Session Update: Allowing Private Tuition as Tax Deduction

A measure that would help parents afford their children’s academic pursuits, particularly as the state emerges from the coronavirus pandemic, came before the Senate Tax Committee Thursday, March 4. Senator Justin Eichorn, R-Grand Rapids, said his bill, SF 1153, would raise the allowed subtraction for education-related expenses and add private school tuition as an allowable expense in Minnesota’s tax code.

“This bill helps address the achievement gap by allowing families to use the tax credit and/or deduction for tutors, summer camps, and other education enrichment opportunities to make up for these learning deficits,” Eichorn said. Further, he said that including private school tuition as an allowable deduction would enable low income families to receive the same kind of tax benefit that middle class families receive.

Noting that a number of organizations oppose tax credits for private school tuition, Senator Tom Bakk, I-Cook, suggested removing the tuition allowance from the bill. Bakk said that raising the limits for education expenses is a creative way to increase K-12 spending. “Maybe there are other ways to get some money in to the K-12 system,” he concluded.

The bill was laid over for possible inclusion in the tax bill.