SF 525

as introduced - 88th Legislature (2013 - 2014) Posted on 02/22/2013 11:49am

A bill for an act
relating to taxes; individual income; providing a credit for contributions to higher
education; 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 [290.0683] HIGHER EDUCATION CONTRIBUTION CREDIT.
new text end

new text begin Subdivision 1. 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) "Nonitemizer" means an individual who does not itemize deductions for federal
income tax purposes for the taxable year, or whose itemized deductions, less the addition
under section 290.01, subdivision 19a, clause (2), are less than the standard deduction for
the taxable year under section 63(c) of the Internal Revenue Code.
new text end

new text begin (c) "Postsecondary educational institution" means a public postsecondary institution
or a private, nonprofit, degree-granting institution.
new text end

new text begin Subd. 2. new text end

new text begin Credit. new text end

new text begin An individual who is a nonitemizer is allowed a credit against the
tax imposed by this chapter for contributions to postsecondary educational institutions.
The credit equals 25 percent of the total amount contributed. The maximum credit allowed
per year is $1,000 for married couples filing joint returns and $500 for all other filers. An
individual who claims the subtraction under section 290.01, subdivision 19b, clause (6),
may not claim the credit in this section. For a nonresident or part-year resident, the credit
determined under this section must be allocated based on the percentage calculated under
section 290.06, subdivision 2c, paragraph (e).
new text end

new text begin Subd. 3. new text end

new text begin Carryover. new text end

new text begin If the credit for a taxable year exceeds the liability for tax
under this chapter, the excess must be carried over to each of the ten succeeding taxable
years. The entire amount of the unused credit must be carried first to the earliest of the
taxable years to which the credit may be carried and then to each successive year to which
the credit may be carried. The amount of the unused credit that may be added under
this subdivision is limited to the individual's liability for tax less the higher education
contribution credit for the taxable year.
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, 2012.
new text end