1.1 	A bill for an act
1.2 	relating to taxation; providing tax incentives for green economy businesses; 
1.3 	providing for certification of qualified businesses; appropriating money;
1.4 	amending Minnesota Statutes 2006, sections 272.02, by adding a subdivision; 
1.5 	290.01, subdivision 29; 290.06, subdivision 2c, by adding a subdivision; 290.067, 
1.6 	subdivision 1; 290.0671, subdivision 1; 290.091, subdivision 2; 290.0921, 
1.7 	subdivision 3; 290.0922, subdivisions 2, 3; 297A.68, by adding a subdivision; 
1.8 	297B.03; Minnesota Statutes 2007 Supplement, section 290.01, subdivision 19b; 
1.9 	proposing coding for new law in Minnesota Statutes, chapter 290.
1.10 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.11 	Section 1. Minnesota Statutes 2006, section 272.02, is amended by adding a 
1.12 	subdivision to read:
1.13 		Subd. 85.Green business zone property.  (a) If approved by the municipality in 
1.14 	which the property is located, improvements to real property, and personal property, 
1.15 	classified under section 273.13, subdivision 24, used primarily in the operation of a 
1.16 	green business certified under section 290.993, are exempt from ad valorem taxes levied 
1.17 	under chapter 275.
1.18 	(b) The exemption applies beginning for the first assessment year after certification of 
1.19 	the green business by the commissioner of employment and economic development. The 
1.20 	exemption applies to each assessment year that begins while the green business is certified, 
1.21 	and terminates after the 12th assessment year, but does not apply to any assessment year 
1.22 	when the business ceases to be certified. To be exempt, the property must be occupied by 
1.23 	July 1 of the assessment year by a certified green business that has signed the business 
1.24 	subsidy agreement by July 1 of the assessment year. This exemption does not apply to:
1.25 	(1) the levy under section 475.61 or similar levy provisions under any other law to 
1.26 	pay general obligation bonds; or
2.1 	(2) other school district levies included in the debt service levy of the district 
2.2 	under section 123B.55.

2.3 	Sec. 2. Minnesota Statutes 2007 Supplement, section 290.01, subdivision 19b, is 
2.4 	amended to read:
2.5 		Subd. 19b.Subtractions from federal taxable income. For individuals, estates, 
2.6 	and trusts, there shall be subtracted from federal taxable income:
2.7 	(1) net interest income on obligations of any authority, commission, or 
2.8 	instrumentality of the United States to the extent includable in taxable income for federal 
2.9 	income tax purposes but exempt from state income tax under the laws of the United States;
2.10 	(2) if included in federal taxable income, the amount of any overpayment of income 
2.11 	tax to Minnesota or to any other state, for any previous taxable year, whether the amount 
2.12 	is received as a refund or as a credit to another taxable year's income tax liability;
2.13 	(3) the amount paid to others, less the amount used to claim the credit allowed under 
2.14 	section 290.0674, not to exceed $1,625 for each qualifying child in grades kindergarten 
2.15 	to 6 and $2,500 for each qualifying child in grades 7 to 12, for tuition, textbooks, and 
2.16 	transportation of each qualifying child in attending an elementary or secondary school 
2.17 	situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a 
2.18 	resident of this state may legally fulfill the state's compulsory attendance laws, which 
2.19 	is not operated for profit, and which adheres to the provisions of the Civil Rights Act 
2.20 	of 1964 and chapter 363A. For the purposes of this clause, "tuition" includes fees or 
2.21 	tuition as defined in section 290.0674, subdivision 1, clause (1). As used in this clause, 
2.22 	"textbooks" includes books and other instructional materials and equipment purchased 
2.23 	or leased for use in elementary and secondary schools in teaching only those subjects 
2.24 	legally and commonly taught in public elementary and secondary schools in this state. 
2.25 	Equipment expenses qualifying for deduction includes expenses as defined and limited in 
2.26 	section 290.0674, subdivision 1, clause (3). "Textbooks" does not include instructional 
2.27 	books and materials used in the teaching of religious tenets, doctrines, or worship, the 
2.28 	purpose of which is to instill such tenets, doctrines, or worship, nor does it include books 
2.29 	or materials for, or transportation to, extracurricular activities including sporting events, 
2.30 	musical or dramatic events, speech activities, driver's education, or similar programs. For 
2.31 	purposes of the subtraction provided by this clause, "qualifying child" has the meaning 
2.32 	given in section 32(c)(3) of the Internal Revenue Code;
2.33 	(4) income as provided under section 290.0802;
2.34 	(5) to the extent included in federal adjusted gross income, income realized on 
2.35 	disposition of property exempt from tax under section 290.491;
3.1 	(6) to the extent not deducted or not deductible pursuant to section 408(d)(8)(E) 
3.2 	of the Internal Revenue Code in determining federal taxable income by an individual 
3.3 	who does not itemize deductions for federal income tax purposes for the taxable year, an 
3.4 	amount equal to 50 percent of the excess of charitable contributions over $500 allowable 
3.5 	as a deduction for the taxable year under section 170(a) of the Internal Revenue Code and 
3.6 	under the provisions of Public Law 109-1;
3.7 	(7) for taxable years beginning before January 1, 2008, the amount of the federal 
3.8 	small ethanol producer credit allowed under section 40(a)(3) of the Internal Revenue Code 
3.9 	which is included in gross income under section 87 of the Internal Revenue Code;
3.10 	(8) for individuals who are allowed a federal foreign tax credit for taxes that do not 
3.11 	qualify for a credit under section 290.06, subdivision 22, an amount equal to the carryover 
3.12 	of subnational foreign taxes for the taxable year, but not to exceed the total subnational 
3.13 	foreign taxes reported in claiming the foreign tax credit. For purposes of this clause, 
3.14 	"federal foreign tax credit" means the credit allowed under section 27 of the Internal 
3.15 	Revenue Code, and "carryover of subnational foreign taxes" equals the carryover allowed 
3.16 	under section 904(c) of the Internal Revenue Code minus national level foreign taxes to 
3.17 	the extent they exceed the federal foreign tax credit;
3.18 	(9) in each of the five tax years immediately following the tax year in which an 
3.19 	addition is required under subdivision 19a, clause (7), or 19c, clause (15), in the case 
3.20 	of a shareholder of a corporation that is an S corporation, an amount equal to one-fifth 
3.21 	of the delayed depreciation. For purposes of this clause, "delayed depreciation" means 
3.22 	the amount of the addition made by the taxpayer under subdivision 19a, clause (7), or 
3.23 	subdivision 19c, clause (15), in the case of a shareholder of an S corporation, minus the 
3.24 	positive value of any net operating loss under section 172 of the Internal Revenue Code 
3.25 	generated for the tax year of the addition. The resulting delayed depreciation cannot be 
3.26 	less than zero;
3.27 	(10) job opportunity building zone income as provided under section 469.316;
3.28 	(11) the amount of compensation paid to members of the Minnesota National Guard 
3.29 	or other reserve components of the United States military for active service performed 
3.30 	in Minnesota, excluding compensation for services performed under the Active Guard 
3.31 	Reserve (AGR) program. For purposes of this clause, "active service" means (i) state 
3.32 	active service as defined in section 190.05, subdivision 5a, clause (1); (ii) federally 
3.33 	funded state active service as defined in section 190.05, subdivision 5b; or (iii) federal 
3.34 	active service as defined in section 190.05, subdivision 5c, but "active service" excludes 
3.35 	services performed exclusively for purposes of basic combat training, advanced individual 
3.36 	training, annual training, and periodic inactive duty training; special training periodically 
4.1 	made available to reserve members; and service performed in accordance with section 
4.2 	190.08, subdivision 3;
4.3 	(12) the amount of compensation paid to Minnesota residents who are members 
4.4 	of the armed forces of the United States or United Nations for active duty performed 
4.5 	outside Minnesota;
4.6 	(13) an amount, not to exceed $10,000, equal to qualified expenses related to a 
4.7 	qualified donor's donation, while living, of one or more of the qualified donor's organs 
4.8 	to another person for human organ transplantation. For purposes of this clause, "organ" 
4.9 	means all or part of an individual's liver, pancreas, kidney, intestine, lung, or bone marrow; 
4.10 	"human organ transplantation" means the medical procedure by which transfer of a human 
4.11 	organ is made from the body of one person to the body of another person; "qualified 
4.12 	expenses" means unreimbursed expenses for both the individual and the qualified donor 
4.13 	for (i) travel, (ii) lodging, and (iii) lost wages net of sick pay, except that such expenses 
4.14 	may be subtracted under this clause only once; and "qualified donor" means the individual 
4.15 	or the individual's dependent, as defined in section 152 of the Internal Revenue Code. An 
4.16 	individual may claim the subtraction in this clause for each instance of organ donation for 
4.17 	transplantation during the taxable year in which the qualified expenses occur;
4.18 	(14) in each of the five tax years immediately following the tax year in which an 
4.19 	addition is required under subdivision 19a, clause (8), or 19c, clause (16), in the case of a 
4.20 	shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the 
4.21 	addition made by the taxpayer under subdivision 19a, clause (8), or 19c, clause (16), in the 
4.22 	case of a shareholder of a corporation that is an S corporation, minus the positive value of 
4.23 	any net operating loss under section 172 of the Internal Revenue Code generated for the 
4.24 	tax year of the addition. If the net operating loss exceeds the addition for the tax year, a 
4.25 	subtraction is not allowed under this clause;
4.26 	(15) to the extent included in federal taxable income, compensation paid to a 
4.27 	nonresident who is a service member as defined in United States Code, title 10, section 
4.28 	101(a)(5), for military service as defined in the Service Member Civil Relief Act, Public 
4.29 	Law 108-189, section 101(2); ~~and~~
4.30 	(16) international economic development zone income as provided under section 
4.31 	469.325; and
4.32 	(17) certified green business income as provided in section 290.996.

4.33 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
4.34 	December 31, 2008.

4.35 	Sec. 3. Minnesota Statutes 2006, section 290.01, subdivision 29, is amended to read:
5.1 		Subd. 29.Taxable income. The term "taxable income" means:
5.2 	(1) for individuals, estates, and trusts, the same as taxable net income;
5.3 	(2) for corporations, the taxable net income less
5.4 	(i) the net operating loss deduction under section 290.095;
5.5 	(ii) the dividends received deduction under section 290.21, subdivision 4;
5.6 	(iii) the exemption for operating in a job opportunity building zone under section 
5.7 	469.317;
5.8 	(iv) the exemption for operating in a biotechnology and health sciences industry 
5.9 	zone under section 469.337; ~~and~~
5.10 	(v) the exemption for operating in an international economic development zone 
5.11 	under section 469.326; and
5.12 	(vi) the exemption for operating a certified green business under section 290.997.

5.13 	Sec. 4. Minnesota Statutes 2006, section 290.06, subdivision 2c, is amended to read:
5.14 		Subd. 2c.Schedules of rates for individuals, estates, and trusts. (a) The income 
5.15 	taxes imposed by this chapter upon married individuals filing joint returns and surviving 
5.16 	spouses as defined in section 2(a) of the Internal Revenue Code must be computed by 
5.17 	applying to their taxable net income the following schedule of rates:
5.18 	(1) On the first $25,680, 5.35 percent;
5.19 	(2) On all over $25,680, but not over $102,030, 7.05 percent;
5.20 	(3) On all over $102,030, 7.85 percent.
5.21 	Married individuals filing separate returns, estates, and trusts must compute their 
5.22 	income tax by applying the above rates to their taxable income, except that the income 
5.23 	brackets will be one-half of the above amounts.
5.24 	(b) The income taxes imposed by this chapter upon unmarried individuals must be 
5.25 	computed by applying to taxable net income the following schedule of rates:
5.26 	(1) On the first $17,570, 5.35 percent;
5.27 	(2) On all over $17,570, but not over $57,710, 7.05 percent;
5.28 	(3) On all over $57,710, 7.85 percent.
5.29 	(c) The income taxes imposed by this chapter upon unmarried individuals qualifying 
5.30 	as a head of household as defined in section 2(b) of the Internal Revenue Code must be 
5.31 	computed by applying to taxable net income the following schedule of rates:
5.32 	(1) On the first $21,630, 5.35 percent;
5.33 	(2) On all over $21,630, but not over $86,910, 7.05 percent;
5.34 	(3) On all over $86,910, 7.85 percent.
6.1 	(d) In lieu of a tax computed according to the rates set forth in this subdivision, the 
6.2 	tax of any individual taxpayer whose taxable net income for the taxable year is less than 
6.3 	an amount determined by the commissioner must be computed in accordance with tables 
6.4 	prepared and issued by the commissioner of revenue based on income brackets of not 
6.5 	more than $100. The amount of tax for each bracket shall be computed at the rates set 
6.6 	forth in this subdivision, provided that the commissioner may disregard a fractional part of 
6.7 	a dollar unless it amounts to 50 cents or more, in which case it may be increased to $1.
6.8 	(e) An individual who is not a Minnesota resident for the entire year must compute 
6.9 	the individual's Minnesota income tax as provided in this subdivision. After the 
6.10 	application of the nonrefundable credits provided in this chapter, the tax liability must 
6.11 	then be multiplied by a fraction in which:
6.12 	(1) the numerator is the individual's Minnesota source federal adjusted gross 
6.13 	income as defined in section 62 of the Internal Revenue Code and increased by the 
6.14 	additions required under section 290.01, subdivision 19a, clauses (1), (5), (6), (7), (8), 
6.15 	and (9), and reduced by the Minnesota assignable portion of the subtraction for United 
6.16 	States government interest under section 290.01, subdivision 19b, clause (1), and the 
6.17 	subtractions under section 290.01, subdivision 19b, clauses (9), (10), (14), (15), ~~and~~ (16),
6.18 	and (17), after applying the allocation and assignability provisions of section 290.081, 
6.19 	clause (a), or 290.17; and
6.20 	(2) the denominator is the individual's federal adjusted gross income as defined in 
6.21 	section 62 of the Internal Revenue Code of 1986, increased by the amounts specified in 
6.22 	section 290.01, subdivision 19a, clauses (1), (5), (6), (7), (8), and (9), and reduced by the 
6.23 	amounts specified in section 290.01, subdivision 19b, clauses (1), (9), (10), (14), (15), 
6.24 	~~and~~ (16), and (17).

6.25 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
6.26 	December 31, 2008.

6.27 	Sec. 5. Minnesota Statutes 2006, section 290.06, is amended by adding a subdivision 
6.28 	to read:
6.29 		Subd. 34.Certified green business job credit. A taxpayer that is a certified green 
6.30 	business, as defined in section 290.993, subdivision 1, is allowed a credit as determined 
6.31 	under section 290.998 against the tax imposed by this chapter.

6.32 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
6.33 	December 31, 2008.

7.1 	Sec. 6. Minnesota Statutes 2006, section 290.067, subdivision 1, is amended to read:
7.2 		Subdivision 1.Amount of credit. (a) A taxpayer may take as a credit against the 
7.3 	tax due from the taxpayer and a spouse, if any, under this chapter an amount equal to the 
7.4 	dependent care credit for which the taxpayer is eligible pursuant to the provisions of 
7.5 	section 21 of the Internal Revenue Code subject to the limitations provided in subdivision 
7.6 	2 except that in determining whether the child qualified as a dependent, income received 
7.7 	as a Minnesota family investment program grant or allowance to or on behalf of the child 
7.8 	must not be taken into account in determining whether the child received more than half 
7.9 	of the child's support from the taxpayer, and the provisions of section 32(b)(1)(D) of 
7.10 	the Internal Revenue Code do not apply.
7.11 	(b) If a child who has not attained the age of six years at the close of the taxable year 
7.12 	is cared for at a licensed family day care home operated by the child's parent, the taxpayer 
7.13 	is deemed to have paid employment-related expenses. If the child is 16 months old or 
7.14 	younger at the close of the taxable year, the amount of expenses deemed to have been paid 
7.15 	equals the maximum limit for one qualified individual under section 21(c) and (d) of the 
7.16 	Internal Revenue Code. If the child is older than 16 months of age but has not attained the 
7.17 	age of six years at the close of the taxable year, the amount of expenses deemed to have 
7.18 	been paid equals the amount the licensee would charge for the care of a child of the same 
7.19 	age for the same number of hours of care.
7.20 	(c) If a married couple:
7.21 	(1) has a child who has not attained the age of one year at the close of the taxable 
7.22 	year;
7.23 	(2) files a joint tax return for the taxable year; and
7.24 	(3) does not participate in a dependent care assistance program as defined in section 
7.25 	129 of the Internal Revenue Code, in lieu of the actual employment related expenses paid 
7.26 	for that child under paragraph (a) or the deemed amount under paragraph (b), the lesser of 
7.27 	(i) the combined earned income of the couple or (ii) the amount of the maximum limit for 
7.28 	one qualified individual under section 21(c) and (d) of the Internal Revenue Code will 
7.29 	be deemed to be the employment related expense paid for that child. The earned income 
7.30 	limitation of section 21(d) of the Internal Revenue Code shall not apply to this deemed 
7.31 	amount. These deemed amounts apply regardless of whether any employment-related 
7.32 	expenses have been paid.
7.33 	(d) If the taxpayer is not required and does not file a federal individual income tax 
7.34 	return for the tax year, no credit is allowed for any amount paid to any person unless:
7.35 	(1) the name, address, and taxpayer identification number of the person are included 
7.36 	on the return claiming the credit; or
8.1 	(2) if the person is an organization described in section 501(c)(3) of the Internal 
8.2 	Revenue Code and exempt from tax under section 501(a) of the Internal Revenue Code, 
8.3 	the name and address of the person are included on the return claiming the credit.
8.4 	In the case of a failure to provide the information required under the preceding sentence, 
8.5 	the preceding sentence does not apply if it is shown that the taxpayer exercised due 
8.6 	diligence in attempting to provide the information required.
8.7 	In the case of a nonresident, part-year resident, or a person who has earned income 
8.8 	not subject to tax under this chapter including earned income excluded pursuant to section 
8.9 	290.01, subdivision 19b, clause (10) ~~or~~, (16), or (17), the credit determined under section 
8.10 	21 of the Internal Revenue Code must be allocated based on the ratio by which the earned 
8.11 	income of the claimant and the claimant's spouse from Minnesota sources bears to the 
8.12 	total earned income of the claimant and the claimant's spouse.
8.13 	For residents of Minnesota, the subtractions for military pay under section 290.01, 
8.14 	subdivision 19b, clauses (11) and (12), are not considered "earned income not subject to 
8.15 	tax under this chapter."
8.16 	For residents of Minnesota, the exclusion of combat pay under section 112 of the 
8.17 	Internal Revenue Code is not considered "earned income not subject to tax under this 
8.18 	chapter."

8.19 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
8.20 	December 31, 2008.

8.21 	Sec. 7. Minnesota Statutes 2006, section 290.0671, subdivision 1, is amended to read:
8.22 		Subdivision 1.Credit allowed. (a) An individual is allowed a credit against the tax 
8.23 	imposed by this chapter equal to a percentage of earned income. To receive a credit, a 
8.24 	taxpayer must be eligible for a credit under section 32 of the Internal Revenue Code.
8.25 	(b) For individuals with no qualifying children, the credit equals 1.9125 percent of 
8.26 	the first $4,620 of earned income. The credit is reduced by 1.9125 percent of earned 
8.27 	income or adjusted gross income, whichever is greater, in excess of $5,770, but in no 
8.28 	case is the credit less than zero.
8.29 	(c) For individuals with one qualifying child, the credit equals 8.5 percent of the first 
8.30 	$6,920 of earned income and 8.5 percent of earned income over $12,080 but less than 
8.31 	$13,450. The credit is reduced by 5.73 percent of earned income or adjusted gross income, 
8.32 	whichever is greater, in excess of $15,080, but in no case is the credit less than zero.
8.33 	(d) For individuals with two or more qualifying children, the credit equals ten 
8.34 	percent of the first $9,720 of earned income and 20 percent of earned income over 
9.1 	$14,860 but less than $16,800. The credit is reduced by 10.3 percent of earned income 
9.2 	or adjusted gross income, whichever is greater, in excess of $17,890, but in no case is 
9.3 	the credit less than zero.
9.4 	(e) For a nonresident or part-year resident, the credit must be allocated based on the 
9.5 	percentage calculated under section 290.06, subdivision 2c, paragraph (e).
9.6 	(f) For a person who was a resident for the entire tax year and has earned income 
9.7 	not subject to tax under this chapter, including income excluded under section 290.01, 
9.8 	subdivision 19b, clause (10) ~~or~~, (16), or (17), the credit must be allocated based on the 
9.9 	ratio of federal adjusted gross income reduced by the earned income not subject to tax 
9.10 	under this chapter over federal adjusted gross income. For purposes of this paragraph, the 
9.11 	subtractions for military pay under section 290.01, subdivision 19b, clauses (11) and (12), 
9.12 	are not considered "earned income not subject to tax under this chapter."
9.13 	For the purposes of this paragraph, the exclusion of combat pay under section 112 
9.14 	of the Internal Revenue Code is not considered "earned income not subject to tax under 
9.15 	this chapter."
9.16 	(g) For tax years beginning after December 31, 2001, and before December 31, 
9.17 	2004, the $5,770 in paragraph (b), the $15,080 in paragraph (c), and the $17,890 in 
9.18 	paragraph (d), after being adjusted for inflation under subdivision 7, are each increased by 
9.19 	$1,000 for married taxpayers filing joint returns.
9.20 	(h) For tax years beginning after December 31, 2004, and before December 31, 
9.21 	2007, the $5,770 in paragraph (b), the $15,080 in paragraph (c), and the $17,890 in 
9.22 	paragraph (d), after being adjusted for inflation under subdivision 7, are each increased by 
9.23 	$2,000 for married taxpayers filing joint returns.
9.24 	(i) For tax years beginning after December 31, 2007, and before December 31, 2010, 
9.25 	the $5,770 in paragraph (b), the $15,080 in paragraph (c), and the $17,890 in paragraph 
9.26 	(d), after being adjusted for inflation under subdivision 7, are each increased by $3,000 for 
9.27 	married taxpayers filing joint returns. For tax years beginning after December 31, 2008, 
9.28 	the $3,000 is adjusted annually for inflation under subdivision 7.
9.29 	(j) The commissioner shall construct tables showing the amount of the credit at 
9.30 	various income levels and make them available to taxpayers. The tables shall follow 
9.31 	the schedule contained in this subdivision, except that the commissioner may graduate 
9.32 	the transition between income brackets.

9.33 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
9.34 	December 31, 2008.

9.35 	Sec. 8. Minnesota Statutes 2006, section 290.091, subdivision 2, is amended to read:
10.1 		Subd. 2.Definitions. For purposes of the tax imposed by this section, the following 
10.2 	terms have the meanings given:
10.3 	(a) "Alternative minimum taxable income" means the sum of the following for 
10.4 	the taxable year:
10.5 	(1) the taxpayer's federal alternative minimum taxable income as defined in section 
10.6 	55(b)(2) of the Internal Revenue Code;
10.7 	(2) the taxpayer's itemized deductions allowed in computing federal alternative 
10.8 	minimum taxable income, but excluding:
10.9 	(i) the charitable contribution deduction under section 170 of the Internal Revenue 
10.10 	Code:
10.11 	(A) for taxable years beginning before January 1, 2006, to the extent that the 
10.12 	deduction exceeds 1.0 percent of adjusted gross income;
10.13 	(B) for taxable years beginning after December 31, 2005, to the full extent of the 
10.14 	deduction.
10.15 	For purposes of this clause, "adjusted gross income" has the meaning given in 
10.16 	section 62 of the Internal Revenue Code;
10.17 	(ii) the medical expense deduction;
10.18 	(iii) the casualty, theft, and disaster loss deduction; and
10.19 	(iv) the impairment-related work expenses of a disabled person;
10.20 	(3) for depletion allowances computed under section 613A(c) of the Internal 
10.21 	Revenue Code, with respect to each property (as defined in section 614 of the Internal 
10.22 	Revenue Code), to the extent not included in federal alternative minimum taxable income, 
10.23 	the excess of the deduction for depletion allowable under section 611 of the Internal 
10.24 	Revenue Code for the taxable year over the adjusted basis of the property at the end of the 
10.25 	taxable year (determined without regard to the depletion deduction for the taxable year);
10.26 	(4) to the extent not included in federal alternative minimum taxable income, the 
10.27 	amount of the tax preference for intangible drilling cost under section 57(a)(2) of the 
10.28 	Internal Revenue Code determined without regard to subparagraph (E);
10.29 	(5) to the extent not included in federal alternative minimum taxable income, the 
10.30 	amount of interest income as provided by section 290.01, subdivision 19a, clause (1); and
10.31 	(6) the amount of addition required by section 290.01, subdivision 19a, clauses 
10.32 	(7), (8), and (9);
10.33 	less the sum of the amounts determined under the following:
10.34 	(1) interest income as defined in section 290.01, subdivision 19b, clause (1);
10.35 	(2) an overpayment of state income tax as provided by section 290.01, subdivision 
10.36 	19b, clause (2), to the extent included in federal alternative minimum taxable income;
11.1 	(3) the amount of investment interest paid or accrued within the taxable year on 
11.2 	indebtedness to the extent that the amount does not exceed net investment income, as 
11.3 	defined in section 163(d)(4) of the Internal Revenue Code. Interest does not include 
11.4 	amounts deducted in computing federal adjusted gross income; and
11.5 	(4) amounts subtracted from federal taxable income as provided by section 290.01, 
11.6 	subdivision 19b, clauses (9) to ~~(16)~~ (17).
11.7 	In the case of an estate or trust, alternative minimum taxable income must be 
11.8 	computed as provided in section 59(c) of the Internal Revenue Code.
11.9 	(b) "Investment interest" means investment interest as defined in section 163(d)(3) 
11.10 	of the Internal Revenue Code.
11.11 	(c) "Tentative minimum tax" equals 6.4 percent of alternative minimum taxable 
11.12 	income after subtracting the exemption amount determined under subdivision 3.
11.13 	(d) "Regular tax" means the tax that would be imposed under this chapter (without 
11.14 	regard to this section and section 290.032), reduced by the sum of the nonrefundable 
11.15 	credits allowed under this chapter.
11.16 	(e) "Net minimum tax" means the minimum tax imposed by this section.

11.17 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
11.18 	December 31, 2008.

11.19 	Sec. 9. Minnesota Statutes 2006, section 290.0921, subdivision 3, is amended to read:
11.20 		Subd. 3.Alternative minimum taxable income. "Alternative minimum taxable 
11.21 	income" is Minnesota net income as defined in section 290.01, subdivision 19, and 
11.22 	includes the adjustments and tax preference items in sections 56, 57, 58, and 59(d), (e), 
11.23 	(f), and (h) of the Internal Revenue Code. If a corporation files a separate company 
11.24 	Minnesota tax return, the minimum tax must be computed on a separate company basis. 
11.25 	If a corporation is part of a tax group filing a unitary return, the minimum tax must be 
11.26 	computed on a unitary basis. The following adjustments must be made.
11.27 	(1) For purposes of the depreciation adjustments under section 56(a)(1) and 
11.28 	56(g)(4)(A) of the Internal Revenue Code, the basis for depreciable property placed in 
11.29 	service in a taxable year beginning before January 1, 1990, is the adjusted basis for federal 
11.30 	income tax purposes, including any modification made in a taxable year under section 
11.31 	290.01, subdivision 19e, or Minnesota Statutes 1986, section 290.09, subdivision 7, 
11.32 	paragraph (c).
11.33 	For taxable years beginning after December 31, 2000, the amount of any remaining 
11.34 	modification made under section 290.01, subdivision 19e, or Minnesota Statutes 1986, 
12.1 	section 290.09, subdivision 7, paragraph (c), not previously deducted is a depreciation 
12.2 	allowance in the first taxable year after December 31, 2000.
12.3 	(2) The portion of the depreciation deduction allowed for federal income tax 
12.4 	purposes under section 168(k) of the Internal Revenue Code that is required as an 
12.5 	addition under section 290.01, subdivision 19c, clause (16), is disallowed in determining 
12.6 	alternative minimum taxable income.
12.7 	(3) The subtraction for depreciation allowed under section 290.01, subdivision 19d, 
12.8 	clause (19), is allowed as a depreciation deduction in determining alternative minimum 
12.9 	taxable income.
12.10 	(4) The alternative tax net operating loss deduction under sections 56(a)(4) and 56(d) 
12.11 	of the Internal Revenue Code does not apply.
12.12 	(5) The special rule for certain dividends under section 56(g)(4)(C)(ii) of the Internal 
12.13 	Revenue Code does not apply.
12.14 	(6) The special rule for dividends from section 936 companies under section 
12.15 	56(g)(4)(C)(iii) does not apply.
12.16 	(7) The tax preference for depletion under section 57(a)(1) of the Internal Revenue 
12.17 	Code does not apply.
12.18 	(8) The tax preference for intangible drilling costs under section 57(a)(2) of the 
12.19 	Internal Revenue Code must be calculated without regard to subparagraph (E) and the 
12.20 	subtraction under section 290.01, subdivision 19d, clause (4).
12.21 	(9) The tax preference for tax exempt interest under section 57(a)(5) of the Internal 
12.22 	Revenue Code does not apply.
12.23 	(10) The tax preference for charitable contributions of appreciated property under 
12.24 	section 57(a)(6) of the Internal Revenue Code does not apply.
12.25 	(11) For purposes of calculating the tax preference for accelerated depreciation or 
12.26 	amortization on certain property placed in service before January 1, 1987, under section 
12.27 	57(a)(7) of the Internal Revenue Code, the deduction allowable for the taxable year is the 
12.28 	deduction allowed under section 290.01, subdivision 19e.
12.29 	For taxable years beginning after December 31, 2000, the amount of any remaining 
12.30 	modification made under section 290.01, subdivision 19e, not previously deducted is a 
12.31 	depreciation or amortization allowance in the first taxable year after December 31, 2004.
12.32 	(12) For purposes of calculating the adjustment for adjusted current earnings in 
12.33 	section 56(g) of the Internal Revenue Code, the term "alternative minimum taxable 
12.34 	income" as it is used in section 56(g) of the Internal Revenue Code, means alternative 
12.35 	minimum taxable income as defined in this subdivision, determined without regard to the 
12.36 	adjustment for adjusted current earnings in section 56(g) of the Internal Revenue Code.
13.1 	(13) For purposes of determining the amount of adjusted current earnings under 
13.2 	section 56(g)(3) of the Internal Revenue Code, no adjustment shall be made under section 
13.3 	56(g)(4) of the Internal Revenue Code with respect to (i) the amount of foreign dividend 
13.4 	gross-up subtracted as provided in section 290.01, subdivision 19d, clause (1), (ii) the 
13.5 	amount of refunds of income, excise, or franchise taxes subtracted as provided in section 
13.6 	290.01, subdivision 19d, clause (10), or (iii) the amount of royalties, fees or other like 
13.7 	income subtracted as provided in section 290.01, subdivision 19d, clause (11).
13.8 	(14) Alternative minimum taxable income excludes the income from operating in a 
13.9 	job opportunity building zone as provided under section 469.317.
13.10 	(15) Alternative minimum taxable income excludes the income from operating in a 
13.11 	biotechnology and health sciences industry zone as provided under section 469.337.
13.12 	(16) Alternative minimum taxable income excludes the income from operating in an 
13.13 	international economic development zone as provided under section 469.326.
13.14 	(17) Alternative minimum taxable income excludes the income from operating a 
13.15 	certified green business as provided under section 290.997.
13.16 	Items of tax preference must not be reduced below zero as a result of the 
13.17 	modifications in this subdivision.

13.18 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
13.19 	December 31, 2008.

13.20 	Sec. 10. Minnesota Statutes 2006, section 290.0922, subdivision 2, is amended to read:
13.21 		Subd. 2.Exemptions. The following entities are exempt from the tax imposed 
13.22 	by this section:
13.23 	(1) corporations exempt from tax under section 290.05;
13.24 	(2) real estate investment trusts;
13.25 	(3) regulated investment companies or a fund thereof; and
13.26 	(4) entities having a valid election in effect under section 860D(b) of the Internal 
13.27 	Revenue Code;
13.28 	(5) town and farmers' mutual insurance companies;
13.29 	(6) cooperatives organized under chapter 308A or 308B that provide housing 
13.30 	exclusively to persons age 55 and over and are classified as homesteads under section 
13.31 	273.124, subdivision 3;
13.32 	(7) an entity, if for the taxable year all of its property is located in a job opportunity 
13.33 	building zone designated under section 469.314 and all of its payroll is a job opportunity 
13.34 	building zone payroll under section 469.310; ~~and~~
14.1 	(8) an entity, if for the taxable year all of its property is located in an international 
14.2 	economic development zone designated under section 469.322, and all of its payroll is 
14.3 	international economic development zone payroll under section 469.321. The exemption 
14.4 	under this clause applies to taxable years beginning during the duration of the international 
14.5 	economic development zone~~.~~; and
14.6 	(9) an entity, if for the taxable year all of its property is used primarily in conducting 
14.7 	a certified green business under section 290.993 and all of its payroll is certified green 
14.8 	business payroll. The exemption under this clause applies to taxable years beginning 
14.9 	during the certification of the green business.
14.10 	Entities not specifically exempted by this subdivision are subject to tax under this 
14.11 	section, notwithstanding section 290.05.

14.12 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
14.13 	December 31, 2008.

14.14 	Sec. 11. Minnesota Statutes 2006, section 290.0922, subdivision 3, is amended to read:
14.15 		Subd. 3.Definitions. (a) "Minnesota sales or receipts" means the total sales 
14.16 	apportioned to Minnesota pursuant to section 290.191, subdivision 5, the total receipts 
14.17 	attributed to Minnesota pursuant to section 290.191, subdivisions 6 to 8, and/or the 
14.18 	total sales or receipts apportioned or attributed to Minnesota pursuant to any other 
14.19 	apportionment formula applicable to the taxpayer.
14.20 	(b) "Minnesota property" means total Minnesota tangible property as provided in 
14.21 	section 290.191, subdivisions 9 to 11, any other tangible property located in Minnesota, 
14.22 	but does not include: (1) property located in a job opportunity building zone designated 
14.23 	under section 469.314, (2) property of a qualified business located in a biotechnology and 
14.24 	health sciences industry zone designated under section 469.334, or (3) for taxable years 
14.25 	beginning during the duration of the zone, property of a qualified business located in the 
14.26 	international economic development zone designated under section 469.322. Intangible 
14.27 	property shall not be included in Minnesota property for purposes of this section. 
14.28 	Taxpayers who do not utilize tangible property to apportion income shall nevertheless 
14.29 	include Minnesota property for purposes of this section. On a return for a short taxable 
14.30 	year, the amount of Minnesota property owned, as determined under section 290.191, 
14.31 	shall be included in Minnesota property based on a fraction in which the numerator is the 
14.32 	number of days in the short taxable year and the denominator is 365.
14.33 	(c) "Minnesota payrolls" means total Minnesota payrolls as provided in section 
14.34 	290.191, subdivision 12, but does not include: (1) job opportunity building zone payrolls 
14.35 	under section 469.310, subdivision 8, (2) biotechnology and health sciences industry zone 
15.1 	payrolls under section 469.330, subdivision 8, ~~or~~ (3) for taxable years beginning during 
15.2 	the duration of the zone, international economic development zone payrolls under section 
15.3 	469.321, subdivision 9, or (4) for taxable years beginning during the certification of the 
15.4 	green business, certified green business payrolls. Taxpayers who do not utilize payrolls 
15.5 	to apportion income shall nevertheless include Minnesota payrolls for purposes of this 
15.6 	section.

15.7 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
15.8 	December 31, 2008.

15.9 	Sec. 12. [290.993] GREEN BUSINESS CERTIFICATION.
15.10 		Subdivision 1.Definitions. (a) As used in this section, the following terms have 
15.11 	the meanings given.
15.12 	(b) "Commissioner" means the commissioner of employment and economic 
15.13 	development.
15.14 	(c) "Person" includes an individual, corporation, partnership, limited liability 
15.15 	company, association, or any other entity.
15.16 	(d) A "certified green business" is a person carrying on a trade or business if the 
15.17 	commissioner certifies that its primary business activity is production of products, 
15.18 	processes, methods, technologies, or services intended to do one or more of the following:
15.19 	(1) to increase the use of energy from renewable sources, as defined in section 
15.20 	216B.1691;
15.21 	(2) to increase the energy efficiency of the electric utility infrastructure system or to 
15.22 	increase energy conservation related to electricity use, as provided in sections 216B.2401 
15.23 	and 216B.241;
15.24 	(3) to reduce greenhouse gas emissions, as defined in section 216H.01, subdivision 
15.25 	2, or to mitigate greenhouse gas emissions through, but not limited to, carbon capture, 
15.26 	storage, or sequestration;
15.27 	(4) to monitor, protect, restore, and preserve the quality of surface waters; and
15.28 	(5) to expand use of biofuels, including expanding the feasibility or reducing the 
15.29 	cost of producing biofuels or the types of equipment, machinery, and vehicles that can use 
15.30 	biofuels.
15.31 		Subd. 2.Business subsidy agreement. (a) A person is a qualified business only if 
15.32 	the person has entered into a business subsidy agreement with the commissioner.
15.33 	(b) Prior to execution of the business subsidy agreement, the commissioner must 
15.34 	consider the following factors:
15.35 	(1) how wages compare to the regional industry average;
16.1 	(2) the number of jobs that will be provided relative to overall employment in the 
16.2 	community;
16.3 	(3) how the business will build on existing regional strengths or diversify the 
16.4 	regional economy;
16.5 	(4) how the business will increase capital investment in the state; and
16.6 	(5) any other criteria the commissioner deems necessary.
16.7 		Subd. 3.Compensation requirement. A qualifying business must pay each 
16.8 	employee compensation, including benefits not mandated by law, that on an annualized 
16.9 	basis is equal to at least 110 percent of the federal poverty level for a family of four.

16.10 	Sec. 13. [290.994] APPLICATION FOR DESIGNATION.
16.11 		Subdivision 1.Who may apply. A person proposing to conduct a green business 
16.12 	may apply for certification as a certified green business.
16.13 		Subd. 2.Application content. The application must include:
16.14 	(1) the proposed duration of the certification, not to exceed 12 years;
16.15 	(2) an agreement by the certified green business to treat incentives provided under 
16.16 	section 290.995 as business subsidies under sections 116J.993 to 116J.995, and to comply 
16.17 	with the requirements of that law; and
16.18 	(3) supporting evidence to allow the commissioner to evaluate the application under 
16.19 	the criteria in section 290.993.

16.20 	Sec. 14. [290.995] TAX INCENTIVES AVAILABLE TO CERTIFIED GREEN 
16.21 	BUSINESSES.
16.22 	Certified green businesses, individuals who invest in a certified green business, and 
16.23 	property used in operation of a certified green business qualify for:
16.24 	(1) exemption from individual income taxes as provided under section 290.996; 
16.25 	(2) exemption from corporate franchise taxes as provided under section 290.997; 
16.26 	(3) exemption from the state sales and use tax and any local sales and use taxes on 
16.27 	qualifying purchases as provided in section 297A.68, subdivision 42; 
16.28 	(4) exemption from the state sales tax on motor vehicles and any local sales tax on 
16.29 	motor vehicles as provided under section 297B.03; 
16.30 	(5) if approved by the municipality in which the property is located, exemption from 
16.31 	the property tax as provided in section 272.02, subdivision 85; and
16.32 	(6) the jobs credit allowed under section 290.998.

16.33 	Sec. 15. [290.996] INDIVIDUAL INCOME TAX EXEMPTION.
17.1 		Subdivision 1.Application. An individual, estate, or trust operating a certified green 
17.2 	business and an individual, estate, or trust making a qualifying investment in a certified 
17.3 	green business qualifies for the exemptions from taxes imposed under this chapter, as 
17.4 	provided in this section. The exemptions provided under this section apply only to the 
17.5 	extent that the income otherwise would be taxable under this chapter. Subtractions under 
17.6 	this section from federal taxable income, alternative minimum taxable income, or any 
17.7 	other base subject to tax are limited to the amount that otherwise would be included in 
17.8 	the tax base absent the exemption under this section. This section applies only to taxable 
17.9 	years beginning during the duration of the green business certification.
17.10 		Subd. 2.Rents. An individual, estate, or trust is exempt from the taxes imposed 
17.11 	under this chapter on net rents derived from real or tangible personal property used by a 
17.12 	certified green business for a taxable year in which the green business was certified.
17.13 		Subd. 3.Business income. An individual, estate, or trust is exempt from the taxes 
17.14 	imposed under this chapter on net income from the operation of a certified green business. 
17.15 	No subtraction is allowed under this section in excess of 20 percent of the sum of the 
17.16 	certified green business payroll and the adjusted basis of the property at the time that the 
17.17 	property is first used by the certified green business.
17.18 		Subd. 4.Capital gains. (a) An individual, estate, or trust is exempt from the taxes 
17.19 	imposed under this chapter on:
17.20 	(1) net gain derived on a sale or exchange of real property used by a certified green 
17.21 	business. If the property was held by the individual, estate, or trust during a period when 
17.22 	the business was not certified, the gain must be prorated based on the percentage of time, 
17.23 	measured in calendar days, that the real property was held by the individual, estate, or 
17.24 	trust during the period the certification was in effect to the total period of time the real 
17.25 	property was held by the individual;
17.26 	(2) net gain derived on a sale or exchange of tangible personal property used by 
17.27 	a certified green business. If the property was held by the individual, estate, or trust 
17.28 	during a period when the business was not certified, the gain must be prorated based on 
17.29 	the percentage of time, measured in calendar days, that the property was held by the 
17.30 	individual, estate, or trust during the period the certification was in effect to the total 
17.31 	period of time the property was held by the individual; and
17.32 	(3) net gain derived on a sale of an ownership interest in a certified green business.

17.33 	Sec. 16. [290.997] CORPORATE FRANCHISE TAX EXEMPTION.
18.1 	(a) A certified green business is exempt from taxation under section 290.02, the 
18.2 	alternative minimum tax under section 290.0921, and the minimum fee under section 
18.3 	290.0922, on the portion of its income attributable to operations as a green business.
18.4 	(b) No subtraction is allowed under this section in excess of 20 percent of the sum of 
18.5 	the payroll of the certified green business and the adjusted basis of the property at the time 
18.6 	that the property is first used by the certified green business.
18.7 	(c) This section applies only to taxable years beginning during the certification of 
18.8 	the business as a certified green business.

18.9 	Sec. 17. [290.998] JOBS CREDIT.
18.10 		Subdivision 1.Credit allowed. A certified green business is allowed a credit against 
18.11 	the taxes imposed under this chapter. The credit equals seven percent of total Minnesota 
18.12 	payroll of the certified green business for the taxable year, less total Minnesota payroll of 
18.13 	the certified green business for the base year, minus $30,000 multiplied by (the number of 
18.14 	full-time equivalent employees that the certified green business employs for the taxable 
18.15 	year, minus the number of full-time equivalent employees the business employed in the 
18.16 	base year, but not less than zero.)
18.17 		Subd. 2.Definitions. (a) For purposes of this section, the following terms have 
18.18 	the meanings given.
18.19 	(b) "Base year" means the taxable year beginning during the calendar year prior to 
18.20 	the calendar year in which the certification took effect.
18.21 	(c) "Full-time equivalent employees" means the equivalent of annualized expected 
18.22 	hours of work equal to 2,080 hours.
18.23 	(d) "Minnesota payroll" means the wages or salaries attributed to Minnesota under 
18.24 	section 290.191, subdivision 12, for the certified green business less the amount of 
18.25 	compensation attributable to any employee that exceeds $100,000.
18.26 		Subd. 3.Inflation adjustment. For taxable years beginning after December 31, 
18.27 	2008, the dollar amounts in subdivision 1 and subdivision 2, paragraph (d), are annually 
18.28 	adjusted for inflation. The commissioner of revenue shall adjust the amounts by the 
18.29 	percentage determined under section 290.06, subdivision 2d, for the taxable year. 
18.30 		Subd. 4.Refundable. If the amount of the credit exceeds the liability for tax under 
18.31 	this chapter, the commissioner of revenue shall refund the excess to the qualified business.
18.32 		Subd. 5.Appropriation. An amount sufficient to pay the refunds authorized by this 
18.33 	section is appropriated to the commissioner of revenue from the general fund.

18.34 	Sec. 18. [290.999] REPAYMENT OF TAX BENEFITS.
19.1 		Subdivision 1.Repayment obligation. A business must repay the amount of the 
19.2 	total tax reduction listed in section 290.995, in excess of tax liability, received during the 
19.3 	two years immediately before it ceased to operate as a certified green business, if the 
19.4 	business:
19.5 	(1) received tax reductions authorized by section 290.995; and
19.6 	(2)(i) did not meet the goals specified in an agreement entered into with the applicant 
19.7 	that states any obligation the certified green business must fulfill in order to be eligible 
19.8 	for tax benefits. The commissioner of employment and economic development may 
19.9 	extend for up to one year the period for meeting any goals provided in an agreement. The 
19.10 	applicant may extend the period for meeting other goals by documenting in writing the 
19.11 	reason for the extension and attaching a copy of the document to its next annual report to 
19.12 	the commissioner of employment and economic development; or
19.13 	(ii) ceased to operate its facility located within the zone or otherwise ceases to 
19.14 	be or is not a qualified business.
19.15 		Subd. 2.Definitions. (a) For purposes of this section, the following terms have 
19.16 	the meanings given.
19.17 	(b) "Business" means any person who received tax benefits enumerated in section 
19.18 	290.995. 
19.19 	(c) "Commissioner" means the commissioner of revenue.
19.20 		Subd. 3.Disposition of repayment. The repayment must be paid to the state to 
19.21 	the extent it represents a state tax reduction and to the county to the extent it represents a 
19.22 	property tax reduction. Any amount repaid to the state must be deposited in the general 
19.23 	fund. Any amount repaid to the county for the property tax exemption must be distributed 
19.24 	to the local governments that granted a tax exemption in the zone in the same manner 
19.25 	provided for distribution of payment of delinquent property taxes. Any repayment of local 
19.26 	sales taxes must be repaid to the city or county imposing the local sales tax.
19.27 		Subd. 4.Repayment procedures. (a) For the repayment of taxes imposed under 
19.28 	chapter 290 or 297A or local taxes collected under section 297A.99, a business must file 
19.29 	an amended return with the commissioner of revenue and pay any taxes required to be 
19.30 	repaid within 30 days after ceasing to do business in the zone. The amount required to be 
19.31 	repaid is determined by calculating the tax for the period or periods for which repayment 
19.32 	is required without regard to the exemptions and credits allowed under section 290.995.
19.33 	(b) For the repayment of taxes imposed under chapter 297B, a business must pay any 
19.34 	taxes required to be repaid to the motor vehicle registrar, as agent for the commissioner of 
19.35 	revenue, within 30 days after ceasing to do business in the zone.
20.1 	(c) For the repayment of property taxes, the county auditor shall prepare a tax 
20.2 	statement for the business, applying the applicable tax extension rates for each payable 
20.3 	year and provide a copy to the business. The business must pay the taxes to the county 
20.4 	treasurer within 30 days after receipt of the tax statement. The taxpayer may appeal the 
20.5 	valuation and determination of the property tax to the Tax Court within 30 days after 
20.6 	receipt of the tax statement.
20.7 	(d) The provisions of chapters 270C and 289A relating to the commissioner's 
20.8 	authority to audit, assess, and collect the tax and to hear appeals are applicable to the 
20.9 	repayment required under paragraphs (a) and (b). The commissioner may impose civil 
20.10 	penalties as provided in chapter 289A, and the additional tax and penalties are subject to 
20.11 	interest at the rate provided in section 270C.40, from 30 days after ceasing to do business 
20.12 	in the zone until the date the tax is paid.
20.13 	(e) If a property tax is not repaid under paragraph (c), the county treasurer shall add 
20.14 	the amount required to be repaid to the property taxes assessed against the property for 
20.15 	payment in the year following the year in which the treasurer discovers that the business 
20.16 	ceased to operate in the zone.
20.17 	(f) For determining the tax required to be repaid, a tax reduction is deemed to have 
20.18 	been received on the date that the tax would have been due if the taxpayer had not been 
20.19 	entitled to the exemption or on the date a refund was issued for a refundable tax credit.
20.20 	(g) The commissioner may assess the repayment of taxes under paragraph (d) any 
20.21 	time within two years after the business ceases to operate in the zone, or within any period 
20.22 	of limitations for the assessment of tax under section 289A.38, whichever period is later.
20.23 		Subd. 5.Waiver authority. The commissioner may waive all or part of a 
20.24 	repayment, if the commissioner, in consultation with the commissioner of employment 
20.25 	and economic development and appropriate officials from the local government units in 
20.26 	which the qualified business is located if the local government imposed a local sales tax or 
20.27 	granted a property tax reduction, determines that requiring repayment of the tax is not 
20.28 	in the best interest of the state or the local government units and the business ceased 
20.29 	operating as a result of circumstances beyond its control including, but not limited to:
20.30 	(1) a natural disaster;
20.31 	(2) unforeseen industry trends; or
20.32 	(3) loss of a major supplier or customer.
20.33 		Subd. 6.Reconciliation. Where this section is inconsistent with section 116J.994, 
20.34 	subdivision 3, paragraph (e); or subdivision 6, or other provisions of sections 116J.993 to 
20.35 	116J.995, this section prevails.

21.1 	Sec. 19. Minnesota Statutes 2006, section 297A.68, is amended by adding a 
21.2 	subdivision to read:
21.3 		Subd. 42.Certified green business. (a) Purchases of tangible personal property or 
21.4 	taxable services by a certified green business, as defined in section 290.993, are exempt 
21.5 	if the property or services are primarily used or consumed in the operation of a green 
21.6 	business certified under section 290.993.
21.7 	(b) Purchase and use of construction materials and supplies used or consumed in, 
21.8 	and equipment incorporated into, the construction of improvements to real property used 
21.9 	primarily in the operation of a certified green business are exempt if the improvements 
21.10 	after completion of construction are to be used in the conduct of a certified green business. 
21.11 	This exemption applies regardless of whether the purchases are made by the business 
21.12 	or a contractor.
21.13 	(c) The exemptions under this subdivision apply to a local sales and use tax 
21.14 	regardless of whether the local sales tax is imposed on the sales taxable as defined under 
21.15 	this chapter.
21.16 	(d) This subdivision applies to sales, if the purchase was made and delivery received 
21.17 	during the duration of the zone.

21.18 	EFFECTIVE DATE. This section is effective for purchases after June 30, 2008.

21.19 	Sec. 20. Minnesota Statutes 2006, section 297B.03, is amended to read:
21.20 	297B.03 EXEMPTIONS.
21.21 	There is specifically exempted from the provisions of this chapter and from 
21.22 	computation of the amount of tax imposed by it the following:
21.23 	(1) purchase or use, including use under a lease purchase agreement or installment 
21.24 	sales contract made pursuant to section 465.71, of any motor vehicle by the United States 
21.25 	and its agencies and instrumentalities and by any person described in and subject to the 
21.26 	conditions provided in section 297A.67, subdivision 11; 
21.27 	(2) purchase or use of any motor vehicle by any person who was a resident of 
21.28 	another state or country at the time of the purchase and who subsequently becomes a 
21.29 	resident of Minnesota, provided the purchase occurred more than 60 days prior to the date 
21.30 	such person began residing in the state of Minnesota and the motor vehicle was registered 
21.31 	in the person's name in the other state or country;
21.32 	(3) purchase or use of any motor vehicle by any person making a valid election to be 
21.33 	taxed under the provisions of section 297A.90; 
22.1 	(4) purchase or use of any motor vehicle previously registered in the state of 
22.2 	Minnesota when such transfer constitutes a transfer within the meaning of section 118, 
22.3 	331, 332, 336, 337, 338, 351, 355, 368, 721, 731, 1031, 1033, or 1563(a) of the Internal 
22.4 	Revenue Code of 1986, as amended through December 31, 1999;
22.5 	(5) purchase or use of any vehicle owned by a resident of another state and leased 
22.6 	to a Minnesota-based private or for-hire carrier for regular use in the transportation of 
22.7 	persons or property in interstate commerce provided the vehicle is titled in the state of 
22.8 	the owner or secured party, and that state does not impose a sales tax or sales tax on 
22.9 	motor vehicles used in interstate commerce;
22.10 	(6) purchase or use of a motor vehicle by a private nonprofit or public educational 
22.11 	institution for use as an instructional aid in automotive training programs operated by the 
22.12 	institution. "Automotive training programs" includes motor vehicle body and mechanical 
22.13 	repair courses but does not include driver education programs;
22.14 	(7) purchase of a motor vehicle for use as an ambulance by an ambulance service 
22.15 	licensed under section 144E.10; 
22.16 	(8) purchase of a motor vehicle by or for a public library, as defined in section 
22.17 	134.001, subdivision 2, as a bookmobile or library delivery vehicle; 
22.18 	(9) purchase of a ready-mixed concrete truck;
22.19 	(10) purchase or use of a motor vehicle by a town for use exclusively for road 
22.20 	maintenance, including snowplows and dump trucks, but not including automobiles, 
22.21 	vans, or pickup trucks;
22.22 	(11) purchase or use of a motor vehicle by a corporation, society, association, 
22.23 	foundation, or institution organized and operated exclusively for charitable, religious, 
22.24 	or educational purposes, except a public school, university, or library, but only if the 
22.25 	vehicle is:
22.26 	(i) a truck, as defined in section 168.011, a bus, as defined in section 168.011, or a 
22.27 	passenger automobile, as defined in section 168.011, if the automobile is designed and 
22.28 	used for carrying more than nine persons including the driver; and 
22.29 	(ii) intended to be used primarily to transport tangible personal property or 
22.30 	individuals, other than employees, to whom the organization provides service in 
22.31 	performing its charitable, religious, or educational purpose;
22.32 	(12) purchase of a motor vehicle for use by a transit provider exclusively to provide 
22.33 	transit service is exempt if the transit provider is either (i) receiving financial assistance or 
22.34 	reimbursement under section 174.24 or 473.384, or (ii) operating under section 174.29, 
22.35 	473.388, or 473.405; 
23.1 	(13) purchase or use of a motor vehicle by a qualified business, as defined in section 
23.2 	469.310, located in a job opportunity building zone, if the motor vehicle is principally 
23.3 	garaged in the job opportunity building zone and is primarily used as part of or in direct 
23.4 	support of the person's operations carried on in the job opportunity building zone. The 
23.5 	exemption under this clause applies to sales, if the purchase was made and delivery 
23.6 	received during the duration of the job opportunity building zone. The exemption under 
23.7 	this clause also applies to any local sales and use tax~~.~~; and
23.8 	(14) purchase or use of a motor vehicle by a certified green business, as defined in 
23.9 	section 290.993, if the motor vehicle is primarily used as part of or in direct support of the 
23.10 	certified green business operations. The exemption under this clause applies to sales if the 
23.11 	purchase was made and delivery received during the duration of the certification of the 
23.12 	green business. The exemption under this clause also applies to any local sales and use tax.

23.13 	EFFECTIVE DATE. This section is effective for purchases after June 30, 2008.