Tax News

CCH (cch.taxgroup.com) reports:

  The Minnesota Senate has approved a bill that would update references to the Internal Revenue Code (IRC) for purposes of computing the Minnesota corporate franchise tax, the personal income tax, the property tax refund, and the estate tax. The legislation previously passed the House of Representatives on February 19, 2009 (TAXDAY, 2009/02/26, S.6).

  The Senate amended the House bill to extend federal conformity for purposes of computing state income tax liability from February 13, 2008 to June 17, 2008. Thus, Minnesota income tax law would not only incorporate provisions of the federal Economic Stimulus Act of 2008 (P.L. 110-185), but also the Heartland, Habitat, Harvest, and Horticulture Act of 2008 (P.L. 110-246) and the Heroes Earnings Assistance and Relief Tax Act of 2008 (P.L. 110-245). Minnesota would continue to require a state addition adjustment for a portion of IRC Sec. 168(k) bonus depreciation and the increased IRC Sec. 179 expense deduction limits. Taxpayers would also continue to be allowed to recapture a portion of the addback amount in future tax years.

  The Senate version of the bill would not decouple from federal rules on the tax treatment of losses from the sale of preferred stock by financial institutions and would not delay corporate franchise tax refunds. In addition, special property tax assessment and deferment rules would be created for land conservation property.

  Subscribers can view the text of the amended bill.

  H.F. 392, as passed by the Minnesota Senate, March 18, 2009