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S.F. No. 1097 - Credit for New STEM and Long-Term Care Employees (as proposed by the A-5 delete-everything amendment)
Author: Senator Gary H. Dahms
Prepared By: Nora Pollock, Senate Counsel (651/297-8066)
Date: March 6, 2015


This bill provides a refundable tax credit for employees who graduate from a two- or four-year institution with a degree in the fields of science, technology, engineering, math, or healthcare, and enter into employment in science, technology, engineering, math, or long-term care in a region with a job vacancy in a corresponding field.  The credit is 50 percent of the maximum amount set under current law for tuition and fees for the two- or four-year institution from which the individual obtained the degree.  The credit is available in the tax year in which the degree was obtained and for the following four tax years.  Effective beginning in tax year 2015. 

Section 1


Subd. 1

Defines eligible individual, maximum qualifying amount, qualified economic development region, and qualified field.

Subd. 2

Authorizes the credit, equal to 50 percent of the maximum amount under current law for state grant programs (currently $13,000 for four-year institutions and $5,808 for two-year institutions), up to $5,000 for eligible individuals with four-year degrees and $2,500 for eligible individuals with two-year degrees.  The credit may be claimed in the tax year in which the degree was obtained and for the following four tax years. 

Subd. 3

Requires the Commissioner of DEED to determine qualified economic development regions for the current tax year based on job vacancy data from the previous calendar year and requires the list of qualified economic development regions and job vacancy fields be posted on the DEED and Department of Revenue websites.

Subd. 4

Allows the credit to be refundable.

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