1.1.................... moves to amend H.F. No. 446 as follows:
1.2Delete everything after the enacting clause and insert:

1.3    "Section 1. Minnesota Statutes 2010, section 290.06, is amended by adding a
1.4subdivision to read:
1.5    Subd. 36. Jobs credit for increasing employment. (a) A business is allowed a
1.6credit against the tax imposed by this chapter. The credit equals five percent of the:
1.7(1) total Minnesota payroll for the taxable year, less the total Minnesota payroll for
1.8taxable year 2010; minus
1.9(2) $35,000 multiplied by (the number of full-time equivalent employees that
1.10the business employs in Minnesota for the taxable year, minus the number of full-time
1.11equivalent employees the business employed in Minnesota in taxable year 2010, but
1.12not less than zero).
1.13(b) For purposes of this subdivision, the following terms have the meanings given
1.15(1) "business" means an individual engaged in a trade or business who is, S
1.16corporation or partnership whose shareholders or partners are, or a corporation that is
1.17subject to tax under chapter 290;
1.18(2) "full-time equivalent employees" means the equivalent of annualized expected
1.19hours of work equal to 2,080 hours; and
1.20(3) "Minnesota payroll" means the wages or salaries attributed to Minnesota under
1.21section 290.191, subdivision 12, for the business or the unitary business of which the
1.22business is a part, whichever is greater, less the amount of compensation attributable
1.23to any employee that exceeds $117,000.
1.24(c) The credit is limited to the liability for tax under this chapter, including the
1.25tax imposed by sections 290.0921 and 290.0922. For shareholders in an S corporation,
1.26the credit must be allocated in the manner provided in section 1366(a) of the Internal
1.27Revenue Code. For partners in a partnership, the credit must be allocated in the manner
2.1provided for determining the distributive share of a credit under section 704 of the Internal
2.2Revenue Code.
2.3(d) If the amount of the credit under this subdivision for any taxable year exceeds
2.4the limitations under paragraph (c), the excess is a credit carryover to each of the four
2.5succeeding taxable years. The entire amount of the excess unused credit for the taxable
2.6year must be carried first to the earliest of the taxable years to which the credit may be
2.7carried. The amount of the unused credit that may be added under this paragraph may not
2.8exceed the taxpayer's liability for tax, less the credit for the taxable year.
2.9EFFECTIVE DATE.This section is effective for taxable years beginning after
2.10December 31, 2010."
2.11Amend the title accordingly