Skip to main content Skip to office menu Skip to footer
Capital IconMinnesota Legislature

Taxes

TWENTY FIRST MEETING

2007-2008 Regular Session - Monday, March 12, 2007

STATE OF MINNESOTA TWENTY FIRST MEETING
HOUSE OF REPRESENTATIVES EIGHTY-FIFTH SESSION

TAX COMMITTEE

MINUTES


Representative Ann Lenczewski, Chair of the Committee, called the meeting to order at 2:22 P.M. on Monday, March 12, 2007, in Room 10 of the State Office Building.

The Committee Legislative Assistant noted the roll.

Members present:

LENCZEWSKI, Ann (Chair)
WOLLSCHLAGER, Sandy (Vice-Chair)
ATKINS, Joe
BROD, Laura
CARLSON, Lyndon
DAVNIE, Jim
DELAFOREST, Chris
DEMMER, Randy
DILL, David
ERHARDT, Ron
HILSTROM, Debra
JAROS, Mike
KOENEN, Lyle
KOHLS, Paul
LANNING, Morrie
LESCH, John
LIEBLING, Tina
MARQUART, Paul
MULLERY, Joe
PAULSEN, Erik
RUKAVINA, Tom
SIMPSON, Dean
SOLBERG, Loren
TILLBERRY, Tom
ZELLERS, Kurt

Members excused:

THAO, Cy


A quorum was not present.

HF0431 Erhardt Transit pass income tax credit extended to nonprofit organizations.

David Van Hattum (Policy and Advocacy Program Manager, Transit for Livable Communities) testified on HF0431.

A quorum was present at 2:30 P.M.

HF1447 Hortman Diesel truck idling reduction equipment income tax credit provided.

John Hausladen (President, Minnesota Trucking Association) and Bruce Goodrich (R & E Enterprises of Mankato, Inc.) testified on HF1447.

Representative Erhardt moved HF0431 be laid over for possible inclusion in the Omnibus Tax Bill.

HF0431 was laid over for possible inclusion in the Omnibus Tax Bill.

Representative Liebling moved HF1447 be laid over for possible inclusion in the Omnibus Tax Bill.

HF1447 was laid over for possible inclusion in the Omnibus Tax Bill.

Representative Solberg moved approval of minutes for Monday, March 5, 2007 and Tuesday, March 6, 2007. THE MOTION PREVAILED.

Joel Michael (House Research) and Nina Manzi (House Research) gave a presentation on income tax credits.

HF1002 Hornstein Alternative fuel vehicle income tax credit provided.

Representative Marquart moved HF1002 be laid over for possible inclusion in the Omnibus Tax Bill.

Representative Marquart moved the H1002A2 amendment.

Representative Marquart moved to amend the H1002A2 amendment to HF1002, as follows:

Page 2, line 16, after "subdivision 1b," insert "but excludes vehicles operated primarily on liquefied petroleum gas, coal-derived liquefied fuels, or other fuel that the Secretary of the United States Department of Energy determines by regulation to be an alternative fuel within the meaning of section 301(2) of the National Energy Policy Act of 1992 and intended for use in motor vehicles." THE AMENDMENT WAS ADOPTED.

HF1002, as amended, was laid over for possible inclusion in the Omnibus Tax Bill.

HF0330 Anderson, S. Telecommuting income tax credit provided.

Representative Zellers moved HF0330 be laid over for possible inclusion in the Omnibus Tax Bill.

Representative Paulsen moved the H0330A1 amendment. THE AMENDMENT WAS ADOPTED.

Jason Flohrs (Director of Government Affairs, TwinWest Chamber of Commerce) and Michael Noble (Executive Director, Fresh Energy) testified on HF0330.

HF1250 Bunn Telecommuting equipment income tax credit provided.

Representative Lenczewski moved HF1250 be laid over for possible inclusion in the Omnibus Tax Bill.

Representative Lenczewski moved the H1250A1 amendment. THE AMENDMENT WAS ADOPTED.

HF0330, as amended, was laid over for possible inclusion in the Omnibus Tax Bill.

HF1250, as amended, was laid over for possible inclusion in the Omnibus Tax Bill.

HF0361 Welti Regional investment income and franchise tax credit provided.

Representative Demmer moved HF0361 be laid over for possible inclusion in the Omnibus Tax Bill.

Representative Demmer moved the A07-0233 amendment. THE AMENDMENT WAS ADOPTED.

Jeffrey M. Nelson (Project Manager, Department of Employment and Economic Development), Dean Harrington (President, First National Bank, Plainview, MN) and Erin Tegtmeier (Executive Director, University of Minnesota Southeast Regional Sustainable Development Partnership) testified on HF0361.

HF0361 was laid over for possible inclusion in the Omnibus Tax Bill.

HF1643 Gardner Scrap metal dealers tax credit provided.

Representative Jaros moved HF1643 be laid over for possible inclusion in the Omnibus Tax Bill.

HF1643 was laid over for possible inclusion in the Omnibus Tax Bill.

The committee recessed at 3:47 P.M.

The committee reconvened in the basement hearing room at 7:01 P.M.

Representative Thissen provided an informational hearing on HF0020 - Prekindergarten scholarship granting organizations contribution income tax credit provided.

Representative Thissen provided an informational hearing on HF0040 - Employer postsecondary education expense tax credit provided.

Representative Slawik presented an informational hearing on HF0123 - Education expense tax credit and deduction applied to certain expenditures for prekindergarten expenses and museum memberships.

HF0263 Paulsen Education credit income tax inflation adjustment provided.

Representative Paulsen moved HF0263 be laid over for possible inclusion in the Omnibus Tax Bill.

HF0263 was laid over for possible inclusion in the Omnibus Tax Bill.

HF0477 Tillberry Parent volunteering at child's school or child care income tax credit provided.

Representative Tillberry moved HF0477 be laid over for possible inclusion in the Omnibus Tax Bill.

Representative Tillberry moved the A07-0240 amendment. THE AMENDMENT WAS ADOPTED.

Linda Rodgers (Parent Involvement Coordinator, Anoka-Hennepin School District) and Judy Watke (Volunter Services Coordinator, Anoka-Hennepin School District) testified on HF0477.

Representative Paulsen assumed the gavel.

HF0477, as amended, was laid over for possible inclusion in the Omnibus Tax Bill.

HF0704 Kohls Universal tuition income tax credit provided, and money appropriated..

Representative Kohls moved HF0704 be laid over for possible inclusion in the Omnibus Tax Bill.

Representative Kohls moved to amend HF0704 as follows:
Page 2, Line 7, strike ", and before January 1, 2007" THE AMENDMENT WAS ADOPTED.

HF0704, as amended, was laid over for possible inclusion in the Omnibus Tax Bill.

HF0747 Simon A bill for an act relating to taxation; individual income; creating a citizenship credit; appropriating money.

Representative Carlson moved HF0747 be laid over for possible inclusion in the Omnibus Tax Bill.

Andrea Ayres (Policy Advocate, Affirm Coalition) testified on HF0747.

HF0747 was laid over for possible inclusion in the Omnibus Tax Bill.

Representative Eastlund provided an informational hearing on HF1264 - Early childhood education access grants contribution and early childhood educational expenses income tax credit authorized.

HF0097 Mullery Research tax credit extended to the individual income tax, portion of the credit refunded, and money appropriated.

Representative Mullery moved HF0097 be laid over for possible inclusion in the Omnibus Tax Bill.

HF0097 was laid over for possible inclusion in the Omnibus Tax Bill.

HF1747 Davnie Bioscience investment tax credits.

Representative Davnie moved HF1747 be recommended to pass.

Representative Davnie moved the H1747A1 amendment. THE AMENDMENT WAS ADOPTED.

Linda Sandvig (Lobbyist, Life Science Alley) and Don Gerhart (CEO, Life Science Alley) testified on HF1747.

HF1747 was laid over for possible inclusion in the Omnibus Tax Bill.

HF0009 Juhnke Dairy investment income and corporate franchise tax credit provided for qualifying investments in dairy operations.

Representative Marquart moved HF0009 be laid over for possible inclusion in the Omnibus Tax Bill.

Representative Urdahl provided an informational hearing on HF0052 - Dairy operations income and corporate franchise tax credit provided for qualifying investments in dairy operations.

Representative Urdahl provided an informational hearing on HF0064 - Dairy and livestock investment income and corporate franchise credit provided for qualifying investments.

Representative Lesch assumed the gavel.

Greg Jans (dairy farmer) testified on HF0009, HF0052, and HF0064.

HF0009 was laid over for possible inclusion in the Omnibus Tax Bill.

Representative Juhnke provided an informational hearing on HF0651 - Family agricultural revitalization zones authorized, and value-added processing agricultural products promoted.

HF0044 Urdahl Rural Minnesota Catch-Up Credit provided allowing a credit against the income tax of an employer for the creation and retention of certain jobs.

Representative Solberg moved HF0044 be laid over for possible inclusion in the Omnibus Tax Bill.

Representative Demmer moved the H0044A1 amendment. THE AMENDMENT WAS ADOPTED.

Sue Pirzig (Economic Development Coordinator, City of Jackson) testified on HF0044.

HF0044, as amended, was laid over for possible inclusion in the Omnibus Tax Bill.

HF0484 Koenen Beginning farmer program administered by the Rural Finance Authority provisions modified, and income tax credits provided to beginning farmers for participating in farm management programs.

HF0568 Heidgerken Income tax credit for sales or rentals of agricultural assets to beginning farmers and farmer financial management programs provided.

Representative Koenen moved HF0484 be laid over for possible inclusion in the Omnibus Tax Bill.

Representative Koenen moved HF0568 be laid over for possible inclusion in the Omnibus Tax Bill.

Thom Petersen (Legislative Director, Minnesota Farmers Union) and Paul Sobocinski (Land Stewardship Project) testified on HF0484 and HF0568.

HF0484 was laid over for possible inclusion in the Omnibus Tax Bill.

HF0568 was laid over for possible inclusion in the Omnibus Tax Bill.

The committee adjourned at 9:05 P.M.



Representative Ann Lenczewski, Chair



Jamie Becker-Finn, Committee Legislative Assistant
More Info On This Meeting..

Introduction to income tax credits by House Research

Transportation
HF431 (Erhardt) Transit pass income tax credit extended to nonprofit organizations.
HF1002 (Hornstein) Alternative fuel vehicle income tax credit provided.
HF1447 (Hortman) Diesel truck idling reduction equipment income tax credit provided.

Business
HF97 (Mullery) Research tax credit extended to the individual income tax, portion of the credit refunded, and money appropriated
HF330 (S. Anderson) Telecommuting income tax credit provided.
HF1250 (Bunn) Telecommuting equipment income tax credit provided.
HF361 (Welti) Regional investment income and franchise tax credit provided.

BILLS TO BE HEARD AT 7PM

Business (continued from this morning)
HF97 (Mullery) Research tax credit extended to the individual income tax, portion of the credit refunded, and money appropriated
HF1747 (Davnie) Bioscience investment tax credits.

Education
HF20 (Thissen) Prekindergarten scholarship granting organizations contribution income tax credit provided.
HF40 (Thissen) Employer postsecondary education expense tax credit provided.
HF123 (Slawik) Education expense tax credit and deduction applied to certain expenditures for prekindergarten expenses and museum memberships.
HF263 (Paulsen) Education credit income tax inflation adjustment provided.
HF477 (Tillberry) Parent volunteering at child's school or child care income tax credit provided.
HF704 (Kohls) Universal tuition income tax credit provided, and money appropriated
HF747 (Simon) A bill for an act relating to taxation; individual income; creating a citizenship credit; appropriating money
HF1264 (Eastlund) Early childhood education access grants contribution and early childhood educational expenses income tax credit authorized

Agriculture
HF9 (Juhnke) Dairy investment income and corporate franchise tax credit provided for qualifying investments in dairy operations
HF44 (Urdahl) Rural Minnesota Catch-Up Credit provided allowing a credit against the income tax of an employer for the creation and retention of certain jobs.
HF52 (Urdahl) Dairy operations income and corporate franchise tax credit provided for qualifying investments in dairy operations.
HF64 (Urdahl) Dairy and livestock investment income and corporate franchise credit provided for qualifying investments.
HF484 (Koenen) Beginning farmer program administered by the Rural Finance Authority provisions modified, and income tax credits provided to beginning farmers for participating in farm management programs.
HF568 (Heidgerken) Income tax credit for sales or rentals of agricultural assets to beginning farmers and farmer financial management programs provided.
HF921 (Hilstrom) Tree-planting income tax credit provided, and money appropriated.
HF651 (Juhnke) Family agricultural revitalization zones authorized, and value-added processing agricultural products promoted.

Removed from Agenda
HF1469 (Tschumper) Motor fuels excise tax increased, refundable income tax credit allowed, and money appropriated.
HF832 (Buesgens) General education access grants for students authorized.
HF457 (Gardner) Scrap metal dealer purchase record keeping expanded relating to law enforcement, registrations required, tax credit to dealers provided, criminal penalties established, and money appropriated.
HF435 (Cornish) Alternative fuel vehicle conversion income tax credit provided
HF10 (Thissen) Small business technology credit provided.

Added to Agenda
HF1747 (Davnie) Bioscience investment tax credits.
HF1643 (Gardner) Scrap metal dealers tax credit provided.