1.1 A bill for an act
1.2 relating to taxation; individual income tax; proposing a refundable tax credit for
1.3 tax years 2021 and 2022.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. INCOME TAX REBATES.
1.6 Subdivision 1.Definitions.The definitions in Minnesota Statutes, section 290.01, apply
1.7to this section.
1.8 Subd. 2.Tax rebate credit.For taxable years beginning after December 31, 2020, and
1.9before January 1, 2024, an individual income taxpayer is allowed a credit against the taxes
1.10imposed in Minnesota Statutes, sections 290.03 and 290.091. The credit equals $1,000 each
1.11taxable year for all filers.
1.12 Subd. 3.Part-year residents.For an individual who was a resident of Minnesota for
1.13less than the entire taxable year, the credit equals the amount determined under subdivision
1.142 for the individual's filing status, multiplied by the percentage determined pursuant to
1.15Minnesota Statutes, section 290.06, subdivision 2c, paragraph (e).
1.16 Subd. 4.Credit refundable; appropriation.(a) If the amount of credit which a claimant
1.17is eligible to receive under this section exceeds the claimant's liability for tax for taxes
1.18imposed under Minnesota Statutes, sections 290.03 and 290.091, the commissioner shall
1.19refund the excess to the claimant.
1.20 (b) An amount sufficient to pay the refunds required by this section is appropriated to
1.21the commissioner from the general fund.
1Section 1.
REVISOR EAP/HL 23-0071101/04/23
State of Minnesota
This Document can be made available
in alternative formats upon request
HOUSE OF REPRESENTATIVES
H. F. No. 167
NINETY-THIRD SESSION
Authored by Quam and Davids01/09/2023
The bill was read for the first time and referred to the Committee on Taxes 2.1 Subd. 5.Distribution of credit payments; filing process for taxpayers without tax
2.2liability.(a) To the extent feasible, the commissioner must automatically adjust the return
2.3of any taxpayer who filed a return for a taxable year in which the credit under this section
2.4applies. If a taxpayer is eligible for a refund as a result of the credit under this section, to
2.5the extent feasible, the commissioner must distribute the refund via direct deposit to the
2.6taxpayer's bank account, check, or any other mechanism the commissioner deems appropriate.
2.7 (b) The commissioner must establish a simplified filing process through which a taxpayer
2.8who did not file a return due to a lack of individual income tax liability may file a return
2.9for the taxable years in which the credit is available. The filing process and forms may be
2.10in the form or manner determined by the commissioner, but must be designed to reduce the
2.11complexity of the filing process and the time needed to file for individuals without an income
2.12tax liability for the taxable year.
2.13 Subd. 6.Recapture of payments forbidden.The commissioner of revenue must not
2.14apply, and must not certify to another agency to apply, a payment resulting from the credit
2.15under this section to any unpaid tax or nontax debt owed by an individual.
2.16 EFFECTIVE DATE.This section is effective retroactively for taxable years beginning
2.17after December 31, 2020, and before January 1, 2023.
2Section 1.
REVISOR EAP/HL 23-0071101/04/23