SF 3732

as introduced - 91st Legislature (2019 - 2020) Posted on 02/27/2020 03:53pm

A bill for an act
relating to taxation; individual income; establishing a refundable tax credit for
certain qualified child care professionals; 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 [290.0693] CHILD CARE PROFESSIONAL SUPPLY AND RETENTION
CREDIT.
new text end

new text begin Subdivision 1. new text end

new text begin Credit allowed for child care professionals. new text end

new text begin (a) An individual taxpayer
who qualifies as a child care professional is allowed a credit against the tax due in this
chapter. An individual claiming the credit under this subdivision may claim a credit for
employment at only one child care facility for the taxable year.
new text end

new text begin (b) The credit under paragraph (a) equals:
new text end

new text begin (1) $1,000 for a child care professional with a career lattice step level equivalent to a
child development associate as of December 31 of the taxable year;
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new text begin (2) $2,500 for a child care professional with a career lattice step level that represents an
associate's degree as of December 31 of the taxable year; and
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new text begin (3) $3,000 for a child care professional with a career lattice step level that represents a
bachelor's degree or higher as of December 31 of the taxable year.
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new text begin (c) The credit amounts in paragraph (b) must be adjusted for inflation as provided in
section 270C.22. For purposes of this paragraph and paragraph (b), the statutory year is
taxable year 2020.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have the
meanings given.
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new text begin (b) "Career lattice step" means the qualification level assigned to a child care professional
on Develop, the Minnesota quality improvement and registry tool, operated by the
Department of Human Services.
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new text begin (c) "Child care facility" means a facility that maintains a quality rating of at least one
star in the quality rating and improvement system during at least six months of the taxable
year in which the credit is claimed and is either:
new text end

new text begin (1) a child care center licensed under chapter 245A; or
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new text begin (2) a family child care provider licensed under chapter 245A.
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new text begin (d) "Child care professional" means an individual who has:
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new text begin (1) obtained a career lattice step level of six or greater; and
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new text begin (2) been employed at the same child care facility for at least six months of the taxable
year in which the credit is claimed.
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new text begin (e) "Quality rating" means the rating awarded to a child care facility by the Department
of Human Services pursuant to section 124D.142.
new text end

new text begin Subd. 3. new text end

new text begin Allocation for nonresidents and part-year residents. new text end

new text begin 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).
new text end

new text begin Subd. 4. new text end

new text begin Credit refundable. new text end

new text begin If the amount of total credits that a taxpayer is eligible to
receive under this section exceeds the claimant's tax liability under this chapter, the
commissioner must refund the excess to the claimant.
new text end

new text begin Subd. 5. new text end

new text begin Appropriation. new text end

new text begin An amount sufficient to pay the refunds authorized under this
section is appropriated to the commissioner from the general fund.
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, 2019.
new text end