This bill proposes amendments to Minnesota Statutes regarding individual income taxation, specifically focusing on expanding the dependent care credit and establishing the Great Start child care credit. Key changes include the addition of a new subdivision to section 290.0131 that allows taxpayers claiming the dependent care credit to exclude certain dependent care assistance from their gross income. Additionally, section 290.067 is significantly revised to redefine the amount of credit available to taxpayers based on their eligible dependent care expenses, which are now calculated using a new credit percentage system that adjusts based on the taxpayer's adjusted gross income.

The bill introduces several new subdivisions that outline eligible dependent care expenses, including specific limits based on the number of qualifying individuals and additional increases for taxpayers with young children. It also establishes rules for married couples filing separately and clarifies the requirements for claiming the credit, including the necessity of providing identifying information for care providers. All new provisions are set to take effect for taxable years beginning after December 31, 2024, with some adjustments related to inflation scheduled for 2025.

Statutes affected:
Introduction: 290.0131, 290.067