.................... moves to amend H.F. No. 2773 as follows:
Page 1, delete section 2 and insert:
"Sec. 2. Minnesota Statutes 2011 Supplement, section 290.01, subdivision 19, is
amended to read:
Subd. 19. Net income.
The term "net income" means the federal taxable income,
as defined in section 63 of the Internal Revenue Code of 1986, as amended through the
date named in this subdivision, incorporating the federal effective dates of changes to the
Internal Revenue Code and any elections made by the taxpayer in accordance with the
Internal Revenue Code in determining federal taxable income for federal income tax
purposes, and with the modifications provided in subdivisions 19a to 19f.
In the case of a regulated investment company or a fund thereof, as defined in section
851(a) or 851(g) of the Internal Revenue Code, federal taxable income means investment
company taxable income as defined in section 852(b)(2) of the Internal Revenue Code,
(1) the exclusion of net capital gain provided in section 852(b)(2)(A) of the Internal
Revenue Code does not apply;
(2) the deduction for dividends paid under section 852(b)(2)(D) of the Internal
Revenue Code must be applied by allowing a deduction for capital gain dividends and
exempt-interest dividends as defined in sections 852(b)(3)(C) and 852(b)(5) of the Internal
Revenue Code; and
(3) the deduction for dividends paid must also be applied in the amount of any
undistributed capital gains which the regulated investment company elects to have treated
as provided in section 852(b)(3)(D) of the Internal Revenue Code.
The net income of a real estate investment trust as defined and limited by section
856(a), (b), and (c) of the Internal Revenue Code means the real estate investment trust
taxable income as defined in section 857(b)(2) of the Internal Revenue Code.
The net income of a designated settlement fund as defined in section 468B(d) of
the Internal Revenue Code means the gross income as defined in section 468B(b) of the
Internal Revenue Code.
The Internal Revenue Code of 1986, as amended through
April 14, 2011 February
, shall be in effect for taxable years beginning after December 31, 1996.
2.6 provisions of the act of January 22, 2010, Public Law 111-126, to accelerate the benefits
2.7 for charitable cash contributions for the relief of victims of the Haitian earthquake, are
2.8 effective at the same time they became effective for federal purposes and apply to the
2.9 subtraction under subdivision 19b, clause (6). The provisions of title II, section 2112, of
2.10 the act of September 27, 2010, Public Law 111-240, rollovers from elective deferral plans
2.11 to designated Roth accounts, are effective at the same time they became effective for
2.12 federal purposes and taxable rollovers are included in net income at the same time they are
2.13 included in gross income for federal purposes.
Except as otherwise provided, references to the Internal Revenue Code in
subdivisions 19 to 19f mean the code in effect for purposes of determining net income for
the applicable year.
2.17EFFECTIVE DATE.This section is effective the day following final enactment.
Renumber the sections in sequence and correct the internal references
Amend the title accordingly