1.1                          A bill for an act
  1.2             relating to taxation; income; modifying the education 
  1.3             credit; amending Minnesota Statutes 1997 Supplement, 
  1.4             section 290.0674, subdivision 2.  
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  Minnesota Statutes 1997 Supplement, section 
  1.7   290.0674, subdivision 2, is amended to read: 
  1.8      Subd. 2.  [LIMITATIONS.] (a) For claimants with income not 
  1.9   greater than $33,500 $30,500, the maximum credit allowed is 
  1.10  $1,000 per child and $2,000 per family.  The maximum credit per 
  1.11  child is reduced by $1 for each $4 of income over $30,500, and 
  1.12  the maximum credit per family is reduced by $2 for each $4 of 
  1.13  income over $30,500.  No credit is allowed for education-related 
  1.14  expenses for claimants with income greater than $33,500 $34,500.
  1.15  For purposes of this section "income" has the meaning given in 
  1.16  section 290.067, subdivision 2a.  In the case of a married 
  1.17  claimant, a credit is not allowed unless a joint income tax 
  1.18  return is filed. 
  1.19     (b) For a nonresident or part-year resident, the credit 
  1.20  determined under subdivision 1 and the maximum credit amount in 
  1.21  paragraph (a) must be allocated using the percentage calculated 
  1.22  in section 290.06, subdivision 2c, paragraph (e). 
  1.23     Sec. 2.  [EFFECTIVE DATE.] 
  1.24     Section 1 is effective for taxable years beginning after 
  1.25  December 31, 1997.