This bill amends Minnesota Statutes to enhance the K-12 education expense subtraction and credit for individual income tax purposes. Key modifications include extending the credit to cover tuition expenses, increasing the maximum allowable subtraction from $1,625 to $2,750 for one qualifying child and from $2,500 to $4,125 for two or more qualifying children. Additionally, the bill introduces provisions for annual inflation adjustments to these amounts and the income phaseout thresholds for the credit, ensuring that the benefits keep pace with economic changes.

The bill also clarifies definitions related to education-related expenses, including qualifying instructional fees and tuition, and specifies that the maximum credit for families with adjusted gross income not exceeding $70,000 is $1,500 multiplied by the number of qualifying children. The credit will be reduced based on income levels above this threshold. Furthermore, the bill mandates that the commissioner adjust the credit amount and income thresholds for inflation annually, with the effective dates for these changes set for taxable years beginning after December 31, 2024, and December 31, 2025, respectively.

Statutes affected:
Introduction: 290.0132, 290.0674