Minnesota Other Nonrefundable Credits (onscreen version)

Other Nonrefundable Credits (onscreen version)
2023 Schedule M1C, Other Nonrefundable Credits
2023 Schedule M1C, Nonrefundable Credits

*231661*

Complete this schedule to determine line 16 of Form M1. Include this schedule when filing your return.

Your First Name and Initial		

Your Last Name			

	1 	 Marriage Credit for joint return when both spouses have taxable earned income
or taxable retirement income (enclose Schedule M1MA)  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .
	
	2	Credit for long-term care insurance premiums paid (enclose Schedule M1LTI) .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .
	3	 Credit for taxes paid to another state (enclose Schedules M1CR and M1RCR) .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .

Your Social Security Number

1	 	

	

2	 	

	

3	 	

	

	4	 Credit for Past Military Service (see instructions)  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 4 	 	
	 5	 Employer Transit Pass Credit (enclose Schedule ETP)  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 5	 	
	 6	 SEED Capital Investment Credit (see instructions; enclose certification) .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 6	 	
	 7	 Education Savings Account Contribution​Credit (enclose Schedule M1529) .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 7	 	
	 8	 Credit for Attaining Master’s Degree in Teacher’s Licensure Field (enclose Schedule M1CMD)  .  .  .  .  .  .  .  .  .  .  .  . 8	 	
	 9	 Student Loan Credit (enclose Schedule M1SLC) .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 9	 	
	10 	
		
		
	11 	
		
	12 	
		
		
		
		
	13 	

Beginning Farmer Management Credit  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .
Enter the certificate number from the certificate you received from the Rural Finance Authority:
BF 23 Film Production Credit .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .
Enter the credit certificate number: TAXC Tax Credit for Owners of Agricultural Assets  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .
Enter the certificate number from the certificate you received from the Rural Finance Authority:
AO 2 3 AO 2 3 AO 2 3 Credit for Sales of Manufactured Home Parks to Cooperatives  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .

10	 	

11	 	
12	 	

13	 	

	14 	 Short Line Railroad Infrastructure Modernization Credit  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 14	 	
	15 	
		
		
	16 	

Housing Tax Credit  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 15	 	
Enter the credit certificate number:
SHTC Credit for increasing research activities (enclose Schedule KPI, KS, or KF) .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 16	 	

	17 	 Carryforward of prior-year Beginning Farmer Management Credits (see instructions) .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 17	 	
		 BF
		 BF
	18 	 Carryforward of prior-year Owners of Agricultural Assets Credits (see instructions) .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 18	 	
		AO
		 AO
-

9995

2023 Schedule M1C, page 2

*231671*

	19 	 Carryforward of prior-year Credit for Increasing Research Activities .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 19	 	
		 List the years the credits were reported to you on Schedule KPI, KS, or KF:
		
	20 	 Alternative Minimum Tax Credit (enclose Schedule M1MTC)  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 20	 	
	21	 Add lines 1 through 20. Enter total here and on line 16 of Form M1.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 21		

	 You must include this schedule with your Form M1.

9995

2023 Schedule M1C Instructions
Should I file this schedule?

Complete Schedule M1C if any of these apply to you (or your spouse if filing a joint return):
•	 You are filing a joint return and have taxable earned income, pension, or Social Security income
•	 You paid premiums on a qualified long-term care insurance policy
•	 You were a Minnesota resident for all or part of 2023 and paid income tax to both Minnesota and another state on the same income
•	 You qualify for the Credit for Past Military Service (see the instructions for line 4 of this schedule)
•	 You purchased transit passes to resell or give to your employees
•	 You paid Minnesota alternative minimum tax in prior years and are not required to pay it in 2023
•	 You invested in a qualified business in East Grand Forks, Breckenridge, Dilworth, Moorhead, or Ortonville, and the business has been certified as qualified for the SEED Capital Investment Program
•	 You contributed to a qualified education savings account in 2023 and did not claim the Education Savings Account Subtraction
•	 You were a licensed teacher who completed a qualifying master’s degree program you began after June 30, 2017
•	 You were a full-year or part-year resident and made eligible loan payments on your own qualified student loans
•	 You received a credit certificate from the Minnesota Rural Finance Authority
Report the total of all credits from Schedule M1C on line 16 of Form M1. Include any schedules you completed when filing your return.

Line Instructions

Round amounts to the nearest whole dollar.
Line 1 — Marriage Credit (Schedule M1MA)
To qualify for the Marriage Credit, all of these must be true:
•	 You are filing a joint return
•	 Both you and your spouse have taxable earned income, taxable pension, or taxable Social Security income
•	 Your joint taxable income on line 9 of your Form M1 is at least $44,000
•	 The earned income of the lesser-earning spouse is at least $28,000
If you qualify, complete Schedule M1MA, Marriage Credit, to determine your credit.
Line 2—Credit for Long-Term Care Insurance Premiums (Schedule M1LTI)
You may be able to claim a credit against tax based on premiums you paid in 2023 for a qualified long-term care insurance policy for which
you did not receive a full deduction on Schedule M1SA, Minnesota Itemized Deductions.
To qualify, your long-term care insurance policy must:
•	 Qualify as a deduction (see Schedule M1SA), disregarding the income test
•	 Have a lifetime long-term care benefit limit of $100,000 or more
The maximum credit is $100 per person. If you qualify, complete Schedule M1LTI, Long-Term Care Insurance Credit.
Line 3—Credit for Taxes Paid to Another State (Schedule M1CR and Schedule M1RCR)
If you were a Minnesota resident for all or part of 2023 and you paid income tax to both Minnesota and another state on the same income, you
may be able to reduce your tax. A Canadian province or territory and the District of Columbia are considered states for purposes of this credit.
If you were domiciled in another state, but are required to file a 2023 Minnesota income tax return as a Minnesota resident under the 183-day
rule, you may be eligible for this credit. To be eligible, you must have paid 2023 state tax on the same income to both Minnesota and your
state of domicile. You must get a statement from the other state’s tax department stating ineligibility to receive a credit on that state’s return
for income tax paid to Minnesota. Include this statement with your Form M1.
If you claimed a federal foreign tax credit and you included taxes paid to a Canadian province or territory, you cannot use these same taxes
paid to determine your Minnesota credit. If you qualify, complete Schedule M1CR, Credit for Income Tax Paid to Another State, and include
the schedule with Form M1.

If you paid income tax to Wisconsin: A portion of your credit may be refundable. Complete Schedule M1RCR, Credit for Tax Paid to Wisconsin, and include the schedule with Form M1.

Line 4 — Credit for Past Military Service

You qualify for a credit if you (or your spouse if filing a joint return) have separated from service, your adjusted gross income is less than
$37,500, you did not claim a subtraction for military pension or other military retirement pay on line 25 of Schedule M1M, and at least one of
these is true:
•	 You were honorably discharged and receive a military pension or other retirement pay for your service in the military.
•	 You had served in the military for at least 20 years.
•	 You have a service-related disability rated by the U.S. Department of Veterans’ Affairs as being 100% total and permanent.

Continued

If your adjusted gross income is:
•	 $30,000 or less, enter $750 on line 4 of Schedule M1C (if both you and your spouse qualify for the credit and are filing a joint return, enter
$1,500)
•	 Between $30,000 and $37,500, use the Worksheet for Line 4 to determine your credit amount.
•	 More than $37,500, you do not qualify for this credit.
You may not claim this credit if you claimed the subtraction for military retirement pay on Schedule M1M.

Worksheet for Line 4

Complete this worksheet if your income is between $30,000 and $37,500.
750
1	 The maximum credit is $750  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2	 Federal adjusted gross income from line 1 of Form M1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
30,000
3	 Income limit  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
4	 Subtract step 3 from step 2  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
5	 Multiply step 4 by 10% (.10)  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
6	 Subtract step 5 from step 1  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
	 Full-year residents: Enter the result here and on line 4 of Schedule M1C.
	 Part-year residents and nonresidents:
7 	Enter the percentage from line 30 of Schedule M1NR  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
8	 Multiply step 6 by step 7. Enter the result here and on line 4 of Schedule M1C . . . . . . . . . . . . . . . . . . . . . . . . . 
If both you and your spouse qualify for the credit and are filing a joint return, multiply the result on step 6 (or step 8 if you are a partyear resident or nonresident) by 2.

Line 5 — Employer Transit Pass Credit (Schedule ETP)

If you purchase transit passes to give or resell to your employees, you may be eligible for this credit. To qualify:
•	 The transit pass must be a pass, token, farecard, voucher, or similar item entitling a person to transportation at regular or reduced prices.
•	 The pass must be used in Minnesota.
•	 The transportation must be provided by either:
•	 A public or privately-owned mass transit facility
•	 A person in the business of transporting people for compensation or hire. The vehicle must have seating capacity for at least six adults,
not including the driver.
The credit is equal to 30% of the difference between the price you incur for the passes and the price you charge employees.
If you qualify, complete Schedule ETP, Employer Transit Pass Credit. Enter the credit amount on line 5 of Schedule M1C, and include both
schedules when you file Form M1. Include any credits reported to you on any Schedule KPI, KS, or KF you received.

Line 6 — SEED Capital Investment Credit

If you invest in a qualified business in Breckenridge, Dilworth, East Grand Forks, Moorhead, or Ortonville, and the business is certified by the
Minnesota Department of Employment and Economic Development (DEED) as qualifying for the SEED Capital Investment Program, you
may qualify for this credit. You may carry the credit forward for up to four years.
Enter the amount from the credit certificate you received from DEED. Include the credit certificate and Schedule M1C when you file Form
M1.

Line 7 — Education Savings Account Contribution Credit

If you contributed to a qualified education savings account (section 529 plan) in 2023, you may be eligible for a nonrefundable credit.
Complete Schedule M1529, Education Savings Account Contribution Credit or Subtraction, and enter the credit on line 7 of Schedule M1C.
Include both schedules with your Form M1.
You are not eligible for this credit if you claimed the Education Savings Account Subtraction.

Line 8 — Credit for Attaining Master’s Degree in Teacher’s Licensure Field

If you were a licensed teacher who completed a master’s degree program in a core content area that you began after June 30, 2017, you
may be eligible for a nonrefundable credit if your degree program did not include pedagogy or a pedagogy component. Complete Schedule
M1CMD, Credit for Attaining Master’s Degree in Teacher’s Licensure Field, and enter the credit on line 8 of Schedule M1C. Include both
schedules with your return.

Line 9 — Student Loan Credit

If you were a full-year or part-year resident of Minnesota in 2023 and made eligible loan payments on your own qualified student loans in
2023, you may be eligible for a credit against tax if you had taxable earned income. Complete Schedule M1SLC, Student Loan Credit, and
enter your credit from the schedule on line 9 of Schedule M1C. Include both schedules with your return.

Line 10 — Beginning Farmer Management Credit

If you received a credit certificate from the Minnesota Rural Finance Authority for enrolling in a management class, enter the certificate number in the space provided and the credit amount on line 10. You may carry the unused credit forward for up to 3 years after the tax year it is
generated.

Line 11 — Film Production Credit

If you received a credit certificate from the Minnesota Department of Employment and Economic Development for certain eligible film
production costs, enter the certificate number in the space provided and credit amount on line 11. You should claim the Film Production Credit
Continued
only for the tax year you incurred eligible film production costs.

Line 12 — Tax Credit for Owners of Agricultural Assets

If you received a credit certificate from the Minnesota Rural Finance Authority for selling or leasing agricultural assets to a beginning farmer,
enter the certificate number in the space provided and the credit amount on line 12.
If, as an individual, you received a certificate from a Partnership or S-Corporation, enter the certificate number for the certificate you received
as an individual. If you received more than one certificate from an entity, but not as an individual, enter each certificate number on the spaces
provided. If you received more than three certificates, provide an attachment with a list of the additional certificate numbers.
You may carry the unused credit forward for up to 15 years after the tax year it is generated.

Line 13 – Credit for Sales of Manufactured Home Parks to Cooperatives

If you sold a manufactured home park to a cooperative, you may be eligible for this credit. Complete and include Schedule MHP, Credit for
Sales of Manufactured Home Parks to Cooperatives. If you were a part year or nonresident of Minnesota, you will determine your credit by using your percentage of income taxable to Minnesota. Multiply the amount of the credit or the amounts reported to you on the lines listed below,
by line 30 of Schedule M1NR.
Also include amounts reported to you on:
•	 Schedule KS, line 22
•	 Schedule KPI, line 23
•	 Schedule KF, line 37

Line 14 – Short Line Railroad Infrastructure Modernization Credit

If you had qualified railroad reconstruction or replacement expenditures, you may be eligible for this credit. Complete Schedule RAIL, Short
Line Railroad Infrastructure Modernization Credit. If you were a part year or nonresident of Minnesota, you will determine your credit by using your percentage of income taxable to Minnesota. Multiply the amount of the credit or the amounts reported to you on the lines listed below,
by line 30 of Schedule M1NR.
Also include amounts reported to you on:
•	 Schedule KS, line 21
•	 Schedule KPI, line 22
•	 Schedule KF, line 36

Line 15 – Housing Tax Credit

If you received a certificate from the Minnesota Housing Finance Agency (MHFA) for qualifying contributions to a state fund, enter the
certificate number in the space provided and the credit amount on line 15. If you received multiple certificates, combine the amounts from all
certificates when completing line 15, and provide a statement with the certificate numbers and the amount from the certificate. If you were a
part year or nonresident of Minnesota, you will determine your credit by using your percentage of income taxable to Minnesota. Multiply the
credit amount you would have used if your income was fully taxable to Minnesota by line 30 of Schedule M1NR.
Also include amounts reported to you on:
•	 Schedule KS, line 21
•	 Schedule KPI, line 21
•	 Schedule KF, line 35

Line 16 — Credit for Increasing Research Activities
Include the amounts reported you on:
•	 Schedule KS, line 24
•	 Schedule KPI, line 24
•	 Schedule KF, line 31

Attach the appropriate schedule when you file your return.
The credit is limited to the amount from line 10 of Form M1 or the liability for tax, whichever is less. You may carry the unused credit forward
for up to 15 years after the tax year it is generated.

Line 17 - Carryforward of prior year Beginning Farmer Management Credit

If you have a carryforward of one or more prior-year Beginning Farmer Management Credits, enter the certificate number for each credit. Next
to each certificate number, enter the amount you are claiming for the current year. On line 14, enter the total carryforward amount for all credits
you are claiming in the current year.

Line 18 - Carryforward of prior year Owners of Agricultural Assets Credit

If you have a carryforward of one or more prior-year Owners of Agricultural Assets Credits, enter the certificate number for each credit. Next
to each certificate number, enter the amount you are claiming for the current year. On line 15, enter the total carryforward amount for all credits
you are claiming in the current year.

Line 20 — Alternative Minimum Tax Credit (Schedule M1MTC)

If you have never paid Minnesota alternative minimum tax, you do not qualify for this credit. If you paid Minnesota alternative minimum tax
in one or more years from 1989 through 2022, but not for 2023, complete Schedule M1MT, Alternative Minimum Tax, and Schedule M1MTC,
Alternative Minimum Tax Credit, to determine if you qualify or have a credit carry over from a prior year of any unused portion of your minimum tax credit. Enter the credit from Schedule M1MTC on line 17 of Schedule M1C.