HF 389

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to taxation; income; amending the education
credit; amending Minnesota Statutes 2004, section
290.0674, subdivision 2.

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

Section 1.

Minnesota Statutes 2004, section 290.0674,
subdivision 2, is amended to read:

Subd. 2.

Limitations.

(a) For claimants with income not
greater than $33,500, the maximum credit allowed is $1,000 per
qualifying child deleted text begin and $2,000 per family deleted text end . No credit is allowed
for education-related expenses for claimants with income greater
than $37,500. The maximum credit per child is reduced by $1 for
each $4 of household income over $33,500, deleted text begin and the maximum credit
per family is reduced by $2 for each $4 of household income over
$33,500, deleted 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, 2004.
new text end