1.1.................... moves to amend H.F. No. 481, the delete everything amendment
1.2(A11-0139), as follows:
1.3Page 37, after line 34, insert:

1.4    "Sec. 13. Minnesota Statutes 2010, section 289A.08, subdivision 3, is amended to read:
1.5    Subd. 3. Corporations. (a) A corporation that is subject to the state's jurisdiction to
1.6tax under section 290.014, subdivision 5, must file a return, except that a foreign operating
1.7corporation as defined in section 290.01, subdivision 6b, is not required to file a return.
1.8    (b) Members of a unitary business that are required to file a combined report on one
1.9return must designate a member of the unitary business to be responsible for tax matters,
1.10including the filing of returns, the payment of taxes, additions to tax, penalties, interest,
1.11or any other payment, and for the receipt of refunds of taxes or interest paid in excess of
1.12taxes lawfully due. The designated member must be a member of the unitary business that
1.13is filing the single combined report and either:
1.14    (1) a corporation that is subject to the taxes imposed by chapter 290; or
1.15    (2) a corporation that is not subject to the taxes imposed by chapter 290:
1.16    (i) Such corporation consents by filing the return as a designated member under this
1.17clause to remit taxes, penalties, interest, or additions to tax due from the members of the
1.18unitary business subject to tax, and receive refunds or other payments on behalf of other
1.19members of the unitary business. The member designated under this clause is a "taxpayer"
1.20for the purposes of this chapter and chapter 270C, and is liable for any liability imposed
1.21on the unitary business under this chapter and chapter 290.
1.22    (ii) If the state does not otherwise have the jurisdiction to tax the member designated
1.23under this clause, consenting to be the designated member does not create the jurisdiction
1.24to impose tax on the designated member, other than as described in item (i).
1.25    (iii) The member designated under this clause must apply for a business tax account
1.26identification number.
2.1    (c) The commissioner shall adopt rules for the filing of one return on behalf of the
2.2members of an affiliated group of corporations that are required to file a combined report.
2.3All members of an affiliated group that are required to file a combined report must file one
2.4return on behalf of the members of the group under rules adopted by the commissioner.
2.5    (d) If a corporation claims on a return that it has paid tax in excess of the amount of
2.6taxes lawfully due, that corporation must include on that return information necessary for
2.7payment of the tax in excess of the amount lawfully due by electronic means.
2.8EFFECTIVE DATE.This section is effective for taxable years beginning after
2.9December 31, 2010."
2.10Pages 39 to 40, delete sections 15 and 16 and insert:

2.11    "Sec. 16. Minnesota Statutes 2010, section 290.01, subdivision 19c, is amended to read:
2.12    Subd. 19c. Corporations; additions to federal taxable income. For corporations,
2.13there shall be added to federal taxable income:
2.14    (1) the amount of any deduction taken for federal income tax purposes for income,
2.15excise, or franchise taxes based on net income or related minimum taxes, including but not
2.16limited to the tax imposed under section 290.0922, paid by the corporation to Minnesota,
2.17another state, a political subdivision of another state, the District of Columbia, or any
2.18foreign country or possession of the United States;
2.19    (2) interest not subject to federal tax upon obligations of: the United States, its
2.20possessions, its agencies, or its instrumentalities; the state of Minnesota or any other
2.21state, any of its political or governmental subdivisions, any of its municipalities, or any
2.22of its governmental agencies or instrumentalities; the District of Columbia; or Indian
2.23tribal governments;
2.24    (3) exempt-interest dividends received as defined in section 852(b)(5) of the Internal
2.25Revenue Code;
2.26    (4) the amount of any net operating loss deduction taken for federal income tax
2.27purposes under section 172 or 832(c)(10) of the Internal Revenue Code or operations loss
2.28deduction under section 810 of the Internal Revenue Code;
2.29    (5) the amount of any special deductions taken for federal income tax purposes
2.30under sections 241 to 247 and 965 of the Internal Revenue Code;
2.31    (6) losses from the business of mining, as defined in section 290.05, subdivision 1,
2.32clause (a), that are not subject to Minnesota income tax;
2.33    (7) the amount of any capital losses deducted for federal income tax purposes under
2.34sections 1211 and 1212 of the Internal Revenue Code;
3.1    (8) the exempt foreign trade income of a foreign sales corporation under sections
3.2921(a) and 291 of the Internal Revenue Code;
3.3    (9) the amount of percentage depletion deducted under sections 611 through 614 and
3.4291 of the Internal Revenue Code;
3.5    (10) for certified pollution control facilities placed in service in a taxable year
3.6beginning before December 31, 1986, and for which amortization deductions were elected
3.7under section 169 of the Internal Revenue Code of 1954, as amended through December
3.831, 1985, the amount of the amortization deduction allowed in computing federal taxable
3.9income for those facilities;
3.10    (11) for taxable years beginning before January 1, 2011, the amount of any deemed
3.11dividend from a foreign operating corporation determined pursuant to section 290.17,
3.12subdivision 4 , paragraph (g). The deemed dividend shall be reduced by the amount of the
3.13addition to income required by clauses (20), (21), (22), and (23);
3.14    (12) the amount of a partner's pro rata share of net income which does not flow
3.15through to the partner because the partnership elected to pay the tax on the income under
3.16section 6242(a)(2) of the Internal Revenue Code;
3.17    (13) the amount of net income excluded under section 114 of the Internal Revenue
3.18Code;
3.19    (14) any increase in subpart F income, as defined in section 952(a) of the Internal
3.20Revenue Code, for the taxable year when subpart F income is calculated without regard to
3.21the provisions of Division C, title III, section 303(b) of Public Law 110-343;
3.22    (15) 80 percent of the depreciation deduction allowed under section 168(k)(1)(A)
3.23and (k)(4)(A) of the Internal Revenue Code. For purposes of this clause, if the taxpayer
3.24has an activity that in the taxable year generates a deduction for depreciation under
3.25section 168(k)(1)(A) and (k)(4)(A) and the activity generates a loss for the taxable year
3.26that the taxpayer is not allowed to claim for the taxable year, "the depreciation allowed
3.27under section 168(k)(1)(A) and (k)(4)(A)" for the taxable year is limited to excess of the
3.28depreciation claimed by the activity under section 168(k)(1)(A) and (k)(4)(A) over the
3.29amount of the loss from the activity that is not allowed in the taxable year. In succeeding
3.30taxable years when the losses not allowed in the taxable year are allowed, the depreciation
3.31under section 168(k)(1)(A) and (k)(4)(A) is allowed;
3.32    (16) 80 percent of the amount by which the deduction allowed by section 179 of the
3.33Internal Revenue Code exceeds the deduction allowable by section 179 of the Internal
3.34Revenue Code of 1986, as amended through December 31, 2003;
3.35    (17) to the extent deducted in computing federal taxable income, the amount of the
3.36deduction allowable under section 199 of the Internal Revenue Code;
4.1    (18) the exclusion allowed under section 139A of the Internal Revenue Code for
4.2federal subsidies for prescription drug plans;
4.3    (19) the amount of expenses disallowed under section 290.10, subdivision 2;
4.4    (20) for taxable years beginning before January 1, 2011, an amount equal to the
4.5interest and intangible expenses, losses, and costs paid, accrued, or incurred by any
4.6member of the taxpayer's unitary group to or for the benefit of a corporation that is a
4.7member of the taxpayer's unitary business group that qualifies as a foreign operating
4.8corporation. For purposes of this clause, intangible expenses and costs include:
4.9    (i) expenses, losses, and costs for, or related to, the direct or indirect acquisition,
4.10use, maintenance or management, ownership, sale, exchange, or any other disposition of
4.11intangible property;
4.12    (ii) losses incurred, directly or indirectly, from factoring transactions or discounting
4.13transactions;
4.14    (iii) royalty, patent, technical, and copyright fees;
4.15    (iv) licensing fees; and
4.16    (v) other similar expenses and costs.
4.17For purposes of this clause, "intangible property" includes stocks, bonds, patents, patent
4.18applications, trade names, trademarks, service marks, copyrights, mask works, trade
4.19secrets, and similar types of intangible assets.
4.20This clause does not apply to any item of interest or intangible expenses or costs paid,
4.21accrued, or incurred, directly or indirectly, to a foreign operating corporation with respect
4.22to such item of income to the extent that the income to the foreign operating corporation
4.23is income from sources without the United States as defined in subtitle A, chapter 1,
4.24subchapter N, part 1, of the Internal Revenue Code;
4.25    (21) for taxable years beginning before January 1, 2011, except as already included
4.26in the taxpayer's taxable income pursuant to clause (20), any interest income and income
4.27generated from intangible property received or accrued by a foreign operating corporation
4.28that is a member of the taxpayer's unitary group. For purposes of this clause, income
4.29generated from intangible property includes:
4.30    (i) income related to the direct or indirect acquisition, use, maintenance or
4.31management, ownership, sale, exchange, or any other disposition of intangible property;
4.32    (ii) income from factoring transactions or discounting transactions;
4.33    (iii) royalty, patent, technical, and copyright fees;
4.34    (iv) licensing fees; and
4.35    (v) other similar income.
5.1For purposes of this clause, "intangible property" includes stocks, bonds, patents, patent
5.2applications, trade names, trademarks, service marks, copyrights, mask works, trade
5.3secrets, and similar types of intangible assets.
5.4This clause does not apply to any item of interest or intangible income received or accrued
5.5by a foreign operating corporation with respect to such item of income to the extent that
5.6the income is income from sources without the United States as defined in subtitle A,
5.7chapter 1, subchapter N, part 1, of the Internal Revenue Code;
5.8    (22) for taxable years beginning before January 1, 2011, the dividends attributable to
5.9the income of a foreign operating corporation that is a member of the taxpayer's unitary
5.10group in an amount that is equal to the dividends paid deduction of a real estate investment
5.11trust under section 561(a) of the Internal Revenue Code for amounts paid or accrued by
5.12the real estate investment trust to the foreign operating corporation;
5.13    (23) for taxable years beginning before January 1, 2011, the income of a foreign
5.14operating corporation that is a member of the taxpayer's unitary group in an amount that
5.15is equal to gains derived from the sale of real or personal property located in the United
5.16States;
5.17    (24) the additional amount allowed as a deduction for donation of computer
5.18technology and equipment under section 170(e)(6) of the Internal Revenue Code, to the
5.19extent deducted from taxable income; and
5.20    (25) discharge of indebtedness income resulting from reacquisition of business
5.21indebtedness and deferred under section 108(i) of the Internal Revenue Code.
5.22EFFECTIVE DATE.This section is effective for taxable years beginning after
5.23December 31, 2010.

5.24    Sec. 17. Minnesota Statutes 2010, section 290.01, subdivision 19d, is amended to read:
5.25    Subd. 19d. Corporations; modifications decreasing federal taxable income. For
5.26corporations, there shall be subtracted from federal taxable income after the increases
5.27provided in subdivision 19c:
5.28    (1) the amount of foreign dividend gross-up added to gross income for federal
5.29income tax purposes under section 78 of the Internal Revenue Code;
5.30    (2) the amount of salary expense not allowed for federal income tax purposes due to
5.31claiming the work opportunity credit under section 51 of the Internal Revenue Code;
5.32    (3) any dividend (not including any distribution in liquidation) paid within the
5.33taxable year by a national or state bank to the United States, or to any instrumentality of
5.34the United States exempt from federal income taxes, on the preferred stock of the bank
5.35owned by the United States or the instrumentality;
6.1    (4) amounts disallowed for intangible drilling costs due to differences between
6.2this chapter and the Internal Revenue Code in taxable years beginning before January
6.31, 1987, as follows:
6.4    (i) to the extent the disallowed costs are represented by physical property, an amount
6.5equal to the allowance for depreciation under Minnesota Statutes 1986, section 290.09,
6.6subdivision 7 , subject to the modifications contained in subdivision 19e; and
6.7    (ii) to the extent the disallowed costs are not represented by physical property, an
6.8amount equal to the allowance for cost depletion under Minnesota Statutes 1986, section
6.9290.09, subdivision 8 ;
6.10    (5) the deduction for capital losses pursuant to sections 1211 and 1212 of the
6.11Internal Revenue Code, except that:
6.12    (i) for capital losses incurred in taxable years beginning after December 31, 1986,
6.13capital loss carrybacks shall not be allowed;
6.14    (ii) for capital losses incurred in taxable years beginning after December 31, 1986,
6.15a capital loss carryover to each of the 15 taxable years succeeding the loss year shall be
6.16allowed;
6.17    (iii) for capital losses incurred in taxable years beginning before January 1, 1987, a
6.18capital loss carryback to each of the three taxable years preceding the loss year, subject to
6.19the provisions of Minnesota Statutes 1986, section 290.16, shall be allowed; and
6.20    (iv) for capital losses incurred in taxable years beginning before January 1, 1987,
6.21a capital loss carryover to each of the five taxable years succeeding the loss year to the
6.22extent such loss was not used in a prior taxable year and subject to the provisions of
6.23Minnesota Statutes 1986, section 290.16, shall be allowed;
6.24    (6) an amount for interest and expenses relating to income not taxable for federal
6.25income tax purposes, if (i) the income is taxable under this chapter and (ii) the interest and
6.26expenses were disallowed as deductions under the provisions of section 171(a)(2), 265 or
6.27291 of the Internal Revenue Code in computing federal taxable income;
6.28    (7) in the case of mines, oil and gas wells, other natural deposits, and timber for
6.29which percentage depletion was disallowed pursuant to subdivision 19c, clause (9), a
6.30reasonable allowance for depletion based on actual cost. In the case of leases the deduction
6.31must be apportioned between the lessor and lessee in accordance with rules prescribed
6.32by the commissioner. In the case of property held in trust, the allowable deduction must
6.33be apportioned between the income beneficiaries and the trustee in accordance with the
6.34pertinent provisions of the trust, or if there is no provision in the instrument, on the basis
6.35of the trust's income allocable to each;
7.1    (8) for certified pollution control facilities placed in service in a taxable year
7.2beginning before December 31, 1986, and for which amortization deductions were elected
7.3under section 169 of the Internal Revenue Code of 1954, as amended through December
7.431, 1985, an amount equal to the allowance for depreciation under Minnesota Statutes
7.51986, section 290.09, subdivision 7;
7.6    (9) amounts included in federal taxable income that are due to refunds of income,
7.7excise, or franchise taxes based on net income or related minimum taxes paid by the
7.8corporation to Minnesota, another state, a political subdivision of another state, the
7.9District of Columbia, or a foreign country or possession of the United States to the extent
7.10that the taxes were added to federal taxable income under section 290.01, subdivision 19c,
7.11clause (1), in a prior taxable year;
7.12    (10) for taxable years beginning before January 1, 2011, 80 percent of royalties,
7.13fees, or other like income accrued or received from a foreign operating corporation
7.14or a foreign corporation which is part of the same unitary business as the receiving
7.15corporation, unless the income resulting from such payments or accruals is income from
7.16sources within the United States as defined in subtitle A, chapter 1, subchapter N, part
7.171, of the Internal Revenue Code;
7.18    (11) income or gains from the business of mining as defined in section 290.05,
7.19subdivision 1 , clause (a), that are not subject to Minnesota franchise tax;
7.20    (12) the amount of disability access expenditures in the taxable year which are not
7.21allowed to be deducted or capitalized under section 44(d)(7) of the Internal Revenue Code;
7.22    (13) the amount of qualified research expenses not allowed for federal income tax
7.23purposes under section 280C(c) of the Internal Revenue Code, but only to the extent that
7.24the amount exceeds the amount of the credit allowed under section 290.068;
7.25    (14) the amount of salary expenses not allowed for federal income tax purposes due
7.26to claiming the Indian employment credit under section 45A(a) of the Internal Revenue
7.27Code;
7.28    (15) for a corporation whose foreign sales corporation, as defined in section 922
7.29of the Internal Revenue Code, constituted a foreign operating corporation during any
7.30taxable year ending before January 1, 1995, and a return was filed by August 15, 1996,
7.31claiming the deduction under section 290.21, subdivision 4, for income received from
7.32the foreign operating corporation, an amount equal to 1.23 multiplied by the amount of
7.33income excluded under section 114 of the Internal Revenue Code, provided the income is
7.34not income of a foreign operating company;
8.1    (16) any decrease in subpart F income, as defined in section 952(a) of the Internal
8.2Revenue Code, for the taxable year when subpart F income is calculated without regard to
8.3the provisions of Division C, title III, section 303(b) of Public Law 110-343;
8.4    (17) in each of the five tax years immediately following the tax year in which an
8.5addition is required under subdivision 19c, clause (15), an amount equal to one-fifth of
8.6the delayed depreciation. For purposes of this clause, "delayed depreciation" means the
8.7amount of the addition made by the taxpayer under subdivision 19c, clause (15). The
8.8resulting delayed depreciation cannot be less than zero;
8.9    (18) in each of the five tax years immediately following the tax year in which an
8.10addition is required under subdivision 19c, clause (16), an amount equal to one-fifth of
8.11the amount of the addition; and
8.12    (19) to the extent included in federal taxable income, discharge of indebtedness
8.13income resulting from reacquisition of business indebtedness included in federal taxable
8.14income under section 108(i) of the Internal Revenue Code. This subtraction applies only
8.15to the extent that the income was included in net income in a prior year as a result of the
8.16addition under section 290.01, subdivision 19c, clause (25).
8.17EFFECTIVE DATE.This section is effective for taxable years beginning after
8.18December 31, 2010."
8.19Page 47, delete section 29
8.20Page 48, after line 25 insert:
8.21"(e) Minnesota Statutes 2010, sections 290.01, subdivision 6b; and 290.0921,
8.22subdivision 7, are repealed."
8.23Page 48, line 32, after the period insert "Paragraph (e) is effective for taxable years
8.24beginning after December 31, 2010."
8.25Renumber the sections in sequence and correct the internal references
8.26Amend the title accordingly