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HF 359

as introduced - 89th Legislature (2015 - 2016) Posted on 03/04/2015 12:26pm

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to education; modifying the reading tax credit; amending Laws 2014,
chapter 308, article 4, section 22, subdivision 1.


Section 1.

Laws 2014, chapter 308, article 4, section 22, subdivision 1, is amended to

Subdivision 1.

Reading credit.

(a) A taxpayer is allowed a credit, up to deleted text begin$2,000deleted text endnew text begin
new text end, against the tax imposed by Minnesota Statutes, chapter 290. The credit amount
equals 75 percent of the amount of eligible expenses paid by a taxpayer who is a parent
or guardian of a qualifying child:

(1) who has been evaluated for determination of a specific learning disability under
Minnesota Rules, part 3525.1341, deleted text beginand was not found to meet the criteria under Minnesota
Rules, part 3525.1341, subpart 2, to have a specific learning disability
deleted text endnew text begin or by a licensed
new text end; and

(2) for whom the evaluation indicated a determination of new text begindyslexia, a specific learning
disability, or
new text enda deleted text begindeficiencydeleted text endnew text begin deficitnew text end in basic reading skills, reading comprehension, deleted text beginordeleted text end reading
fluency deleted text beginthat impair a child to meet expected age or grade-level standardsdeleted text endnew text begin, or spellingnew text end.

(b) For purposes of this subdivision, the following definitions apply:

(1) "eligible expenses" means actual expenses, less the amount of expenses used
to claim the credit under Minnesota Statutes, section 290.0674, subdivision 1, paid by
the taxpayer for new text beginan evaluation under paragraph (a), clause (1), new text endtutoring, instruction,
or treatment by an instructor and not compensated by insurance, pretax account, or
otherwise, for purposes of meeting the academic standards required under Minnesota
Statutes, section 120B.021;

(2) "instructor" means a person qualifying under Minnesota Statutes, section
120A.22, subdivision 10, clauses (1) to (5), who is not a lineal ancestor or sibling of
the qualifying child;

(3) "treatment" means instruction that:

(i) teaches language decoding skills in a systematic manner;

(ii) uses recognized diagnostic assessments to determine what intervention would be
most appropriate for individual students; and

(iii) employs a research-based method; and

(4) "qualifying child" has the meaning given in section 32(c)(3) of the Internal
Revenue Code.

(c) A taxpayer claiming the credit under this subdivision must provide documentation
of eligibility for the credit in a form and manner prescribed by the commissioner of
revenue in consultation with the commissioner of education. The documentation under
this paragraph must not disclose any information other than that necessary to prove
eligibility for the credit allowed under this subdivision.

(d) For a nonresident or part-year resident, the credit determined under this section
must be allocated based on the percentage calculated under Minnesota Statutes, section
290.06, subdivision 2c, paragraph (e).

(e) The amount used to claim the credit under this section must be excluded from
any amount subtracted from federal taxable income under section 290.01, subdivision
, clause (3).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for taxable years
beginning after December 31, 2013.
new text end

Sec. 2.

Laws 2014, chapter 308, article 4, section 22, the effective date, is amended to


This section is effective for taxable years beginning after
December 31, 2013, and before January 1, deleted text begin2015deleted text endnew text begin 2020,new text end only.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end