Bill > HF2339

This bill increases the income threshold for the child tax credit in Minnesota, making it easier for more families to qualify for the credit. Specifically, the bill raises the phaseout threshold (the income level at which the tax credit begins to decrease) from $35,000 to $45,490 for married couples filing jointly, and from $29,500 to $38,340 for all other filers. The changes mean that families with higher incomes can now receive a larger child tax credit before it starts to be reduced. Additionally, the bill modifies the timeline for annual inflation adjustments to the credit amount and phaseout thresholds, pushing the start of these adjustments from 2023 to 2025. The commissioner of revenue will be responsible for making these annual adjustments, which will help ensure the credit's value keeps pace with rising living costs. These changes will take effect for taxable years beginning after December 31, 2024, providing tax relief for Minnesota families in the upcoming tax years.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF2339&ssn=0&y=2025