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SF2293 (Legislative Session 94 (2025-2026))

Critical access dental clinics employee student loan payments income tax subtraction establishment provision

Related bill: HF1974

AI Generated Summary

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

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 09, 2025SenateFloorActionIntroduction and first reading
March 09, 2025SenateFloorActionReferred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill refers to the designation of critical access dental providers under section 256B.76.",
      "modified": []
    },
    "citation": "256B.76"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill makes reference to section 127 of the Internal Revenue Code related to educational assistance programs.",
      "modified": []
    },
    "citation": "127"
  }
]

Sponsors