HF578 Summary

• Replaces the fixed $33,500 income threshold with a reference to the federal reduced-price lunch income eligibility guideline as of July 1 of the taxable year.

• Maintains the maximum credit of $1,000 per qualifying child in kindergarten through grade 12.

• Reduces the maximum credit by $1 per $4 of income over the eligibility guideline for families with one child, and by $2 per $4 for families with two or more children.

• Repeals Minnesota Statutes section 290.0674, subdivision 2a, which previously contained a detailed definition of "income" for purposes of the education credit.

• Effective for taxable years beginning after December 31, 2018.