SF2293

Purpose of the Bill

The purpose of this bill is to encourage employment in critical access dental clinics by offering a tax benefit related to student loan payments. This is aimed at assisting employees who are paying off educational loans.

Main Provisions

• The bill establishes an income tax subtraction for student loan payments made by critical access dental clinics on behalf of their employees.
• The subtraction applies to the amount of student loan payments that exceed the threshold set by federal tax law.
• A critical access dental clinic is defined specifically as a dental provider or clinic recognized under Minnesota's Medicaid program for its critical importance in dental care access.

Significant Changes to Existing Law

• This bill amends the Minnesota Statutes by adding a provision allowing employees of critical access dental clinics to deduct a portion of their employer-paid student loan payments from their state taxable income.
• It aligns with parts of the federal Internal Revenue Code, which traditionally have set some limits on educational assistance-related payments but extends beyond these by covering amounts exceeding the federal limit.

Relevant Terms

• Income tax subtraction
• Critical access dental clinic
• Student loan educational assistance
• Internal Revenue Code
• Educational assistance
• Minnesota Statutes Section 290.0132