This bill (S.F. No. 2293) proposes an amendment to Minnesota's tax code to allow an income tax subtraction for student loan payments made by critical access dental clinics on behalf of their employees. Specifically, it adds a new subdivision to Minnesota Statutes 2024, section 290.0132, permitting employees of these clinics to subtract from their taxable income any student loan assistance payments they receive from their employer, provided the payments exceed the federal educational assistance limit under IRS Section 127(a)(2).

The bill defines a critical access dental clinic as a provider designated under Minnesota Statutes, section 256B.76, subdivision 4. The student loan educational assistance payments refer to employer-paid student loan payments classified as educational assistance under the federal Internal Revenue Code (IRC) Section 127(c)(1)(B), disregarding the expiration of that clause.

If enacted, this bill would provide tax relief to employees of critical access dental clinics by reducing their taxable income for qualifying student loan assistance payments received from their employer.