S.F. No. 860 Summary

• Expands the Minnesota education credit to allow individuals a tax credit equal to 75 percent of education-related expenses for qualifying children in kindergarten through grade 12

• Increases the income threshold for the credit from $33,500 to $70,000 adjusted gross income and raises the maximum credit amount from $1,000 to $1,500 per child

• Qualifies expenses include instructional fees or tuition from qualified instructors (tutoring, driver's education, summer camps), textbooks and instructional materials, up to $200 for computer hardware and educational software, and transportation costs to schools in Minnesota and neighboring states

• Excludes expenses for religious instruction, extracurricular activities (sports, music, drama), and expenses using the taxpayer's or child's own vehicle

• Adds annual inflation adjustment to income thresholds beginning in taxable year 2023, using the method in section 270C.22