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HF968 (Legislative Session 94 (2025-2026))

Individual income tax; eligible expenses for the Minnesota education credit expanded.

Related bill: SF501

AI Generated Summary

House File No. H.F. 2503349, introduced by Representative Davids, focuses on modifying the taxation laws related to education expenses in Minnesota. Specifically, it amends the existing provisions in Minnesota Statutes 2024, section 290.0674, subdivision 1a, to expand eligible expenses for the Minnesota education credit. Here’s a simple breakdown of the main changes proposed in the bill:

  1. Definition Updates:

    • Career and technical education programs are further defined, emphasizing their approval under specific sections and that they must provide rigorous content aligned with academic standards and relevant technical knowledge.
    • Education-related expenses now include:
      1. Qualifying instructional fees or tuition.
      2. Expenses for textbooks and other instructional materials used in elementary and secondary schools, excluding materials for teaching religious doctrines or for extracurricular activities.
      3. A cap of $200 per family for personal computer hardware and educational software used at home to help a dependent meet or exceed school curriculum standards.
      4. Costs related to transportation for children attending schools within specific neighboring states and transportation costs related to participation in career and technical education programs outside regular school hours.
      5. Expenses for participation in student organizations required by the curriculum and specific equipment needed for career and technical education programs.

  2. Qualified Instructors:

    • Defines who can be considered a qualified instructor, excluding family members and specifying criteria such as belonging to certain accredited teaching categories or associations.

  3. Qualifying Children and Instructional Fees:

    • Clarifies what constitutes a qualifying child, aligning it with definitions in the Internal Revenue Code.
    • Outlines what counts as qualifying instructional fees or tuition, including drivers education, tutoring, or summer camps that focus on enhancing knowledge of core curricular areas or world languages standards.

This bill is aimed at providing clearer guidelines and broader support for families incurring education-related expenses, by enhancing the education credit within state tax laws, thus potentially making educational activities more affordable and accessible.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
February 16, 2025HouseFloorActionIntroduction and first reading, referred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [
        "Career and technical education program expenses as eligible.",
        "Transportation costs related to participation in such programs."
      ],
      "removed": [
        "None"
      ],
      "summary": "This bill modifies the Minnesota education credit by expanding eligible expenses under section 290.0674.",
      "modified": [
        "Clarifies definitions and eligible expenses for qualifying children and educational programs."
      ]
    },
    "citation": "290.0674"
  },
  {
    "analysis": {
      "added": [
        "Not applicable"
      ],
      "removed": [
        "Not applicable"
      ],
      "summary": "The bill references the career and technical education program approval process under section 124D.4531.",
      "modified": [
        "As the section is merely referenced for program approvals."
      ]
    },
    "citation": "124D.4531"
  },
  {
    "analysis": {
      "added": [
        "Not applicable"
      ],
      "removed": [
        "Not applicable"
      ],
      "summary": "The bill makes reference to career and technical education program approval under section 136F.32.",
      "modified": [
        "As the section is only referenced for program approvals."
      ]
    },
    "citation": "136F.32"
  },
  {
    "analysis": {
      "added": [
        "Not applicable"
      ],
      "removed": [
        "Not applicable"
      ],
      "summary": "This bill references academic standards under section 120B.021 in relation to eligible expenses.",
      "modified": [
        "Used in defining eligible expenses for educational credit."
      ]
    },
    "citation": "120B.021"
  },
  {
    "analysis": {
      "added": [
        "Not applicable"
      ],
      "removed": [
        "Not applicable"
      ],
      "summary": "This bill references elective standards under section 120B.022 for expanding knowledge and skills.",
      "modified": [
        "Used in defining criteria for eligible instructional expenses."
      ]
    },
    "citation": "120B.022"
  },
  {
    "analysis": {
      "added": [
        "Definition of qualified instructor related to career and technical education programs."
      ],
      "removed": [
        "None"
      ],
      "summary": "The bill defines 'qualified instructor' in part by reference to section 120A.22.",
      "modified": [
        "Clarified definition as part of eligibility criteria."
      ]
    },
    "citation": "120A.22"
  }
]

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