MN HF72

Extends the education expense credit to include prekindergarten educational programs, allowing taxpayers to claim 75 percent of amounts paid for prekindergarten expenses for qualifying children.

Defines "prekindergarten educational program" to include school district prekindergarten programs, licensed and accredited preschools, Montessori programs, and child care programs provided by family day care providers with early childhood development credentials.

Increases the deduction limit for prekindergarten expenses to $1,625 per qualifying child, with existing deduction limits of $1,625 for kindergarten through grade 6 and $2,500 for grades 7-12 for tuition, textbooks, and transportation.

Applies to education-related expenses for qualified children in prekindergarten through grade 12, including tuition, fees, textbooks, instructional materials, computer equipment (limited to $200 per family), and transportation to eligible schools in Minnesota and neighboring states.

Effective for taxable years beginning after December 31, 2014.