This bill amends Minnesota Statutes to expand the dependent care credit and establish the Great Start child care credit. It introduces new provisions that allow taxpayers to claim a credit based on their eligible dependent care expenses, which are defined as employment-related expenses incurred during the taxable year. The bill sets specific limits on these expenses, increasing the allowable amounts for taxpayers with young children. Additionally, it establishes a credit percentage that varies based on the taxpayer's adjusted gross income, with reductions applied as income increases.

Key amendments include the addition of new subdivisions that define eligible dependent care expenses, the credit percentage, and the requirements for claiming the credit. The bill also specifies that taxpayers must provide identifying information for any person to whom payments are made for care in order to qualify for the credit. The effective date for these changes is set for taxable years beginning after December 31, 2024, with some provisions related to inflation adjustments taking effect for taxable years beginning after December 31, 2025.

Statutes affected:
Introduction: 290.0131, 290.067