Bill > SF5177

This bill establishes a new tax credit for employers in Minnesota who provide child care expenses, aiming to encourage businesses to support their employees' child care needs. The credit is tied to a federal tax credit, specifically section 45F of the Internal Revenue Code, but is limited to expenses paid or incurred within Minnesota. To claim this credit, employers must apply to the commissioner of employment and economic development, who will issue an allocation certificate verifying eligibility and the credit amount. There are annual caps on the total amount of credits that can be allocated statewide and to individual taxpayers, with unused allocations potentially carrying over to future years. The bill also outlines how these credits are handled for partnerships and other pass-through entities, and allows any unused credit to be carried forward for up to five years to offset future tax liabilities. This provision is set to take effect for taxable years beginning after December 31, 2026.