1.1 	A bill for an act
1.2 	relating to taxes; individual income; providing a health insurance credit;
1.3 	proposing coding for new law in Minnesota Statutes, chapter 290.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. [290.0677] HEALTH INSURANCE CREDIT.
1.6 	An individual is allowed a credit against the tax imposed by this chapter for health 
1.7 	insurance premiums paid during the tax year.  The credit equals 50 percent of health 
1.8 	insurance premiums paid during the tax year in excess of $3,000.  The maximum credit is 
1.9 	$2,000 for married couples filing joint returns, and $1,000 for all other filers.  For purposes 
1.10 	of this section, "health insurance premiums" means premiums paid for a health plan, as 
1.11 	defined in section 62A.011, subdivision 3, obtained as an individual health plan.  For a 
1.12 	nonresident or part-year resident, the credit determined under this section must be allocated 
1.13 	based on the percentage calculated under section 290.06, subdivision 2c, paragraph (e).

1.14 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
1.15 	December 31, 2005.