State Of Minnesota

1 A bill for an act

2 Relating to financing and operation of state and local government; providing for new
3 income tax credits; establishing a universal charitable credit; amending Minnesota Statutes
4 2016 Chapter 290 by adding subdivision 290.0693.



7 Subdivision 1. Definitions. (a) For the purpose of this section, the following terms have
8 the meaning given.

9 (b) "Qualified charitable organizations" means charitable organizations that are:

10 (1) exempt from federal income taxation under section 501(c)(3) of the internal
11 revenue code,

12 (2) incorporated in the State of Minnesota,

13 (3) in good standing with the Minnesota Department of Revenue, and

14 (4) not under suspension per section 501(p) of the internal revenue code, or
15 revocation per the Internal Revenue Bulletin at the time of the contribution.

16 (c) The legislature declares that the purpose of the Minnesota Universal Charitable
17 Credit established in accordance with section 290.0693 is to permit taxpayers to direct a
18 portion of their state income tax liability to “qualified charitable organizations”
19 designated exempt from federal income taxation under section 501(c)(3) in the Internal
20 Revenue Code resulting in significant financial and civic benefits for our state.

21 Subd. 2. Minnesota Universal Charitable Credit. (a) A credit is allowed against the taxes
22 imposed by this title for voluntary cash contributions by the taxpayer or on the

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1 taxpayer's behalf during the taxable year to qualified charitable organizations not to
2 exceed:

3 (1). Five hundred dollars in any taxable year for a taxpayer who files as: single
4 individual, head of household or married filing separately.

5 (2). One thousand dollars in any taxable year for a married couple filing jointly.

6 Subd. 3. Authorities, duties. Minnesota universal charitable credit. (a) The credit
7 allowed by this section is in lieu of a deduction pursuant to section 170 of the internal
8 revenue code and taken for state tax purposes.

9 (b) Taxpayers taking a credit authorized by this section shall provide the names of the
10 qualified charitable organizations and the amount of the contributions to the
11 department of revenue on forms provided by the department.

12 (c) The department of revenue shall compile and make available to the public a list of
13 qualified charitable organizations.

14 (d) Taxpayers choosing to make voluntary cash contributions through an umbrella
15 charitable organization that collects donations on behalf of member charities shall
16 designate that the donations be directed only to member charitable organizations that
17 would qualify under this section on a stand-alone basis.

18 (e) The allowable credit shall be applied against the qualified tax liability for the year
19 in which it is claimed, but shall not exceed the total liability of the taxpayer for that year.

20 (f) A credit granted under this article shall not be carried back or refunded.

21 (g) Notwithstanding any other provision of law, the department of revenue shall settle,
22 assess or determine the tax of an applicant under this subsection within 90 days of the
23 filing of all required final returns or reports in accordance with the Minnesota Revised
24 Statutes.

25 Subd. 4 Retroactivity. This act applies retroactively to taxable years beginning from and
26 after December 31, 2016.

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