HF 1369

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/01/2023 10:56am

A bill for an act
relating to taxation; individual income; establishing a temporary refundable young
child credit.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1. new text begin MINNESOTA CHILD CREDIT.
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new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have
the meanings given:
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new text begin (1) "qualifying child" has the meaning given in section 152(c) of the Internal Revenue
Code; and
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new text begin (2) "young child" means a qualifying child of the taxpayer who has not attained the age
of six as of the close of the calendar year in which the taxable year of the taxpayer began.
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new text begin (b) The definitions in Minnesota Statutes, chapter 290, apply to this section.
new text end

new text begin Subd. 2. new text end

new text begin Credit allowed. new text end

new text begin (a) An individual income taxpayer is allowed a credit against
the tax imposed under Minnesota Statutes, chapter 290, equal to $3,000 for each young
child of the taxpayer.
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new text begin (b) The credit is reduced by ten percent of adjusted gross income in excess of:
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new text begin (1) $150,000 for a married taxpayer filing a joint return;
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new text begin (2) $112,500 for a head of household taxpayer; and
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new text begin (3) $75,000 for all other taxpayers.
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new text begin Subd. 3. new text end

new text begin Credit refundable. new text end

new text begin (a) If the amount of credit which a claimant is eligible to
receive under this section exceeds the claimant's tax liability under this chapter, the
commissioner shall refund the excess to the claimant.
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new text begin (b) An amount sufficient to pay the refunds required by this section is appropriated to
the commissioner from the general fund.
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new text begin Subd. 4. new text end

new text begin Advance payment of tax credits. new text end

new text begin (a) The commissioner of revenue must allow
taxpayers to elect to receive six periodic advance payments of the credit under this section.
The aggregate amount of advance payments made to a taxpayer during must equal the
amount of the credit for which taxpayer was eligible. The commissioner must not distribute
advance payments to a taxpayer who does not elect to receive advance payments. The
process for applying for and distributing payments must include:
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new text begin (1) a process for a taxpayer to elect to receive and cease receiving advance payments;
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new text begin (2) a process for distributing advance payments to taxpayers through direct deposit,
United States mail, or any other method deemed appropriate by the commissioner; and
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new text begin (3) a process for informing taxpayers of the amount of advance payments received in
the calendar year.
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new text begin (b) The amount of a taxpayer's credit under this section for the taxable year is reduced
by the amount of advance payments under this section.
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new text begin (c) If a taxpayer's advance payments exceeded the credit the taxpayer was eligible to
receive for the taxable year, the taxpayer's liability for tax is increased by the difference
between the amount of advance payments received and the credit amount.
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new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for taxable years beginning
after December 31, 2022, and before January 1, 2024.
new text end