as introduced - 89th Legislature (2015 - 2016) Posted on 03/10/2016 05:16pm
Engrossments | ||
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Introduction | Posted on 03/10/2015 |
A bill for an act
relating to taxation; individual income; allowing a refundable credit for student
loan interest; appropriating money; proposing coding for new law in Minnesota
Statutes, chapter 290.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
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(a) For purposes of this section, the following terms
have the meanings given.
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(b) "Eligible individual" means an individual with one or more qualified education
loans related to an undergraduate or graduate degree program at a postsecondary
educational institution.
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(c) "Postsecondary educational institution" means a postsecondary institution
eligible for state student aid under section 136A.103 or, if the institution is not located in
this state, a postsecondary institution participating in the federal Pell Grant program under
Title IV of the Higher Education Act of 1965, Public Law 89-329, as amended.
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(d) "Qualified education loan" has the meaning given in section 221 of the Internal
Revenue Code, but is limited to indebtedness incurred on behalf of the eligible individual
or the eligible individual's spouse.
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(a) An eligible individual or the parent of an
eligible individual is allowed a credit against the tax due under this chapter.
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(b) The credit for an eligible individual equals the lesser of:
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(1) the amount the eligible individual paid during the taxable year to pay principal
and interest on qualified education loans; or
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(2) $5,000.
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(c) The credit for the parent of an eligible individual equals the lesser of:
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(1) the amount the parent of the eligible individual paid during the taxable year to
pay principal and interest on qualified education loans of the eligible individual; or
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(2) $5,000 less the amount of credit allowed to the eligible individual under
paragraph (b).
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(d) For a nonresident or part-year resident, the credit must be allocated based on the
percentage calculated under section 290.06, subdivision 2c, paragraph (e).
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If the amount of credit that an individual is eligible
to receive under this section exceeds the individual's tax liability under this chapter, the
commissioner shall refund the excess to the individual.
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An amount sufficient to pay the refunds required by this
section is appropriated to the commissioner from the general fund.
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This section is effective for taxable years beginning after
December 31, 2014.
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