This bill amends Minnesota Statutes 2024, section 290.0682, to increase the student loan credit for eligible individuals from $500 to $1,000. The credit is calculated based on eligible loan payments, adjusted gross income, and earned income, ensuring that it remains beneficial for taxpayers with student loans. Additionally, the bill introduces a new subdivision that makes the credit refundable, meaning that if the credit amount exceeds the claimant's tax liability, the excess will be refunded to the claimant.

The changes will take effect for taxable years beginning after December 31, 2024. The bill also includes an appropriation from the general fund to cover the refunds required under the new refundable credit provision. This legislation aims to provide greater financial relief to individuals managing student loan debt by enhancing the existing tax credit structure.

Statutes affected:
Introduction: 290.0682