MN SF847

Expands the education expense credit and deduction to include expenditures for prekindergarten educational programs, effective for tax years beginning after December 31, 2012.

Defines "prekindergarten educational program" to include school district pre-K programs, licensed and accredited preschools, Montessori programs affiliated with recognized societies, and child care programs provided by family day care providers with approved credentials.

Allows subtraction from federal taxable income for amounts paid for prekindergarten enrollment fees and expenses, up to $1,625 per qualifying child, using the same deduction framework as kindergarten through grade 6.

Provides a 75 percent credit against state income tax for education-related expenses including prekindergarten enrollment fees, to the extent not used to claim the related deduction.

Amends Minnesota Statutes sections 290.01 and 290.0674 to incorporate prekindergarten expenses into existing education tax benefits for Minnesota taxpayers.