HF 3299

Introduction - 94th Legislature (2025 - 2026)

Posted on 05/06/2025 10:23 a.m.

A bill for an act
relating to taxation; individual income; establishing a refundable tax credit for
family members who provide child care; 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 [290.0696] CREDIT FOR FAMILY CHILD CAREGIVERS.
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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 (b) "Qualifying caregiver" means an individual who meets the requirements of subdivision
3.
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new text begin (c) "Qualifying relative" means an individual who, by blood or marriage, bears any of
the following relationships to a qualifying child:
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new text begin (1) grandparent, or ancestor of a grandparent;
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new text begin (2) sibling;
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new text begin (3) uncle or aunt; or
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new text begin (4) cousin.
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new text begin (d) "Qualifying child" means a child who has not attained the age of six as of the close
of the calendar year in which the taxable year began.
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new text begin Subd. 2. new text end

new text begin Credit allowed. new text end

new text begin (a) An individual taxpayer who is a qualifying caregiver is
allowed a $2,000 credit against the tax imposed under this chapter. A married taxpayer
filing a joint return is eligible for the credit if one spouse is a qualifying caregiver.
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new text begin (b) The credit under paragraph (a) is reduced by ten percent of adjusted gross income
in excess of the phaseout threshold. The phaseout threshold is $100,000 for a married
taxpayer filing a joint return and $50,000 for all other taxpayers.
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new text begin (c) For a nonresident or part-year resident, the credit determined under this section must
be allocated based on the percentage calculated under section 290.06, subdivision 2c,
paragraph (e).
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new text begin Subd. 3. new text end

new text begin Caregiving requirements. new text end

new text begin (a) To qualify for the credit in this section, an
individual must:
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new text begin (1) provide at least 416 hours of child care to at least one qualifying child during the
taxable year, provided that the care is required to enable the child's parent or guardian to
be gainfully employed;
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new text begin (2) not receive compensation for providing child care to the qualifying child;
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new text begin (3) be a qualifying relative of the qualifying child for which the individual provided
child care;
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new text begin (4) not have the same principal place of abode as the qualifying child for which the
individual provided child care; and
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new text begin (5) be excluded from licensure under section 142B.05, subdivision 2.
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new text begin (b) To claim the credit under this section, an individual must keep records of the days
and times the individual provided child care to a qualifying child.
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new text begin Subd. 4. new text end

new text begin Credit refundable; appropriation. new text end

new text begin If the amount of credit which the 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. The amount necessary to pay the
refunds required by this section is appropriated to the commissioner from the general fund.
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new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2024.
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