Bill Text: MN SF524 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Student loan income tax credit
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced - Dead) 2013-02-18 - Referred to Taxes [SF524 Detail]
Download: Minnesota-2013-SF524-Introduced.html
1.2relating to taxes; individual income; providing a refundable credit for payment
1.3of principal and interest on student loans;proposing coding for new law in
1.4Minnesota Statutes, chapter 290.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. [290.0684] STUDENT LOAN CREDIT.
1.7 Subdivision 1. Definitions. (a) For purposes of this section, the following terms
1.8have the meanings given.
1.9(b) "Allowance for tuition and fees" is the amount set in law as required under
1.10section 136A.121, subdivision 6.
1.11(c) "Eligible individual" means an individual who is a Minnesota resident who
1.12completed a degree program at a postsecondary educational institution located in Minnesota
1.13or at a public postsecondary educational institution located in a state that had a tuition
1.14reciprocity agreement under section 136A.08 in effect when the individual graduated.
1.15(d) "Postsecondary educational institution" means a public postsecondary institution
1.16or a private, nonprofit, degree-granting institution.
1.17(e) "Qualified education loan" has the meaning given in section 221 of the Internal
1.18Revenue Code, but is limited to indebtedness incurred:
1.19(1) through a federal subsidized Perkins or Stafford loan;
1.20(2) on behalf of the taxpayer or taxpayer's spouse; and
1.21(3) to pay tuition and fees for academic year 2012-2013 or later.
1.22 Subd. 2. Maximum qualifying amount. For an eligible individual who completed
1.23a degree program at a two-year postsecondary educational institution, the maximum
1.24qualifying amount equals the allowance for tuition and fees specified for a two-year
2.1institution for the individual's final year of attendance, and for an eligible individual
2.2who completed a degree program at a four-year postsecondary educational institution,
2.3the maximum qualifying amount equals the allowance for tuition and fees specified for a
2.4four-year institution for the individual's final year of attendance.
2.5 Subd. 3. Credit allowed. (a) An eligible individual is allowed a credit against the
2.6tax due under this chapter.
2.7(b) The credit amount equals the least of:
2.8(1) the amount the individual paid during the taxable year to pay principal and
2.9interest on qualified education loans;
2.10(2) the maximum qualifying amount; or
2.11(3) $500.
2.12 Subd. 4. Credit refundable. If the amount of credit which a taxpayer is eligible
2.13to receive under this section exceeds the taxpayer's tax liability under this chapter, the
2.14commissioner shall refund the excess to the taxpayer.
2.15 Subd. 5. Appropriation. An amount sufficient to pay the refunds required by this
2.16section is appropriated to the commissioner from the general fund.
2.17EFFECTIVE DATE.This section is effective for taxable years beginning after
2.18December 31, 2012.
1.3of principal and interest on student loans;proposing coding for new law in
1.4Minnesota Statutes, chapter 290.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. [290.0684] STUDENT LOAN CREDIT.
1.7 Subdivision 1. Definitions. (a) For purposes of this section, the following terms
1.8have the meanings given.
1.9(b) "Allowance for tuition and fees" is the amount set in law as required under
1.10section 136A.121, subdivision 6.
1.11(c) "Eligible individual" means an individual who is a Minnesota resident who
1.12completed a degree program at a postsecondary educational institution located in Minnesota
1.13or at a public postsecondary educational institution located in a state that had a tuition
1.14reciprocity agreement under section 136A.08 in effect when the individual graduated.
1.15(d) "Postsecondary educational institution" means a public postsecondary institution
1.16or a private, nonprofit, degree-granting institution.
1.17(e) "Qualified education loan" has the meaning given in section 221 of the Internal
1.18Revenue Code, but is limited to indebtedness incurred:
1.19(1) through a federal subsidized Perkins or Stafford loan;
1.20(2) on behalf of the taxpayer or taxpayer's spouse; and
1.21(3) to pay tuition and fees for academic year 2012-2013 or later.
1.22 Subd. 2. Maximum qualifying amount. For an eligible individual who completed
1.23a degree program at a two-year postsecondary educational institution, the maximum
1.24qualifying amount equals the allowance for tuition and fees specified for a two-year
2.1institution for the individual's final year of attendance, and for an eligible individual
2.2who completed a degree program at a four-year postsecondary educational institution,
2.3the maximum qualifying amount equals the allowance for tuition and fees specified for a
2.4four-year institution for the individual's final year of attendance.
2.5 Subd. 3. Credit allowed. (a) An eligible individual is allowed a credit against the
2.6tax due under this chapter.
2.7(b) The credit amount equals the least of:
2.8(1) the amount the individual paid during the taxable year to pay principal and
2.9interest on qualified education loans;
2.10(2) the maximum qualifying amount; or
2.11(3) $500.
2.12 Subd. 4. Credit refundable. If the amount of credit which a taxpayer is eligible
2.13to receive under this section exceeds the taxpayer's tax liability under this chapter, the
2.14commissioner shall refund the excess to the taxpayer.
2.15 Subd. 5. Appropriation. An amount sufficient to pay the refunds required by this
2.16section is appropriated to the commissioner from the general fund.
2.17EFFECTIVE DATE.This section is effective for taxable years beginning after
2.18December 31, 2012.
