HF 3291

as introduced - 91st Legislature (2019 - 2020) Posted on 02/13/2020 12:38pm

A bill for an act
relating to taxation; individual income; modifying the definition of education
expenses for the Minnesota education credit; amending Minnesota Statutes 2019
Supplement, section 290.0674, subdivision 1.

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

Section 1.

Minnesota Statutes 2019 Supplement, section 290.0674, subdivision 1, is
amended to read:

Subdivision 1.

Credit allowed; definitions.

new text begin (a) new text end An individual is allowed a credit against
the tax imposed by this chapter in an amount equal to 75 percent of the amount paid for
education-related expenses for a qualifying child in kindergarten through grade 12.

new text begin (b) new text end For purposes of this section, "education-related expenses" means:

(1) deleted text begin fees or tuition for instruction by an instructor under section 120A.22, subdivision
10, clause (1), (2), (3), (4), or (5), or a member of the Minnesota Music Teachers Association,
and who is not a lineal ancestor or sibling of the dependent for instruction outside the regular
school day or school year, including tutoring, driver's education offered as part of school
curriculum, regardless of whether it is taken from a public or private entity or summer
camps, in grade or age appropriate curricula that supplement curricula and instruction
available during the regular school year, that assists a dependent to improve knowledge of
core curriculum areas or to expand knowledge and skills under the required academic
standards under section 120B.021, subdivision 1, and the world languages standards under
section 120B.022, subdivision 1, and that do not include the teaching of religious tenets,
doctrines, or worship, the purpose of which is to instill such tenets, doctrines, or worship deleted text end new text begin
qualifying instructional fees or tuition new text end ;

(2) expenses for textbooks, including books and other instructional materials and
equipment purchased or leased for use in elementary and secondary schools in teaching
only those subjects legally and commonly taught in public elementary and secondary schools
in this state. "Textbooks" does not include instructional books and materials used in the
teaching of religious tenets, doctrines, or worship, the purpose of which is to instill such
tenets, doctrines, or worship, nor does it include books or materials for extracurricular
activities including sporting events, musical or dramatic events, speech activities, driver's
education, or similar programs;

(3) a maximum expense of $200 per family for personal computer hardware, excluding
single purpose processors, and educational software that assists a dependent to improve
knowledge of core curriculum areas or to expand knowledge and skills under the required
academic standards under section 120B.021, subdivision 1, and the elective standard under
section 120B.022, subdivision 1, clause (2), purchased for use in the taxpayer's home and
not used in a trade or business regardless of whether the computer is required by the
dependent's school; and

(4) the amount paid to others for transportation of a qualifying child attending an
elementary or secondary school situated in Minnesota, North Dakota, South Dakota, Iowa,
or Wisconsin, wherein a resident of this state may legally fulfill the state's compulsory
attendance laws, which is not operated for profit, and which adheres to the provisions of
the Civil Rights Act of 1964 and chapter 363A. Amounts under this clause exclude any
expense the taxpayer incurred in using the taxpayer's or the qualifying child's vehicle.

new text begin (c) new text end For purposes of this section, "qualifying child" has the meaning given in section
32(c)(3) of the Internal Revenue Code.

new text begin (d) For the purposes of this section, "qualified instructor" means an individual who is
not a lineal ancestor or sibling of the dependent and who is:
new text end

new text begin (1) an instructor under section 120A.22, subdivision 10, clause (1), (2), (3), (4), or (5);
or
new text end

new text begin (2) a member of the Minnesota Music Teachers Association.
new text end

new text begin (e) For the purposes of this section, "qualifying instructional fees or tuition" means fees
or tuition for instruction by a qualified instructor outside the regular school day or school
year, and that does not include the teaching of religious tenets, doctrines, or worship, the
purpose of which is to instill such tenets, doctrines, or worship, including:
new text end

new text begin (1) tutoring;
new text end

new text begin (2) driver's education offered as part of school curriculum, regardless of whether it is
taken from a public or private entity;
new text end

new text begin (3) summer camps, in grade or age appropriate curricula that supplement curricula and
instruction available during the regular school year, that assist a dependent to improve
knowledge of core curriculum areas or to expand knowledge and skills under the required
academic standards under section 120B.021, subdivision 1, and the world languages standards
under section 120B.022, subdivision 1; or
new text end

new text begin (4) Internet-accessible educational software that allows a qualified instructor to monitor
a student using the software and allows a student to communicate directly with a qualified
instructor.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable year beginning after December
31, 2019.
new text end