1.1 A bill for an act
1.2 relating to taxation; individual income; establishing an income tax subtraction for
1.3 employee student loan payments by critical access dental clinics; amending
1.4 Minnesota Statutes 2024, section 290.0132, by adding a subdivision.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2024, section 290.0132, is amended by adding a subdivision
1.7to read:
1.8 Subd. 36.Student loan education assistance paid by critical access dental clinics.(a)
1.9The amount of student loan educational assistance payments that is received from a critical
1.10access dental clinic is a subtraction.
1.11 (b) For the purposes of this subdivision, the following terms have the meanings given.
1.12 (c) "Critical access dental clinic" means a dentist or dental clinic that is designated as a
1.13critical access dental provider under section 256B.76, subdivision 4.
1.14 (d) "Student loan educational assistance payments" means payments by an employer on
1.15the education loan of an employee that are included in the definition of educational assistance
1.16under section 127(c)(1)(B) of the Internal Revenue Code, disregarding the expiration of
1.17that clause. Student loan educational assistance payments are limited to amounts in excess
1.18of the limit in section 127(a)(2) of the Internal Revenue Code.
1.19 EFFECTIVE DATE.This section is effective for taxable years beginning after December
1.2031, 2025.
1Section 1.
REVISOR EAP/VJ 25-0417102/20/25
State of Minnesota
This Document can be made available
in alternative formats upon request
HOUSE OF REPRESENTATIVES
H. F. No. 1974
NINETY-FOURTH SESSION
Authored by Franson and Davids03/06/2025
The bill was read for the first time and referred to the Committee on Taxes