.................... moves to amend H. F. No. 9 as follows:
Page 2, line 33, insert:
"Sec. 2. Minnesota Statutes 2006, section 290.06, is amended by adding a subdivision
1.5 Subd. 35. Livestock investment credit. (a) A livestock investment credit is allowed
1.6against the tax due under this chapter equal to ten percent of the amount paid or incurred
1.7by the taxpayer on the first $100,000 of qualifying expenditures made in the qualifying
1.8period by a person who raises livestock in this state.
1.9 (b) For purposes of this subdivision, "livestock" has the meaning given in section
1.1031.59, subdivision 3, and "qualifying expenditures" means the amount spent for:
1.11 (1) the acquisition, construction, or improvement of buildings or facilities, if related
1.13 (2) the development of pasture owned or rented by the taxpayer for use by livestock;
1.15 (3) the acquisition of equipment for livestock housing, confinement, animal feeding,
1.16for production and delivery of livestock products, and waste management, including the
1.17following, if related to livestock in this state:
1.18 (i) birthing, rearing, and feedlot structures;
1.19 (ii) feed storage and handling equipment;
1.20 (iii) fences;
1.21 (iv) watering facilities;
1.22 (v) scales;
1.23 (vi) manure pumping and storage facilities;
1.24 (vii) digesters; and
1.25 (viii) equipment used to produce energy.
1.26 (e) Qualifying expenditures, other than expenditures for development of pasture,
1.27only include amounts that are capitalized and deducted under either section 167 or 179 of
2.1the Internal Revenue Code in computing federal taxable income. Qualifying expenditures
2.2for development of pasture must not include land acquisition and are limited to soil
2.3preparation expenses, seed costs, planting costs, and weed control, which are allowed
2.4once for each acre owned or rented by the taxpayer for the use by livestock and developed
2.5into pasture during the qualifying period.
2.6 (f) The credit is limited to the liability for tax, as computed under this chapter for the
2.7taxable year. If the amount of the credit determined under this section for any taxable year
2.8exceeds this limitation, the excess livestock investment credit carryover to each of the 15
2.9succeeding taxable years. The entire amount of the excess unused credit for the taxable
2.10year is carried first to the earliest of the taxable years to which the credit may be carried
2.11and then to each successive year to which the credit may be carried. The amount of the
2.12unused credit which may be added under this paragraph shall not exceed the taxpayer's
2.13liability for tax less the livestock investment credit for the taxable year.
2.14 (g) The qualifying period is that time after December 31, 2006, and before January
2.16 (h) The $10,000 maximum credit applies at the entity level for partnerships, S
2.17corporations, trusts, and estates, as well as at the individual level. In the case of married
2.18individuals, the credit is limited to $10,000 for a married couple.
2.19 (i) To be eligible for the livestock investment credit in this subdivision, a taxpayer
2.20must apply to the commissioner of agriculture for a tax credit certificate. The application
2.21must be made on forms prescribed by the commissioner of agriculture and must include a
2.22statement of the qualifying expenditures made during the qualifying period.
2.23 (j) The livestock investment credit for all taxpayers combined during the qualifying
2.24period is $1,000,000. The commissioner of agriculture shall certify credits in the order
2.25the forms required under paragraph (i) are received and approved by the commissioner
2.26of agriculture, until the maximum credit for all taxpayers has been reached. The
2.27commissioner of agriculture shall notify in writing any taxpayer who applies for a
2.28tax credit certificate and is ineligible under the provisions of this subdivision and any
2.29taxpayer whose application is received or reviewed after the $1,000,000 credit limit has
2.31EFFECTIVE DATE.This section is effective for the taxable year beginning
2.32January 1, 2007.
Renumber the sections in sequence and correct the internal references
Amend the title accordingly