This bill amends Minnesota Statutes to expand the dependent care credit for individual income tax purposes. It introduces a new subdivision to section 290.0131, which allows taxpayers claiming the dependent care credit to exclude certain amounts of dependent care assistance from their gross income. Additionally, it modifies section 290.067 by adding definitions for "employment-related expenses" and "qualifying individual," and it establishes new criteria for calculating eligible dependent care expenses and the credit percentage. The bill also includes provisions for deemed expenses for care provided by a licensed family day care home operated by a child's parent, and it specifies requirements for identifying information needed to claim the credit.

The bill further stipulates that the credit will be refundable, meaning that if the credit exceeds the taxpayer's liability, the excess will be refunded. It also clarifies that only one spouse in a married couple filing separately may claim the credit. The effective date for these changes is set for taxable years beginning after December 31, 2024. Overall, the bill aims to enhance support for families with dependent care expenses by broadening eligibility and simplifying the claiming process.

Statutes affected:
Introduction: 290.0131, 290.067