Minnesota Statutes Various State Taxes and Programs (Ch. 289A-295) § 290.0682. Student loan credit

Subdivision 1.Definitions. (a) For purposes of this section, the following terms have the meanings given.

(b) “Adjusted gross income” means federal adjusted gross income as defined insection 62 of the Internal Revenue Code. 1

(c) “Earned income” has the meaning given insection 290.0675, subdivision 1, paragraph (b).

(d) “Eligible individual” means a resident individual with one or more qualified education loans related to an undergraduate or graduate degree program at a postsecondary educational institution.

(e) “Eligible loan payments” means the amount the eligible individual paid during the taxable year in principal and interest on qualified education loans.

(f) “Postsecondary educational institution” means a public or nonprofit postsecondary institution eligible for state student aid undersection 136A.103or, if the institution is not located in this state, a public or nonprofit postsecondary institution participating in the federal Pell Grant program under title IV of the Higher Education Act of 1965,Public Law 89-329, 2as amended.

(g) “Qualified education loan” has the meaning given insection 221 of the Internal Revenue Code, but is limited to indebtedness incurred on behalf of the eligible individual.

Subd. 2.Credit allowed. (a) An eligible individual is allowed a credit against the tax due under this chapter.

(b) The credit for an eligible individual equals the least of:

(c) For a part-year resident, the credit must be allocated based on the percentage calculated undersection 290.06, subdivision 2c, paragraph (e).

(d) In the case of a married couple, each spouse is eligible for the credit in this section. For the purposes of paragraph (b), for married taxpayers filing joint returns, each spouse's adjusted gross income equals the spouse's percentage share of the couple's earned income, multiplied by the couple's combined adjusted gross income.