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Minnesota Legislature

Office of the Revisor of Statutes

290.0674 Minnesota education credit.

Subdivision 1. Credit allowed. An individual is allowed a credit against the tax imposed by this chapter in an amount equal to the amount paid for education-related expenses for a dependent 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 120.101, subdivision 7, clause (1), (2), (3), (4), or (5), for instruction outside the regular school day or school year, including tutoring, driver's education taken as part of school curriculum, 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 121.11, subdivision 7c, 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 used 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 121.11, subdivision 7c, 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 transportation of a dependent 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 363.

Subd. 2. Limitations. (a) For claimants with income not greater than $33,500, the maximum credit allowed is $1,000 per child and $2,000 per family. No credit is allowed for education-related expenses for claimants with income greater than $33,500. 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).

Subd. 3. Reduction by alternative minimum tax liability. The amount of the credit allowed must be reduced by the amount of the taxpayer's liability under section 290.091, determined before the credit allowed by this section is subtracted from regular tax liability.

Subd. 4. Credit to be refundable. If the amount of credit that the claimant is eligible to receive under this section exceeds the claimant's tax liability under this chapter, the commissioner shall refund the excess to the claimant.

Subd. 5. Appropriation. An amount sufficient to pay the refunds required by this section is appropriated to the commissioner from the general fund.

HIST: 1Sp1997 c 4 art 13 s 3

* NOTE: This section, as added by Laws 1997, First Special *Session chapter 4, article 13, section 3, is effective for tax *years beginning after December 31, 1997, if on the basis of the *November 1997 forecast of general revenues and expenditures, the *commissioner of finance determines that there will be positive *unrestricted budgetary general fund balance at the close of the *biennium after taking into account the costs of sections 290.01, *subdivision 19b, 290.0671, subdivision 1, and 290.0674, as *amended and added by Laws 1997, First Special Session chapter 4, *article 13, sections 1 to 3, after meeting the requirements of *section 16A.152, subdivision 2, clause (a). Laws 1997, First *Special Session chapter 4, article 13, section 5.