Agenda - Council - 02/08/2021 - Laserfiche WebLink

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01/13/21 REVISOR EAP/HR 21-01750 10.1 (ii) the ratio derived by dividing the income subject to tax in the qualifying state that 10.2 consists of compensation for performance of personal or professional services by the total 10.3 amount of income subject to tax in the qualifying state. 10.4 (2) If the amount of the credit that a qualifying individual is eligible to receive under 10.5 clause (1) for tax paid to a qualifying state exceeds the tax due under this chapter before 10.6 the application of the credit calculated under clause (1), the commissioner shall refund the 10.7 excess to the qualifying individual. An amount sufficient to pay the refunds required by this 10.8 subdivision is appropriated to the commissioner from the general fund. 10.9 (3) For purposes of this paragraph, "preliminary credit" means the credit that a qualifying 10.10 individual is eligible to receive under paragraphs (b) and (d) for tax paid to a qualifying 10. i 1 state without regard to the limitation in paragraph (d), clause (2); "qualifying individual" 10.12 means a Minnesota resident under section 290.01, subdivision 7, paragraph (a), who received 10.13 compensation during the taxable year for the performance of personal or professional services 10.14 within a qualifying state; and "qualifying state" means a state with which an agreement 10.15 under section 290.081 is not in effect for the taxable year but was in effect for a taxable 10.16 year beginning before January 1, 2010. 10.17 (m) A resident partner, member, or shareholder of a qualifying entity making an election 10.18 to be taxed as a C-option corporation under section 289A.08, subdivision 7a, may claim a 10.19 credit for the amount of their pro rata share of any net income tax paid to another state by 10.20 the entity or on a composite return filed with that state on behalf of its Minnesota resident 10.21 partners, members, or shareholders. For purposes of this paragraph, "net income tax" means 10.22 any tax imposed on or measured by net income, but "net income" does not include any 10.23 income that is apportioned to this state under section 290.191 or 290.20. 10.24 EFFECTIVE DATE. This section is effective for taxable years beginning after December 10.25 31, 2020. 10.26 Sec. 10. Minnesota Statutes 2020, section 290.091, subdivision 2, is amended to read: 10.27 Subd. 2. Definitions. For purposes of the tax imposed by this section, the following 10.28 terms have the meanings given. 10.29 (a) "Alternative minimum taxable income" means the sum of the following for the taxable 10.30 year: 10.31 (1) the taxpayer's federal alternative minimum taxable income as defined in section 10.32 55(b)(2) of the Internal Revenue Code; Sec. 10. 10