1.1.................... moves to amend H.F. No. .... as follows:
1.2Page ..., after line ..., insert:

1.3    "Sec. 2. Minnesota Statutes 2009 Supplement, section 290.01, subdivision 19b,
1.4is amended to read:
1.5    Subd. 19b. Subtractions from federal taxable income. For individuals, estates,
1.6and trusts, there shall be subtracted from federal taxable income:
1.7    (1) net interest income on obligations of any authority, commission, or
1.8instrumentality of the United States to the extent includable in taxable income for federal
1.9income tax purposes but exempt from state income tax under the laws of the United States;
1.10    (2) if included in federal taxable income, the amount of any overpayment of income
1.11tax to Minnesota or to any other state, for any previous taxable year, whether the amount
1.12is received as a refund or as a credit to another taxable year's income tax liability;
1.13    (3) the amount paid to others, less the amount used to claim the credit allowed under
1.14section 290.0674, not to exceed $1,625 for each qualifying child in grades kindergarten
1.15to 6 and $2,500 for each qualifying child in grades 7 to 12, for tuition, textbooks, and
1.16transportation of each qualifying child in attending an elementary or secondary school
1.17situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a
1.18resident of this state may legally fulfill the state's compulsory attendance laws, which
1.19is not operated for profit, and which adheres to the provisions of the Civil Rights Act
1.20of 1964 and chapter 363A. For the purposes of this clause, "tuition" includes fees or
1.21tuition as defined in section 290.0674, subdivision 1, clause (1). As used in this clause,
1.22"textbooks" includes books and other instructional materials and equipment purchased
1.23or leased for use in elementary and secondary schools in teaching only those subjects
1.24legally and commonly taught in public elementary and secondary schools in this state.
1.25Equipment expenses qualifying for deduction includes expenses as defined and limited in
1.26section 290.0674, subdivision 1, clause (3). "Textbooks" does not include instructional
1.27books and materials used in the teaching of religious tenets, doctrines, or worship, the
2.1purpose of which is to instill such tenets, doctrines, or worship, nor does it include books
2.2or materials for, or transportation to, extracurricular activities including sporting events,
2.3musical or dramatic events, speech activities, driver's education, or similar programs. No
2.4deduction is permitted for any expense the taxpayer incurred in using the taxpayer's or
2.5the qualifying child's vehicle to provide such transportation for a qualifying child. For
2.6purposes of the subtraction provided by this clause, "qualifying child" has the meaning
2.7given in section 32(c)(3) of the Internal Revenue Code;
2.8    (4) income as provided under section 290.0802;
2.9    (5) to the extent included in federal adjusted gross income, income realized on
2.10disposition of property exempt from tax under section 290.491;
2.11    (6) to the extent not deducted or not deductible pursuant to section 408(d)(8)(E)
2.12of the Internal Revenue Code in determining federal taxable income by an individual
2.13who does not itemize deductions for federal income tax purposes for the taxable year, an
2.14amount equal to 50 percent of the excess of charitable contributions over $500 allowable
2.15as a deduction for the taxable year under section 170(a) of the Internal Revenue Code and,
2.16under the provisions of Public Law 109-1, and under the provisions of Public Law 111-126;
2.17    (7) for taxable years beginning before January 1, 2008, the amount of the federal
2.18small ethanol producer credit allowed under section 40(a)(3) of the Internal Revenue Code
2.19which is included in gross income under section 87 of the Internal Revenue Code;
2.20    (8) for individuals who are allowed a federal foreign tax credit for taxes that do not
2.21qualify for a credit under section 290.06, subdivision 22, an amount equal to the carryover
2.22of subnational foreign taxes for the taxable year, but not to exceed the total subnational
2.23foreign taxes reported in claiming the foreign tax credit. For purposes of this clause,
2.24"federal foreign tax credit" means the credit allowed under section 27 of the Internal
2.25Revenue Code, and "carryover of subnational foreign taxes" equals the carryover allowed
2.26under section 904(c) of the Internal Revenue Code minus national level foreign taxes to
2.27the extent they exceed the federal foreign tax credit;
2.28    (9) in each of the five tax years immediately following the tax year in which an
2.29addition is required under subdivision 19a, clause (7), or 19c, clause (15), in the case
2.30of a shareholder of a corporation that is an S corporation, an amount equal to one-fifth
2.31of the delayed depreciation. For purposes of this clause, "delayed depreciation" means
2.32the amount of the addition made by the taxpayer under subdivision 19a, clause (7), or
2.33subdivision 19c, clause (15), in the case of a shareholder of an S corporation, minus the
2.34positive value of any net operating loss under section 172 of the Internal Revenue Code
2.35generated for the tax year of the addition. The resulting delayed depreciation cannot be
2.36less than zero;
3.1    (10) job opportunity building zone income as provided under section 469.316;
3.2    (11) to the extent included in federal taxable income, the amount of compensation
3.3paid to members of the Minnesota National Guard or other reserve components of the
3.4United States military for active service performed in Minnesota, excluding compensation
3.5for services performed under the Active Guard Reserve (AGR) program. For purposes of
3.6this clause, "active service" means (i) state active service as defined in section 190.05,
3.7subdivision 5a , clause (1); (ii) federally funded state active service as defined in section
3.8190.05, subdivision 5b ; or (iii) federal active service as defined in section 190.05,
3.9subdivision 5c , but "active service" excludes service performed in accordance with section
3.10190.08, subdivision 3 ;
3.11    (12) to the extent included in federal taxable income, the amount of compensation
3.12paid to Minnesota residents who are members of the armed forces of the United States or
3.13United Nations for active duty performed outside Minnesota under United States Code,
3.14title 10, section 101(d); United States Code, title 32, section 101(12); or the authority of
3.15the United Nations;
3.16    (13) an amount, not to exceed $10,000, equal to qualified expenses related to a
3.17qualified donor's donation, while living, of one or more of the qualified donor's organs
3.18to another person for human organ transplantation. For purposes of this clause, "organ"
3.19means all or part of an individual's liver, pancreas, kidney, intestine, lung, or bone marrow;
3.20"human organ transplantation" means the medical procedure by which transfer of a human
3.21organ is made from the body of one person to the body of another person; "qualified
3.22expenses" means unreimbursed expenses for both the individual and the qualified donor
3.23for (i) travel, (ii) lodging, and (iii) lost wages net of sick pay, except that such expenses
3.24may be subtracted under this clause only once; and "qualified donor" means the individual
3.25or the individual's dependent, as defined in section 152 of the Internal Revenue Code. An
3.26individual may claim the subtraction in this clause for each instance of organ donation for
3.27transplantation during the taxable year in which the qualified expenses occur;
3.28    (14) in each of the five tax years immediately following the tax year in which an
3.29addition is required under subdivision 19a, clause (8), or 19c, clause (16), in the case of a
3.30shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the
3.31addition made by the taxpayer under subdivision 19a, clause (8), or 19c, clause (16), in the
3.32case of a shareholder of a corporation that is an S corporation, minus the positive value of
3.33any net operating loss under section 172 of the Internal Revenue Code generated for the
3.34tax year of the addition. If the net operating loss exceeds the addition for the tax year, a
3.35subtraction is not allowed under this clause;
4.1    (15) to the extent included in federal taxable income, compensation paid to a service
4.2member as defined in United States Code, title 10, section 101(a)(5), for military service
4.3as defined in the Servicemembers Civil Relief Act, Public Law 108-189, section 101(2);
4.4    (16) international economic development zone income as provided under section
4.5469.325 ;
4.6    (17) to the extent included in federal taxable income, the amount of national service
4.7educational awards received from the National Service Trust under United States Code,
4.8title 42, sections 12601 to 12604, for service in an approved Americorps National Service
4.9program; and
4.10(18) to the extent included in federal taxable income, discharge of indebtedness
4.11income resulting from reacquisition of business indebtedness included in federal taxable
4.12income under section 108(i) of the Internal Revenue Code. This subtraction applies only
4.13to the extent that the income was included in net income in a prior year as a result of the
4.14addition under section 290.01, subdivision 19a, clause (16).
4.15EFFECTIVE DATE.This section is effective for taxable years beginning after
4.16December 31, 2008."
4.17Renumber the sections in sequence and correct the internal references
4.18Amend the title accordingly