Bill > HF706

This bill modifies K-12 education income tax provisions by expanding and increasing tax benefits for families with school-age children. Specifically, the bill increases the education expense subtraction amounts for qualifying children, raising the maximum deduction from $1,625 to $2,750 for kindergarten through 6th grade students, and from $2,500 to $4,125 for 7th through 12th grade students. The bill also broadens the definition of "education-related expenses" to include tuition and expands the types of expenses that can be claimed, such as computer hardware and educational software. Additionally, the legislation increases the income threshold for the education tax credit, allowing more families to benefit from the full credit amount. The bill introduces an annual inflation adjustment mechanism for both the subtraction amounts and credit thresholds, ensuring the tax benefits keep pace with economic changes. The provisions will take effect for taxable years beginning after December 31, 2024, providing taxpayers with new opportunities to offset educational expenses through state income tax benefits.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF0706&ssn=0&y=2025