This bill amends Minnesota Statutes to expand the dependent care credit for individual income tax purposes. It introduces a new subdivision in section 290.0131 that 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 determining eligible dependent care expenses and credit percentages. The bill also includes provisions for deemed expenses for children under six years old and outlines requirements for identifying information to claim the credit.

Key changes include the introduction of a credit percentage that starts at 50% and is reduced based on the taxpayer's adjusted gross income, as well as specific limits on eligible dependent care expenses—$12,000 for one qualifying individual and $24,000 for two or more. The bill also clarifies that if a married couple files separately, only one spouse can claim the credit. The effective date for these changes is set for taxable years beginning after December 31, 2024.

Statutes affected:
Introduction: 290.0131, 290.067