Bill > SF2101

This bill repeals the inflation adjustment provisions for two specific tax credits in Minnesota: the Child Tax Credit and the Working Family Credit. Currently, these credits have mechanisms that automatically adjust their dollar amounts each year to account for inflation, using guidance from section 270C.22. The bill would eliminate these annual inflation adjustments, meaning the credit amounts and phase-out thresholds would remain static instead of increasing with economic changes. Specifically, the bill targets Minnesota Statutes sections 290.0661, subdivision 7 (which covers the Child Tax Credit's inflation adjustments) and 290.0671, subdivision 7 (which covers the Working Family Credit's inflation adjustments). The provisions would become effective for taxable years beginning after December 31, 2024, which means the 2025 tax year would be the first year without these automatic inflation adjustments. By preventing these automatic increases, the bill could effectively reduce the real value of these tax credits over time as inflation continues, potentially impacting lower and middle-income families who rely on these credits.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF2101&ssn=0&y=2025