Minnesota Senate OKs tax break for college expenses

01/25/2007

BY BILL SALISBURY
Pioneer Press


An estimated 160,000 Minnesota college students, their parents and teachers will get immediate tax breaks under a bill the state Senate passed today and sent to Gov. Tim Pawlenty for his signature.

The measure, approved on a 65-0 vote, will allow students or their parents to deduct up to $4,000 in college tuition and related expenses on their 2006 Minnesota income tax returns. That would save the average eligible taxpayer about $165.

Teachers will be able to deduct up to $250 spent on classroom books and supplies last year. The average tax benefit would be $20.

The bill, the first major piece of legislation passed this year, conforms state tax law to federal tax breaks that Congress enacted last year after the Legislature adjourned. Lawmakers acted on it quickly so taxpayers can claim the deductions on the income tax returns they started filing this month.