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HF 1933

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

2025-2026 Regular Session Introduced by Aisha Gomez and 2 co-sponsors

Minnesota bill would raise the student loan tax credit for individuals and make it refundable, allowing eligible filers to receive a refund even if their tax liability is zero.

Author added Smith
#education-higher #students #taxation-income
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Bill Summary · HF 1933

HF 1933 — Individual income tax; student loan credit amount increased and credit made refundable

Overview

HF 1933 is a Minnesota bill proposed to modify the individual income tax credit related to student loans by increasing the credit amount and making the credit refundable. The bill sits within the Education-Higher, Students, Taxation-Income policy area. Its companion in the Senate is SF 2594.

  • Status: Author added Smith
  • Introduced: March 5, 2025
  • Legislative actions:
    • 2025-03-05: Introduction and first reading; referred to Taxes
    • 2025-03-10: Her named as chief author
    • 2025-03-13: Smith added as author
  • Related: Companion bill SF 2594

What the bill would do

  • Increase the amount of the student loan tax credit available to individual income taxpayers.
  • Make the student loan credit refundable, meaning eligible taxpayers could receive a refund even if their state tax liability is zero.

Note: Specific details such as the exact credit amount, eligibility criteria (e.g., income limits, loan type, repayment status), interaction with other credits, and the effective tax year are not provided in the information available. The actual text would define these elements.

Key provisions (as indicated)

  • Credit amount: Increase the current student loan tax credit.
  • Refundability: Establish or expand refundability of the student loan credit.
  • Scope: Applies to Minnesota individual income tax filers; targeted to taxpayers with student loan burdens (definition to be provided in the bill).
  • Administration: Administrative responsibilities would fall under the Minnesota Department of Revenue and relevant tax statutes.

Who would be affected

  • Minnesota residents who have student loans and file state income tax returns.
  • Potential beneficiaries include borrowers with eligible loan types and repayment arrangements, particularly those who previously could not benefit fully from nonrefundable credits.
  • The bill could affect taxpayers across income levels depending on the defined eligibility and credit cap.

Procedural and timeline aspects

  • Introduced March 5, 2025, with first reading and referral to the Taxes committee.
  • Subsequent author changes occurred on March 10 and March 13, 2025, indicating ongoing revisions and positioning for potential floor action.
  • The companion SF 2594 in the Senate suggests parallel consideration in the other chamber.

Additional notes

  • The actual fiscal impact, program particulars (eligibility, phase-ins, and interaction with federal student loan programs), and the precise effective date would be found in the bill’s text and fiscal note.
  • Stakeholders to watch include taxpayers with student loans, higher education advocates, and Revenue/Finance committees as they review the parameter changes.

For a complete understanding, reviewing the official bill text, fiscal note, and any committee hearings or amendments will be necessary.

Compiled from official sources — confirm details with the bill’s official record.

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