Bill Text: MN SF997 | 2013-2014 | 88th Legislature | Engrossed
Bill Title: Education opportunity income tax credit establishment
Sponsorship: Bipartisan Bill
Status: (Introduced - Dead) 2013-03-18 - Comm report: To pass as amended and re-refer to Taxes [SF997 Detail]
Download: Minnesota-2013-SF997-Engrossed.html
1.2relating to taxation; income and franchise; providing a refundable credit for
1.3payment of principal and interest on student loans; appropriating money;
1.4proposing coding for new law in Minnesota Statutes, chapter 290.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. [290.0682] EDUCATION OPPORTUNITY CREDIT.
1.7 Subdivision 1. Definitions. (a) For purposes of this section, the following terms
1.8have the meanings given.
1.9(b) "Eligible individual" means an individual who is a Minnesota resident who
1.10graduated from a postsecondary educational institution located in Minnesota.
1.11(c) "Eligible employer" means an employer of an eligible individual who undertakes
1.12partial or full payment of the eligible individual's qualified education loan.
1.13(d) "Qualified education loan" has the meaning given in section 221 of the Internal
1.14Revenue Code, but is limited to indebtedness incurred after June 30, 2012, on behalf of
1.15the taxpayer or taxpayer's spouse. Qualified education loan includes indebtedness incurred
1.16at a postsecondary educational institution located in Minnesota. Qualified education loan
1.17also includes indebtedness incurred at a postsecondary educational institution located
1.18outside Minnesota by an individual who transferred to a postsecondary educational
1.19institution in Minnesota prior to graduating.
1.20(e) "Postsecondary educational institution" means a two- or four-year postsecondary
1.21educational institution that meets the definition of "eligible education institution" provided
1.22in section 221(d)(2)(B) of the Internal Revenue Code.
1.23(f) "Income" has the meaning given in section 290.067, subdivision 2a.
2.1 Subd. 2. Credit allowed. (a) An eligible individual or an eligible employer is
2.2allowed a credit against the tax due under this chapter.
2.3(b) The credit amount for an eligible individual equals the amount the individual
2.4paid during the taxable year to pay principal and interest on qualified education loans, not
2.5to exceed $4,000.
2.6(c) The credit amount for an eligible employer equals the amount the employer paid
2.7during the taxable year to pay principal and interest on qualified education loans of an
2.8eligible individual, not to exceed $4,000. An eligible employer may only claim the credit
2.9based on qualified education loan payments made on behalf of the eligible individual in
2.10months in which the eligible individual did not make payments.
2.11 Subd. 3. Limitations. (a) For an eligible individual taxpayer filing single, or
2.12married filing separately, the amount of credit allowed under this section is reduced by $1
2.13for every $9 that the eligible individual's income exceeds $39,000.
2.14(b) For all other eligible individual taxpayers, the amount of credit under this section
2.15is reduced by $1 for every $9 that the eligible individual's income exceeds $58,500.
2.16(c) There is no limit to the number of credits that an eligible employer may claim
2.17under subdivision 2, paragraph (c).
2.18(d) An eligible individual or eligible employer may only claim the credit under
2.19subdivision 2 for ten taxable years.
2.20 Subd. 4. Credit refundable. (a) If the amount of credit which an eligible individual
2.21taxpayer is eligible to receive under this section exceeds the taxpayer's tax liability under
2.22this chapter, the commissioner shall refund the excess to the taxpayer.
2.23(b) The credit under this section for eligible employers is not refundable.
2.24 Subd. 5. Appropriation. An amount sufficient to pay the refunds required by this
2.25section is appropriated to the commissioner from the general fund.
2.26EFFECTIVE DATE.This section is effective for taxable years beginning after
2.27December 31, 2012, for indebtedness incurred after June 30, 2012.
1.3payment of principal and interest on student loans; appropriating money;
1.4proposing coding for new law in Minnesota Statutes, chapter 290.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. [290.0682] EDUCATION OPPORTUNITY CREDIT.
1.7 Subdivision 1. Definitions. (a) For purposes of this section, the following terms
1.8have the meanings given.
1.9(b) "Eligible individual" means an individual who is a Minnesota resident who
1.10graduated from a postsecondary educational institution located in Minnesota.
1.11(c) "Eligible employer" means an employer of an eligible individual who undertakes
1.12partial or full payment of the eligible individual's qualified education loan.
1.13(d) "Qualified education loan" has the meaning given in section 221 of the Internal
1.14Revenue Code, but is limited to indebtedness incurred after June 30, 2012, on behalf of
1.15the taxpayer or taxpayer's spouse. Qualified education loan includes indebtedness incurred
1.16at a postsecondary educational institution located in Minnesota. Qualified education loan
1.17also includes indebtedness incurred at a postsecondary educational institution located
1.18outside Minnesota by an individual who transferred to a postsecondary educational
1.19institution in Minnesota prior to graduating.
1.20(e) "Postsecondary educational institution" means a two- or four-year postsecondary
1.21educational institution that meets the definition of "eligible education institution" provided
1.22in section 221(d)(2)(B) of the Internal Revenue Code.
1.23(f) "Income" has the meaning given in section 290.067, subdivision 2a.
2.1 Subd. 2. Credit allowed. (a) An eligible individual or an eligible employer is
2.2allowed a credit against the tax due under this chapter.
2.3(b) The credit amount for an eligible individual equals the amount the individual
2.4paid during the taxable year to pay principal and interest on qualified education loans, not
2.5to exceed $4,000.
2.6(c) The credit amount for an eligible employer equals the amount the employer paid
2.7during the taxable year to pay principal and interest on qualified education loans of an
2.8eligible individual, not to exceed $4,000. An eligible employer may only claim the credit
2.9based on qualified education loan payments made on behalf of the eligible individual in
2.10months in which the eligible individual did not make payments.
2.11 Subd. 3. Limitations. (a) For an eligible individual taxpayer filing single, or
2.12married filing separately, the amount of credit allowed under this section is reduced by $1
2.13for every $9 that the eligible individual's income exceeds $39,000.
2.14(b) For all other eligible individual taxpayers, the amount of credit under this section
2.15is reduced by $1 for every $9 that the eligible individual's income exceeds $58,500.
2.16(c) There is no limit to the number of credits that an eligible employer may claim
2.17under subdivision 2, paragraph (c).
2.18(d) An eligible individual or eligible employer may only claim the credit under
2.19subdivision 2 for ten taxable years.
2.20 Subd. 4. Credit refundable. (a) If the amount of credit which an eligible individual
2.21taxpayer is eligible to receive under this section exceeds the taxpayer's tax liability under
2.22this chapter, the commissioner shall refund the excess to the taxpayer.
2.23(b) The credit under this section for eligible employers is not refundable.
2.24 Subd. 5. Appropriation. An amount sufficient to pay the refunds required by this
2.25section is appropriated to the commissioner from the general fund.
2.26EFFECTIVE DATE.This section is effective for taxable years beginning after
2.27December 31, 2012, for indebtedness incurred after June 30, 2012.
