HF 3006

as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; individual income; modifying the 
  1.3             education tax credit; amending Minnesota Statutes 
  1.4             2000, section 290.0674, subdivision 2; Minnesota 
  1.5             Statutes 2001 Supplement, section 290.0674, 
  1.6             subdivision 1. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 2001 Supplement, section 
  1.9   290.0674, subdivision 1, is amended to read: 
  1.10     Subdivision 1.  [CREDIT ALLOWED.] An individual is allowed 
  1.11  a credit against the tax imposed by this chapter in an amount 
  1.12  equal to 75 100 percent of the amount paid for education-related 
  1.13  expenses for a qualifying child in kindergarten through grade 
  1.14  12.  For purposes of this section, "education-related expenses" 
  1.15  means: 
  1.16     (1) fees or tuition for instruction by an instructor under 
  1.17  section 120A.22, subdivision 10, clause (1), (2), (3), (4), or 
  1.18  (5), or a member of the Minnesota music teachers association, 
  1.19  and who is not a lineal ancestor or sibling of the dependent for 
  1.20  instruction outside the regular school day or school year, 
  1.21  including tutoring, driver's education offered as part of school 
  1.22  curriculum, regardless of whether it is taken from a public or 
  1.23  private entity or summer camps, in grade or age appropriate 
  1.24  curricula that supplement curricula and instruction available 
  1.25  during the regular school year, that assists a dependent to 
  1.26  improve knowledge of core curriculum areas or to expand 
  2.1   knowledge and skills under the graduation rule under section 
  2.2   120B.02, paragraph (e), clauses (1) to (7), (9), and (10), and 
  2.3   that do not include the teaching of religious tenets, doctrines, 
  2.4   or worship, the purpose of which is to instill such tenets, 
  2.5   doctrines, or worship; 
  2.6      (2) expenses for textbooks, including books and other 
  2.7   instructional materials and equipment purchased or leased for 
  2.8   use in elementary and secondary schools in teaching only those 
  2.9   subjects legally and commonly taught in public elementary and 
  2.10  secondary schools in this state.  "Textbooks" does not include 
  2.11  instructional books and materials used in the teaching of 
  2.12  religious tenets, doctrines, or worship, the purpose of which is 
  2.13  to instill such tenets, doctrines, or worship, nor does it 
  2.14  include books or materials for extracurricular activities 
  2.15  including sporting events, musical or dramatic events, speech 
  2.16  activities, driver's education, or similar programs; 
  2.17     (3) a maximum expense of $200 per family for personal 
  2.18  computer hardware, excluding single purpose processors, and 
  2.19  educational software that assists a dependent to improve 
  2.20  knowledge of core curriculum areas or to expand knowledge and 
  2.21  skills under the graduation rule under section 120B.02 purchased 
  2.22  for use in the taxpayer's home and not used in a trade or 
  2.23  business regardless of whether the computer is required by the 
  2.24  dependent's school; and 
  2.25     (4) the amount paid to others for transportation of a 
  2.26  qualifying child attending an elementary or secondary school 
  2.27  situated in Minnesota, North Dakota, South Dakota, Iowa, or 
  2.28  Wisconsin, wherein a resident of this state may legally fulfill 
  2.29  the state's compulsory attendance laws, which is not operated 
  2.30  for profit, and which adheres to the provisions of the Civil 
  2.31  Rights Act of 1964 and chapter 363. 
  2.32     For purposes of this section, "qualifying child" has the 
  2.33  meaning given in section 32(c)(3) of the Internal Revenue Code. 
  2.34     Sec. 2.  Minnesota Statutes 2000, section 290.0674, 
  2.35  subdivision 2, is amended to read: 
  2.36     Subd. 2.  [LIMITATIONS.] (a) For claimants with income not 
  3.1   greater than $33,500, the maximum credit allowed is $1,000 per 
  3.2   qualifying child and $2,000 per family.  No credit is allowed 
  3.3   for education-related expenses for claimants with income greater 
  3.4   than $37,500.  The maximum credit for each claimant is $1,000 
  3.5   multiplied by the number of qualifying children for whom the 
  3.6   individual claims the credit.  The maximum credit per child for 
  3.7   a claimant is reduced by $1 for each $4 of household income over 
  3.8   $33,500, and the maximum credit per family is reduced by $2 for 
  3.9   each $4 of household income over $33,500, for claimants with one 
  3.10  qualifying child, and by $1 for each $3 of household income over 
  3.11  $33,500 for all other claimants, but in no case is the credit 
  3.12  less than zero. 
  3.13     For purposes of this section "income" has the meaning given 
  3.14  in section 290.067, subdivision 2a.  In the case of a married 
  3.15  claimant, a credit is not allowed unless a joint income tax 
  3.16  return is filed. 
  3.17     (b) For a nonresident or part-year resident, the credit 
  3.18  determined under subdivision 1 and the maximum credit amount in 
  3.19  paragraph (a) must be allocated using the percentage calculated 
  3.20  in section 290.06, subdivision 2c, paragraph (e). 
  3.21     (c) For taxable years beginning after December 31, 2002, 
  3.22  the dollar amount of the credit provided by this subdivision and 
  3.23  the dollar amount of the income threshold at which the maximum 
  3.24  credit begins to be reduced must be adjusted for inflation.  The 
  3.25  commissioner shall adjust the credit amount and the income 
  3.26  threshold by the percentage determined under section 290.06, 
  3.27  subdivision 2d, for the taxable year. 
  3.28     Sec. 3.  [EFFECTIVE DATE.] 
  3.29     Sections 1 and 2 are effective for taxable years beginning 
  3.30  after December 31, 2001.