MN HF1317

Establishes a 25 percent tax credit for eligible educators on qualifying education expenses, with no annual cap on eligible expenses despite the federal $250 limitation.

Defines eligible educators to include prekindergarten teachers working with children ages 3 to 5 at schools, Head Start programs, or licensed child care centers.

Credit is reduced by 3 percent of adjusted gross income exceeding $40,000 ($80,000 for married couples filing jointly), with maximum credit of $250 per person ($500 for married couples if both are eligible educators).

Credit is fully refundable, allowing excess credits beyond tax liability to be refunded to the taxpayer, with costs paid from the general fund.

Effective for taxable years beginning after December 31, 2020.