Bill > HF779

This bill establishes a new system for advance payments of the education credit in Minnesota, allowing eligible taxpayers to receive partial payments of their education tax credit before filing their annual tax return. Under the new provisions, taxpayers can elect to receive an advance payment equal to half the education credit they received in the previous year, or up to $750 per qualifying child for those who did not receive a credit in the previous year. To be eligible, taxpayers must have an adjusted gross income below a specified threshold and apply to the commissioner between July 1 and September 15 of the calendar year. The bill includes important safeguards, such as requiring taxpayers to certify their understanding that advance payments may increase their tax liability if they have insufficient education-related expenses. Additionally, the bill requires the commissioner of revenue to submit a report by January 15, 2027, exploring the feasibility of delivering these advance payments using an electronic benefits transfer card, including potential costs and advantages. The bill also repeals an existing statute related to the assignment of tax refunds, effective after December 31, 2025, which suggests a move towards a more direct and streamlined method of providing education tax credits to qualifying families.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF0779&ssn=0&y=2025