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Committee hears bill to expand education tax credit to cover career and technical education costs
Summary
Senate File 501 would expand the state education credit to cover transportation, required student-organization participation and certain equipment costs for Career and Technical Education students.
Senate File 501, presented by Senator Dornick Feb. 5, would amend Minnesota’s education credit to allow certain additional expenses tied to Career and Technical Education (CTE) programs to qualify for the tax credit. The changes described at the hearing would add (1) transportation outside regular school hours directly related to program participation, (2) required participation fees for career-technical student organizations integrated into CTE curriculum (CTSO participation), and (3) equipment required for program participation that is not already covered by clause 2.
Why it matters: Witness Emily Saeed, director of the Minnesota STEM Ecosystem and former executive director of the Minnesota Foundation for Student Organizations, described how meaningful CTSO participation and immersive work-based learning can be costly and often falls on students and families. She said CTSO national conference fees can range from about $150–$250 and that experiential internships and immersive work-based learning can add transportation, safety, and certification costs that create barriers for students, especially in Greater Minnesota.
Testimony and fiscal context: Saeed told the committee, “career and technical education…drives our workforce and workforce development here in Minnesota,” and argued an expanded credit would improve access. The chair highlighted information from the Department of Education and the Department of Revenue included in the packet: testimony cited approximately 206,400 students enrolled in CTE for the calendar year, a Department estimate that 8.45% of school-age dependents were eligible for the current education credit in tax year 2023, and a fiscal estimate that a 5% uptake of eligible CTE children under the proposed expansion would cost about $1.9 million per year (average credit estimated at $180 per child, with an assumption of one eligible child per return).
Outcome and next steps: After testimony and questions the committee laid SF 501 over for possible inclusion in the omnibus tax bill.
Votes and formal actions: No roll-call votes were recorded; bill was laid over for omnibus consideration.
