HF 142

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to taxation; individual income; modifying the
dependent care credit; amending Minnesota Statutes
2004, section 290.067, subdivision 2.

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

Section 1.

Minnesota Statutes 2004, section 290.067,
subdivision 2, is amended to read:

Subd. 2.

Limitations.

The credit for expenses incurred
for the care of each dependent shall not exceed deleted text begin $720 deleted text end new text begin $1,050 new text end in
any taxable year, and the total credit for all dependents of a
claimant shall not exceed deleted text begin $1,440 deleted text end new text begin $2,100 new text end in a taxable year. The
maximum total credit shall be reduced according to the amount of
the income of the claimant and a spouse, if any, as follows:

income up to $18,040, deleted text begin $720 deleted text end new text begin $1,050 new text end maximum for one
dependent, deleted text begin $1,440 deleted text end new text begin $2,100 new text end for all dependents;

income over $18,040, the maximum credit for one dependent
shall be reduced by $18 for every $350 of additional income, $36
for all dependents.

The commissioner shall construct and make available to
taxpayers tables showing the amount of the credit at various
levels of income and expenses. The tables shall follow the
schedule contained in this subdivision, except that the
commissioner may graduate the transitions between expenses and
income brackets.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable
years beginning after December 31, 2004.
new text end