MN HF387

Increases K-12 education expense subtraction limits from $1,625 to $2,600 for kindergarten through grade 6, and from $2,500 to $3,900 for grades 7-12, with annual inflation adjustments based on Internal Revenue Code section 1(f).

Extends the education expense credit to include tuition and fees paid to attend qualifying schools, in addition to existing education-related expenses.

Raises the maximum education credit from $1,000 to $1,500 per qualifying child and increases the income threshold for full credit eligibility from $33,500 to $50,000 household income.

Modifies the credit phase-out formula, reducing the credit by $1 for each $6 of income over $50,000 for families with one child and by $1 for each $3 of income over $50,000 for families with two or more children.

Adds automatic inflation adjustments to both the credit amount and income threshold starting in 2018, with amounts rounded to the nearest $10.