SF 2983

as introduced - 89th Legislature (2015 - 2016) Posted on 03/22/2016 09:06am

A bill for an act
relating to taxation; individual income; allowing a tax credit for certain payments
on student loans by teachers; 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] STUDENT LOAN CREDIT FOR TEACHERS.
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 them unless the context clearly indicates otherwise.
new text end

new text begin (b) "Income-driven repayment plan" means a payment plan established by the
United States Department of Education that sets monthly student loan payments based
on income and family size under United States Code, title 20, section 1087e, or similar
authority and specifically includes, but is not limited to:
new text end

new text begin (1) the income-based repayment plan under United States Code, title 20, section
1098e;
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new text begin (2) the income contingent repayment plan established under United States Code,
title 20, section 1087e, subsection (e); and
new text end

new text begin (3) the PAYE program or REPAYE program established by the United States
Department of Education under administrative regulations.
new text end

new text begin (c) "Qualified loan payment" means the payment of principal and interest on a
student loan made by a teacher during the taxable year if the payments are made under an
income-driven repayment plan.
new text end

new text begin (d) "Teacher" means a licensed teacher employed for all or part of the taxable year
by a public school located in this state.
new text end

new text begin Subd. 2. new text end

new text begin Credit allowed. new text end

new text begin A teacher is allowed a credit against the tax imposed by
this chapter equal to 50 percent of the lesser of:
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new text begin (1) the qualified loan payments made by the teacher during the taxable year; or
new text end

new text begin (2) the amount of wages, as defined in section 290.92, paid by a public school
located in this state to the teacher for the taxable year.
new text end

new text begin Subd. 3. new text end

new text begin Credit refundable. new text end

new text begin (a) If the credit allowed under this section exceeds
the liability for tax under this chapter, the commissioner shall pay the excess as a refund
to the teacher.
new text end

new text begin (b) An amount sufficient to pay the refunds required by this section is appropriated
from the general fund to the commissioner.
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, 2015.
new text end