SF 558

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to education; authorizing an education tax
credit for tuition expenses for certain school
attendance; eliminating the family cap on the
education tax credit; amending Minnesota Statutes
2004, section 290.0674, subdivisions 1, 2.

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

Section 1.

Minnesota Statutes 2004, section 290.0674,
subdivision 1, is amended to read:

Subdivision 1.

Credit allowed.

An individual is allowed
a credit against the tax imposed by this chapter in an amount
equal to 75 percent of the amount paid for education-related
expenses for a qualifying child in kindergarten through grade
12. For purposes of this section, "education-related expenses"
means:

(1) fees or tuition for instruction by an instructor under
section 120A.22, subdivision 10, clause (1), (2), (3), (4), or
(5), or a member of the Minnesota Music Teachers Association,
and who is not a lineal ancestor or sibling of the dependent for
instruction outside the regular school day or school year,
including tutoring, driver's education offered as part of school
curriculum, regardless of whether it is taken from a public or
private entity or summer camps, in grade or age appropriate
curricula that supplement curricula and instruction available
during the regular school year, that assists a dependent to
improve knowledge of core curriculum areas or to expand
knowledge and skills under the graduation rule under section
120B.02, paragraph (e), clauses (1) to (7), (9), and (10), and
that do not include the teaching of religious tenets, doctrines,
or worship, the purpose of which is to instill such tenets,
doctrines, or worship;

(2) expenses for textbooks, including books and other
instructional materials and equipment purchased or leased for
use in elementary and secondary schools in teaching only those
subjects legally and commonly taught in public elementary and
secondary schools in this state. "Textbooks" does not include
instructional books and materials used in the teaching of
religious tenets, doctrines, or worship, the purpose of which is
to instill such tenets, doctrines, or worship, nor does it
include books or materials for extracurricular activities
including sporting events, musical or dramatic events, speech
activities, driver's education, or similar programs;

(3) a maximum expense of $200 per family for personal
computer hardware, excluding single purpose processors, and
educational software that assists a dependent to improve
knowledge of core curriculum areas or to expand knowledge and
skills under the graduation rule under section 120B.02 purchased
for use in the taxpayer's home and not used in a trade or
business regardless of whether the computer is required by the
dependent's school; and

(4) the amount paid to others for new text begin tuition and
new text end transportation of a qualifying child attending an elementary or
secondary school situated in Minnesota, North Dakota, South
Dakota, Iowa, or Wisconsin, wherein a resident of this state may
legally fulfill the state's compulsory attendance laws, which is
not operated for profit, and which adheres to the provisions of
the Civil Rights Act of 1964 and chapter 363A.

For purposes of this section, "qualifying child" has the
meaning given in section 32(c)(3) of the Internal Revenue Code.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable
years beginning after December 31, 2004.
new text end

Sec. 2.

Minnesota Statutes 2004, section 290.0674,
subdivision 2, is amended to read:

Subd. 2.

Limitations.

(a) For claimants with income not
greater than deleted text begin $33,500 deleted text end new text begin 250 percent of the federal poverty
guidelines new text end , the maximum credit allowed is $1,000 per qualifying
child deleted text begin and $2,000 per family. No credit is allowed for
education-related expenses for claimants with income greater
than $37,500 deleted text end . The maximum credit per child is reduced by $1 for
each $4 of household income over deleted text begin $33,500, and the maximum credit
per family is reduced by $2 for each $4 of household income over
$33,500 deleted text end new text begin 250 percent of the federal poverty guidelines new text end , but in no
case is the credit less than zero.

For purposes of this section "income" has the meaning given
in section 290.067, subdivision 2a. In the case of a married
claimant, a credit is not allowed unless a joint income tax
return is filed.

(b) For a nonresident or part-year resident, the credit
determined under subdivision 1 and the maximum credit amount in
paragraph (a) must be allocated using the percentage calculated
in section 290.06, subdivision 2c, paragraph (e).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable
years beginning after December 31, 2004.
new text end