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Minnesota Legislature

Office of the Revisor of Statutes

HF 255

as introduced - 90th Legislature (2017 - 2018) Posted on 02/16/2017 07:25pm

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to taxation; individual income; modifying the K-12 education expense
credit; increasing the credit amount and increasing the income phaseout for the
credit; adjusting the credit phaseout threshold for inflation; amending Minnesota
Statutes 2016, section 290.0674, subdivision 2, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2016, section 290.0674, subdivision 2, is amended to read:


Subd. 2.

Limitations.

(a) For claimants with income not greater than deleted text begin$33,500deleted text endnew text begin $50,000new text end,
the maximum credit allowed for a family is deleted text begin$1,000deleted text endnew text begin $1,500new text end multiplied by the number of
qualifying children in kindergarten through grade 12 in the family. The maximum credit
deleted text begin for families with one qualifying child in kindergarten through grade 12deleted text end is reduced by $1
for each deleted text begin$4deleted text endnew text begin $10new text end of household income over deleted text begin$33,500, 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 household income over $33,500
deleted text endnew text begin $50,000new text end, but in no case is the credit less than
zero.

For purposes of this section "income" has the meaning given in section 290.067,
subdivision 2a
. In the case of a married claimant, a credit is not allowed unless a joint income
tax return is filed.

(b) 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 EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2016.
new text end

Sec. 2.

Minnesota Statutes 2016, section 290.0674, is amended by adding a subdivision
to read:


new text begin Subd. 6. new text end

new text begin Inflation adjustment. new text end

new text begin The income threshold at which the maximum credit
begins to be reduced in subdivision 2 must be adjusted for inflation. The commissioner shall
adjust the income threshold by the percentage determined pursuant to the provisions of
section 1(f) of the Internal Revenue Code, except that in section 1(f)(3)(B), the word "2016"
shall be substituted for the word "1992." For 2018, the commissioner shall then determine
the percent change from the 12 months ending on August 31, 2016, to the 12 months ending
on August 31, 2017, and in each subsequent year, from the 12 months ending August 31,
2016, to the 12 months ending on August 31 of the year preceding the taxable year. The
income threshold as adjusted for inflation must be rounded to the nearest $10 amount. If
the amount ends in $5, the amount is rounded up to the nearest $10 amount. The
determination of the commissioner under this subdivision is not a rule under the
Administrative Procedure Act.
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, 2016.
new text end