This bill amends Minnesota Statutes 2024, specifically section 290.0661, to increase the income thresholds for the child tax credit. The phaseout threshold for the credits is raised from $35,000 to $45,490 for joint filers and from $29,500 to $38,340 for single filers. These changes are set to take effect for taxable years beginning after December 31, 2024.

Additionally, the bill mandates that starting in taxable year 2025, the Minnesota Department of Revenue will adjust the credit amounts and phaseout thresholds for inflation annually, as outlined in section 270C.22. The adjustments will be rounded to the nearest $60, ensuring that the thresholds keep pace with inflation. This provision will also take effect for taxable years beginning after December 31, 2025.

Statutes affected:
Introduction: 290.0661