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

1.6 	Section 1. [290.0678] TREE-PLANTING CREDIT.
1.7 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms 
1.8 	have the  meanings given.
1.9 	(b) "Tree-planting expenses" means the cost to the individual of purchasing and 
1.10 	planting a qualifying tree.
1.11 	(c) "Qualifying tree" means a tree of a variety recommended for planting in the 
1.12 	region of the state in which the individuala??s homestead is located, on a list maintained by 
1.13 	the University of Minnesota Forest Resources Extension service.
1.14 	(d) "Homestead" has the meaning given in section 290A.03, subdivision 6.
1.15 		Subd. 2.Credit. An individual is allowed a credit against the tax imposed by this 
1.16 	chapter for  tree-planting expenses paid during the tax year. The credit equals 25 percent of 
1.17 	tree-planting expenses for each qualifying tree planted on the individuala??s homestead. The 
1.18 	maximum credit allowed per year is $100 for each qualifying tree, for no more than two 
1.19 	qualifying trees planted on each homestead, regardless of the number of individuals who 
1.20 	may claim the property as a homestead. For a nonresident or part-year resident, the credit 
1.21 	determined under this section must be allocated based on the percentage calculated under 
1.22 	section 290.06, subdivision 2c, paragraph (e).
2.1 		Subd. 3.Credit refundable. If the amount of credit which the claimant is eligible 
2.2 	to receive  under this section exceeds the claimant's tax liability under this chapter, the 
2.3 	commissioner shall  refund the excess to the claimant.
2.4 		Subd. 4.Appropriation. An amount sufficient to pay the refunds required by this 
2.5 	section  is appropriated to the commissioner from the general fund.

2.6 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
2.7 	December 31, 2006.