1.1.................... moves to amend H.F. No. .... as follows:
1.2Page 11, after line 15, insert:

1.3    "Sec. 7. Minnesota Statutes 2012, section 290.067, subdivision 1, is amended to read:
1.4    Subdivision 1. Amount of credit. (a) A taxpayer may take as a credit against the
1.5tax due from the taxpayer and a spouse, if any, under this chapter an amount equal to the
1.6dependent care credit for which the taxpayer is eligible pursuant to the provisions of
1.7section 21 of the Internal Revenue Code subject to the limitations provided in subdivision
1.82 except that in determining whether the child qualified as a dependent, income received
1.9as a Minnesota family investment program grant or allowance to or on behalf of the child
1.10must not be taken into account in determining whether the child received more than half
1.11of the child's support from the taxpayer, and the provisions of section 32(b)(1)(D) of
1.12the Internal Revenue Code do not apply.
1.13(b) If a child who has not attained the age of six years at the close of the taxable year
1.14is cared for at a licensed family day care home operated by the child's parent, the taxpayer
1.15is deemed to have paid employment-related expenses. If the child is 16 months old or
1.16younger at the close of the taxable year, the amount of expenses deemed to have been paid
1.17equals the maximum limit for one qualified individual under section 21(c) and (d) of the
1.18Internal Revenue Code. If the child is older than 16 months of age but has not attained the
1.19age of six years at the close of the taxable year, the amount of expenses deemed to have
1.20been paid equals the amount the licensee would charge for the care of a child of the same
1.21age for the same number of hours of care.
1.22(c) If a married couple:
1.23(1) has a child who has not attained the age of one year at the close of the taxable year;
1.24(2) files a joint tax return for the taxable year; and
1.25(3) does not participate in a dependent care assistance program as defined in section
1.26129 of the Internal Revenue Code, in lieu of the actual employment related expenses paid
1.27for that child under paragraph (a) or the deemed amount under paragraph (b), the lesser of
2.1(i) the combined earned income of the couple or (ii) the amount of the maximum limit for
2.2one qualified individual under section 21(c) and (d) of the Internal Revenue Code will
2.3be deemed to be the employment related expense paid for that child. The earned income
2.4limitation of section 21(d) of the Internal Revenue Code shall not apply to this deemed
2.5amount. These deemed amounts apply regardless of whether any employment-related
2.6expenses have been paid.
2.7(d) If the taxpayer is not required and does not file a federal individual income tax
2.8return for the tax year, no credit is allowed for any amount paid to any person unless:
2.9(1) the name, address, and taxpayer identification number of the person are included
2.10on the return claiming the credit; or
2.11(2) if the person is an organization described in section 501(c)(3) of the Internal
2.12Revenue Code and exempt from tax under section 501(a) of the Internal Revenue Code,
2.13the name and address of the person are included on the return claiming the credit.
2.14In the case of a failure to provide the information required under the preceding sentence,
2.15the preceding sentence does not apply if it is shown that the taxpayer exercised due
2.16diligence in attempting to provide the information required.
2.17In the case of a nonresident, part-year resident, or a person who has earned income
2.18not subject to tax under this chapter including earned income excluded pursuant to section
2.19290.01, subdivision 19b , clause (9) (14), the credit determined under section 21 of the
2.20Internal Revenue Code must be allocated based on the ratio by which the earned income
2.21of the claimant and the claimant's spouse from Minnesota sources bears to the total earned
2.22income of the claimant and the claimant's spouse.
2.23For residents of Minnesota, the subtractions for military pay under section 290.01,
2.24subdivision 19b , clauses (10) and (11), are not considered "earned income not subject to
2.25tax under this chapter."
2.26For residents of Minnesota, the exclusion of combat pay under section 112 of the
2.27Internal Revenue Code is not considered "earned income not subject to tax under this
2.28chapter."
2.29EFFECTIVE DATE.This section is effective for tax years beginning after
2.30December 31, 2013."
2.31Page 39, line 32, after "of" insert "finished"
2.32Renumber the sections in sequence and correct the internal references
2.33Amend the title accordingly