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RELEASE: Applebaum proposes tax credit to help Minnesotans with student debt

Monday, March 14, 2016

St. Paul, Minn. – Today, state Rep. Jon Applebaum (DFL – Minnetonka) introduced a bill, HF 2965, that assists Minnesotans facing growing amounts of student loan debt by creating a refundable tax credit applied toward their repayments. Under the proposal, qualifying Minnesotans would be able to claim a refundable credit of up to $5,000 on their Minnesota state income taxes per year.



“For generations, young people have been told that earning a college degree is a necessary step to achieving the American Dream,” Applebaum said. “In recent years, however, too many Minnesotans experience nightmares caused by almost insurmountable sums of student loan debt that precludes full participation in our economy. With Minnesota having the nation’s fifth highest average student debt load, we must address this problem and establish a state that is friendly to students, young professionals and their families.”



The bill enables Minnesotans who attended any postsecondary institution to claim up to $5,000 in a refundable tax credit for all principal and interest payments made on student loan debt obligations during the year, with a phase-out beginning at $65,000 yearly income for single filers, and $130,000 for those filing jointly. Applebaum noted a bipartisan appetite to, at least in part, use the state budget surplus to provide middle class tax relief, and he believes this proposal fits solidly within that goal.



“This bill is a step in the right direction of reversing the adverse effects of massive disinvestments in higher education that began over a decade ago," Applebaum said. "I believe this legislation will provide much needed relief to countless Minnesotans being held back from buying homes, starting businesses, or starting families because of the crushing burden of student loan debt. With a short session this year, this action can boldly put us on the path toward my goal of making Minnesota the nation’s leader in college affordability and student loan debt relief.”




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