1.1.................... moves to amend H.F. No. 82 as follows:
1.2Delete everything after the enacting clause and insert:

1.3    "Section 1. Minnesota Statutes 2010, section 290.01, subdivision 19b, is amended to
1.4read:
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,
2.16under the provisions of Public Law 109-1 and Public Law 111-126;
2.17    (7) for individuals who are allowed a federal foreign tax credit for taxes that do not
2.18qualify for a credit under section 290.06, subdivision 22, an amount equal to the carryover
2.19of subnational foreign taxes for the taxable year, but not to exceed the total subnational
2.20foreign taxes reported in claiming the foreign tax credit. For purposes of this clause,
2.21"federal foreign tax credit" means the credit allowed under section 27 of the Internal
2.22Revenue Code, and "carryover of subnational foreign taxes" equals the carryover allowed
2.23under section 904(c) of the Internal Revenue Code minus national level foreign taxes to
2.24the extent they exceed the federal foreign tax credit;
2.25    (8) in each of the five tax years immediately following the tax year in which an
2.26addition is required under subdivision 19a, clause (7), or 19c, clause (15), in the case
2.27of a shareholder of a corporation that is an S corporation, an amount equal to one-fifth
2.28of the delayed depreciation. For purposes of this clause, "delayed depreciation" means
2.29the amount of the addition made by the taxpayer under subdivision 19a, clause (7), or
2.30subdivision 19c, clause (15), in the case of a shareholder of an S corporation, minus the
2.31positive value of any net operating loss under section 172 of the Internal Revenue Code
2.32generated for the tax year of the addition. The resulting delayed depreciation cannot be
2.33less than zero;
2.34    (9) job opportunity building zone income as provided under section 469.316;
2.35    (10) to the extent included in federal taxable income, the amount of compensation
2.36paid to members of the Minnesota National Guard or other reserve components of the
3.1United States military for active service performed in Minnesota, excluding compensation
3.2for services performed under the Active Guard Reserve (AGR) program. For purposes of
3.3this clause, "active service" means (i) state active service as defined in section 190.05,
3.4subdivision 5a , clause (1); (ii) federally funded state active service as defined in section
3.5190.05, subdivision 5b ; or (iii) federal active service as defined in section 190.05,
3.6subdivision 5c , but "active service" excludes service performed in accordance with section
3.7190.08, subdivision 3 ;
3.8    (11) to the extent included in federal taxable income, the amount of compensation
3.9paid to Minnesota residents who are members of the armed forces of the United States or
3.10United Nations for active duty performed outside Minnesota under United States Code,
3.11title 10, section 101(d); United States Code, title 32, section 101(12); or the authority of
3.12the United Nations;
3.13    (12) an amount, not to exceed $10,000, equal to qualified expenses related to a
3.14qualified donor's donation, while living, of one or more of the qualified donor's organs
3.15to another person for human organ transplantation. For purposes of this clause, "organ"
3.16means all or part of an individual's liver, pancreas, kidney, intestine, lung, or bone marrow;
3.17"human organ transplantation" means the medical procedure by which transfer of a human
3.18organ is made from the body of one person to the body of another person; "qualified
3.19expenses" means unreimbursed expenses for both the individual and the qualified donor
3.20for (i) travel, (ii) lodging, and (iii) lost wages net of sick pay, except that such expenses
3.21may be subtracted under this clause only once; and "qualified donor" means the individual
3.22or the individual's dependent, as defined in section 152 of the Internal Revenue Code. An
3.23individual may claim the subtraction in this clause for each instance of organ donation for
3.24transplantation during the taxable year in which the qualified expenses occur;
3.25    (13) in each of the five tax years immediately following the tax year in which an
3.26addition is required under subdivision 19a, clause (8), or 19c, clause (16), in the case of a
3.27shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the
3.28addition made by the taxpayer under subdivision 19a, clause (8), or 19c, clause (16), in the
3.29case of a shareholder of a corporation that is an S corporation, minus the positive value of
3.30any net operating loss under section 172 of the Internal Revenue Code generated for the
3.31tax year of the addition. If the net operating loss exceeds the addition for the tax year, a
3.32subtraction is not allowed under this clause;
3.33    (14) to the extent included in federal taxable income, compensation paid to a service
3.34member as defined in United States Code, title 10, section 101(a)(5), for military service
3.35as defined in the Servicemembers Civil Relief Act, Public Law 108-189, section 101(2);
4.1    (15) international economic development zone income as provided under section
4.2469.325 ;
4.3    (16) to the extent included in federal taxable income, the amount of national service
4.4educational awards received from the National Service Trust under United States Code,
4.5title 42, sections 12601 to 12604, for service in an approved Americorps National Service
4.6program; and
4.7(17) to the extent included in federal taxable income, discharge of indebtedness
4.8income resulting from reacquisition of business indebtedness included in federal taxable
4.9income under section 108(i) of the Internal Revenue Code. This subtraction applies only
4.10to the extent that the income was included in net income in a prior year as a result of the
4.11addition under section 290.01, subdivision 19a, clause (16).; and
4.12(18) to the extent included in federal taxable income, a percentage of compensation
4.13received from a pension or other retirement pay from the federal government for service in
4.14the military, as computed under United States Code, title 10, sections 1401 to 1414, 1447
4.15to 1455, and 12733, as follows:
4.16(i) for taxable years beginning after December 31, 2011, and before January 1,
4.172013, the percentage is ten percent;
4.18(ii) for taxable years beginning after December 31, 2012, and before January 1,
4.192014, the percentage is 20 percent;
4.20(iii) for taxable years beginning after December 31, 2013, the percentage is 30
4.21percent, except that if the commissioner determines that the number of individuals
4.22claiming this subtraction in any taxable year beginning after December 31, 2014, is at
4.23least 1,500 greater than the number claiming this subtraction in the taxable year beginning
4.24after December 31, 2011, and before January 1, 2013, then the percentage increases by ten
4.25percentage points per year in each of the following four taxable years through the taxable
4.26year during which the percentage is 70 percent, and if the commissioner determines that
4.27the number of individuals claiming this subtraction in any taxable year beginning after the
4.28first taxable year in which the percentage is 70 percent is at least 3,000 greater than the
4.29number claiming this subtraction in the taxable year beginning after December 31, 2011,
4.30and before January 1, 2013, then the percentage increases by ten percentage points in each
4.31of the following three taxable years until the percentage is 100 percent.
4.32EFFECTIVE DATE.This section is effective for taxable years beginning after
4.33December 31, 2011.

4.34    Sec. 2. Minnesota Statutes 2010, section 290.091, subdivision 2, is amended to read:
5.1    Subd. 2. Definitions. For purposes of the tax imposed by this section, the following
5.2terms have the meanings given:
5.3    (a) "Alternative minimum taxable income" means the sum of the following for
5.4the taxable year:
5.5    (1) the taxpayer's federal alternative minimum taxable income as defined in section
5.655(b)(2) of the Internal Revenue Code;
5.7    (2) the taxpayer's itemized deductions allowed in computing federal alternative
5.8minimum taxable income, but excluding:
5.9    (i) the charitable contribution deduction under section 170 of the Internal Revenue
5.10Code;
5.11    (ii) the medical expense deduction;
5.12    (iii) the casualty, theft, and disaster loss deduction; and
5.13    (iv) the impairment-related work expenses of a disabled person;
5.14    (3) for depletion allowances computed under section 613A(c) of the Internal
5.15Revenue Code, with respect to each property (as defined in section 614 of the Internal
5.16Revenue Code), to the extent not included in federal alternative minimum taxable income,
5.17the excess of the deduction for depletion allowable under section 611 of the Internal
5.18Revenue Code for the taxable year over the adjusted basis of the property at the end of the
5.19taxable year (determined without regard to the depletion deduction for the taxable year);
5.20    (4) to the extent not included in federal alternative minimum taxable income, the
5.21amount of the tax preference for intangible drilling cost under section 57(a)(2) of the
5.22Internal Revenue Code determined without regard to subparagraph (E);
5.23    (5) to the extent not included in federal alternative minimum taxable income, the
5.24amount of interest income as provided by section 290.01, subdivision 19a, clause (1); and
5.25    (6) the amount of addition required by section 290.01, subdivision 19a, clauses (7)
5.26to (9), (12), (13), (16), and (17);
5.27    less the sum of the amounts determined under the following:
5.28    (1) interest income as defined in section 290.01, subdivision 19b, clause (1);
5.29    (2) an overpayment of state income tax as provided by section 290.01, subdivision
5.3019b , clause (2), to the extent included in federal alternative minimum taxable income;
5.31    (3) the amount of investment interest paid or accrued within the taxable year on
5.32indebtedness to the extent that the amount does not exceed net investment income, as
5.33defined in section 163(d)(4) of the Internal Revenue Code. Interest does not include
5.34amounts deducted in computing federal adjusted gross income; and
5.35    (4) amounts subtracted from federal taxable income as provided by section 290.01,
5.36subdivision 19b , clauses (6), (8) to (15), and (17), and (18).
6.1    In the case of an estate or trust, alternative minimum taxable income must be
6.2computed as provided in section 59(c) of the Internal Revenue Code.
6.3    (b) "Investment interest" means investment interest as defined in section 163(d)(3)
6.4of the Internal Revenue Code.
6.5    (c) "Net minimum tax" means the minimum tax imposed by this section.
6.6    (d) "Regular tax" means the tax that would be imposed under this chapter (without
6.7regard to this section and section 290.032), reduced by the sum of the nonrefundable
6.8credits allowed under this chapter.
6.9    (e) "Tentative minimum tax" equals 6.4 percent of alternative minimum taxable
6.10income after subtracting the exemption amount determined under subdivision 3.
6.11EFFECTIVE DATE.This section is effective for taxable years beginning after
6.12December 31, 2011."
6.13Renumber the sections in sequence and correct the internal references
6.14Amend the title accordingly