The bill establishes a temporary refundable young child credit for individual income taxpayers in Minnesota. It defines a "young child" as a qualifying child under the age of six and allows taxpayers to claim a credit of $3,000 for each young child. The credit is subject to a reduction based on the taxpayer's adjusted gross income, with specific thresholds set for married couples, heads of household, and other taxpayers. Additionally, the bill includes provisions for the credit to be refundable, meaning that if the credit exceeds the taxpayer's tax liability, the excess will be refunded.

Furthermore, the bill allows taxpayers to opt for six periodic advance payments of the credit, with the total amount of these payments equaling the credit for which the taxpayer is eligible. It outlines processes for taxpayers to elect to receive or stop receiving advance payments, as well as methods for distributing these payments. The bill is effective retroactively for taxable years beginning after December 31, 2022, and before January 1, 2024.