This bill amends Minnesota Statutes to modify the K-12 education expense subtraction and credit, expanding the eligibility and increasing the amounts available to families. It introduces a new provision that allows tuition to be included as an education-related expense, while also increasing the maximum subtraction amounts 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 mandates that the maximum amounts for the subtraction and credit be adjusted annually for inflation, starting with the taxable year 2025.

Furthermore, the bill raises the income phaseout threshold for the credit and establishes that the credit amount and the income threshold for reduction will also be adjusted for inflation. The effective date for these changes is set for taxable years beginning after December 31, 2024, for the education expense provisions and after December 31, 2025, for the credit adjustments. These modifications aim to provide greater financial support to families with children in K-12 education, making it more affordable for them to cover educational expenses.

Statutes affected:
Introduction: 290.0132, 290.0674