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HF2197 (Legislative Session 94 (2025-2026))

Individual income tax; child credit marriage penalty eliminated and credit phaseout increased, and working family credit limited based on earned income to taxpayers with qualifying children.

AI Generated Summary

This bill proposes changes to Minnesota's taxation laws concerning individual income tax credits. Specifically, it aims to:

  1. Eliminate the Marriage Penalty for the Child Credit – By increasing the phaseout threshold for married taxpayers filing jointly, the bill ensures they are not penalized for filing together.

  2. Increase the Phaseout Thresholds – The income levels at which the child credit and working family credit begin to phase out are raised:

    • For married taxpayers filing jointly, from $35,000 to $75,000.
    • For all other filers, from $29,500 to $37,500.

  3. Restrict the Working Family Credit – Limits eligibility for the credit to taxpayers with qualifying children, meaning those without children would no longer receive this benefit.

These amendments would impact Minnesota Statutes 2024, specifically sections 290.0661 (subdivision 4 and 7) and 290.0671 (subdivisions 1 and 7). The bill was introduced in the Minnesota House of Representatives by multiple authors and has been referred to the Committee on Taxes for further consideration.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 11, 2025HouseFloorActionIntroduction and first reading, referred toTaxes
March 11, 2025HouseFloorActionIntroduction and first reading, referred toTaxes
March 12, 2025HouseFloorActionAuthor added

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Amending the phaseout process for individual income tax credits, specifically under 290.0661.",
      "modified": [
        "Adjusting phaseout thresholds for tax credits based on income."
      ]
    },
    "citation": "290.0661",
    "subdivision": "subdivision 4"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Reference to the tax credits affected by the phaseout modification in 290.0661.",
      "modified": []
    },
    "citation": "290.0671",
    "subdivision": ""
  }
]

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