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

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01/13/21 REVISOR EAP/HR 21-01750 13.1 may not exceed 90 percent of alternative minimum taxable net income. This limitation does 13.2 not apply to: 13.3 (1) a deduction for dividends paid to or received from a corporation which is subject to 13.4 tax under section 290.36 and which is a member of an affiliated group of corporations as 13.5 defined by the Internal Revenue Code; or 13.6 (2) a deduction for dividends received from a property and casualty insurer as defined 13.7 under section 60A.60, subdivision 8, which is a member of an affiliated group of corporations 13.8 as defined by the Internal Revenue Code and either: (i) the dividend is eliminated in 13.9 consolidation under Treasury Regulation 1.1502-14(a), as amended through December 31, 13.10 1989; or (ii) the dividend is deducted under an election under section 243(b) of the Internal 13.11 Revenue Code. 13.12 (e) "Internal Revenue Code" means the Internal Revenue Code of 1986, as amended 13.13 through December 16, 2016, except that for the purposes of exclusion from gross income 13.14 of paycheck protection loan forgiveness and allowable deductions of covered expenses paid 13.15 for with covered loans under section 1106 of Public Law 116-136, as clarified by Title II, 13.16 subtitle B, section 276(a)(i) of Public Law 116-260, "Internal Revenue Code" means the 13.17 Internal Revenue Code as amended through March 27, 2020. 13.18 EFFECTIVE DATE. This section is effective the day following final enactment, except 13.19 that changes incorporated by federal changes are effective retroactively at the same time 13.20 the changes were effective for federal purposes. 13.21 Sec. 12. [290.096] SPECIAL RULES FOR C-OPTION CORPORATIONS. 13.22 Subdivision 1. Allocation of subtractions and credits. No carryover generated by a 13.23 C-option corporation for a subtraction allowed under this chapter that remains after the 13.24 revocation or expiration of the election in section 289A.08, subdivision 7a, paragraph (a), 13.25 may be claimed by a partner, member, or shareholder of that C-option corporation. 13.26 Subd. 2. Credits. (a) Credits and credit carryovers against the tax due under this chapter 13.27 that are claimed by a C-option corporation must be distributed as follows: 13.28 (1) for a nonrefundable credit, the credit is distributed to the C-option corporation; and 13.29 (2) for a refundable credit, the amount of the credit that does not exceed the C-option 13.30 corporation's taxable income is distributed to the C-option corporation and the amount of 13.31 the credit that exceeds the amount of the C-option corporation's taxable income is distributed 13.32 in the same manner as the subtraction in section 290.0132, subdivision 30. Sec. 12. 13