Bill Text: MN SF2605 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Endow Minnesota Program Act
Spectrum: Slight Partisan Bill (Democrat 3-1)
Status: (Introduced - Dead) 2012-04-23 - Referred to Jobs and Economic Growth [SF2605 Detail]
Download: Minnesota-2011-SF2605-Introduced.html
1.2relating to community foundations; establishing an endow Minnesota program;
1.3authorizing matching grants and providing tax credits to encourage contributions;
1.4authorizing rulemaking;amending Minnesota Statutes 2010, sections 290.06, by
1.5adding a subdivision; 297I.20, by adding a subdivision; proposing coding for
1.6new law in Minnesota Statutes, chapter 116J.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. [116J.9821] ENDOW MINNESOTA PROGRAM ACT.
1.9 Subdivision 1. Title. This section may be known and cited as the "Endow Minnesota
1.10Program Act."
1.11 Subd. 2. Purpose. The purpose of this section is to:
1.12(1) enhance the quality of life for citizens of this state through increased
1.13philanthropic activity by providing capital to new and existing citizen groups organized to
1.14establish endowment funds that will address community needs in this state; and
1.15(2) encourage individuals, businesses, and organizations to invest in community
1.16foundations.
1.17 Subd. 3. Definitions. (a) For purposes of this section, the following terms have
1.18the meanings given.
1.19(b) "Board" means the governing body of the lead philanthropic entity selected
1.20by the commissioner under subdivision 4.
1.21(c) "Business" means a business operating within this state or a consortium of
1.22businesses operating within this state and includes an individual operating a sole
1.23proprietorship or having rental, royalty, or farm income in this state.
1.24(d) "Commissioner" means the commissioner of employment and economic
1.25development.
2.1(e) "Community affiliate organization" means a group of five or more community
2.2leaders or advocates organized for the purpose of increasing philanthropic activity in an
2.3identified community or geographic area in this state with the intention of establishing
2.4a community affiliate endowment fund.
2.5(f) "Endow Minnesota qualified community foundation" means a community
2.6foundation organized or operating in this state that substantially complies with the national
2.7standards established by the National Council on Foundations, as determined by the
2.8commissioner in collaboration with the Minnesota Council on Foundations.
2.9(g) "Endowment gift" means an irrevocable contribution to a permanent endowment
2.10held by an endow Minnesota qualified community foundation.
2.11(h) "Lead philanthropic entity" means the entity selected by the commissioner under
2.12subdivision 4.
2.13 Subd. 4. Endow Minnesota grants. (a) The commissioner shall select a lead
2.14philanthropic entity for purposes of encouraging the development of qualified community
2.15foundations in this state. A lead philanthropic entity must:
2.16(1) be a nonprofit entity that is exempt from federal income taxation under section
2.17501(c)(3) of the Internal Revenue Code, as amended;
2.18(2) be a statewide organization with membership consisting of organizations, such as
2.19community, corporate, and private foundations, whose principal function is the making of
2.20grants in this state; and
2.21(3) have a minimum of 40 members that include qualified community foundations.
2.22(b) A lead philanthropic entity may receive a grant from the commissioner out of
2.23any appropriation or other money available for that purpose. The board shall use the
2.24grant money to award endow Minnesota grants to new and existing qualified community
2.25foundations and to community affiliate organizations that do all of the following:
2.26(1) provide the board with all information it requires;
2.27(2) demonstrate a dollar-for-dollar funding match in a form approved by the board;
2.28(3) identify an endow Minnesota qualified community foundation to hold all funds.
2.29This requirement does not apply to an endow Minnesota qualified community foundation;
2.30and
2.31(4) provide a plan to the board demonstrating the method for distributing grant
2.32money received from the board to organizations within the community or geographic area,
2.33as defined by the endow Minnesota qualified community foundation or the community
2.34affiliate organization.
2.35(c) Endow Minnesota grants awarded to new and existing endow Minnesota
2.36qualified community foundations and to community affiliate organizations must not
3.1exceed $25,000 per foundation or organization unless a foundation or organization
3.2demonstrates a multiple county or regional approach. Grants may be awarded annually,
3.3with no more than three grants to any one county in a fiscal year.
3.4(d) In ranking applications for grants, the board shall consider a variety of factors
3.5including the following:
3.6(1) the demonstrated need for financial assistance;
3.7(2) the potential for future philanthropic activity in the area represented by or being
3.8considered for assistance;
3.9(3) the proportion of the funding match being provided;
3.10(4) for community affiliate organizations, the demonstrated need for the creation of a
3.11community affiliate endowment fund in the applicant's geographic area;
3.12(5) the identification of community needs and the manner in which additional
3.13funding will address those needs; and
3.14(6) the geographic diversity of awards.
3.15(e) A lead philanthropic entity must not use more than five percent of money
3.16received from the state for administrative purposes.
3.17 Subd. 5. Endow Minnesota tax credit. (a) For taxable years beginning on or after
3.18December 31, 2011, a tax credit is allowed against the taxes imposed under chapters 290
3.19and 297I equal to 25 percent of a taxpayer's endowment gift made during the taxable year
3.20to an endow Minnesota qualified community foundation. A tax credit is allowed only for
3.21an endowment gift made to an endow Minnesota qualified community foundation for a
3.22permanent endowment fund established to benefit a charitable cause in this state. The
3.23tax credit is limited to the amount certified by the commissioner to the taxpayer under
3.24paragraph (d).
3.25(b) The aggregate amount of tax credits authorized under this subdivision is limited
3.26to a total of $ ........ The maximum amount of tax credits granted to a taxpayer must not
3.27exceed five percent of the aggregate amount of tax credits available to be authorized
3.28for the taxable year. Ten percent of the aggregate amount of tax credits authorized in a
3.29calendar year shall be reserved for endowment gifts in amounts of $30,000 or less. If by
3.30September 1 of a calendar year the entire ten percent of the reserved tax credits is not
3.31distributed, the remaining tax credits are available to any other eligible applicants.
3.32(c) A tax credit is not transferable to any other taxpayer.
3.33(d) To limit the amount of credits allowed to the amount provided under paragraph
3.34(b), the commissioner shall develop a system for registration and authorization of tax
3.35credits under this subdivision and shall control the distribution of all tax credits to
3.36taxpayers providing an endowment gift subject to this subdivision. The commissioner
4.1shall certify to each authorized taxpayer the tax credit amount by taxable year that the
4.2taxpayer qualifies for.
4.3(e) The commissioner may adopt administrative rules under chapter 14 for the
4.4qualification and administration of endowment gifts.
4.5 Sec. 2. Minnesota Statutes 2010, section 290.06, is amended by adding a subdivision
4.6to read:
4.7 Subd. 36. Endow Minnesota tax credit. (a) A taxpayer is allowed a credit against
4.8the tax under subdivision 1 or 2c equal to the amount certified by the commissioner of
4.9employment and economic development under section 116J.9821, subdivision 5, to the
4.10taxpayer for the taxable year.
4.11(b) Credits allowed to a partnership, limited liability company taxed as a partnership,
4.12S corporation, or multiple owners of property are passed through to the partners, members,
4.13shareholders, or owners, respectively, pro rata to each partner, member, shareholder, or
4.14owner based on their share of the entity's income for the taxable year.
4.15(c)(1) The credit is limited to the liability for tax. "Liability for tax" for purposes of
4.16this subdivision means the tax imposed under subdivision 1 or 2c, as applicable, for the
4.17taxable year reduced by the sum of the nonrefundable credits allowed under this chapter.
4.18(2) For a corporation that is a partner in a partnership, the credit allowed for the
4.19taxable year is limited to the lesser of the amount determined under clause (1) for the
4.20taxable year or an amount, separately computed with respect to the corporation's interest
4.21in the trade, business, or entity, equal to the amount of tax attributable to that portion of
4.22taxable income which is allocable or apportionable to the corporation's interest in the
4.23trade, business, or entity.
4.24(3) If the amount of the credit determined under this subdivision for any taxable year
4.25exceeds the limitation under clause (1), the excess is a credit carryover to each of the 15
4.26succeeding taxable years. The entire amount of the excess unused credit for the taxable
4.27year is carried first to the earliest of the taxable years to which the credit may be carried
4.28and then to each successive year to which the credit may be carried. The amount of the
4.29unused credit which may be added under this clause is limited to the taxpayer's liability
4.30for tax, less the credit for the taxable year.
4.31EFFECTIVE DATE.This section is effective for taxable years beginning after
4.32December 31, 2011.
4.33 Sec. 3. Minnesota Statutes 2010, section 297I.20, is amended by adding a subdivision
4.34to read:
5.1 Subd. 4. Endow Minnesota tax credit. An insurance company may claim a credit
5.2against the premiums tax imposed under this chapter equal to the amount of the credit
5.3certificate issued to it under section 116J.9821. This credit does not affect the calculation
5.4of police and fire aid under section 69.021.
5.5EFFECTIVE DATE.This section is effective for taxable years beginning after
5.6December 31, 2011.
1.3authorizing matching grants and providing tax credits to encourage contributions;
1.4authorizing rulemaking;amending Minnesota Statutes 2010, sections 290.06, by
1.5adding a subdivision; 297I.20, by adding a subdivision; proposing coding for
1.6new law in Minnesota Statutes, chapter 116J.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. [116J.9821] ENDOW MINNESOTA PROGRAM ACT.
1.9 Subdivision 1. Title. This section may be known and cited as the "Endow Minnesota
1.10Program Act."
1.11 Subd. 2. Purpose. The purpose of this section is to:
1.12(1) enhance the quality of life for citizens of this state through increased
1.13philanthropic activity by providing capital to new and existing citizen groups organized to
1.14establish endowment funds that will address community needs in this state; and
1.15(2) encourage individuals, businesses, and organizations to invest in community
1.16foundations.
1.17 Subd. 3. Definitions. (a) For purposes of this section, the following terms have
1.18the meanings given.
1.19(b) "Board" means the governing body of the lead philanthropic entity selected
1.20by the commissioner under subdivision 4.
1.21(c) "Business" means a business operating within this state or a consortium of
1.22businesses operating within this state and includes an individual operating a sole
1.23proprietorship or having rental, royalty, or farm income in this state.
1.24(d) "Commissioner" means the commissioner of employment and economic
1.25development.
2.1(e) "Community affiliate organization" means a group of five or more community
2.2leaders or advocates organized for the purpose of increasing philanthropic activity in an
2.3identified community or geographic area in this state with the intention of establishing
2.4a community affiliate endowment fund.
2.5(f) "Endow Minnesota qualified community foundation" means a community
2.6foundation organized or operating in this state that substantially complies with the national
2.7standards established by the National Council on Foundations, as determined by the
2.8commissioner in collaboration with the Minnesota Council on Foundations.
2.9(g) "Endowment gift" means an irrevocable contribution to a permanent endowment
2.10held by an endow Minnesota qualified community foundation.
2.11(h) "Lead philanthropic entity" means the entity selected by the commissioner under
2.12subdivision 4.
2.13 Subd. 4. Endow Minnesota grants. (a) The commissioner shall select a lead
2.14philanthropic entity for purposes of encouraging the development of qualified community
2.15foundations in this state. A lead philanthropic entity must:
2.16(1) be a nonprofit entity that is exempt from federal income taxation under section
2.17501(c)(3) of the Internal Revenue Code, as amended;
2.18(2) be a statewide organization with membership consisting of organizations, such as
2.19community, corporate, and private foundations, whose principal function is the making of
2.20grants in this state; and
2.21(3) have a minimum of 40 members that include qualified community foundations.
2.22(b) A lead philanthropic entity may receive a grant from the commissioner out of
2.23any appropriation or other money available for that purpose. The board shall use the
2.24grant money to award endow Minnesota grants to new and existing qualified community
2.25foundations and to community affiliate organizations that do all of the following:
2.26(1) provide the board with all information it requires;
2.27(2) demonstrate a dollar-for-dollar funding match in a form approved by the board;
2.28(3) identify an endow Minnesota qualified community foundation to hold all funds.
2.29This requirement does not apply to an endow Minnesota qualified community foundation;
2.30and
2.31(4) provide a plan to the board demonstrating the method for distributing grant
2.32money received from the board to organizations within the community or geographic area,
2.33as defined by the endow Minnesota qualified community foundation or the community
2.34affiliate organization.
2.35(c) Endow Minnesota grants awarded to new and existing endow Minnesota
2.36qualified community foundations and to community affiliate organizations must not
3.1exceed $25,000 per foundation or organization unless a foundation or organization
3.2demonstrates a multiple county or regional approach. Grants may be awarded annually,
3.3with no more than three grants to any one county in a fiscal year.
3.4(d) In ranking applications for grants, the board shall consider a variety of factors
3.5including the following:
3.6(1) the demonstrated need for financial assistance;
3.7(2) the potential for future philanthropic activity in the area represented by or being
3.8considered for assistance;
3.9(3) the proportion of the funding match being provided;
3.10(4) for community affiliate organizations, the demonstrated need for the creation of a
3.11community affiliate endowment fund in the applicant's geographic area;
3.12(5) the identification of community needs and the manner in which additional
3.13funding will address those needs; and
3.14(6) the geographic diversity of awards.
3.15(e) A lead philanthropic entity must not use more than five percent of money
3.16received from the state for administrative purposes.
3.17 Subd. 5. Endow Minnesota tax credit. (a) For taxable years beginning on or after
3.18December 31, 2011, a tax credit is allowed against the taxes imposed under chapters 290
3.19and 297I equal to 25 percent of a taxpayer's endowment gift made during the taxable year
3.20to an endow Minnesota qualified community foundation. A tax credit is allowed only for
3.21an endowment gift made to an endow Minnesota qualified community foundation for a
3.22permanent endowment fund established to benefit a charitable cause in this state. The
3.23tax credit is limited to the amount certified by the commissioner to the taxpayer under
3.24paragraph (d).
3.25(b) The aggregate amount of tax credits authorized under this subdivision is limited
3.26to a total of $ ........ The maximum amount of tax credits granted to a taxpayer must not
3.27exceed five percent of the aggregate amount of tax credits available to be authorized
3.28for the taxable year. Ten percent of the aggregate amount of tax credits authorized in a
3.29calendar year shall be reserved for endowment gifts in amounts of $30,000 or less. If by
3.30September 1 of a calendar year the entire ten percent of the reserved tax credits is not
3.31distributed, the remaining tax credits are available to any other eligible applicants.
3.32(c) A tax credit is not transferable to any other taxpayer.
3.33(d) To limit the amount of credits allowed to the amount provided under paragraph
3.34(b), the commissioner shall develop a system for registration and authorization of tax
3.35credits under this subdivision and shall control the distribution of all tax credits to
3.36taxpayers providing an endowment gift subject to this subdivision. The commissioner
4.1shall certify to each authorized taxpayer the tax credit amount by taxable year that the
4.2taxpayer qualifies for.
4.3(e) The commissioner may adopt administrative rules under chapter 14 for the
4.4qualification and administration of endowment gifts.
4.5 Sec. 2. Minnesota Statutes 2010, section 290.06, is amended by adding a subdivision
4.6to read:
4.7 Subd. 36. Endow Minnesota tax credit. (a) A taxpayer is allowed a credit against
4.8the tax under subdivision 1 or 2c equal to the amount certified by the commissioner of
4.9employment and economic development under section 116J.9821, subdivision 5, to the
4.10taxpayer for the taxable year.
4.11(b) Credits allowed to a partnership, limited liability company taxed as a partnership,
4.12S corporation, or multiple owners of property are passed through to the partners, members,
4.13shareholders, or owners, respectively, pro rata to each partner, member, shareholder, or
4.14owner based on their share of the entity's income for the taxable year.
4.15(c)(1) The credit is limited to the liability for tax. "Liability for tax" for purposes of
4.16this subdivision means the tax imposed under subdivision 1 or 2c, as applicable, for the
4.17taxable year reduced by the sum of the nonrefundable credits allowed under this chapter.
4.18(2) For a corporation that is a partner in a partnership, the credit allowed for the
4.19taxable year is limited to the lesser of the amount determined under clause (1) for the
4.20taxable year or an amount, separately computed with respect to the corporation's interest
4.21in the trade, business, or entity, equal to the amount of tax attributable to that portion of
4.22taxable income which is allocable or apportionable to the corporation's interest in the
4.23trade, business, or entity.
4.24(3) If the amount of the credit determined under this subdivision for any taxable year
4.25exceeds the limitation under clause (1), the excess is a credit carryover to each of the 15
4.26succeeding taxable years. The entire amount of the excess unused credit for the taxable
4.27year is carried first to the earliest of the taxable years to which the credit may be carried
4.28and then to each successive year to which the credit may be carried. The amount of the
4.29unused credit which may be added under this clause is limited to the taxpayer's liability
4.30for tax, less the credit for the taxable year.
4.31EFFECTIVE DATE.This section is effective for taxable years beginning after
4.32December 31, 2011.
4.33 Sec. 3. Minnesota Statutes 2010, section 297I.20, is amended by adding a subdivision
4.34to read:
5.1 Subd. 4. Endow Minnesota tax credit. An insurance company may claim a credit
5.2against the premiums tax imposed under this chapter equal to the amount of the credit
5.3certificate issued to it under section 116J.9821. This credit does not affect the calculation
5.4of police and fire aid under section 69.021.
5.5EFFECTIVE DATE.This section is effective for taxable years beginning after
5.6December 31, 2011.
