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

1.3    "Section 1. Minnesota Statutes 2012, section 290A.03, subdivision 3, is amended to
1.4read:
1.5    Subd. 3. Income. (1) "Income" means the sum of the following:
1.6(a) federal adjusted gross income as defined in the Internal Revenue Code; and
1.7(b) the sum of the following amounts to the extent not included in clause (a):
1.8(i) all nontaxable income;
1.9(ii) the amount of a passive activity loss that is not disallowed as a result of section
1.10469, paragraph (i) or (m) of the Internal Revenue Code and the amount of passive activity
1.11loss carryover allowed under section 469(b) of the Internal Revenue Code;
1.12(iii) an amount equal to the total of any discharge of qualified farm indebtedness
1.13of a solvent individual excluded from gross income under section 108(g) of the Internal
1.14Revenue Code;
1.15(iv) cash public assistance and relief;
1.16(v) any pension or annuity (including railroad retirement benefits, all payments
1.17received under the federal Social Security Act, Supplemental Security Income, and
1.18veterans benefits), which was not exclusively funded by the claimant or spouse, or which
1.19was funded exclusively by the claimant or spouse and which funding payments were
1.20excluded from federal adjusted gross income in the years when the payments were made;
1.21(vi) interest received from the federal or a state government or any instrumentality
1.22or political subdivision thereof;
1.23(vii) workers' compensation;
1.24(viii) nontaxable strike benefits;
1.25(ix) the gross amounts of payments received in the nature of disability income or
1.26sick pay as a result of accident, sickness, or other disability, whether funded through
1.27insurance or otherwise;
2.1(x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of
2.21986, as amended through December 31, 1995;
2.3(xi) contributions made by the claimant to an individual retirement account,
2.4including a qualified voluntary employee contribution; simplified employee pension plan;
2.5self-employed retirement plan; cash or deferred arrangement plan under section 401(k)
2.6of the Internal Revenue Code; or deferred compensation plan under section 457 of the
2.7Internal Revenue Code;
2.8(xii) nontaxable scholarship or fellowship grants;
2.9(xiii) the amount of deduction allowed under section 199 of the Internal Revenue
2.10Code;
2.11(xiv) the amount of deduction allowed under section 220 or 223 of the Internal
2.12Revenue Code;
2.13(xv) the amount of tuition expenses required to be added to income under section
2.14290.01, subdivision 19a , clause (12);
2.15(xvi) the amount deducted for certain expenses of elementary and secondary school
2.16teachers under section 62(a)(2)(D) of the Internal Revenue Code; and
2.17(xvii) unemployment compensation.
2.18In the case of an individual who files an income tax return on a fiscal year basis, the
2.19term "federal adjusted gross income" shall mean federal adjusted gross income reflected
2.20in the fiscal year ending in the calendar year. Federal adjusted gross income shall not be
2.21reduced by the amount of a net operating loss carryback or carryforward or a capital loss
2.22carryback or carryforward allowed for the year.
2.23(2) "Income" does not include:
2.24(a) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and 102;
2.25(b) amounts of any pension or annuity which was exclusively funded by the claimant
2.26or spouse and which funding payments were not excluded from federal adjusted gross
2.27income in the years when the payments were made;
2.28(c) surplus food or other relief in kind supplied by a governmental agency;
2.29(d) relief granted under this chapter;
2.30(e) child support payments received under a temporary or final decree of dissolution
2.31or legal separation; or
2.32(f) restitution payments received by eligible individuals and excludable interest as
2.33defined in section 803 of the Economic Growth and Tax Relief Reconciliation Act of
2.342001, Public Law 107-16.
2.35(3) The sum of the following amounts may be subtracted from income:
2.36(a) for the claimant's first dependent, the exemption amount multiplied by 1.4 1.5;
3.1(b) for the claimant's second dependent, the exemption amount multiplied by 1.3 1.4;
3.2(c) for the claimant's third dependent, the exemption amount multiplied by 1.2 1.3;
3.3(d) for the claimant's fourth dependent, the exemption amount multiplied by 1.1 1.2;
3.4(e) for the claimant's fifth dependent, the exemption amount multiplied by 1.1; and
3.5(f) for each additional dependent of the claimant, the exemption amount;
3.6(g) if the claimant was disabled or attained the age of 65 on or before December 31
3.7of the year for which the taxes were levied or rent paid, the exemption amount multiplied
3.8by 1.5; and
3.9(f) (h) if the claimant or claimant's spouse was disabled or attained the age of 65
3.10on or before December 31 of the year for which the taxes were levied or rent paid, the
3.11exemption amount multiplied by 1.4.
3.12For purposes of this subdivision, the "exemption amount" means the exemption
3.13amount under section 151(d) of the Internal Revenue Code for the taxable year for which
3.14the income is reported.
3.15EFFECTIVE DATE.This section is effective for claims based on property taxes
3.16payable in 2014 and rent paid in 2013 and following years."
3.17Renumber the sections in sequence and correct the internal references
3.18Amend the title accordingly