Minnesota 2023-2024 Regular Session

Minnesota Senate Bill SF684

Introduced
1/25/23  

Caption

Maximum student loan credit increase

Impact

This bill could have a profound impact on state laws related to taxation and education financing. By increasing the student loan credit and making it refundable, SF684 is designed to alleviate some of the financial pressures faced by graduates burdened with educational debt. Moreover, this change could promote access to higher education, encouraging potential students from lower-income backgrounds to pursue advanced degrees, thereby potentially increasing the overall educational attainment in the state.

Summary

Senate File 684 (SF684) proposes significant amendments to Minnesota's tax system concerning student loans. The bill aims to increase the maximum student loan credit available to eligible individuals, thereby assisting them in managing their educational debt. The proposal entails raising the income threshold for the credit eligibility, increasing the potential refund amount, and making the student loan credit refundable, which provides a more effective financial relief mechanism for borrowers.

Contention

During discussions of SF684, points of contention arose primarily around the implications of the increased tax credit and the overall financial sustainability for the state. Critics have expressed concerns regarding the long-term fiscal impacts this legislation could impose on the state's budget. Additionally, there are debates over whether these measures sufficiently address the systemic issues surrounding student loan debt or if they merely offer temporary relief. Supporters argue that the enhancements in the credit will assist a large number of borrowers and have the potential to stimulate local economies by increasing disposable income.

Companion Bills

MN HF443

Similar To Individual income tax provisions modified, maximum student loan credit increased, student loan credit income threshold increased, and student loan credit made refundable.

Previously Filed As

MN HF443

Individual income tax provisions modified, maximum student loan credit increased, student loan credit income threshold increased, and student loan credit made refundable.

MN HF1933

Individual income tax; student loan credit amount increased and credit made refundable.

MN SF2594

Student loan income tax credit increase and making the credit refundable authorization

MN SF271

Maximum refunds increase and eligibility expansion for refunds

MN HF1653

Property tax refunds and individual income tax provisions modified, and renter's credit converted to refundable income tax credit.

MN HF355

Maximum long-term care insurance credit increased.

MN SF45

Property tax refund program conversion to a refundable income tax credit authorization

MN SF1203

Long-term care insurance credit maximum amount pert beneficiary and maximum credit amount increase authorization

MN HF397

Individual income tax provisions modified, and maximum amount per beneficiary and maximum credit amount for long-term care insurance credit increased.

MN HF493

Individual income and property tax refund provisions modified, subtraction allowed for all federally taxable Social Security income, first tier income tax rate reduced, and homestead credit state refunds increased.

Similar Bills

No similar bills found.