Bill > SF2508

This bill increases the income thresholds for the child tax credit in Minnesota, raising the phaseout thresholds for the credit's calculation. Specifically, for married taxpayers filing joint returns, the income threshold will increase from $35,000 to $45,490, and for all other filers, the threshold will increase from $29,500 to $38,340. The bill also modifies the timeline for annual inflation adjustments, changing the reference year for these adjustments from 2023 to 2025. When the credit is phased out, it is reduced by 12 percent of either earned income or adjusted gross income (whichever is greater) that exceeds these new thresholds. The changes will be effective for taxable years beginning after December 31, 2024, for the threshold increases, and after December 31, 2025, for the inflation adjustment provisions. This modification aims to provide more financial support to families by allowing them to claim more of the child tax credit at higher income levels.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF2508&ssn=0&y=2025