For more information contact: Sandy Connolly 651-296-8877
ST. PAUL –Representative John Ward (DFL – Brainerd) voted in support of the "Federal Conformity" bill Thursday. The bill passed with unanimous support from both parties. In passing this bill, the freshmen legislator has provided over $25 million in tax relief to Minnesota college students, teachers, and military personnel.
Specifically this bill will:
· Save college students money by allowing low- and middle-income taxpayers to deduct up to $4,000 of college tuition and related expenses. It is anticipated this could affect as many as 110,000 Minnesota families.
· Provide books and supplies for public school teachers by extending the allowance of the $250 deduction for K-12 educators.
· Make military combat pay retirement contributions tax exempt. Members of the military, including the National Guard, who are deployed in combat zones, often have little earned income other than their combat pay to contribute to retirement accounts such as IRA's.
"I would encourage anyone who believes this law will help them save money to delay filing their 2006
tax return," said Ward. "The Governor could sign this into law as early as next week."
This legislation is conforming state tax laws to federal laws that were passed after the adjournment of the 2006 legislative session.
"I'm glad a helpful bill such as this received the support of both parties in the House and the Senate, as well as the Governor," said Ward. "This is just how our state government is supposed to work – passing good legislation quickly to help Minnesotans."