Bill Text: MN SF1834 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Minnesota college saving plan contributions income tax subtraction authorization
Spectrum: Partisan Bill (Democrat 5-0)
Status: (Introduced - Dead) 2014-02-25 - Referred to Taxes [SF1834 Detail]
Download: Minnesota-2013-SF1834-Introduced.html
1.2relating to taxation; individual income; providing a subtraction for contributions
1.3to a Minnesota college savings plan;amending Minnesota Statutes 2013
1.4Supplement, section 290.01, subdivision 19b.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2013 Supplement, section 290.01, subdivision 19b,
1.7is amended to read:
1.8 Subd. 19b. Subtractions from federal taxable income. For individuals, estates,
1.9and trusts, there shall be subtracted from federal taxable income:
1.10 (1) net interest income on obligations of any authority, commission, or
1.11instrumentality of the United States to the extent includable in taxable income for federal
1.12income tax purposes but exempt from state income tax under the laws of the United States;
1.13 (2) if included in federal taxable income, the amount of any overpayment of income
1.14tax to Minnesota or to any other state, for any previous taxable year, whether the amount
1.15is received as a refund or as a credit to another taxable year's income tax liability;
1.16 (3) the amount paid to others, less the amount used to claim the credit allowed under
1.17section290.0674 , not to exceed $1,625 for each qualifying child in grades kindergarten
1.18to 6 and $2,500 for each qualifying child in grades 7 to 12, for tuition, textbooks, and
1.19transportation of each qualifying child in attending an elementary or secondary school
1.20situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a
1.21resident of this state may legally fulfill the state's compulsory attendance laws, which
1.22is not operated for profit, and which adheres to the provisions of the Civil Rights Act
1.23of 1964 and chapter 363A. For the purposes of this clause, "tuition" includes fees or
1.24tuition as defined in section290.0674, subdivision 1 , clause (1). As used in this clause,
2.1"textbooks" includes books and other instructional materials and equipment purchased
2.2or leased for use in elementary and secondary schools in teaching only those subjects
2.3legally and commonly taught in public elementary and secondary schools in this state.
2.4Equipment expenses qualifying for deduction includes expenses as defined and limited in
2.5section290.0674, subdivision 1 , clause (3). "Textbooks" does not include instructional
2.6books and materials used in the teaching of religious tenets, doctrines, or worship, the
2.7purpose of which is to instill such tenets, doctrines, or worship, nor does it include books
2.8or materials for, or transportation to, extracurricular activities including sporting events,
2.9musical or dramatic events, speech activities, driver's education, or similar programs. No
2.10deduction is permitted for any expense the taxpayer incurred in using the taxpayer's or
2.11the qualifying child's vehicle to provide such transportation for a qualifying child. For
2.12purposes of the subtraction provided by this clause, "qualifying child" has the meaning
2.13given in section 32(c)(3) of the Internal Revenue Code;
2.14 (4) income as provided under section290.0802 ;
2.15 (5) to the extent included in federal adjusted gross income, income realized on
2.16disposition of property exempt from tax under section290.491 ;
2.17 (6) to the extent not deducted or not deductible pursuant to section 408(d)(8)(E)
2.18of the Internal Revenue Code in determining federal taxable income by an individual
2.19who does not itemize deductions for federal income tax purposes for the taxable year, an
2.20amount equal to 50 percent of the excess of charitable contributions over $500 allowable
2.21as a deduction for the taxable year under section 170(a) of the Internal Revenue Code,
2.22under the provisions of Public Law 109-1 and Public Law 111-126;
2.23 (7) for individuals who are allowed a federal foreign tax credit for taxes that do not
2.24qualify for a credit under section290.06, subdivision 22 , an amount equal to the carryover
2.25of subnational foreign taxes for the taxable year, but not to exceed the total subnational
2.26foreign taxes reported in claiming the foreign tax credit. For purposes of this clause,
2.27"federal foreign tax credit" means the credit allowed under section 27 of the Internal
2.28Revenue Code, and "carryover of subnational foreign taxes" equals the carryover allowed
2.29under section 904(c) of the Internal Revenue Code minus national level foreign taxes to
2.30the extent they exceed the federal foreign tax credit;
2.31 (8) in each of the five tax years immediately following the tax year in which an
2.32addition is required under subdivision 19a, clause (7), or 19c, clause (12), in the case of a
2.33shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the
2.34delayed depreciation. For purposes of this clause, "delayed depreciation" means the amount
2.35of the addition made by the taxpayer under subdivision 19a, clause (7), or subdivision 19c,
2.36clause (12), in the case of a shareholder of an S corporation, minus the positive value of
3.1any net operating loss under section 172 of the Internal Revenue Code generated for the
3.2tax year of the addition. The resulting delayed depreciation cannot be less than zero;
3.3 (9) job opportunity building zone income as provided under section469.316 ;
3.4 (10) to the extent included in federal taxable income, the amount of compensation
3.5paid to members of the Minnesota National Guard or other reserve components of the
3.6United States military for active service, excluding compensation for services performed
3.7under the Active Guard Reserve (AGR) program. For purposes of this clause, "active
3.8service" means (i) state active service as defined in section190.05, subdivision 5a , clause
3.9(1); or (ii) federally funded state active service as defined in section190.05, subdivision
3.105b , but "active service" excludes service performed in accordance with section
190.08,
3.11subdivision 3 ;
3.12 (11) to the extent included in federal taxable income, the amount of compensation
3.13paid to Minnesota residents who are members of the armed forces of the United States
3.14or United Nations for active duty performed under United States Code, title 10; or the
3.15authority of the United Nations;
3.16 (12) an amount, not to exceed $10,000, equal to qualified expenses related to a
3.17qualified donor's donation, while living, of one or more of the qualified donor's organs
3.18to another person for human organ transplantation. For purposes of this clause, "organ"
3.19means all or part of an individual's liver, pancreas, kidney, intestine, lung, or bone marrow;
3.20"human organ transplantation" means the medical procedure by which transfer of a human
3.21organ is made from the body of one person to the body of another person; "qualified
3.22expenses" means unreimbursed expenses for both the individual and the qualified donor
3.23for (i) travel, (ii) lodging, and (iii) lost wages net of sick pay, except that such expenses
3.24may be subtracted under this clause only once; and "qualified donor" means the individual
3.25or the individual's dependent, as defined in section 152 of the Internal Revenue Code. An
3.26individual may claim the subtraction in this clause for each instance of organ donation for
3.27transplantation during the taxable year in which the qualified expenses occur;
3.28 (13) in each of the five tax years immediately following the tax year in which an
3.29addition is required under subdivision 19a, clause (8), or 19c, clause (13), in the case of a
3.30shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the
3.31addition made by the taxpayer under subdivision 19a, clause (8), or 19c, clause (13), in the
3.32case of a shareholder of a corporation that is an S corporation, minus the positive value of
3.33any net operating loss under section 172 of the Internal Revenue Code generated for the
3.34tax year of the addition. If the net operating loss exceeds the addition for the tax year, a
3.35subtraction is not allowed under this clause;
4.1 (14) to the extent included in the federal taxable income of a nonresident of
4.2Minnesota, compensation paid to a service member as defined in United States Code, title
4.310, section 101(a)(5), for military service as defined in the Servicemembers Civil Relief
4.4Act, Public Law 108-189, section 101(2);
4.5 (15) to the extent included in federal taxable income, the amount of national service
4.6educational awards received from the National Service Trust under United States Code,
4.7title 42, sections 12601 to 12604, for service in an approved Americorps National Service
4.8program;
4.9(16) to the extent included in federal taxable income, discharge of indebtedness
4.10income resulting from reacquisition of business indebtedness included in federal taxable
4.11income under section 108(i) of the Internal Revenue Code. This subtraction applies only
4.12to the extent that the income was included in net income in a prior year as a result of the
4.13addition under section290.01, subdivision 19a , clause (16);
4.14(17) the amount of the net operating loss allowed under section290.095, subdivision
4.1511 , paragraph (c); and
4.16(18) the amount of expenses not allowed for federal income tax purposes due
4.17to claiming the railroad track maintenance credit under section 45G(a) of the Internal
4.18Revenue Code.; and
4.19(19) the amount equal to the contributions made during the tax year to a college
4.20savings plan account qualifying under section 529 of the Internal Revenue Code, not
4.21including amounts rolled over from other college savings plan accounts, and not to exceed
4.22$10,000 for married couples filing joint returns and $5,000 for all other filers.
4.23EFFECTIVE DATE.This section is effective for taxable years beginning after
4.24December 31, 2013.
1.3to a Minnesota college savings plan;amending Minnesota Statutes 2013
1.4Supplement, section 290.01, subdivision 19b.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2013 Supplement, section 290.01, subdivision 19b,
1.7is amended to read:
1.8 Subd. 19b. Subtractions from federal taxable income. For individuals, estates,
1.9and trusts, there shall be subtracted from federal taxable income:
1.10 (1) net interest income on obligations of any authority, commission, or
1.11instrumentality of the United States to the extent includable in taxable income for federal
1.12income tax purposes but exempt from state income tax under the laws of the United States;
1.13 (2) if included in federal taxable income, the amount of any overpayment of income
1.14tax to Minnesota or to any other state, for any previous taxable year, whether the amount
1.15is received as a refund or as a credit to another taxable year's income tax liability;
1.16 (3) the amount paid to others, less the amount used to claim the credit allowed under
1.17section
1.18to 6 and $2,500 for each qualifying child in grades 7 to 12, for tuition, textbooks, and
1.19transportation of each qualifying child in attending an elementary or secondary school
1.20situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a
1.21resident of this state may legally fulfill the state's compulsory attendance laws, which
1.22is not operated for profit, and which adheres to the provisions of the Civil Rights Act
1.23of 1964 and chapter 363A. For the purposes of this clause, "tuition" includes fees or
1.24tuition as defined in section
2.1"textbooks" includes books and other instructional materials and equipment purchased
2.2or leased for use in elementary and secondary schools in teaching only those subjects
2.3legally and commonly taught in public elementary and secondary schools in this state.
2.4Equipment expenses qualifying for deduction includes expenses as defined and limited in
2.5section
2.6books and materials used in the teaching of religious tenets, doctrines, or worship, the
2.7purpose of which is to instill such tenets, doctrines, or worship, nor does it include books
2.8or materials for, or transportation to, extracurricular activities including sporting events,
2.9musical or dramatic events, speech activities, driver's education, or similar programs. No
2.10deduction is permitted for any expense the taxpayer incurred in using the taxpayer's or
2.11the qualifying child's vehicle to provide such transportation for a qualifying child. For
2.12purposes of the subtraction provided by this clause, "qualifying child" has the meaning
2.13given in section 32(c)(3) of the Internal Revenue Code;
2.14 (4) income as provided under section
2.15 (5) to the extent included in federal adjusted gross income, income realized on
2.16disposition of property exempt from tax under section
2.17 (6) to the extent not deducted or not deductible pursuant to section 408(d)(8)(E)
2.18of the Internal Revenue Code in determining federal taxable income by an individual
2.19who does not itemize deductions for federal income tax purposes for the taxable year, an
2.20amount equal to 50 percent of the excess of charitable contributions over $500 allowable
2.21as a deduction for the taxable year under section 170(a) of the Internal Revenue Code,
2.22under the provisions of Public Law 109-1 and Public Law 111-126;
2.23 (7) for individuals who are allowed a federal foreign tax credit for taxes that do not
2.24qualify for a credit under section
2.25of subnational foreign taxes for the taxable year, but not to exceed the total subnational
2.26foreign taxes reported in claiming the foreign tax credit. For purposes of this clause,
2.27"federal foreign tax credit" means the credit allowed under section 27 of the Internal
2.28Revenue Code, and "carryover of subnational foreign taxes" equals the carryover allowed
2.29under section 904(c) of the Internal Revenue Code minus national level foreign taxes to
2.30the extent they exceed the federal foreign tax credit;
2.31 (8) in each of the five tax years immediately following the tax year in which an
2.32addition is required under subdivision 19a, clause (7), or 19c, clause (12), in the case of a
2.33shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the
2.34delayed depreciation. For purposes of this clause, "delayed depreciation" means the amount
2.35of the addition made by the taxpayer under subdivision 19a, clause (7), or subdivision 19c,
2.36clause (12), in the case of a shareholder of an S corporation, minus the positive value of
3.1any net operating loss under section 172 of the Internal Revenue Code generated for the
3.2tax year of the addition. The resulting delayed depreciation cannot be less than zero;
3.3 (9) job opportunity building zone income as provided under section
3.4 (10) to the extent included in federal taxable income, the amount of compensation
3.5paid to members of the Minnesota National Guard or other reserve components of the
3.6United States military for active service, excluding compensation for services performed
3.7under the Active Guard Reserve (AGR) program. For purposes of this clause, "active
3.8service" means (i) state active service as defined in section
3.9(1); or (ii) federally funded state active service as defined in section
3.105b
3.11subdivision 3
3.12 (11) to the extent included in federal taxable income, the amount of compensation
3.13paid to Minnesota residents who are members of the armed forces of the United States
3.14or United Nations for active duty performed under United States Code, title 10; or the
3.15authority of the United Nations;
3.16 (12) an amount, not to exceed $10,000, equal to qualified expenses related to a
3.17qualified donor's donation, while living, of one or more of the qualified donor's organs
3.18to another person for human organ transplantation. For purposes of this clause, "organ"
3.19means all or part of an individual's liver, pancreas, kidney, intestine, lung, or bone marrow;
3.20"human organ transplantation" means the medical procedure by which transfer of a human
3.21organ is made from the body of one person to the body of another person; "qualified
3.22expenses" means unreimbursed expenses for both the individual and the qualified donor
3.23for (i) travel, (ii) lodging, and (iii) lost wages net of sick pay, except that such expenses
3.24may be subtracted under this clause only once; and "qualified donor" means the individual
3.25or the individual's dependent, as defined in section 152 of the Internal Revenue Code. An
3.26individual may claim the subtraction in this clause for each instance of organ donation for
3.27transplantation during the taxable year in which the qualified expenses occur;
3.28 (13) in each of the five tax years immediately following the tax year in which an
3.29addition is required under subdivision 19a, clause (8), or 19c, clause (13), in the case of a
3.30shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the
3.31addition made by the taxpayer under subdivision 19a, clause (8), or 19c, clause (13), in the
3.32case of a shareholder of a corporation that is an S corporation, minus the positive value of
3.33any net operating loss under section 172 of the Internal Revenue Code generated for the
3.34tax year of the addition. If the net operating loss exceeds the addition for the tax year, a
3.35subtraction is not allowed under this clause;
4.1 (14) to the extent included in the federal taxable income of a nonresident of
4.2Minnesota, compensation paid to a service member as defined in United States Code, title
4.310, section 101(a)(5), for military service as defined in the Servicemembers Civil Relief
4.4Act, Public Law 108-189, section 101(2);
4.5 (15) to the extent included in federal taxable income, the amount of national service
4.6educational awards received from the National Service Trust under United States Code,
4.7title 42, sections 12601 to 12604, for service in an approved Americorps National Service
4.8program;
4.9(16) to the extent included in federal taxable income, discharge of indebtedness
4.10income resulting from reacquisition of business indebtedness included in federal taxable
4.11income under section 108(i) of the Internal Revenue Code. This subtraction applies only
4.12to the extent that the income was included in net income in a prior year as a result of the
4.13addition under section
4.14(17) the amount of the net operating loss allowed under section
4.1511
4.16(18) the amount of expenses not allowed for federal income tax purposes due
4.17to claiming the railroad track maintenance credit under section 45G(a) of the Internal
4.18Revenue Code
4.19(19) the amount equal to the contributions made during the tax year to a college
4.20savings plan account qualifying under section 529 of the Internal Revenue Code, not
4.21including amounts rolled over from other college savings plan accounts, and not to exceed
4.22$10,000 for married couples filing joint returns and $5,000 for all other filers.
4.23EFFECTIVE DATE.This section is effective for taxable years beginning after
4.24December 31, 2013.
