1.1 	A bill for an act
1.2 	relating to taxation; income; amending the education
1.3 	credit; amending Minnesota Statutes 2004, section
1.4 	290.0674, subdivision 2.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2004, section 290.0674,
1.7 	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 	qualifying child and $2,000 per family.  No credit is allowed
1.11 	for education-related expenses for claimants with income greater
1.12 	than $37,500.  The maximum credit per child is reduced by $1 for
1.13 	each $4 of household income over $33,500, and the maximum credit
1.14 	per family is reduced by $2 for each $4 of household income over
1.15 	$33,500,but in no case is the credit less than zero.
1.16 	For purposes of this section "income" has the meaning given
1.17 	in section 290.067, subdivision 2a.  In the case of a married
1.18 	claimant, a credit is not allowed unless a joint income tax
1.19 	return is filed.
1.20 	(b) For a nonresident or part-year resident, the credit
1.21 	determined under subdivision 1 and the maximum credit amount in
1.22 	paragraph (a) must be allocated using the percentage calculated
1.23 	in section 290.06, subdivision 2c, paragraph (e).
1.24 	
EFFECTIVE DATE. This section is effective for taxable
1.25 	years beginning after December 31, 2004.