SF 4552

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/05/2024 09:36am

A bill for an act
relating to taxation; individual income; expanding the eligible expenses for the
Minnesota education credit; amending Minnesota Statutes 2023 Supplement,
section 290.0674, subdivision 1a.

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

Section 1.

Minnesota Statutes 2023 Supplement, section 290.0674, subdivision 1a, is
amended to read:

Subd. 1a.

Definitions.

(a) For purposes of this section, the following terms have the
meanings given them.

new text begin (b) "Career and technical education program" means a program that provides individuals
with coherent rigorous content aligned with academic standards and relevant technical
knowledge and skills needed to prepare for further education and careers in current and
emerging professions and provides technical skill proficiency, an industry recognized
credential, and a certificate, a diploma, or an associate degree.
new text end

deleted text begin (b) deleted text end new text begin (c) new text end "Education-related expenses" means:

(1) qualifying instructional fees or tuition;

(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 required
academic standards under section 120B.021, subdivision 1, and the elective standard under
section 120B.022, subdivision 1, clause (2), 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; deleted text begin and
deleted text end

(4) the amount paid to others for 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. new text begin For a qualifying child participating in a
career and technical education program, "education-related expenses" includes the amount
paid to others for transportation outside regular school hours that is directly related to the
qualifying child's participation in the program. new text end Amounts under this clause exclude any
expense the taxpayer incurred in using the taxpayer's or the qualifying child's vehicle new text begin ; and
new text end

new text begin (5) for a qualifying child participating in a career and technical education program,
expenses for:
new text end

new text begin (i) participation in a student organization that is a component of the program curriculum;
and
new text end

new text begin (ii) equipment not eligible under paragraph (c), clause (2), that is required for participation
in the program new text end .

deleted text begin (c) deleted text end new text begin (d) new text end "Qualified instructor" means an individual who is not a lineal ancestor or sibling
of the dependent and who is:

(1) an instructor under section 120A.22, subdivision 10, clause (1), (2), (3), (4), or (5);
or

(2) a member of the Minnesota Music Teachers Association.

deleted text begin (d) deleted text end new text begin (e) new text end "Qualifying child" has the meaning given in section 32(c)(3) of the Internal
Revenue Code.

deleted text begin (e) deleted text end new text begin (f) new text end "Qualifying instructional fees or tuition" means fees or tuition for instruction by
a qualified instructor outside the regular school day or school year, and that does not include
the teaching of religious tenets, doctrines, or worship, the purpose of which is to instill such
tenets, doctrines, or worship, including:

(1) driver's education offered as part of school curriculum, regardless of whether it is
taken from a public or private entity; or

(2) tutoring or summer camps that:

(i) are in grade or age appropriate curricula that supplement curricula and instruction
available during the regular school year;

(ii) assist a dependent to improve knowledge of core curriculum areas; or

(iii) expand knowledge and skills under:

(A) the required academic standards under section 120B.021, subdivision 1; and

(B) the world languages standards under section 120B.022, subdivision 1.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2023.
new text end