Bill Text: MN SF525 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Higher education institutions contributions income tax credit
Spectrum: Partisan Bill (Democrat 5-0)
Status: (Introduced - Dead) 2013-02-21 - Author added Wiger [SF525 Detail]
Download: Minnesota-2013-SF525-Introduced.html
1.2relating to taxes; individual income; providing a credit for contributions to higher
1.3education;proposing coding for new law in Minnesota Statutes, chapter 290.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. [290.0683] HIGHER EDUCATION CONTRIBUTION CREDIT.
1.6 Subdivision 1. Definitions. (a) For purposes of this section, the following terms
1.7have the meanings given.
1.8(b) "Nonitemizer" means an individual who does not itemize deductions for federal
1.9income tax purposes for the taxable year, or whose itemized deductions, less the addition
1.10under section 290.01, subdivision 19a, clause (2), are less than the standard deduction for
1.11the taxable year under section 63(c) of the Internal Revenue Code.
1.12(c) "Postsecondary educational institution" means a public postsecondary institution
1.13or a private, nonprofit, degree-granting institution.
1.14 Subd. 2. Credit. An individual who is a nonitemizer is allowed a credit against the
1.15tax imposed by this chapter for contributions to postsecondary educational institutions.
1.16The credit equals 25 percent of the total amount contributed. The maximum credit allowed
1.17per year is $1,000 for married couples filing joint returns and $500 for all other filers. An
1.18individual who claims the subtraction under section 290.01, subdivision 19b, clause (6),
1.19may not claim the credit in this section. For a nonresident or part-year resident, the credit
1.20determined under this section must be allocated based on the percentage calculated under
1.21section 290.06, subdivision 2c, paragraph (e).
1.22 Subd. 3. Carryover. If the credit for a taxable year exceeds the liability for tax
1.23under this chapter, the excess must be carried over to each of the ten succeeding taxable
1.24years. The entire amount of the unused credit must be carried first to the earliest of the
2.1taxable years to which the credit may be carried and then to each successive year to which
2.2the credit may be carried. The amount of the unused credit that may be added under
2.3this subdivision is limited to the individual's liability for tax less the higher education
2.4contribution credit for the taxable year.
2.5EFFECTIVE DATE.This section is effective for taxable years beginning after
2.6December 31, 2012.
1.3education;proposing coding for new law in Minnesota Statutes, chapter 290.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. [290.0683] HIGHER EDUCATION CONTRIBUTION CREDIT.
1.6 Subdivision 1. Definitions. (a) For purposes of this section, the following terms
1.7have the meanings given.
1.8(b) "Nonitemizer" means an individual who does not itemize deductions for federal
1.9income tax purposes for the taxable year, or whose itemized deductions, less the addition
1.10under section 290.01, subdivision 19a, clause (2), are less than the standard deduction for
1.11the taxable year under section 63(c) of the Internal Revenue Code.
1.12(c) "Postsecondary educational institution" means a public postsecondary institution
1.13or a private, nonprofit, degree-granting institution.
1.14 Subd. 2. Credit. An individual who is a nonitemizer is allowed a credit against the
1.15tax imposed by this chapter for contributions to postsecondary educational institutions.
1.16The credit equals 25 percent of the total amount contributed. The maximum credit allowed
1.17per year is $1,000 for married couples filing joint returns and $500 for all other filers. An
1.18individual who claims the subtraction under section 290.01, subdivision 19b, clause (6),
1.19may not claim the credit in this section. For a nonresident or part-year resident, the credit
1.20determined under this section must be allocated based on the percentage calculated under
1.21section 290.06, subdivision 2c, paragraph (e).
1.22 Subd. 3. Carryover. If the credit for a taxable year exceeds the liability for tax
1.23under this chapter, the excess must be carried over to each of the ten succeeding taxable
1.24years. The entire amount of the unused credit must be carried first to the earliest of the
2.1taxable years to which the credit may be carried and then to each successive year to which
2.2the credit may be carried. The amount of the unused credit that may be added under
2.3this subdivision is limited to the individual's liability for tax less the higher education
2.4contribution credit for the taxable year.
2.5EFFECTIVE DATE.This section is effective for taxable years beginning after
2.6December 31, 2012.
