Skip to main content Skip to office menu Skip to footer
Capital IconMinnesota Legislature

Pre-tax learning accounts

Published (3/13/2009)
By Nick Busse
Share on: 

Many employees in Minnesota take advantage of pre-tax accounts to help pay for medical and dental expenses; they might be able to use them for education as well.

HF72, sponsored by Rep. Kim Norton (DFL-Rochester), would allow for the creation of lifelong learning accounts through the Department of Employment and Economic Development. Employers and employees who make contributions would be eligible for tax credits.

The House Higher Education and Workforce Development Finance and Policy Division approved the bill March 10 and referred it to the House Finance Committee.

The credit for employees would equal 50 percent of contributions up to $1,000, while the employer credit would be equal to the employer’s account contribution up to $500. The accounts would be “portable,” meaning they would stay with the employee and not the company.

Norton said the bill would help ensure that the state’s workforce has the tools to deal with rapidly changing economic times and an aging population of workers who will likely need to be retrained.

“We often see it in the public good to fund education for kids, but for the private good often for adults. And I would say that isn’t the case, and in the future I think we need to change our mindset,” Norton said.

Rep. Joe Atkins (DFL-Inver Grove Heights) called the accounts a “neat idea,” but wondered whether the state’s projected budget deficit made it inadvisable to implement the program right now.

Sen. Kathy Sheran (DFL-Mankato) sponsors the companion, SF147, which awaits action by the Senate Business, Industry and Jobs Committee.

Session Weekly More...

Session Weekly Home

Related Stories

A little bit of everything
Omnibus economic development law touches on a wide range of topics
(view full story) Published 6/1/2010

Return on investments
State employee and teacher retirement accounts hurting
(view full story) Published 4/15/2010

Building a better unemployment system
Omnibus workforce policy bill includes help of laid-off workers
(view full story) Published 3/25/2010

Minnesota Index: Working (or not) Minnesotans
Figures and statistics on employment and unemployment in Minnesota
(view full story) Published 2/11/2010

At Issue: Line-item vetoes for jobs bill
New law funds jobs and housing, makes ice hockey the state sport
(view full story) Published 5/29/2009

At Issue: The works
Jobs programs get a boost in economic development finance bill
(view full story) Published 5/1/2009

First Reading: Career non-opportunities
Lawmakers offer conflicting ideas on how to create jobs
(view full story) Published 3/27/2009

At Issue: A lifeline for the jobless
A law extending unemployment benefits highlights a growing problem
(view full story) Published 1/30/2009

Minnesota Index: Employment or lack thereof
Figures and statistics on unemployment in Minnesota.
(view full story) Published 1/30/2009

First Reading: New jobs in hard times
Lawmakers make job creation a priority for 2009
(view full story) Published 1/16/2009