1.1                          A bill for an act
  1.2             relating to taxation; income; modifying the education 
  1.3             credit; amending Minnesota Statutes 1997 Supplement, 
  1.4             section 290.0674, subdivision 2.  
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  Minnesota Statutes 1997 Supplement, section 
  1.7   290.0674, subdivision 2, is amended to read: 
  1.8      Subd. 2.  [LIMITATIONS.] (a) For claimants with income not 
  1.9   greater than $33,500, the maximum credit allowed is $1,000 per 
  1.10  child and $2,000 per family.  The maximum credit per child is 
  1.11  reduced by $1 for each $4 of income over $33,500, and the 
  1.12  maximum credit per family is reduced by $2 for each $4 of income 
  1.13  over $33,500.  No credit is allowed for education-related 
  1.14  expenses for claimants with income greater than $33,500 $37,500. 
  1.15  For purposes of this section "income" has the meaning given in 
  1.16  section 290.067, subdivision 2a.  In the case of a married 
  1.17  claimant, a credit is not allowed unless a joint income tax 
  1.18  return is filed. 
  1.19     (b) For a nonresident or part-year resident, the credit 
  1.20  determined under subdivision 1 and the maximum credit amount in 
  1.21  paragraph (a) must be allocated using the percentage calculated 
  1.22  in section 290.06, subdivision 2c, paragraph (e). 
  1.23     Sec. 2.  [EFFECTIVE DATE.] 
  1.24     Subdivision 1.  [CONTINGENCY.] Section 1 is effective for 
  1.25  tax years beginning after December 1, 1997, if on the basis of 
  2.1   the November forecast of general fund revenues and expenditures, 
  2.2   the commissioner of finance determines that there will be a 
  2.3   positive unrestricted budgetary general fund balance at the 
  2.4   close of the biennium after taking into account the cost of 
  2.5   section 1 and after meeting the requirements of Minnesota 
  2.6   Statutes, section 16A.152, subdivision 2, clause (a). 
  2.7      Subd. 2.  [SUSPENSION.] Minnesota Statutes, section 
  2.8   16A.152, subdivision 2, clauses (b) and (c), are not to be 
  2.9   implemented for the forecast of general fund revenues and 
  2.10  expenditures in November 1997 until section 1 is implemented.  
  2.11  However, if the November 1997 forecast does not provide an 
  2.12  unrestricted general fund balance adequate to implement section 
  2.13  1, the provisions of Minnesota Statutes, section 16A.152, 
  2.14  subdivision 2, clauses (b) and (c), are effective.