HF 4016

as introduced - 93rd Legislature (2023 - 2024) Posted on 02/22/2024 04:42pm

A bill for an act
relating to taxation; individual income; establishing a refundable educator expense
credit; proposing coding for new law in Minnesota Statutes, chapter 290.

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

Section 1.

new text begin [290.0696] EDUCATOR EXPENSE CREDIT.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Eligible educator" has the meaning given in section 62(d) of the Internal Revenue
Code, except an eligible prekindergarten teacher is an eligible educator.
new text end

new text begin (c) "Eligible education expenses" means expenses that are deductible under section
62(a)(2)(D) of the Internal Revenue Code, disregarding the $250 limitation, and substituting
the definition of eligible educator in paragraph (b).
new text end

new text begin (d) "Eligible prekindergarten teacher" means an individual whose primary job
responsibility is working directly with children who are over the age of three and not yet
enrolled in kindergarten, and who is an employee of:
new text end

new text begin (1) a school, as defined in section 120A.22, subdivision 4;
new text end

new text begin (2) a Head Start program under section 119A.50; or
new text end

new text begin (3) a licensed child care center.
new text end

new text begin Subd. 2. new text end

new text begin Credit allowed; limit. new text end

new text begin An eligible educator is allowed a credit equal to the
taxpayer's eligible education expenses. The credit allowed under this section is limited to
$300, except, in the case of a married taxpayer filing a joint return, the limit is $600 if both
spouses are eligible educators.
new text end

new text begin Subd. 3. new text end

new text begin Credit refundable; appropriation. new text end

new text begin (a) If the credit a taxpayer is allowed under
this section exceeds the taxpayer's tax liability under this chapter, the commissioner must
refund the excess to the individual.
new text end

new text begin (b) 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, 2023.
new text end