1.1.................... moves to amend H.F. No. 2 as follows:
1.2Page 1, line 10, delete "November 15" and insert "December 16"
1.3Page 2, line 16, delete "November" and insert "December"
1.4Page 2, line 17, delete "15" and insert "16"
1.5Page 2, line 27, delete "November 15" and insert "December 16"
1.6Page 3, after line 20, insert:

1.7    "Sec. 6. Minnesota Statutes 2016, section 290.0671, subdivision 1, is amended to read:
1.8    Subdivision 1. Credit allowed. (a) An individual who is a resident of Minnesota is
1.9allowed a credit against the tax imposed by this chapter equal to a percentage of earned
1.10income. To receive a credit, a taxpayer must be eligible for a credit under section 32 of the
1.11Internal Revenue Code.
1.12(b) For individuals with no qualifying children, the credit equals 2.10 percent of the first
1.13$6,180 of earned income. The credit is reduced by 2.01 percent of earned income or adjusted
1.14gross income, whichever is greater, in excess of $8,130, but in no case is the credit less than
1.15zero.
1.16(c) For individuals with one qualifying child, the credit equals 9.35 percent of the first
1.17$11,120 of earned income. The credit is reduced by 6.02 percent of earned income or adjusted
1.18gross income, whichever is greater, in excess of $21,190, but in no case is the credit less
1.19than zero.
1.20(d) For individuals with two or more qualifying children, the credit equals 11 percent
1.21of the first $18,240 of earned income. The credit is reduced by 10.82 percent of earned
1.22income or adjusted gross income, whichever is greater, in excess of $25,130, but in no case
1.23is the credit less than zero.
2.1(e) For a part-year resident, the credit must be allocated based on the percentage calculated
2.2under section 290.06, subdivision 2c, paragraph (e).
2.3(f) For a person who was a resident for the entire tax year and has earned income not
2.4subject to tax under this chapter, including income excluded under section 290.0132,
2.5subdivision 10 , the credit must be allocated based on the ratio of federal adjusted gross
2.6income reduced by the earned income not subject to tax under this chapter over federal
2.7adjusted gross income. For purposes of this paragraph, the subtractions for military pay
2.8under section 290.0132, subdivisions 11 and 12, are not considered "earned income not
2.9subject to tax under this chapter."
2.10For the purposes of this paragraph, the exclusion of combat pay under section 112 of
2.11the Internal Revenue Code is not considered "earned income not subject to tax under this
2.12chapter."
2.13(g) For tax years beginning after December 31, 2007, and before December 31, 2010,
2.14and for tax years beginning after December 31, 2017, the $8,130 in paragraph (b), the
2.15$21,190 in paragraph (c), and the $25,130 in paragraph (d), after being adjusted for inflation
2.16under subdivision 7, are each increased by $3,000 for married taxpayers filing joint returns.
2.17For tax years beginning after December 31, 2008, the commissioner shall annually adjust
2.18the $3,000 by the percentage determined pursuant to the provisions of section 1(f) of the
2.19Internal Revenue Code, except that in section 1(f)(3)(B), the word "2007" shall be substituted
2.20for the word "1992." For 2009, the commissioner shall then determine the percent change
2.21from the 12 months ending on August 31, 2007, to the 12 months ending on August 31,
2.222008, and in each subsequent year, from the 12 months ending on August 31, 2007, to the
2.2312 months ending on August 31 of the year preceding the taxable year. The earned income
2.24thresholds as adjusted for inflation must be rounded to the nearest $10. If the amount ends
2.25in $5, the amount is rounded up to the nearest $10. The determination of the commissioner
2.26under this subdivision is not a rule under the Administrative Procedure Act.
2.27(h)(1) (g) For tax years beginning after December 31, 2012, and before January 1, 2014,
2.28the $5,770 in paragraph (b), the $15,080 in paragraph (c), and the $17,890 in paragraph (d),
2.29after being adjusted for inflation under subdivision 7, are increased by $5,340 for married
2.30taxpayers filing joint returns; and (2) for tax years beginning after December 31, 2013, and
2.31before January 1, 2018, the $8,130 in paragraph (b), the $21,190 in paragraph (c), and the
2.32$25,130 in paragraph (d), after being adjusted for inflation under subdivision 7, are each
2.33increased by $5,000 for married taxpayers filing joint returns. For tax years beginning after
2.34December 31, 2010, and before January 1, 2012, and for tax years beginning after December
2.3531, 2013, and before January 1, 2018, the commissioner shall annually adjust the $5,000
3.1by the percentage determined pursuant to the provisions of section 1(f) of the Internal
3.2Revenue Code, except that in section 1(f)(3)(B), the word "2008" shall be substituted for
3.3the word "1992." For 2011 2014, the commissioner shall then determine the percent change
3.4from the 12 months ending on August 31, 2008, to the 12 months ending on August 31,
3.52010 2013, and in each subsequent year, from the 12 months ending on August 31, 2008,
3.6to the 12 months ending on August 31 of the year preceding the taxable year. The earned
3.7income thresholds as adjusted for inflation must be rounded to the nearest $10. If the amount
3.8ends in $5, the amount is rounded up to the nearest $10. The determination of the
3.9commissioner under this subdivision is not a rule under the Administrative Procedure Act.
3.10(i) (h) The commissioner shall construct tables showing the amount of the credit at
3.11various income levels and make them available to taxpayers. The tables shall follow the
3.12schedule contained in this subdivision, except that the commissioner may graduate the
3.13transition between income brackets.
3.14EFFECTIVE DATE.This section is effective for taxable years beginning after December
3.1531, 2016."
3.16Page 3, line 23, delete "November 15" and insert "December 16"
3.17Page 4, line 7, delete "November 15" and insert "December 16"
3.18Page 6, after line 6, insert:
3.19    "Subd. 3. Severance payments to veterans with combat-related injuries. An individual
3.20who excludes certain severance payments for combat-related injuries paid after January 17,
3.211991, from which the United States Department of Defense withheld amounts for tax
3.22purposes, as authorized under Public Law 114-292, may file an amended individual income
3.23tax return and claim for refund of state taxes as provided under Minnesota Statutes, section
3.24289A.40, subdivision 1, or, if later, by December 15, 2018."
3.25Renumber the sections in sequence and correct the internal references
3.26Amend the title accordingly