1.1.................... moves to amend H.F. No. 2773 as follows:
1.2Page 1, delete section 2 and insert:

1.3    "Sec. 2. Minnesota Statutes 2011 Supplement, section 290.01, subdivision 19, is
1.4amended to read:
1.5    Subd. 19. Net income. The term "net income" means the federal taxable income,
1.6as defined in section 63 of the Internal Revenue Code of 1986, as amended through the
1.7date named in this subdivision, incorporating the federal effective dates of changes to the
1.8Internal Revenue Code and any elections made by the taxpayer in accordance with the
1.9Internal Revenue Code in determining federal taxable income for federal income tax
1.10purposes, and with the modifications provided in subdivisions 19a to 19f.
1.11    In the case of a regulated investment company or a fund thereof, as defined in section
1.12851(a) or 851(g) of the Internal Revenue Code, federal taxable income means investment
1.13company taxable income as defined in section 852(b)(2) of the Internal Revenue Code,
1.14except that:
1.15    (1) the exclusion of net capital gain provided in section 852(b)(2)(A) of the Internal
1.16Revenue Code does not apply;
1.17    (2) the deduction for dividends paid under section 852(b)(2)(D) of the Internal
1.18Revenue Code must be applied by allowing a deduction for capital gain dividends and
1.19exempt-interest dividends as defined in sections 852(b)(3)(C) and 852(b)(5) of the Internal
1.20Revenue Code; and
1.21    (3) the deduction for dividends paid must also be applied in the amount of any
1.22undistributed capital gains which the regulated investment company elects to have treated
1.23as provided in section 852(b)(3)(D) of the Internal Revenue Code.
1.24    The net income of a real estate investment trust as defined and limited by section
1.25856(a), (b), and (c) of the Internal Revenue Code means the real estate investment trust
1.26taxable income as defined in section 857(b)(2) of the Internal Revenue Code.
2.1    The net income of a designated settlement fund as defined in section 468B(d) of
2.2the Internal Revenue Code means the gross income as defined in section 468B(b) of the
2.3Internal Revenue Code.
2.4    The Internal Revenue Code of 1986, as amended through April 14, 2011 February
2.514, 2012, shall be in effect for taxable years beginning after December 31, 1996. The
2.6provisions of the act of January 22, 2010, Public Law 111-126, to accelerate the benefits
2.7for charitable cash contributions for the relief of victims of the Haitian earthquake, are
2.8effective at the same time they became effective for federal purposes and apply to the
2.9subtraction under subdivision 19b, clause (6). The provisions of title II, section 2112, of
2.10the act of September 27, 2010, Public Law 111-240, rollovers from elective deferral plans
2.11to designated Roth accounts, are effective at the same time they became effective for
2.12federal purposes and taxable rollovers are included in net income at the same time they are
2.13included in gross income for federal purposes.
2.14    Except as otherwise provided, references to the Internal Revenue Code in
2.15subdivisions 19 to 19f mean the code in effect for purposes of determining net income for
2.16the applicable year.
2.17EFFECTIVE DATE.This section is effective the day following final enactment."
2.18Renumber the sections in sequence and correct the internal references
2.19Amend the title accordingly