received from
7.10the foreign operating corporation, an amount equal to1.23 multiplied by the amount of
7.11income excluded under section 114 of the Internal Revenue Code, provided the income is
7.12not income of a foreign operating company;
7.13 (16) any decrease in subpart F income, as defined in section 952(a) of the Internal
7.14Revenue Code, for the taxable year when subpart F income is calculated without regard to
7.15the provisions of Division C, title III, section 303(b) of Public Law 110-343;
7.16 (17) in each of the five tax years immediately following the tax year in which an
7.17addition is required under subdivision 19c, clause (15), an amount equal to one-fifth of
7.18the delayed depreciation. For purposes of this clause, "delayed depreciation" means the
7.19amount of the addition made by the taxpayer under subdivision 19c, clause (15). The
7.20resulting delayed depreciation cannot be less than zero;
7.21 (18) in each of the five tax years immediately following the tax year in which an
7.22addition is required under subdivision 19c, clause (16), an amount equal to one-fifth of
7.23the amount of the addition;and
7.24(19) to the extent included in federal taxable income, discharge of indebtedness
7.25income resulting from reacquisition of business indebtedness included in federal taxable
7.26income under section 108(i) of the Internal Revenue Code. This subtraction applies only
7.27to the extent that the income was included in net income in a prior year as a result of the
7.28addition under section290.01, subdivision 19c , clause (25).; and
7.29(20)(i) an amount equal to any fees, dues, or membership expenses paid on behalf of
7.30each employee to a fitness facility, as defined in subdivision 19b, clause (18), item (iii). The
7.31subtraction under this clause shall not exceed $600 per employee per calendar year; and
7.32(ii) the subtraction under this clause applies only if the payment of fees, dues, or
7.33membership expenses to a fitness facility are available on substantially the same terms
7.34to each member of a group of employees defined under a reasonable classification by
7.35the employer, but no classification may include only highly compensated employees,
8.1as defined under section 414(q) of the Internal Revenue Code, or any other group that
8.2includes only executives, directors, or other managerial employees.
8.3EFFECTIVE DATE.This section is effective for taxable years beginning after
8.4December 31, 2012.
1.3amending Minnesota Statutes 2012, section 290.01, subdivisions 19b, 19d.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes 2012, section 290.01, subdivision 19b, is amended to read:
1.6 Subd. 19b. Subtractions from federal taxable income. For individuals, estates,
1.7and trusts, there shall be subtracted from federal taxable income:
1.8 (1) net interest income on obligations of any authority, commission, or
1.9instrumentality of the United States to the extent includable in taxable income for federal
1.10income tax purposes but exempt from state income tax under the laws of the United States;
1.11 (2) if included in federal taxable income, the amount of any overpayment of income
1.12tax to Minnesota or to any other state, for any previous taxable year, whether the amount
1.13is received as a refund or as a credit to another taxable year's income tax liability;
1.14 (3) the amount paid to others, less the amount used to claim the credit allowed under
1.15section
1.16to 6 and $2,500 for each qualifying child in grades 7 to 12, for tuition, textbooks, and
1.17transportation of each qualifying child in attending an elementary or secondary school
1.18situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a
1.19resident of this state may legally fulfill the state's compulsory attendance laws, which
1.20is not operated for profit, and which adheres to the provisions of the Civil Rights Act
1.21of 1964 and chapter 363A. For the purposes of this clause, "tuition" includes fees or
1.22tuition as defined in section
1.23"textbooks" includes books and other instructional materials and equipment purchased
1.24or leased for use in elementary and secondary schools in teaching only those subjects
2.1legally and commonly taught in public elementary and secondary schools in this state.
2.2Equipment expenses qualifying for deduction includes expenses as defined and limited in
2.3section
2.4books and materials used in the teaching of religious tenets, doctrines, or worship, the
2.5purpose of which is to instill such tenets, doctrines, or worship, nor does it include books
2.6or materials for, or transportation to, extracurricular activities including sporting events,
2.7musical or dramatic events, speech activities, driver's education, or similar programs. No
2.8deduction is permitted for any expense the taxpayer incurred in using the taxpayer's or
2.9the qualifying child's vehicle to provide such transportation for a qualifying child. For
2.10purposes of the subtraction provided by this clause, "qualifying child" has the meaning
2.11given in section 32(c)(3) of the Internal Revenue Code;
2.12 (4) income as provided under section
2.13 (5) to the extent included in federal adjusted gross income, income realized on
2.14disposition of property exempt from tax under section
2.15 (6) to the extent not deducted or not deductible pursuant to section 408(d)(8)(E)
2.16of the Internal Revenue Code in determining federal taxable income by an individual
2.17who does not itemize deductions for federal income tax purposes for the taxable year, an
2.18amount equal to 50 percent of the excess of charitable contributions over $500 allowable
2.19as a deduction for the taxable year under section 170(a) of the Internal Revenue Code,
2.20under the provisions of Public Law 109-1 and Public Law 111-126;
2.21 (7) for individuals who are allowed a federal foreign tax credit for taxes that do not
2.22qualify for a credit under section
2.23of subnational foreign taxes for the taxable year, but not to exceed the total subnational
2.24foreign taxes reported in claiming the foreign tax credit. For purposes of this clause,
2.25"federal foreign tax credit" means the credit allowed under section 27 of the Internal
2.26Revenue Code, and "carryover of subnational foreign taxes" equals the carryover allowed
2.27under section 904(c) of the Internal Revenue Code minus national level foreign taxes to
2.28the extent they exceed the federal foreign tax credit;
2.29 (8) in each of the five tax years immediately following the tax year in which an
2.30addition is required under subdivision 19a, clause (7), or 19c, clause (15), in the case of a
2.31shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the
2.32delayed depreciation. For purposes of this clause, "delayed depreciation" means the amount
2.33of the addition made by the taxpayer under subdivision 19a, clause (7), or subdivision 19c,
2.34clause (15), in the case of a shareholder of an S corporation, minus the positive value of
2.35any net operating loss under section 172 of the Internal Revenue Code generated for the
2.36tax year of the addition. The resulting delayed depreciation cannot be less than zero;
3.1 (9) job opportunity building zone income as provided under section
3.2 (10) to the extent included in federal taxable income, the amount of compensation
3.3paid to members of the Minnesota National Guard or other reserve components of the
3.4United States military for active service, excluding compensation for services performed
3.5under the Active Guard Reserve (AGR) program. For purposes of this clause, "active
3.6service" means (i) state active service as defined in section
3.7(1); or (ii) federally funded state active service as defined in section
3.85b
3.9subdivision 3
3.10 (11) to the extent included in federal taxable income, the amount of compensation
3.11paid to Minnesota residents who are members of the armed forces of the United States
3.12or United Nations for active duty performed under United States Code, title 10; or the
3.13authority of the United Nations;
3.14 (12) an amount, not to exceed $10,000, equal to qualified expenses related to a
3.15qualified donor's donation, while living, of one or more of the qualified donor's organs
3.16to another person for human organ transplantation. For purposes of this clause, "organ"
3.17means all or part of an individual's liver, pancreas, kidney, intestine, lung, or bone marrow;
3.18"human organ transplantation" means the medical procedure by which transfer of a human
3.19organ is made from the body of one person to the body of another person; "qualified
3.20expenses" means unreimbursed expenses for both the individual and the qualified donor
3.21for (i) travel, (ii) lodging, and (iii) lost wages net of sick pay, except that such expenses
3.22may be subtracted under this clause only once; and "qualified donor" means the individual
3.23or the individual's dependent, as defined in section 152 of the Internal Revenue Code. An
3.24individual may claim the subtraction in this clause for each instance of organ donation for
3.25transplantation during the taxable year in which the qualified expenses occur;
3.26 (13) in each of the five tax years immediately following the tax year in which an
3.27addition is required under subdivision 19a, clause (8), or 19c, clause (16), in the case of a
3.28shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the
3.29addition made by the taxpayer under subdivision 19a, clause (8), or 19c, clause (16), in the
3.30case of a shareholder of a corporation that is an S corporation, minus the positive value of
3.31any net operating loss under section 172 of the Internal Revenue Code generated for the
3.32tax year of the addition. If the net operating loss exceeds the addition for the tax year, a
3.33subtraction is not allowed under this clause;
3.34 (14) to the extent included in the federal taxable income of a nonresident of
3.35Minnesota, compensation paid to a service member as defined in United States Code, title
4.110, section 101(a)(5), for military service as defined in the Servicemembers Civil Relief
4.2Act, Public Law 108-189, section 101(2);
4.3 (15) to the extent included in federal taxable income, the amount of national service
4.4educational awards received from the National Service Trust under United States Code,
4.5title 42, sections 12601 to 12604, for service in an approved Americorps National Service
4.6program;
4.7(16) to the extent included in federal taxable income, discharge of indebtedness
4.8income resulting from reacquisition of business indebtedness included in federal taxable
4.9income under section 108(i) of the Internal Revenue Code. This subtraction applies only
4.10to the extent that the income was included in net income in a prior year as a result of the
4.11addition under section
4.12(17) the amount of the net operating loss allowed under section
4.1311
4.14(18)(i) for employees, the value of the use of an on-premises facility provided by an
4.15employer to its employees, or the value of any fees, dues, or membership expenses paid by
4.16an employer on behalf of its employees to a fitness facility, as defined in item (iii). In the
4.17case of employers filing under this subdivision that are S corporations, sole proprietors, or
4.18partnerships, the value of any fees, dues, or membership expenses paid by the employer
4.19on behalf of its employees to a fitness facility, as defined in item (iii). The subtraction
4.20under this clause shall not exceed $600 per employee per calendar year;
4.21(ii) the subtraction under this clause applies only if the use of on-premises fitness
4.22facilities or the payment of fees, dues, or membership expenses to a fitness facility are
4.23available on substantially the same terms to each member of a group of employees defined
4.24under a reasonable classification by the employer, but no classification may include only
4.25highly compensated employees, as defined under section 414(q) of the Internal Revenue
4.26Code, or any other group that includes only executives, directors, or other managerial
4.27employees; and
4.28(iii) for purposes of this clause, "fitness facility" means a facility located in the state:
4.29(A) that provides instruction in a program of physical exercise; offers facilities for
4.30the preservation, maintenance, encouragement, or development of physical fitness; or is
4.31the site of such a program of a state or local government;
4.32(B) that is not a private club owned and operated by its members;
4.33(C) that does not offer golf, hunting, sailing, or horseback riding facilities;
4.34(D) whose fitness facility is not incidental to its overall function and purpose; and
4.35(E) that is compliant with antidiscrimination laws under chapter 363A and applicable
4.36federal antidiscrimination laws.
5.1EFFECTIVE DATE.This section is effective for taxable years beginning after
5.2December 31, 2012.
5.3 Sec. 2. Minnesota Statutes 2012, section 290.01, subdivision 19d, is amended to read:
5.4 Subd. 19d. Corporations; modifications decreasing federal taxable income. For
5.5corporations, there shall be subtracted from federal taxable income after the increases
5.6provided in subdivision 19c:
5.7 (1) the amount of foreign dividend gross-up added to gross income for federal
5.8income tax purposes under section 78 of the Internal Revenue Code;
5.9 (2) the amount of salary expense not allowed for federal income tax purposes due to
5.10claiming the work opportunity credit under section 51 of the Internal Revenue Code;
5.11 (3) any dividend (not including any distribution in liquidation) paid within the
5.12taxable year by a national or state bank to the United States, or to any instrumentality of
5.13the United States exempt from federal income taxes, on the preferred stock of the bank
5.14owned by the United States or the instrumentality;
5.15 (4) amounts disallowed for intangible drilling costs due to differences between
5.16this chapter and the Internal Revenue Code in taxable years beginning before January
5.171, 1987, as follows:
5.18 (i) to the extent the disallowed costs are represented by physical property, an amount
5.19equal to the allowance for depreciation under Minnesota Statutes 1986, section
5.20subdivision 7
5.21 (ii) to the extent the disallowed costs are not represented by physical property, an
5.22amount equal to the allowance for cost depletion under Minnesota Statutes 1986, section
5.24 (5) the deduction for capital losses pursuant to sections 1211 and 1212 of the
5.25Internal Revenue Code, except that:
5.26 (i) for capital losses incurred in taxable years beginning after December 31, 1986,
5.27capital loss carrybacks shall not be allowed;
5.28 (ii) for capital losses incurred in taxable years beginning after December 31, 1986,
5.29a capital loss carryover to each of the 15 taxable years succeeding the loss year shall be
5.30allowed;
5.31 (iii) for capital losses incurred in taxable years beginning before January 1, 1987, a
5.32capital loss carryback to each of the three taxable years preceding the loss year, subject to
5.33the provisions of Minnesota Statutes 1986, section
5.34 (iv) for capital losses incurred in taxable years beginning before January 1, 1987,
5.35a capital loss carryover to each of the five taxable years succeeding the loss year to the
6.1extent such loss was not used in a prior taxable year and subject to the provisions of
6.2Minnesota Statutes 1986, section
6.3 (6) an amount for interest and expenses relating to income not taxable for federal
6.4income tax purposes, if (i) the income is taxable under this chapter and (ii) the interest and
6.5expenses were disallowed as deductions under the provisions of section 171(a)(2), 265 or
6.6291 of the Internal Revenue Code in computing federal taxable income;
6.7 (7) in the case of mines, oil and gas wells, other natural deposits, and timber for
6.8which percentage depletion was disallowed pursuant to subdivision 19c, clause (9), a
6.9reasonable allowance for depletion based on actual cost. In the case of leases the deduction
6.10must be apportioned between the lessor and lessee in accordance with rules prescribed
6.11by the commissioner. In the case of property held in trust, the allowable deduction must
6.12be apportioned between the income beneficiaries and the trustee in accordance with the
6.13pertinent provisions of the trust, or if there is no provision in the instrument, on the basis
6.14of the trust's income allocable to each;
6.15 (8) for certified pollution control facilities placed in service in a taxable year
6.16beginning before December 31, 1986, and for which amortization deductions were elected
6.17under section 169 of the Internal Revenue Code of 1954, as amended through December
6.1831, 1985, an amount equal to the allowance for depreciation under Minnesota Statutes
6.191986, section
6.20 (9) amounts included in federal taxable income that are due to refunds of income,
6.21excise, or franchise taxes based on net income or related minimum taxes paid by the
6.22corporation to Minnesota, another state, a political subdivision of another state, the
6.23District of Columbia, or a foreign country or possession of the United States to the extent
6.24that the taxes were added to federal taxable income under section
6.25clause (1), in a prior taxable year;
6.26 (10) 80 percent of royalties, fees, or other like income accrued or received from a
6.27foreign operating corporation or a foreign corporation which is part of the same unitary
6.28business as the receiving corporation, unless the income resulting from such payments or
6.29accruals is income from sources within the United States as defined in subtitle A, chapter
6.301, subchapter N, part 1, of the Internal Revenue Code;
6.31 (11) income or gains from the business of mining as defined in section
6.32subdivision 1
6.33 (12) the amount of disability access expenditures in the taxable year which are not
6.34allowed to be deducted or capitalized under section 44(d)(7) of the Internal Revenue Code;
7.1 (13) the amount of qualified research expenses not allowed for federal income tax
7.2purposes under section 280C(c) of the Internal Revenue Code, but only to the extent that
7.3the amount exceeds the amount of the credit allowed under section
7.4 (14) the amount of salary expenses not allowed for federal income tax purposes due to
7.5claiming the Indian employment credit under section 45A(a) of the Internal Revenue Code;
7.6 (15) for a corporation whose foreign sales corporation, as defined in section 922
7.7of the Internal Revenue Code, constituted a foreign operating corporation during any
7.8taxable year ending before January 1, 1995, and a return was filed by August 15, 1996,
7.9claiming the deduction under section
7.10the foreign operating corporation, an amount equal to
7.11income excluded under section 114 of the Internal Revenue Code, provided the income is
7.12not income of a foreign operating company;
7.13 (16) any decrease in subpart F income, as defined in section 952(a) of the Internal
7.14Revenue Code, for the taxable year when subpart F income is calculated without regard to
7.15the provisions of Division C, title III, section 303(b) of Public Law 110-343;
7.16 (17) in each of the five tax years immediately following the tax year in which an
7.17addition is required under subdivision 19c, clause (15), an amount equal to one-fifth of
7.18the delayed depreciation. For purposes of this clause, "delayed depreciation" means the
7.19amount of the addition made by the taxpayer under subdivision 19c, clause (15). The
7.20resulting delayed depreciation cannot be less than zero;
7.21 (18) in each of the five tax years immediately following the tax year in which an
7.22addition is required under subdivision 19c, clause (16), an amount equal to one-fifth of
7.23the amount of the addition;
7.24(19) to the extent included in federal taxable income, discharge of indebtedness
7.25income resulting from reacquisition of business indebtedness included in federal taxable
7.26income under section 108(i) of the Internal Revenue Code. This subtraction applies only
7.27to the extent that the income was included in net income in a prior year as a result of the
7.28addition under section
7.29(20)(i) an amount equal to any fees, dues, or membership expenses paid on behalf of
7.30each employee to a fitness facility, as defined in subdivision 19b, clause (18), item (iii). The
7.31subtraction under this clause shall not exceed $600 per employee per calendar year; and
7.32(ii) the subtraction under this clause applies only if the payment of fees, dues, or
7.33membership expenses to a fitness facility are available on substantially the same terms
7.34to each member of a group of employees defined under a reasonable classification by
7.35the employer, but no classification may include only highly compensated employees,
8.1as defined under section 414(q) of the Internal Revenue Code, or any other group that
8.2includes only executives, directors, or other managerial employees.
8.3EFFECTIVE DATE.This section is effective for taxable years beginning after
8.4December 31, 2012.
