Senate Counsel, Research
and Fiscal Analysis
Minnesota Senate Bldg.
95 University Avenue W. Suite 3300
St. Paul, MN 55155
(651) 296-4791
Alexis C. Stangl
Director
   Senate   
State of Minnesota
 
 
 
 
 
S.F. No. 165 - Student Loan Credit
 
Author: Senator Gregory D. Clausen
 
Prepared By: Nora Pollock, Senate Counsel (651/297-8066)
 
Date: February 28, 2017



 

This bill provides a refundable credit of the amount of interest and principal paid on qualifying student loans, up to $5,000. The credit is available to eligible individuals with at least one qualified education loan related to an undergraduate or graduate degree at a postsecondary institution, or to the parent of an eligible individual, less the amount claimed by the eligible individual.

A postsecondary educational institution means a postsecondary institution eligible for state student aid or a postsecondary institution participating in the federal Pell Grant program. A qualified education loan is indebtedness incurred by the taxpayer solely to pay qualified higher education expenses incurred on behalf of the taxpayer or the taxpayer’s spouse, was paid or incurred within a reasonable period of time before or after the indebtedness is incurred, and is attributable to education furnished during a period during which the recipient was an eligible student.

The credit is phased out for married joint filers by $1 for every $6 of modified adjusted gross income in excess of $130,000 and for all other filers by $1 for every $3 of modified adjusted gross income in excess of $65,000.

Effective beginning in tax year 2017.

 
Check on the status of this bill
 
Back to Senate Counsel and Research Bill Summaries page
 

 
This page is maintained by the Office of Senate Counsel, Research, and Fiscal Analysis for the Minnesota Senate.
 
Last review or update: 02/28/2017
 
If you see any errors on this page, please e-mail us at webmaster@senate.mn