1997 Minnesota 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.