MN HF255

Increases the maximum K-12 education expense credit from $1,000 to $1,500 per qualifying child in kindergarten through grade 12, effective for taxable years beginning after December 31, 2016.

Raises the income threshold for the credit from $33,500 to $50,000 for families claiming the maximum credit amount.

Changes the phaseout rate for single child families from $1 reduction per $4 of income over the threshold to $1 reduction per $10 of income over the threshold.

Establishes annual inflation adjustments to the income threshold beginning in 2018, using the Internal Revenue Code methodology with 2016 as the base year, rounded to the nearest $10.

Applies inflation adjustments based on the 12-month period ending August 31, comparing year-to-year changes starting with August 31, 2017.