Office of the Revisor of Statutes
SF 429
Introduction - 94th Legislature (2025 - 2026)
Posted on 01/28/2025 01:20 p.m.
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A bill for an act
relating to individual income; modifying the K-12 education expense subtraction
and credit; extending the credit to tuition; increasing the subtraction and credit
amounts; increasing the income phaseout for the credit; adjusting the credit and
subtraction amounts and credit phaseout thresholds for inflation; amending
Minnesota Statutes 2024, sections 290.0132, subdivision 4; 290.0674, subdivisions
1a, 2.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2024, section 290.0132, subdivision 4, is amended to read:
Subd. 4.
Education expenses.
(a) Subject to the limits in paragraph (b), the deleted text begin following
amountsdeleted text end new text begin amountnew text end paid to others for deleted text begin each qualifying child aredeleted text end new text begin education-related expenses,
less any amount used to claim the credit under section 290.0674, isnew text end a subtractiondeleted text begin :deleted text end new text begin .
new text end
deleted text begin
(1) education-related expenses; plus
deleted text end
deleted text begin
(2) tuition and fees paid to attend a school described in section 290.0674, subdivision
1a, paragraph (b), clause (4), that are not included in education-related expenses; less
deleted text end
deleted text begin
(3) any amount used to claim the credit under section 290.0674.
deleted text end
(b) The maximum subtraction allowed under this subdivision is:
(1) deleted text begin $1,625deleted text end new text begin $2,750new text end for each qualifying child in kindergarten through grade 6; and
(2) deleted text begin $2,500deleted text end new text begin $4,125new text end for each qualifying child in grades 7 through 12.
(c) The definitions in section 290.0674, subdivision 1a, apply to this subdivision.
new text begin
(d) The commissioner must annually adjust for inflation the maximum amounts allowed
for each qualifying child under paragraph (b) as provided in section 270C.22. The statutory
year is taxable year 2025.
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, 2024.
new text end
Sec. 2.
Minnesota Statutes 2024, section 290.0674, subdivision 1a, is amended to read:
Subd. 1a.
Definitions.
(a) For purposes of this section, the following terms have the
meanings given them.
(b) "Education-related expenses" means:
(1) qualifying instructional fees or tuition;
(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 fornew text begin tuition andnew text end 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.
(c) "Qualified instructor" means an individual who is not a lineal ancestor or sibling of
the dependent and who is:
(1) an instructor under section 120A.22, subdivision 10, clause (1), (2), (3), (4), or (5);
or
(2) a member of the Minnesota Music Teachers Association.
(d) "Qualifying child" has the meaning given in section 32(c)(3) of the Internal Revenue
Code.
(e) "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:
(1) driver's education offered as part of school curriculum, regardless of whether it is
taken from a public or private entity; or
(2) tutoring or summer camps that:
(i) are in grade or age appropriate curricula that supplement curricula and instruction
available during the regular school year;
(ii) assist a dependent to improve knowledge of core curriculum areas; or
(iii) expand knowledge and skills under:
(A) the required academic standards under section 120B.021, subdivision 1; and
(B) the world languages standards under section 120B.022, subdivision 1.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2024.
new text end
Sec. 3.
Minnesota Statutes 2024, section 290.0674, subdivision 2, is amended to read:
Subd. 2.
Limitations.
(a) For claimants with adjusted gross income not greater than
$70,000, the maximum credit allowed for a family is $1,500 multiplied by the number of
qualifying children in kindergarten through grade 12 in the family. The maximum credit
for families with one qualifying child in kindergarten through grade 12 is reduced by $1
for each $4 of adjusted gross income over $70,000, and the maximum credit for families
with two or more qualifying children in kindergarten through grade 12 is reduced by $2 for
each $4 of adjusted gross income over $70,000, but in no case is the credit less than zero.
(b) In the case of a married claimant, a credit is not allowed unless a joint income tax
return is filed.
(c) For a nonresident or part-year resident, the credit determined under subdivision 1
and the maximum credit amount in paragraph (a) must be allocated using the percentage
calculated in section 290.06, subdivision 2c, paragraph (e).
new text begin
(d) The commissioner must annually adjust for inflation the credit amount and the income
threshold at which the maximum credit begins to be reduced as provided in section 270C.22.
The statutory year is taxable year 2025.
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, 2025.
new text end