Bill > HF1384

This bill expands Minnesota's dependent care tax credit by introducing several key changes to make child care more affordable for families. The bill increases the maximum eligible dependent care expenses to $3,000 for one qualifying child and $6,000 for two or more qualifying children, with additional increases for families with young children (under age five) of up to $7,000 for one young child and $14,000 for two young children. The credit percentage starts at 50% and is gradually reduced for taxpayers with higher incomes, with a minimum credit percentage of 20% for those with adjusted gross incomes above $400,000. The bill also introduces new provisions for determining eligible expenses, including allowing deemed expenses for parents who operate licensed family day care homes or have children under one year old. Additionally, the bill requires taxpayers to provide identifying information for care providers when claiming the credit and makes special provisions for married couples filing separate returns. These changes aim to provide more financial support for working families by helping to offset the costs of child care, with the new provisions set to take effect for taxable years beginning after December 31, 2024.

Budget and Finance, Education

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF1384&ssn=0&y=2025