This bill proposes amendments to Minnesota's taxation laws, specifically targeting individual income tax credits. It aims to eliminate the marriage penalty associated with the child credit and increase the phaseout thresholds for these credits. The phaseout threshold will be raised from $35,000 to $75,000 for joint filers and from $29,500 to $37,500 for single filers. Additionally, the bill introduces an effective date for these changes, stating they will apply to taxable years beginning after December 31, 2024.

Furthermore, the bill limits the working family credit based on earned income to taxpayers with qualifying children. The credit amount for earned income will increase from $8,750 to $9,480, and the additional credits will also see increases. Notably, the eligibility for the working family credit will now be restricted to taxpayers with either a qualifying older child or a qualifying child as defined in the relevant statute. The bill also includes provisions for annual inflation adjustments to the phaseout thresholds and credit amounts, with the statutory year for these adjustments set to 2025.

Statutes affected:
Introduction: 290.0661, 290.0671