MN HF602

Expands the education expense deduction under Minnesota Statutes 2016, section 290.0132 to include prekindergarten expenses, with a maximum deduction of $1,625 per qualifying child in a prekindergarten educational program or kindergarten through grade 6.

Extends the education expense credit under Minnesota Statutes 2016, section 290.0674 to apply to qualifying children in prekindergarten educational programs, in addition to kindergarten through grade 12, at 75 percent of education-related expenses paid.

Defines "prekindergarten educational program" to include school district prekindergarten programs under chapter 124D, licensed and accredited preschools and early childhood development programs, Montessori programs affiliated with specified organizations, and child care programs provided by family day care providers with an early childhood development credential.

Adds fees charged for enrollment in a prekindergarten educational program as a new category of "education-related expenses" eligible for the credit, to the extent not used to claim the credit under section 290.067.

Makes the amendments effective for taxable years beginning after December 31, 2016.