1.1 	A bill for an act
1.2 	relating to taxes; individual income and corporate franchise; providing a tax 
1.3 	credit to employers that employ qualified veterans;amending Minnesota Statutes 
1.4 	2012, section 290.06, by adding a subdivision.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2012, section 290.06, is amended by adding a 
1.7 	subdivision to read:
1.8 		Subd. 36.Employment of qualified veteran tax credit. (a) For taxable years 
1.9 	beginning after December 31, 2012, and before January 1, 2016, a taxpayer is allowed a 
1.10 	credit against the tax imposed under this chapter for employment of one or more qualified 
1.11 	veterans.
1.12 	(b) "Qualified veteran" has the meaning given in section 51 of the Internal Revenue 
1.13 	Code.
1.14 	(c) The credit equals the credit allowed under section 51 of the Internal Revenue 
1.15 	Code without regard to the limitation to federal liability, but is limited to the portion of the 
1.16 	federal credit allowed for employment of qualified veterans in Minnesota.
1.17 	(d) The credit under this subdivision is in effect without regard to whether or not the 
1.18 	credit allowed under section 51 of the Internal Revenue Code is allowed for wages paid 
1.19 	during the taxable year.
1.20 	(e) If the amount of the credit determined under this section exceeds the liability for 
1.21 	tax under this chapter, the excess may be carried forward to each of the next ten taxable 
1.22 	years. The entire amount of the excess unused credit for the taxable year shall be carried 
1.23 	first to the earliest of the taxable years to which the credit may be carried, and then to each 
1.24 	successive year to which the credit may be carried. The amount of the unused credit which 
2.1 	may be added under this paragraph shall not exceed the taxpayer's liability for tax less the 
2.2 	credit under this section for the taxable year.

2.3 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
2.4 	December 31, 2012.