SF2103

SF2103 (Legislative Session 94 (2025-2026))

Refundability removal of the child tax credit and working family credit

AI Generated Summary

This bill proposes changes to Minnesota's tax laws by eliminating the refundability of the child tax credit and working family credit. Specifically, it amends Minnesota Statutes sections 289A.08 and 290.0661 and repeals certain provisions related to these credits. Key points include:

Removing the ability for taxpayers to receive refunds for any portion of the child tax credit and working family credit that exceeds their tax liability.
Repealing Minnesota Statutes 290.0661, subdivisions 6 and 8, and 290.0671, subdivision 4, which likely contain provisions related to the refundable nature of these credits.
Clarifying filing requirements for Minnesota taxpayers, including stipulations about nonresidents and those with low income.

If passed, this legislation would reduce or eliminate tax refunds for lower-income individuals and families who previously benefited from refundable credits, making the credits nonrefundable (i.e., they can only lower the tax owed, rather than result in a refund if they exceed the tax liability).

Bill text versions

Introduction PDF file

Actions

Date	Chamber	Where	Type	Name	Committee Name
March 02, 2025	House	Floor	Action	Introduction and first reading
March 02, 2025	Senate	Floor	Action	Introduction and first reading
March 02, 2025	House	Floor	Action	Referred to	Taxes
March 02, 2025	Senate	Floor	Action	Referred to	Taxes

Citations

[
  {
    "analysis": {
      "added": [
        "Clarifies that individuals electing for advance child tax credit payments must file returns."
      ],
      "removed": [
        ""
      ],
      "summary": "Amendments to the filing requirements for individual income tax under section 289A.08.",
      "modified": [
        "Updates filing thresholds for non-residents and residents based on Minnesota-derived income."
      ]
    },
    "citation": "289A.08",
    "subdivision": "subdivision 1"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "The modification of the working family credit refundability in Minnesota tax code.",
      "modified": [
        "Alters the refundability provisions of the credit."
      ]
    },
    "citation": "290.0661",
    "subdivision": "subdivision 9"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        "Subdivision detailing certain credit computations has been repealed."
      ],
      "summary": "This section previously governed aspects of the working family credit.",
      "modified": [
        ""
      ]
    },
    "citation": "290.0661",
    "subdivision": "subdivision 6"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        "Subdivision concerning advance payments of credits has been repealed."
      ],
      "summary": "This section dealt with advance payments for the credits.",
      "modified": [
        ""
      ]
    },
    "citation": "290.0661",
    "subdivision": "subdivision 8"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        "This subdivision has been repealed, reflecting a change in tax credit applications."
      ],
      "summary": "Specific subdivision of a statute related to tax credits for families.",
      "modified": [
        ""
      ]
    },
    "citation": "290.0671",
    "subdivision": "subdivision 4"
  }
]