1.1    .................... moves to amend H. F. No. 3149, the second engrossment, as follows:
1.2Page 25, after line 26, insert:

1.3    "Section 1. Minnesota Statutes 2006, section 270A.03, subdivision 7, is amended to
1.4read:
1.5    Subd. 7. Refund. "Refund" means an individual income tax refund or political
1.6contribution refund, pursuant to chapter 290, or a property tax credit or refund, pursuant to
1.7chapter 290A, or a sustainable forest tax payment to a claimant under chapter 290C.
1.8    For purposes of this chapter, lottery prizes, as set forth in section 349A.08,
1.9subdivision 8 , and amounts granted to persons by the legislature on the recommendation
1.10of the joint senate-house of representatives Subcommittee on Claims shall be treated
1.11as refunds.
1.12    In the case of a joint property tax refund payable to spouses under chapter 290A,
1.13the refund shall be considered as belonging to each spouse in the proportion of the total
1.14refund that equals each spouse's proportion of the total income determined under section
1.15290A.03, subdivision 3 . In the case of a joint income tax refund under chapter 289A, the
1.16refund shall be considered as belonging to each spouse in the proportion of the total
1.17refund that equals each spouse's proportion of the total taxable income determined under
1.18section 290.01, subdivision 29. The commissioner shall remit the entire refund to the
1.19claimant agency, which shall, upon the request of the spouse who does not owe the debt,
1.20determine the amount of the refund belonging to that spouse and refund the amount to
1.21that spouse. For court fines, fees, and surcharges and court-ordered restitution under
1.22section 611A.04, subdivision 2, the notice provided by the commissioner of revenue under
1.23section 270A.07, subdivision 2, paragraph (b), serves as the appropriate legal notice
1.24to the spouse who does not owe the debt.
1.25EFFECTIVE DATE.This section is effective for political contribution refund
1.26claims based on contributions that are made after June 30, 2008."
2.1Page 28, after line 3 insert:

2.2    "Sec. 6. Minnesota Statutes 2006, section 289A.50, subdivision 1, is amended to read:
2.3    Subdivision 1. General right to refund. (a) Subject to the requirements of this
2.4section and section 289A.40, a taxpayer who has paid a tax in excess of the taxes lawfully
2.5due and who files a written claim for refund will be refunded or credited the overpayment
2.6of the tax determined by the commissioner to be erroneously paid.
2.7    (b) The claim must specify the name of the taxpayer, the date when and the period
2.8for which the tax was paid, the kind of tax paid, the amount of the tax that the taxpayer
2.9claims was erroneously paid, the grounds on which a refund is claimed, and other
2.10information relative to the payment and in the form required by the commissioner. An
2.11income tax, estate tax, or corporate franchise tax return, or amended return claiming an
2.12overpayment constitutes a claim for refund.
2.13    (c) When, in the course of an examination, and within the time for requesting a
2.14refund, the commissioner determines that there has been an overpayment of tax, the
2.15commissioner shall refund or credit the overpayment to the taxpayer and no demand
2.16is necessary. If the overpayment exceeds $1, the amount of the overpayment must
2.17be refunded to the taxpayer. If the amount of the overpayment is less than $1, the
2.18commissioner is not required to refund. In these situations, the commissioner does not
2.19have to make written findings or serve notice by mail to the taxpayer.
2.20    (d) If the amount allowable as a credit for withholding, estimated taxes, or dependent
2.21care exceeds the tax against which the credit is allowable, the amount of the excess is
2.22considered an overpayment. The refund allowed by section 290.06, subdivision 23, is also
2.23considered an overpayment. The requirements of section 270C.33 do not apply to the
2.24refunding of such an overpayment shown on the original return filed by a taxpayer.
2.25    (e) If the entertainment tax withheld at the source exceeds by $1 or more the taxes,
2.26penalties, and interest reported in the return of the entertainment entity or imposed by
2.27section 290.9201, the excess must be refunded to the entertainment entity. If the excess is
2.28less than $1, the commissioner need not refund that amount.
2.29    (f) If the surety deposit required for a construction contract exceeds the liability of
2.30the out-of-state contractor, the commissioner shall refund the difference to the contractor.
2.31    (g) An action of the commissioner in refunding the amount of the overpayment does
2.32not constitute a determination of the correctness of the return of the taxpayer.
2.33    (h) There is appropriated from the general fund to the commissioner of revenue the
2.34amount necessary to pay refunds allowed under this section.
2.35EFFECTIVE DATE.This section is effective for political contribution refund
2.36claims based on contributions made after June 30, 2008.

3.1    Sec. 7. Minnesota Statutes 2006, section 290.01, subdivision 6, is amended to read:
3.2    Subd. 6. Taxpayer. The term "taxpayer" means any person or corporation subject to
3.3a tax imposed by this chapter. For purposes of section 290.06, subdivision 23, the term
3.4"taxpayer" means an individual eligible to vote in Minnesota under section 201.014.
3.5EFFECTIVE DATE.This section is effective for political contribution refund
3.6claims based on contributions made after June 30, 2008.

3.7    Sec. 8. Minnesota Statutes 2007 Supplement, section 290.01, subdivision 19b, as
3.8amended by Laws 2008, chapter 154, article 3, section 3, and Laws 2008, chapter 154,
3.9article 11, section 11, is amended to read:
3.10    Subd. 19b. Subtractions from federal taxable income. For individuals, estates,
3.11and trusts, there shall be subtracted from federal taxable income:
3.12    (1) net interest income on obligations of any authority, commission, or
3.13instrumentality of the United States to the extent includable in taxable income for federal
3.14income tax purposes but exempt from state income tax under the laws of the United States;
3.15    (2) if included in federal taxable income, the amount of any overpayment of income
3.16tax to Minnesota or to any other state, for any previous taxable year, whether the amount
3.17is received as a refund or as a credit to another taxable year's income tax liability;
3.18    (3) the amount paid to others, less the amount used to claim the credit allowed under
3.19section 290.0674, not to exceed $1,625 for each qualifying child in grades kindergarten
3.20to 6 and $2,500 for each qualifying child in grades 7 to 12, for tuition, textbooks, and
3.21transportation of each qualifying child in attending an elementary or secondary school
3.22situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a
3.23resident of this state may legally fulfill the state's compulsory attendance laws, which
3.24is not operated for profit, and which adheres to the provisions of the Civil Rights Act
3.25of 1964 and chapter 363A. For the purposes of this clause, "tuition" includes fees or
3.26tuition as defined in section 290.0674, subdivision 1, clause (1). As used in this clause,
3.27"textbooks" includes books and other instructional materials and equipment purchased
3.28or leased for use in elementary and secondary schools in teaching only those subjects
3.29legally and commonly taught in public elementary and secondary schools in this state.
3.30Equipment expenses qualifying for deduction includes expenses as defined and limited in
3.31section 290.0674, subdivision 1, clause (3). "Textbooks" does not include instructional
3.32books and materials used in the teaching of religious tenets, doctrines, or worship, the
3.33purpose of which is to instill such tenets, doctrines, or worship, nor does it include books
3.34or materials for, or transportation to, extracurricular activities including sporting events,
3.35musical or dramatic events, speech activities, driver's education, or similar programs. For
4.1purposes of the subtraction provided by this clause, "qualifying child" has the meaning
4.2given in section 32(c)(3) of the Internal Revenue Code;
4.3    (4) income as provided under section 290.0802;
4.4    (5) to the extent included in federal adjusted gross income, income realized on
4.5disposition of property exempt from tax under section 290.491;
4.6    (6) to the extent not deducted or not deductible pursuant to section 408(d)(8)(E)
4.7of the Internal Revenue Code in determining federal taxable income by an individual
4.8who does not itemize deductions for federal income tax purposes for the taxable year, an
4.9amount equal to 50 percent of the excess of charitable contributions over $500 allowable
4.10as a deduction for the taxable year under section 170(a) of the Internal Revenue Code and
4.11under the provisions of Public Law 109-1;
4.12    (7) for taxable years beginning before January 1, 2008, the amount of the federal
4.13small ethanol producer credit allowed under section 40(a)(3) of the Internal Revenue Code
4.14which is included in gross income under section 87 of the Internal Revenue Code;
4.15    (8) for individuals who are allowed a federal foreign tax credit for taxes that do not
4.16qualify for a credit under section 290.06, subdivision 22, an amount equal to the carryover
4.17of subnational foreign taxes for the taxable year, but not to exceed the total subnational
4.18foreign taxes reported in claiming the foreign tax credit. For purposes of this clause,
4.19"federal foreign tax credit" means the credit allowed under section 27 of the Internal
4.20Revenue Code, and "carryover of subnational foreign taxes" equals the carryover allowed
4.21under section 904(c) of the Internal Revenue Code minus national level foreign taxes to
4.22the extent they exceed the federal foreign tax credit;
4.23    (9) in each of the five tax years immediately following the tax year in which an
4.24addition is required under subdivision 19a, clause (7), or 19c, clause (14), in the case
4.25of a shareholder of a corporation that is an S corporation, an amount equal to one-fifth
4.26of the delayed depreciation. For purposes of this clause, "delayed depreciation" means
4.27the amount of the addition made by the taxpayer under subdivision 19a, clause (7), or
4.28subdivision 19c, clause (14), in the case of a shareholder of an S corporation, minus the
4.29positive value of any net operating loss under section 172 of the Internal Revenue Code
4.30generated for the tax year of the addition. The resulting delayed depreciation cannot be
4.31less than zero;
4.32    (10) job opportunity building zone income as provided under section 469.316;
4.33    (11) to the extent included in federal taxable income, the amount of compensation
4.34paid to members of the Minnesota National Guard or other reserve components of the
4.35United States military for active service performed in Minnesota, excluding compensation
4.36for services performed under the Active Guard Reserve (AGR) program. For purposes of
5.1this clause, "active service" means (i) state active service as defined in section 190.05,
5.2subdivision 5a , clause (1); (ii) federally funded state active service as defined in section
5.3190.05, subdivision 5b ; or (iii) federal active service as defined in section 190.05,
5.4subdivision 5c , but "active service" excludes services performed exclusively for purposes
5.5of basic combat training, advanced individual training, annual training, and periodic
5.6inactive duty training; special training periodically made available to reserve members;
5.7and service performed in accordance with section 190.08, subdivision 3;
5.8    (12) to the extent included in federal taxable income, the amount of compensation
5.9paid to Minnesota residents who are members of the armed forces of the United States or
5.10United Nations for active duty performed outside Minnesota under United States Code,
5.11title 10, section 101(d); United States Code, title 32, section 101(12); or the authority of
5.12the United Nations;
5.13    (13) an amount, not to exceed $10,000, equal to qualified expenses related to a
5.14qualified donor's donation, while living, of one or more of the qualified donor's organs
5.15to another person for human organ transplantation. For purposes of this clause, "organ"
5.16means all or part of an individual's liver, pancreas, kidney, intestine, lung, or bone marrow;
5.17"human organ transplantation" means the medical procedure by which transfer of a human
5.18organ is made from the body of one person to the body of another person; "qualified
5.19expenses" means unreimbursed expenses for both the individual and the qualified donor
5.20for (i) travel, (ii) lodging, and (iii) lost wages net of sick pay, except that such expenses
5.21may be subtracted under this clause only once; and "qualified donor" means the individual
5.22or the individual's dependent, as defined in section 152 of the Internal Revenue Code. An
5.23individual may claim the subtraction in this clause for each instance of organ donation for
5.24transplantation during the taxable year in which the qualified expenses occur;
5.25    (14) in each of the five tax years immediately following the tax year in which an
5.26addition is required under subdivision 19a, clause (8), or 19c, clause (15), in the case of a
5.27shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the
5.28addition made by the taxpayer under subdivision 19a, clause (8), or 19c, clause (15), in the
5.29case of a shareholder of a corporation that is an S corporation, minus the positive value of
5.30any net operating loss under section 172 of the Internal Revenue Code generated for the
5.31tax year of the addition. If the net operating loss exceeds the addition for the tax year, a
5.32subtraction is not allowed under this clause;
5.33    (15) to the extent included in federal taxable income, compensation paid to a
5.34nonresident who is a service member as defined in United States Code, title 10, section
5.35101(a)(5), for military service as defined in the Service Member Civil Relief Act, Public
5.36Law 108-189, section 101(2); and
6.1    (16) international economic development zone income as provided under section
6.2469.325 .; and
6.3    (17) to the extent included in federal taxable income, a percentage of compensation
6.4received from a pension or other retirement pay from the government for service in the
6.5armed forces of the United States. For taxable years beginning after December 31, 2008,
6.6and before January 1, 2010, the percentage is 25 percent up to a maximum subtraction
6.7of $7,500; for taxable years beginning after December 31, 2009, and before January 1,
6.82011, the percentage is 50 percent up to a maximum subtraction of $15,000; for taxable
6.9years beginning after December 31, 2010, and before January 1, 2012, the percentage is
6.1075 percent up to a maximum subtraction of $22,500; and for taxable years beginning
6.11after December 31, 2011, the percentage is 100 percent up to a maximum subtraction of
6.12$30,000.
6.13EFFECTIVE DATE.This section is effective for tax years beginning after
6.14December 31, 2008."
6.15Page 37, delete section 15 and insert:

6.16    "Sec. 15. REPEALER.
6.17(a) Minnesota Statutes 2006, section 290.191, subdivision 4, is repealed.
6.18(b) Minnesota Statutes 2006, section 10A.322, subdivision 4, is repealed.
6.19(c) Minnesota Statutes 2006, section 290.06, subdivision 23, is repealed.
6.20EFFECTIVE DATE.Paragraph (a) is effective for taxable years beginning after
6.21December 31, 2008.
6.22    Paragraph (b) is effective June 30, 2008.
6.23    Paragraph (c) is effective for refund claims based on contributions made after June
6.2430, 2008."
6.25Renumber the sections in sequence and correct the internal references
6.26Amend the title accordingly