ST. PAUL, MN – The House Ways and Means Committee has passed important tax conformity legislation. The bill provides conformity for income, franchise, and property tax refund provisions for tax year 2012 with the federal regulations put forward in the Federal Aviation Administration Modernization and Reform Act of 2012 and the American Taxpayer Relief Act of 2012.
The federal regulations that Minnesota would conform to for tax year 2012 include extending the higher education tuition deduction, extending the educator classroom expense deduction of up to $250, and extending the authority for individuals age 70 ½ years old or older to transfer up to $100,000 from an IRA or Roth IRA directly to a qualified charity. This bill would also extend various provisions related to depreciation and expensing, including more generous rules for leasehold and restaurant improvements, motorsports entertainment complexes, and mine safety equipment. This bill is necessary to bring Minnesota tax law up to speed with new federal regulations and should save taxpayers an estimated $18.5 million.
Ways and Means Chair Lyndon Carlson (DFL-Crystal) released the following statement:
“Tax conformity is meant to streamline Minnesota’s tax system and get us in line with federal law. We needed to move quickly on this legislation in order to ensure that taxpayers have time to adjust to the new regulations when filing their taxes this year. This legislation will save money for taxpayers and provide additional tax deductions.”
The bill should be taken up for final passage off the House floor sometime within the next week.
Rep. Carlson can be reached by phone at (651) 296-4255 or by email at email@example.com.