HF 2115

as introduced - 93rd Legislature (2023 - 2024) Posted on 02/21/2023 09:01am

A bill for an act
relating to taxation; income and corporate franchise; establishing a tax credit for
employer-provided child care expenses; proposing coding for new law in Minnesota
Statutes, chapter 290.

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

Section 1.

new text begin [290.0687] EMPLOYER-PROVIDED CHILD CARE CREDIT.
new text end

new text begin Subdivision 1. new text end

new text begin Definition. new text end

new text begin (a) For the purposes of this section, the following term has
the meaning given.
new text end

new text begin (b) "Employer" has the meaning given in section 290.92, clause (4).
new text end

new text begin Subd. 2. new text end

new text begin Credit allowed. new text end

new text begin (a) An employer is allowed a credit against the taxes imposed
under this chapter equal to the amount of the credit claimed under section 45F of the Internal
Revenue Code, except the credit under this section is limited to credits claimed based on
qualified child care expenses or qualified child care resource and referral expenditures that
were paid or incurred in Minnesota.
new text end

new text begin (b) For a taxpayer who claimed a credit under section 45F of the Internal Revenue Code
based partly on expenses paid or incurred outside of Minnesota, the credit under this section
equals the amount of the credit claimed federally that is attributable to expenses paid or
incurred in Minnesota.
new text end

new text begin Subd. 3. new text end

new text begin Partnerships. new text end

new text begin Credits granted to a partnership, a limited liability company
taxed as a partnership, or S corporation are passed through to the partners, members, or
shareholders, respectively, pro rata to each partner, member, or shareholder based on their
share of the entity's assets or as specially allocated in their organizational documents or any
other executed agreement, as of the last day of the taxable year.
new text end

new text begin Subd. 4. new text end

new text begin Carryover. new text end

new text begin If the amount of the credit under this section exceeds the taxpayer's
liability for tax under this chapter, the excess is a credit carryover to each of the five
succeeding taxable years. The entire amount of the excess unused credit for the taxable year
must be carried first to the earliest of the taxable years to which the credit may be carried
and then to each successive year to which the credit may be carried. The amount of the
unused credit that may be added under this subdivision may not exceed the taxpayer's
liability for tax, less any credit for the current taxable year.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2022.
new text end