This bill modifies the K-12 education expense subtraction and credit in Minnesota by expanding the definition of eligible education-related expenses to include tuition, while also increasing the maximum allowable amounts for both the subtraction and credit. Specifically, the maximum subtraction amount is raised 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 they remain relevant over time.

The bill also amends the definitions related to education-related expenses, clarifying what constitutes qualifying instructional fees or tuition, and specifies that the credit is available only to those who file a joint income tax return if married. The effective date for these changes is set for taxable years beginning after December 31, 2024, for the education expense modifications, and after December 31, 2025, for the credit adjustments. Overall, the bill aims to provide greater financial support for families with children in K-12 education by broadening the scope of eligible expenses and increasing the financial benefits available.

Statutes affected:
Introduction: 290.0132, 290.0674