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S.F. No. 1224 - Increase in K-12 Education Subtraction and Credit; Adding Tuition Expenses to Be Eligible for Credit
 
Author: Senator Roger C. Chamberlain
 
Prepared By: Nora Pollock, Senate Counsel (651/297-8066)
 
Date: March 10, 2015



 

This bill increases the amounts available for the K-12 subtraction and credit, increases the amount by which the credit phases out, and adds language to include tuition expenses in the amounts that count toward eligibility for the credit.  The bill also updates the increased amounts for inflation.  Effective beginning in tax year 2015.

Section

Provision

1

Increases the amount that may subtracted for qualifying educational expenses for purposes of calculating Minnesota taxable income and adjusts these amounts for inflation for later tax years.  The amounts are increased as follows:

  • For each qualifying child in grades K-6, the amount is increased from $1,625 to $2,500; and
  • For each qualifying child in grades 7-12, the amount is increased from $2,500 to $3,750.  
     

2

Adds tuition to the amounts that may be counted for purposes of calculating the K-12 expenses credit. 
 

3

Increases the income threshold at which eligibility for the credit for K-12 expenses phases out and increases the available amount of the credit from $1,000 to $1,500 per qualifying child.  The income phaseout is increased from $33,500 to $47,500 and phases out by $1 for every $6 of household income over $47,500 for families with one qualifying child, and phases out by $1 for each $3 of household income for families with two or more qualifying children.
 

4

Adjusts the credit amounts and income threshold in section 3 for inflation.

 
 
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