The bill, H.F. No. 1933, introduced in the Minnesota House of Representatives by Representative Gomez, proposes changes to the state's student loan credit under Minnesota's tax laws. The key amendments include:

1. Increase in the Student Loan Credit Amount:

   • The maximum credit allowed is raised from $500 to $1,000.

2. Making the Credit Refundable:

   • Previously, the credit was non-refundable, meaning it could only offset owed taxes but not generate a refund. This bill would make the credit refundable, allowing eligible individuals to receive a benefit even if they owe little or no state income tax.

3. Credit Calculation Adjustments:

   • The credit amount continues to be determined by taking the lesser of:
     1. Eligible loan payments minus 10% of adjusted gross income exceeding $10,000, but not below zero.
     2. The individual's earned income for the tax year.
     3. The sum of:
     4. The interest portion of loan payments made in the tax year.
     5. 10% of the original principal loan amount.
     6. The new maximum limit of $1,000 (previously $500).

4. Provisions for Part-Year Residents:

   • The credit for individuals who lived in Minnesota for only part of the year will be calculated proportionally based on their residency period.

5. Married Couples Filing Jointly:

   • Each spouse remains eligible for the credit.
   • Their adjusted gross income allocation will be based on each person's share of the couple’s earned income.

This bill aims to provide greater financial relief to individuals repaying student loans by doubling the maximum credit and enabling more taxpayers to receive refunds.