This bill amends Minnesota Statutes to establish an advance payment option for the education credit, allowing taxpayers to receive a portion of their education credit before filing their taxes. Specifically, it introduces a new subdivision under section 290.0674, which permits taxpayers to elect for an advance payment equal to half of the education credit received in the previous year, or up to $750 for each qualifying child if no credit was received. To qualify, taxpayers must have an adjusted gross income below a specified threshold and must apply for the advance payment by September 1 of the applicable year. The bill also stipulates that any advance payments received will reduce the taxpayer's credit for the taxable year and may increase their tax liability if the advance exceeds the actual credit.

Additionally, the bill requires the commissioner of revenue to submit a report by January 15, 2027, evaluating the feasibility of delivering these advance payments through an electronic benefits transfer card. This report will assess the potential costs and benefits of such a system. Furthermore, the bill repeals section 290.0679, which previously allowed for the assignment of education credit refunds, thereby eliminating that option for taxpayers. The effective date for these changes is set for advance payments after December 31, 2025.

Statutes affected:
Introduction: 290.0674, 290.0679