MN SF429

Increases the maximum K-12 education expense subtraction from $1,625 to $2,750 per child in kindergarten through grade 6, and from $2,500 to $4,125 per child in grades 7-12

Expands qualifying expenses to include tuition and fees paid to attend eligible nonprofit elementary or secondary schools in Minnesota and neighboring states (North Dakota, South Dakota, Iowa, Wisconsin)

Requires annual inflation adjustments for the subtraction amounts, credit amounts, and income phaseout thresholds, with taxable year 2025 as the baseline

Maximum education credit remains $1,500 per qualifying child for families with adjusted gross income at or below $70,000, with phaseout for higher incomes

Effective for taxable years beginning after December 31, 2024 (subtraction and definitions) and December 31, 2025 (credit inflation adjustments)