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 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 required academic standards under section
, and the elective standard under section
120B.022, subdivision 1
, clause (2), 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 required academic standards
120B.021, subdivision 1
, and the elective standard under section
, 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; and
(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
For purposes of this section, "qualifying child" has the meaning given in section 32(c)(3) of
the Internal Revenue Code.
Subd. 2. Limitations.
(a) For claimants with income not greater than $33,500, the maximum
credit allowed for a family is $1,000 multiplied by the number of qualifying children in
kindergarten through grade 12 in the family. The maximum credit for families with one qualifying
child in kindergarten through grade 12 is reduced by $1 for each $4 of household income
over $33,500, and the maximum credit for families with two or more qualifying children in
kindergarten through grade 12 is reduced by $2 for each $4 of household income over $33,500,
but in no case is the credit less than zero.
For purposes of this section "income" has the meaning given in section
. 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
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
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.
History: 1Sp1997 c 4 art 13 s 3; 1998 c 397 art 11 s 3; 1998 c 398 art 6 s 32; 1999 c 243 art
2 s 13,14; 1Sp2001 c 5 art 9 s 11; 2005 c 151 art 6 s 17; 1Sp2005 c 3 art 3 s 10