1.1                          A bill for an act
  1.2             relating to taxation; corporate franchise; allowing a 
  1.3             credit for certain education expenses; amending 
  1.4             Minnesota Statutes 1998, section 290.06, by adding a 
  1.5             subdivision. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1998, section 290.06, is 
  1.8   amended by adding a subdivision to read: 
  1.9      Subd. 26.  [CREDIT; EDUCATION EXPENSES.] (a) A credit is 
  1.10  allowed against the tax imposed under subdivision 1, equal to 50 
  1.11  percent of the amount paid or incurred during the taxable year 
  1.12  for education expenses. 
  1.13     (b) To qualify for the credit under this subdivision, the 
  1.14  amounts paid or incurred must be for: 
  1.15     (1) tuition and fees, either paid by the corporation 
  1.16  directly or to reimburse the person who paid the tuition and 
  1.17  fees; 
  1.18     (2) either an employee of the corporation or an affiliate 
  1.19  of the corporation, who was stationed outside of the United 
  1.20  States for 12 or more of the 15 months before enrolling in the 
  1.21  post-secondary education program, or a dependent, as defined in 
  1.22  section 152 of the Internal Revenue Code, of such an employee; 
  1.23  and 
  1.24     (3) post-secondary education at a post-secondary 
  1.25  educational institution located in this state that either (i) is 
  2.1   operated by the state, or (ii) is operated publicly or privately 
  2.2   and, as determined by the higher education services office, 
  2.3   maintains academic standards substantially equivalent to those 
  2.4   of comparable institutions in the state. 
  2.5      (c) If the credit under this subdivision exceeds the tax 
  2.6   liability of the corporation for the taxable year, the excess 
  2.7   amount of the credit may be carried over to each of the three 
  2.8   taxable years after the taxable year.  The entire amount of the 
  2.9   credit must be carried to the earliest taxable year to which the 
  2.10  amount may be carried.  The unused portion of the credit must be 
  2.11  carried to the following taxable year.  No credit may be carried 
  2.12  to a taxable year more than three years after the taxable year 
  2.13  in which the credit was earned. 
  2.14     Sec. 2.  [EFFECTIVE DATE.] 
  2.15     Section 1 is effective for taxable years beginning after 
  2.16  December 31, 1998.