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MN Fed Tax Conformity Bill (or lack thereof)

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    MN Fed Tax Conformity Bill (or lack thereof)

    As promised....Here is an update on the progress (in this case lack of progress) on the bill that was suppose to bring some of MN tax laws in conformity with recent federal tax laws. In theory they were going to pass something early in the tax season. This late in the season it would seem to me that if something does eventually pass that they would allow MN taxpayers to take any tax advantage passed on their 2009 returns rather than amending 2008 returns.

    Mike
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    Taxes
    Tax bill likely headed to conference committee Published (3/23/2009)


    After a lengthy debate, the House refused to concur on a federal tax conformity bill with the Senate because Green Acres provisions were added. The bill now returns to the Senate, to act on the conference committee request. (Watch the debate)

    Five members from each body will be chosen to discuss HF392, which was originally a bill that would have conformed Minnesota to most of the federal tax changes enacted since last February. House conferees are Rep. Ann Lenczewski (DFL-Bloomington), Rep. Paul Marquart (DFL-Dilworth), Rep. Lyle Koenen (DFL-Clara City), Rep. Al Juhnke (DFL-Willmar) and Rep. Randy Demmer (R-Hayfield).

    The Senate amended the bill by including language that would make changes to the controversial Green Acres program. In 2008, the Green Acres law was modified by changing the definition of land allowed in the program. These changes included a seven-year payback in taxes if land is transferred or sold out of current ownership, which could cost thousands of dollars.

    Lenczewski, the House Taxes Committee chairwoman, said the changes the Senate made to the bill, which she sponsors, removed most of the federal conformity that needs to be in place.

    #2
    Appreciate the update Mike.

    If I am correct, no adustment is needed on the MN return if the client is using the Lifetime Learning credit- correct?

    Comment


      #3
      That's correct

      because the LLC only applies as a Federal Credit and has no effect on the State return.

      Becky

      Comment


        #4
        Even if it passes..

        It won't be much of a conformity law. The latest iteration of the bill took out the $250 educator deduction and the tuition & fees deduction was never was in the bill as a subtraction on MN (and I agree with mblatour that both the LLC and Hope does not need an adjustment to MN).

        Mike

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