Bill > SF4715

This bill expands the dependent care credit in Minnesota by: 1) Allowing taxpayers who claim the credit to add the amount of dependent care assistance excluded from their gross income under Section 129 of the Internal Revenue Code as an addition on their state tax return. 2) Increasing the maximum eligible dependent care expenses from $3,000 for one qualifying individual and $6,000 for two or more qualifying individuals to $12,000 and $24,000, respectively. 3) Setting the credit percentage at 50% and phasing it out at a rate of 1 percentage point for every $1,000 of adjusted gross income above $150,000 (or $75,000 for married filing separately). 4) Providing deemed expenses rules for certain situations, such as when a child under age 6 is cared for at a licensed family day care home operated by the child's parent. 5) Requiring the identifying information of the care provider to be included on the tax return in order to claim the credit. The bill takes effect for tax years beginning after December 31, 2022.