A bill for an act
 relating to taxation; income and corporate franchise; providing a onetime subtraction
for small business relief grants.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1. new text beginONETIME INCOME TAX SUBTRACTION FOR SMALL BUSINESS
RELIEF GRANTS.
new text end

new text begin Subdivision 1. new text end

new text begin Subtraction allowed; individual filers. new text end

new text begin (a) For taxable years beginning
after December 31, 2019, and before January 1, 2021, the amount of any grant received by
a qualifying business is a subtraction.
 new text end

new text begin (b) For purposes of this subdivision:
 new text end

new text begin (1) "qualifying business" is a business that received a grant under Laws 2020, First
Special Session chapter 1, section 4; and
 new text end

new text begin (2) "subtraction" has the meaning provided in Minnesota Statutes, section 290.0132,
subdivision 1.
 new text end

new text begin Subd. 2. new text end

new text begin Subtraction allowed; corporate filers. new text end

new text begin (a) For taxable years beginning after
December 31, 2019, and before January 1, 2021, the amount of any grant received by a
qualifying business that is a corporation, other than an S corporation, is a subtraction.
 new text end

new text begin (b) For purposes of this subdivision:
 new text end

new text begin (1) "qualifying business" is a business that received a grant under Laws 2020, First
Special Session chapter 1, section 4; and
 new text end

new text begin (2) "subtraction" has the meaning provided in Minnesota Statutes, section 290.0134,
subdivision 1.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for taxable years beginning
after December 31, 2019, and before January 1, 2021.
 new text end