ST. PAUL – House Republicans who serve on the joint House-Senate Legislative Working Group on Economic Disparities raised the idea of education-related tax credits for low-income Minnesotans on Friday, the product of recent discussions aimed at mitigating economic disparities in the state.
Rep. Jim Knoblach, R-St. Cloud, who co-chairs the joint House-Senate Legislative Working Group on Economic Disparities, discussed the prospect of education credits while acknowledging that addressing economic disparities will require a multi-faceted approach, with legislation on subjects addressed by several standing legislative committees.
"We recognize that education plays a key role in a child’s future success," Knoblach said. "Our goal is to help children of disadvantaged families access educational opportunities that may not otherwise have been available so they can grow and thrive later in life."
Members of the working group discussed expanding upon legislation that was part of last year's House tax bill, which remains in the hands of a conference committee. The current package includes the following tax credits:
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The household income level for which families are eligible to use the existing education tax credit be increased to reflect inflation since it was enacted, so that it starts to phase out at $47,500 per household instead of the current level of $33,500 per household;
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Household income and the amount of the credit be adjusted for inflation in future years;
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The list of expenditures eligible for the education tax credit be made the same as the list of expenditures eligible for the existing state education tax deduction, which has existed in Minnesota since 1955. This would result in private school tuition now being eligible for the tax credit, just as it is already eligible for the tax deduction;
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The existing refundable education tax credit be increased from $1,000 per student to $3,500 per student.
The Legislature is scheduled to convene March 8 for the regular 2016 session.
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