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HF706 (Legislative Session 94 (2025-2026))

K-12 education income tax provisions modified, and tuition credit extension provided.

Related bill: SF429

AI Generated Summary

This legislative bill, authored by Davis and referred to the Committee on Taxes, is focused on enhancing financial support for families with school-going children in Minnesota. It aims to modify the existing K-12 education expense subtraction and credit provisions by:

  1. Expanding the Eligible Expenses: The bill proposes to extend the education credit to cover tuition, apart from other education-related expenses.

  2. Increasing the Financial Caps: The maximum amounts that can be subtracted or credited are increased. For example, expenses for children in kindergarten through grade 6 can now be subtracted up to $2,750 (previously $1,625) and for grades 7 through 12 up to $4,125 (previously $2,500).

  3. Raising Income Phaseout Thresholds: The income levels at which these benefits phase out (reduce as income increases) will also be adjusted upward, allowing more families to qualify for these financial benefits.

  4. Indexing for Inflation: It includes a provision for annual adjustments based on inflation. This ensures that the benefits do not diminish in real value over time.

These changes aim to reduce the financial burden on families by providing greater tax relief for educational expenses. The anticipated start for these amendments is the tax year 2025.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
February 12, 2025HouseFloorActionIntroduction and first reading, referred toTaxes
February 23, 2025HouseFloorActionAuthor added

Citations

 
[
  {
    "analysis": {
      "added": [
        "A new provision for tuition and fees to be included for subtraction."
      ],
      "removed": [],
      "summary": "This bill modifies education expense subtractions under section 290.0132.",
      "modified": [
        "Increased subtraction limits for education expenses for qualifying children."
      ]
    },
    "citation": "290.0132"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill relates to modifications in education-related credit eligibility and limits under section 290.0674.",
      "modified": [
        "Extended credit applicability to tuition.",
        "Increased credit amounts and income phaseout thresholds."
      ]
    },
    "citation": "290.0674"
  }
]

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