Bill Text: MN SF2057 | 2013-2014 | 88th Legislature | Introduced
Bill Title: K-12 education income tax subtraction and credit allowance to apply to reading credit activities
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2014-02-27 - Referred to Taxes [SF2057 Detail]
Download: Minnesota-2013-SF2057-Introduced.html
1.2relating to taxation; individual income; modifying the Minnesota education credit
1.3by adding additional allowances;amending Minnesota Statutes 2012, sections
1.4290.0674, subdivisions 1, 2, 4, by adding subdivisions; 290.0679, subdivision 1.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2012, section 290.0674, subdivision 1, is amended to read:
1.7 Subdivision 1. Education credit allowed. An individual is allowed a credit against
1.8the tax imposed by this chapter in an amount equal to 75 percent of the amount paid for
1.9education-related expenses, less the amount of expenses used to claim the credit under
1.10subdivision 1a, for a qualifying child in kindergarten through grade 12. For purposes of
1.11this section, "education-related expenses" means:
1.12(1) fees or tuition for instruction by an instructor under section120A.22, subdivision
1.1310 , clause (1), (2), (3), (4), or (5), or a member of the Minnesota Music Teachers
1.14Association, and who is not a lineal ancestor or sibling of the dependent for instruction
1.15outside the regular school day or school year, including tutoring, driver's education
1.16offered as part of school curriculum, regardless of whether it is taken from a public or
1.17private entity or summer camps, in grade or age appropriate curricula that supplement
1.18curricula and instruction available during the regular school year, that assists a dependent
1.19to improve knowledge of core curriculum areas or to expand knowledge and skills under
1.20the required academic standards under section120B.021, subdivision 1 , and the elective
1.21standard under section120B.022, subdivision 1 , clause (2), and that do not include the
1.22teaching of religious tenets, doctrines, or worship, the purpose of which is to instill such
1.23tenets, doctrines, or worship;
2.1(2) expenses for textbooks, including books and other instructional materials and
2.2equipment purchased or leased for use in elementary and secondary schools in teaching
2.3only those subjects legally and commonly taught in public elementary and secondary
2.4schools in this state. "Textbooks" does not include instructional books and materials
2.5used in the teaching of religious tenets, doctrines, or worship, the purpose of which is
2.6to instill such tenets, doctrines, or worship, nor does it include books or materials for
2.7extracurricular activities including sporting events, musical or dramatic events, speech
2.8activities, driver's education, or similar programs;
2.9(3) a maximum expense of $200 per family for personal computer hardware,
2.10excluding single purpose processors, and educational software that assists a dependent to
2.11improve knowledge of core curriculum areas or to expand knowledge and skills under
2.12the required academic standards under section120B.021, subdivision 1 , and the elective
2.13standard under section120B.022, subdivision 1 , clause (2), purchased for use in the
2.14taxpayer's home and not used in a trade or business regardless of whether the computer is
2.15required by the dependent's school; and
2.16(4) the amount paid to others for transportation of a qualifying child attending an
2.17elementary or secondary school situated in Minnesota, North Dakota, South Dakota, Iowa,
2.18or Wisconsin, wherein a resident of this state may legally fulfill the state's compulsory
2.19attendance laws, which is not operated for profit, and which adheres to the provisions of
2.20the Civil Rights Act of 1964 and chapter 363A.
2.21For purposes of this section, "qualifying child" has the meaning given in section
2.2232(c)(3) of the Internal Revenue Code.
2.23EFFECTIVE DATE.This section is effective for taxable years beginning after
2.24December 31, 2013.
2.25 Sec. 2. Minnesota Statutes 2012, section 290.0674, is amended by adding a subdivision
2.26to read:
2.27 Subd. 1a. Reading credit allowed. (a) An individual is allowed a credit, up to
2.28$2,000, against the tax imposed by this chapter. The credit amount equals 75 percent of
2.29the amount paid for actual expenses, not compensated by insurance or otherwise, for the
2.30treatment, by an instructor, of dyslexia or any reading disorder, disability, or difficulty that
2.31impairs a qualifying child to read and comprehend language at an expected age level.
2.32(b) For the purposes of this subdivision, "treatment" means instruction that:
2.33(1) teaches language decoding skills in a systematic manner;
2.34(2) uses recognized diagnostic assessments to determine what intervention would be
2.35most appropriate for individual students; and
3.1(3) utilizes a research-based method.
3.2(c) For the purposes of this subdivision, "instructor" means a person qualifying
3.3under section 120A.22, subdivision 10, clauses (1) to (5), who is not a lineal ancestor
3.4or sibling of the qualifying child.
3.5(d) This subdivision expires beginning with taxable years beginning after December
3.631, 2016.
3.7EFFECTIVE DATE.This section is effective for taxable years beginning after
3.8December 31, 2013.
3.9 Sec. 3. Minnesota Statutes 2012, section 290.0674, is amended by adding a subdivision
3.10to read:
3.11 Subd. 1b. Reading educator credit allowed. An individual is allowed a credit, up
3.12to $1,000, against the tax imposed by this chapter in an amount equal to 75 percent of
3.13the amount paid for training in the diagnosis and treatment of dyslexia. The individual
3.14claiming the credit must be a Minnesota licensed teacher and the training for which the
3.15credit is claimed must be offered through a program that has been field tested and shown to
3.16be effective for dyslexic students that incorporates a complete multisensorial curriculum.
3.17EFFECTIVE DATE.This section is effective for taxable years beginning after
3.18December 31, 2013.
3.19 Sec. 4. Minnesota Statutes 2012, section 290.0674, subdivision 2, is amended to read:
3.20 Subd. 2. Limitations. (a) For claimants with income not greater than $33,500,
3.21the maximum credit allowed under subdivision 1 for a family is $1,000 multiplied by
3.22the number of qualifying children in kindergarten through grade 12 in the family. The
3.23maximum credit under subdivision 1 for families with one qualifying child in kindergarten
3.24through grade 12 is reduced by $1 for each $4 of household income over $33,500, and the
3.25maximum credit under subdivision 1 for families with two or more qualifying children in
3.26kindergarten through grade 12 is reduced by $2 for each $4 of household income over
3.27$33,500, but in no case is the credit under subdivision 1 less than zero.
3.28For purposes of this section "income" has the meaning given in section290.067,
3.29subdivision 2a . In the case of a married claimant, a credit is not allowed unless a joint
3.30income tax return is filed.
3.31(b) For a nonresident or part-year resident, the credit determined under subdivision
3.321 and the maximum credit amount in paragraph (a) and the credits determined under
4.1subdivisions 1a and 1b must be allocated using the percentage calculated in section
4.2290.06, subdivision 2c
, paragraph (e).
4.3EFFECTIVE DATE.This section is effective for taxable years beginning after
4.4December 31, 2013.
4.5 Sec. 5. Minnesota Statutes 2012, section 290.0674, subdivision 4, is amended to read:
4.6 Subd. 4. Credit to be refundable. If the amount ofcredit total credits that the
4.7claimant is eligible to receive under this section exceeds the claimant's tax liability under
4.8this chapter, the commissioner shall refund the excess to the claimant.
4.9EFFECTIVE DATE.This section is effective for taxable years beginning after
4.10December 31, 2013.
4.11 Sec. 6. Minnesota Statutes 2012, section 290.0679, subdivision 1, is amended to read:
4.12 Subdivision 1. Definitions. (a) "Qualifying taxpayer" means a resident who has
4.13a child in kindergarten through grade 12 in the current tax year and who (1) met the
4.14income requirements under section290.0674, subdivision 2 , for receiving the education
4.15credit in the tax year preceding the assignment of the taxpayer's refund, or (2) is allowed
4.16a reading credit under section 290.0674.
4.17(b) "Education credit" means the credit allowed under section290.0674, subdivision
4.181 or 1a .
4.19(c) "Refund" means an individual income tax refund.
4.20(d) "Financial institution" means a state or federally chartered bank, savings bank,
4.21savings association, or credit union.
4.22(e) "Qualifying organization" means a tax-exempt organization under section
4.23501(c)(3) of the Internal Revenue Code.
4.24(f) "Assignee" means a financial institution or qualifying organization that is entitled
4.25to receive payment of a refund assigned under this section.
4.26EFFECTIVE DATE.This section is effective for taxable years beginning after
4.27December 31, 2013.
1.3by adding additional allowances;amending Minnesota Statutes 2012, sections
1.4290.0674, subdivisions 1, 2, 4, by adding subdivisions; 290.0679, subdivision 1.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2012, section 290.0674, subdivision 1, is amended to read:
1.7 Subdivision 1. Education credit allowed. An individual is allowed a credit against
1.8the tax imposed by this chapter in an amount equal to 75 percent of the amount paid for
1.9education-related expenses, less the amount of expenses used to claim the credit under
1.10subdivision 1a, for a qualifying child in kindergarten through grade 12. For purposes of
1.11this section, "education-related expenses" means:
1.12(1) fees or tuition for instruction by an instructor under section
1.1310
1.14Association, and who is not a lineal ancestor or sibling of the dependent for instruction
1.15outside the regular school day or school year, including tutoring, driver's education
1.16offered as part of school curriculum, regardless of whether it is taken from a public or
1.17private entity or summer camps, in grade or age appropriate curricula that supplement
1.18curricula and instruction available during the regular school year, that assists a dependent
1.19to improve knowledge of core curriculum areas or to expand knowledge and skills under
1.20the required academic standards under section
1.21standard under section
1.22teaching of religious tenets, doctrines, or worship, the purpose of which is to instill such
1.23tenets, doctrines, or worship;
2.1(2) expenses for textbooks, including books and other instructional materials and
2.2equipment purchased or leased for use in elementary and secondary schools in teaching
2.3only those subjects legally and commonly taught in public elementary and secondary
2.4schools in this state. "Textbooks" does not include instructional books and materials
2.5used in the teaching of religious tenets, doctrines, or worship, the purpose of which is
2.6to instill such tenets, doctrines, or worship, nor does it include books or materials for
2.7extracurricular activities including sporting events, musical or dramatic events, speech
2.8activities, driver's education, or similar programs;
2.9(3) a maximum expense of $200 per family for personal computer hardware,
2.10excluding single purpose processors, and educational software that assists a dependent to
2.11improve knowledge of core curriculum areas or to expand knowledge and skills under
2.12the required academic standards under section
2.13standard under section
2.14taxpayer's home and not used in a trade or business regardless of whether the computer is
2.15required by the dependent's school; and
2.16(4) the amount paid to others for transportation of a qualifying child attending an
2.17elementary or secondary school situated in Minnesota, North Dakota, South Dakota, Iowa,
2.18or Wisconsin, wherein a resident of this state may legally fulfill the state's compulsory
2.19attendance laws, which is not operated for profit, and which adheres to the provisions of
2.20the Civil Rights Act of 1964 and chapter 363A.
2.21For purposes of this section, "qualifying child" has the meaning given in section
2.2232(c)(3) of the Internal Revenue Code.
2.23EFFECTIVE DATE.This section is effective for taxable years beginning after
2.24December 31, 2013.
2.25 Sec. 2. Minnesota Statutes 2012, section 290.0674, is amended by adding a subdivision
2.26to read:
2.27 Subd. 1a. Reading credit allowed. (a) An individual is allowed a credit, up to
2.28$2,000, against the tax imposed by this chapter. The credit amount equals 75 percent of
2.29the amount paid for actual expenses, not compensated by insurance or otherwise, for the
2.30treatment, by an instructor, of dyslexia or any reading disorder, disability, or difficulty that
2.31impairs a qualifying child to read and comprehend language at an expected age level.
2.32(b) For the purposes of this subdivision, "treatment" means instruction that:
2.33(1) teaches language decoding skills in a systematic manner;
2.34(2) uses recognized diagnostic assessments to determine what intervention would be
2.35most appropriate for individual students; and
3.1(3) utilizes a research-based method.
3.2(c) For the purposes of this subdivision, "instructor" means a person qualifying
3.3under section 120A.22, subdivision 10, clauses (1) to (5), who is not a lineal ancestor
3.4or sibling of the qualifying child.
3.5(d) This subdivision expires beginning with taxable years beginning after December
3.631, 2016.
3.7EFFECTIVE DATE.This section is effective for taxable years beginning after
3.8December 31, 2013.
3.9 Sec. 3. Minnesota Statutes 2012, section 290.0674, is amended by adding a subdivision
3.10to read:
3.11 Subd. 1b. Reading educator credit allowed. An individual is allowed a credit, up
3.12to $1,000, against the tax imposed by this chapter in an amount equal to 75 percent of
3.13the amount paid for training in the diagnosis and treatment of dyslexia. The individual
3.14claiming the credit must be a Minnesota licensed teacher and the training for which the
3.15credit is claimed must be offered through a program that has been field tested and shown to
3.16be effective for dyslexic students that incorporates a complete multisensorial curriculum.
3.17EFFECTIVE DATE.This section is effective for taxable years beginning after
3.18December 31, 2013.
3.19 Sec. 4. Minnesota Statutes 2012, section 290.0674, subdivision 2, is amended to read:
3.20 Subd. 2. Limitations. (a) For claimants with income not greater than $33,500,
3.21the maximum credit allowed under subdivision 1 for a family is $1,000 multiplied by
3.22the number of qualifying children in kindergarten through grade 12 in the family. The
3.23maximum credit under subdivision 1 for families with one qualifying child in kindergarten
3.24through grade 12 is reduced by $1 for each $4 of household income over $33,500, and the
3.25maximum credit under subdivision 1 for families with two or more qualifying children in
3.26kindergarten through grade 12 is reduced by $2 for each $4 of household income over
3.27$33,500, but in no case is the credit under subdivision 1 less than zero.
3.28For purposes of this section "income" has the meaning given in section
3.29subdivision 2a
3.30income tax return is filed.
3.31(b) For a nonresident or part-year resident, the credit determined under subdivision
3.321 and the maximum credit amount in paragraph (a) and the credits determined under
4.1subdivisions 1a and 1b must be allocated using the percentage calculated in section
4.3EFFECTIVE DATE.This section is effective for taxable years beginning after
4.4December 31, 2013.
4.5 Sec. 5. Minnesota Statutes 2012, section 290.0674, subdivision 4, is amended to read:
4.6 Subd. 4. Credit to be refundable. If the amount of
4.7claimant is eligible to receive under this section exceeds the claimant's tax liability under
4.8this chapter, the commissioner shall refund the excess to the claimant.
4.9EFFECTIVE DATE.This section is effective for taxable years beginning after
4.10December 31, 2013.
4.11 Sec. 6. Minnesota Statutes 2012, section 290.0679, subdivision 1, is amended to read:
4.12 Subdivision 1. Definitions. (a) "Qualifying taxpayer" means a resident who has
4.13a child in kindergarten through grade 12 in the current tax year and who (1) met the
4.14income requirements under section
4.15credit in the tax year preceding the assignment of the taxpayer's refund, or (2) is allowed
4.16a reading credit under section 290.0674.
4.17(b) "Education credit" means the credit allowed under section
4.181 or 1a
4.19(c) "Refund" means an individual income tax refund.
4.20(d) "Financial institution" means a state or federally chartered bank, savings bank,
4.21savings association, or credit union.
4.22(e) "Qualifying organization" means a tax-exempt organization under section
4.23501(c)(3) of the Internal Revenue Code.
4.24(f) "Assignee" means a financial institution or qualifying organization that is entitled
4.25to receive payment of a refund assigned under this section.
4.26EFFECTIVE DATE.This section is effective for taxable years beginning after
4.27December 31, 2013.
