SF 195

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to taxation; income taxes; providing an income tax credit for tuition of
qualified beneficiaries; appropriating money; proposing coding for new law in
Minnesota Statutes, chapter 290.

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

Section 1.

new text begin [290.0678] UNIVERSAL TUITION CREDIT.
new text end

new text begin Subdivision 1. new text end

new text begin Credit allowed. new text end

new text begin A taxpayer is allowed a credit against the tax due
under this chapter equal to the amount paid for qualifying education expenses on behalf of
a qualified beneficiary. The maximum total credit allowed is $1,000 for each qualified
beneficiary.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Qualifying education expenses" means:
new text end

new text begin (1) the amount paid to a Minnesota public school for a child attending an all-day,
everyday kindergarten program;
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new text begin (2) the amount paid for tuition of a child attending an elementary or secondary
school situated in Minnesota wherein a resident of this state may legally fulfill the state's
compulsory attendance laws; or
new text end

new text begin (3) the amount paid to an eligible postsecondary educational institution as defined in
section 136A.101, subdivision 4.
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new text begin (c) "Qualified beneficiary" means the taxpayer, the taxpayer's spouse, or the
taxpayer's dependent child as claimed in that taxable year.
new text end

new text begin Subd. 3. new text end

new text begin Credit refundable. new text end

new text begin If the amount of the credit which the taxpayer is
eligible to receive under this section exceeds the individual's tax liability for tax under this
chapter, the commissioner shall refund the excess to the taxpayer.
new text end

new text begin Subd. 4. new text end

new text begin Appropriation. new text end

new text begin An amount sufficient to pay the refunds required by this
section is appropriated to the commissioner from the general fund.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2005, and before January 1, 2007.
new text end