This bill proposes amendments to Minnesota Statutes regarding taxation, specifically focusing on individual income and corporate franchise taxes. It introduces a new subtraction for employer-provided dependent care assistance, allowing a subtraction of up to $10,000 for married taxpayers filing jointly and $5,000 for other filers. The bill defines "dependent care assistance" in accordance with the Internal Revenue Code and specifies that this provision will be effective for taxable years beginning after December 31, 2024.

Additionally, the bill establishes a tax credit for employers who provide child care expenses, allowing them to claim a credit equivalent to the amount claimed under section 45F of the Internal Revenue Code, limited to expenses incurred in Minnesota. It includes provisions for partnerships and S corporations regarding the distribution of credits and outlines a carryover mechanism for any unused credits over the taxpayer's liability for tax. This section, like the previous one, will also take effect for taxable years beginning after December 31, 2024.

Statutes affected:
Introduction: 290.0132