Bill > HF1933

This bill increases the student loan credit amount in Minnesota's income tax code and makes the credit refundable. Currently, eligible individuals can claim a credit against their state income tax for student loan payments, with a maximum credit of $500. The bill raises this maximum credit to $1,000 and allows taxpayers to receive the full credit even if it exceeds their tax liability, which means they could receive the difference as a cash refund. The credit calculation remains complex, considering factors like eligible loan payments, adjusted gross income, earned income, and loan interest. For married couples filing jointly, each spouse can claim the credit, with their individual credit amount calculated based on their share of the couple's combined income. The changes will apply to taxable years beginning after December 31, 2024, providing financial relief to individuals with student loan debt by increasing the available tax credit and making it fully refundable.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF1933&ssn=0&y=2025