MN SF4172

Expands the student loan credit to include eligible family members (parents and grandparents) who pay qualified education loan principal and interest for undergraduate or graduate students.

Increases the maximum annual credit from $500 to $5,000 for eligible individuals and eligible family members.

Makes the student loan credit refundable, allowing the commissioner of revenue to refund any excess credit amount that exceeds the taxpayer's tax liability from the general fund.

Applies income phase-out reductions for eligible family members: $1 reduction per $6 of adjusted gross income over $130,000 for married joint filers, and $1 reduction per $3 of adjusted gross income over $65,000 for other filers.

Effective for taxable years beginning after December 31, 2021.