1.1 	A bill for an act
1.2 	relating to taxation; creating an income tax credit for employers who provide 
1.3 	English and citizenship education to their employees;amending Minnesota 
1.4 	Statutes 2004, section 290.06, by adding a subdivision.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2004, section 290.06, is amended by adding a 
1.7 	subdivision to read:
1.8 		Subd. 33.Employer-provided education credit. (a) An employer may take a 
1.9 	credit against the tax due under this chapter, for expenses incurred during the taxable 
1.10 	year to provide the taxpayer's employees, as defined in section 290.92, subdivision 1, 
1.11 	with qualified educational programs directly relating to instruction in literacy, English 
1.12 	proficiency, or citizenship. The credit must not exceed $5,000. The credit for the taxable 
1.13 	year must not exceed the liability for tax.
1.14 	(b) For purposes of this section, "qualified educational program" means on-site 
1.15 	instruction in literacy, English proficiency, or citizenship provided by a nonprofit 
1.16 	organization, and "nonprofit organization" means a charitable, religious, civic, or 
1.17 	educational organization as defined under section 501(c)(3) of the Internal Revenue Code.

1.18 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
1.19 	December 31, 2005.