HF 502

as introduced - 91st Legislature (2019 - 2020) Posted on 02/11/2019 03:47pm

A bill for an act
relating to taxation; individual income; making the student loan credit refundable;
amending Minnesota Statutes 2018, section 290.0682, subdivision 2.

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

Section 1.

Minnesota Statutes 2018, section 290.0682, subdivision 2, is amended to read:

Subd. 2.

Credit allowed new text begin ; refundable; appropriation new text end .

(a) An eligible individual is
allowed a credit against the tax due under this chapter.

(b) The credit for an eligible individual equals the least of:

(1) eligible loan payments minus ten percent of an amount equal to adjusted gross income
in excess of $10,000, but in no case less than zero;

(2) the earned income for the taxable year of the eligible individual, if any;

(3) the sum of:

(i) the interest portion of eligible loan payments made during the taxable year; and

(ii) ten percent of the original loan amount of all qualified education loans of the eligible
individual; or

(4) $500.

(c) For a part-year resident, the credit must be allocated based on the percentage calculated
under section 290.06, subdivision 2c, paragraph (e).

(d) In the case of a married couple, each spouse is eligible for the credit in this section.

new text begin (e) If the amount of credit which a claimant is eligible to receive under this section
exceeds the claimant's tax liability under this chapter, the commissioner shall refund the
excess to the claimant.
new text end

new text begin (f) An amount sufficient to pay the refunds required by this section is appropriated to
the commissioner from the general fund.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2018.
new text end