HF 1974

as introduced - 94th Legislature (2025 - 2026) Posted on 03/06/2025 02:41pm

A bill for an act
relating to taxation; individual income; establishing an income tax subtraction for
employee student loan payments by critical access dental clinics; amending
Minnesota Statutes 2024, section 290.0132, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2024, section 290.0132, is amended by adding a subdivision
to read:

new text begin Subd. 36. new text end

new text begin Student loan education assistance paid by critical access dental clinics. new text end

new text begin (a)
The amount of student loan educational assistance payments that is received from a critical
access dental clinic is a subtraction.
new text end

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

new text begin (c) "Critical access dental clinic" means a dentist or dental clinic that is designated as a
critical access dental provider under section 256B.76, subdivision 4.
new text end

new text begin (d) "Student loan educational assistance payments" means payments by an employer on
the education loan of an employee that are included in the definition of educational assistance
under section 127(c)(1)(B) of the Internal Revenue Code, disregarding the expiration of
that clause. Student loan educational assistance payments are limited to amounts in excess
of the limit in section 127(a)(2) of the Internal Revenue Code.
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, 2025.
new text end