HF1974

Purpose of the Bill

The purpose of this bill is to establish a tax benefit for employees of critical access dental clinics in Minnesota. It offers a financial incentive aimed at alleviating student loan debt for dental professionals working in designated critical access areas.

Main Provisions

• Income Tax Subtraction: The bill introduces an income tax subtraction for student loan payments made to employees by critical access dental clinics. This means that qualifying employees can reduce their taxable income by the amount of these specific payments.
• Eligibility Criteria: To qualify for this tax benefit, the payments must be made by dental clinics or dentists designated as critical access providers, as specified in Minnesota law.
• Definition of Terms:
  • "Critical access dental clinic" refers to clinics or dentists recognized under section 256B.76 subdivision 4.
  • "Student loan educational assistance payments" are those payments made to reduce an employee's education loan under specified sections of the Internal Revenue Code, particularly exceeding certain limits.

Significant Changes

• This bill amends the Minnesota Statutes by adding a new subdivision to section 290.0132, creating a clear pathway for certain student loan repayment assistance to be subtracted from individual taxable income.
• It specifically aligns with federal tax codes, utilizing definitions and limits as per the Internal Revenue Code, ensuring that the state provision works in harmony with federal taxation rules.

Relevant Terms

• Tax subtraction
• Critical access dental clinic
• Student loan educational assistance
• Income tax
• Education loan
• Minnesota Statutes
• Internal Revenue Code