HF 36 Summary

• Increases the K-12 education expense subtraction from $1,625 to $2,600 for kindergarten through grade 6 and from $2,500 to $3,900 for grades 7-12, effective for taxable years beginning after December 31, 2020.

• Expands the education expense credit to include tuition and fees paid to attend eligible schools, in addition to education-related expenses previously covered.

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

• Modifies the credit reduction rate for families with one child from $1 per $4 of income over the threshold to $1 per $6, and for families with two or more children from $2 per $4 to $1 per $3.

• Directs the commissioner to adjust the subtraction amounts, credit amount, and income threshold for inflation beginning in taxable year 2021 using the methodology in section 270C.22.