Bill > HF2197

This bill proposes several changes to Minnesota's individual income tax credits, specifically focusing on the child credit and working family credit. The legislation increases the phaseout thresholds for these credits, raising the threshold for married couples filing jointly from $35,000 to $75,000 and for other filers from $29,500 to $37,500. The bill also increases the earned income base for the working family credit from $8,750 to $9,480 and raises the additional credit amounts for taxpayers with qualifying older children. Furthermore, the bill limits the working family credit based on earned income to taxpayers with qualifying children, specifically those with either a qualifying older child or a qualifying child as defined in another section of the law. The legislation adjusts the inflation calculation year from 2023 to 2025 and sets the effective date for most provisions as taxable years beginning after December 31, 2024. These changes aim to provide more substantial tax relief for working families with children by expanding the income thresholds and increasing credit amounts, while also ensuring that the credits are more targeted to families with children.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF2197&ssn=0&y=2025