Minneslate Logo

SF1554 (Legislative Session 94 (2025-2026))

Credit provision for attendance at a nonpublic school

AI Generated Summary

The legislative bill S.F. No. 1554 proposes to introduce a new tax credit for Minnesota taxpayers whose children attend nonpublic schools (i.e., private or religious schools, but excluding charter schools). Here's a simple breakdown of the bill:

  1. Definitions: Clarifies terms like full-time instruction, noncustodial parent, and qualifying student.

  2. Tax Credit Details:

    • Eligibility: The credit is available to individual taxpayers who have children that attend a nonpublic school full-time.
    • Amount: The amount of the tax credit is calculated based on the number of the taxpayer's qualifying students multiplied by the formula allowance set for the fiscal school year starting July 1 of the taxable year.
    • Limitations: The credit cannot exceed the taxpayer’s total tax liability for the year. For non-residents or those who lived in Minnesota part of the year, the credit is prorated.

  3. Special Conditions for Noncustodial Parents: Noncustodial parents can claim the credit if they have been awarded tax benefits associated with their child in a divorce settlement or if the custodial parent agrees in writing that they won't claim the credit.

  4. Administration and Restrictions:

    • The credit cannot be used to offset other tax liabilities, penalties, interest, or tax liabilities from prior years.
    • Tax refunds resulting from this credit are not subject to being taken by the government for other debts owed.

Overall, this bill aims to provide financial relief to parents opting for nonpublic schooling for their children by reducing their state income tax obligations accordingly.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
February 16, 2025SenateFloorActionIntroduction and first reading
February 16, 2025SenateFloorActionReferred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Section 120A.22 outlines compulsory attendance requirements for educational settings in Minnesota.",
      "modified": []
    },
    "citation": "120A.22"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "These sections of the Internal Revenue Code define qualifying child for tax purposes.",
      "modified": []
    },
    "citation": "152(c)(1) to (4)"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Section 126C.10 discusses formula allowance calculations for schools, which are used to determine the credit amount.",
      "modified": []
    },
    "citation": "126C.10"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Section 290.06 provides information on tax computations and allocations for nonresidents and part-year residents.",
      "modified": []
    },
    "citation": "290.06"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Chapter 270A involves revenue recapture and is referenced to exclude tax credit refunds from recapture.",
      "modified": []
    },
    "citation": "270A"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Chapter 518 relates to dissolution of marriage and is relevant for determining who can claim certain tax benefits.",
      "modified": []
    },
    "citation": "518"
  }
]

Sponsors