MN SF3254

Adds a new subtraction from Minnesota state income tax for eligible student loan payments made by individuals with qualified education loans for undergraduate or graduate degree programs at postsecondary institutions

Subtraction equals eligible loan payments made during the taxable year minus the federal deduction allowed under Internal Revenue Code section 221

Defines "qualified education loan" to include indebtedness incurred on behalf of the eligible individual or their spouse, consistent with federal tax law definitions

Applies to postsecondary institutions eligible for Minnesota state student aid or, if out-of-state, institutions participating in the federal Pell Grant program

Effective for taxable years beginning after December 31, 2015, with conforming amendments to the alternative minimum tax calculations