This bill proposes the establishment of a contingent health insurance premium tax credit for individual taxpayers in Minnesota. It amends existing statutes to allow eligible taxpayers—those who do not qualify for a federal premium tax credit due to high household income and who have purchased a qualified health plan through MNsure—to receive a tax credit equal to 20% of their premiums paid for the plan. The credit is contingent upon the Minnesota premium security plan not being funded by the legislature for the applicable taxable year. Additionally, the bill outlines the process for claiming the credit, including provisions for refunds if the credit exceeds the taxpayer's liability.

The bill also modifies the outreach process for health insurance enrollment by requiring MNsure to send outreach letters to interested taxpayers and allowing a special enrollment period for those who receive the letters. It specifies that taxpayers with household members currently enrolled in a qualified health plan are eligible for this special enrollment. Furthermore, it introduces a temporary restriction on deductions for medical expenses related to insurance premiums for certain taxable years, ensuring that taxpayers cannot claim deductions for premiums used to claim the new credit. The effective date for these changes is set for January 1, 2027, or upon federal approval, whichever is later.

Statutes affected:
Introduction: 290.0122