MN HF2859

Creates a state income tax credit for Minnesota residents equal to the additional federal tax paid on early retirement plan withdrawals, if the withdrawal is used for qualified long-term care expenses.

Defines qualified long-term care expenses as amounts paid for long-term care services and qualified long-term care insurance contracts, as specified in the Internal Revenue Code.

Allocates the credit for nonresidents and part-year residents based on the percentage calculated under Minnesota income tax residency rules.

Makes the credit refundable, requiring the commissioner to refund any credit amount exceeding the taxpayer's state income tax liability.

Appropriates sufficient funds from the general fund to the commissioner to pay required refunds and is effective for taxable years beginning after December 31, 2013.