Minnesota Session Laws - 2009, Regular Session

CHAPTER 3--S.F.No. 49

An act

relating to taxation; income; creating a health insurance premium credit;

proposing coding for new law in Minnesota Statutes, chapter 290; repealing Minnesota Statutes 2008, sections 62U.071; 275.76.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [290.0678] HEALTH INSURANCE PREMIUMS CREDIT. new text end

new text begin Subdivision 1. new text end

new text begin Credit allowed. new text end

new text begin (a) An individual is allowed a credit against the tax due under this chapter equal to 20 percent of the health insurance premiums paid from a plan under section 125 of the Internal Revenue Code. The credit is allowed only for premiums paid after the individual has not had coverage under a health care plan for at least one year, and is allowed only for the first 12 months in which an individual participates in the Section 125 Plan. new text end

new text begin (b) For a nonresident or part-year resident, the credit determined under this section must be allocated based on the percentage calculated under section 290.06, subdivision 2c, paragraph (e). new text end

new text begin Subd. 2. new text end

new text begin Limitations. new text end

new text begin The credit is allowed only for individuals with household income for the taxable year between: new text end

new text begin (1) 275 percent and 300 percent of the federal poverty guidelines for the applicable family size if the individual has dependents; or new text end

new text begin (2) 200 percent and 275 percent of the federal poverty guidelines for the applicable family size if the individual has no dependents. new text end

new text begin Subd. 3. new text end

new text begin Definitions. new text end

new text begin For purposes of this section, "household income" means income as defined in section 290.067, subdivision 2a, and "dependent" has the meaning given in section 152 of the Internal Revenue Code. new text end

new text begin Subd. 4. new text end

new text begin Statement of premiums paid. new text end

new text begin Each employer must provide to each employee a statement that shows the amount of health insurance premiums paid from the Section 125 Plan for each month of the taxable year. The employer must provide the statement to the employee at the same time as the annual written statement of wages paid as required under section 289A.09, subdivision 2. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December 31, 2008, for premiums paid in January 2009 and thereafter. new text end

Sec. 2.

new text begin REPEALER. new text end

new text begin (a) new text end new text begin Minnesota Statutes 2008, section 62U.071, new text end new text begin is repealed. new text end

new text begin (b) new text end new text begin Minnesota Statutes 2008, section 275.76, new text end new text begin is repealed. new text end

new text begin EFFECTIVE DATE. new text end

new text begin Paragraph (a) is effective the day following final enactment. Paragraph (b) is effective retroactively from July 1, 2008. new text end

Presented to the governor February 17, 2009

Signed by the governor February 20, 2009, 8:35 a.m.