HF 649

as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 01:40am

A bill for an act
relating to taxes; individual income; modifying the K-12 education subtraction
and credit to apply to fees charged for extracurricular activities; amending
Minnesota Statutes 2008, section 290.0674, subdivision 1.

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

Section 1.

Minnesota Statutes 2008, section 290.0674, subdivision 1, is amended to
read:

Subdivision 1.

Credit allowed.

An individual is allowed a credit against the
tax imposed by this chapter in an amount equal to 75 percent of the amount paid for
education-related expenses for a qualifying child in kindergarten through grade 12. For
purposes of this section, "education-related expenses" means:

(1) fees or tuition for new text begin (i) new text end instruction by an instructor under section 120A.22,
subdivision 10, clause (1), (2), (3), (4), or (5), or a member of the Minnesota Music
Teachers Association, and who is not a lineal ancestor or sibling of the dependent for
instruction outside the regular school day or school year, including tutoring, driver's
education offered as part of school curriculum, regardless of whether it is taken from
a public or private entity or summer camps, in grade or age appropriate curricula that
supplement curricula and instruction available during the regular school year, 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), and that do
not include the teaching of religious tenets, doctrines, or worship, the purpose of which
is to instill such tenets, doctrines, or worship; new text begin and (ii) admission fees or charges for
extracurricular activities authorized under section 123B.36, subdivision 1, paragraph
(b), clause (2);
new text end

(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 for 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.

For purposes of this section, "qualifying child" has the meaning given in section
32(c)(3) of the Internal Revenue Code.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2008.
new text end