{"id":2678,"date":"2025-03-08T17:47:00","date_gmt":"2025-03-08T17:47:00","guid":{"rendered":"https:\/\/apexsamplework.com\/insightnews\/?p=2678"},"modified":"2026-07-08T19:45:16","modified_gmt":"2026-07-08T19:45:16","slug":"legislation-proposes-overhaul-of-minnesotas-child-care-tax-credit","status":"publish","type":"post","link":"https:\/\/apexsamplework.com\/insightnews\/2025\/03\/08\/legislation-proposes-overhaul-of-minnesotas-child-care-tax-credit\/","title":{"rendered":"Legislation proposes overhaul of Minnesota\u2019s child care tax credit"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Child care for the youngest children is usually the most expensive.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Expanding the&nbsp;<a href=\"https:\/\/www.revenue.state.mn.us\/child-and-dependent-care-credit\">dependent care credit<\/a>&nbsp;would assist with those child care expenses.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cWe have decided to target the youngest Minnesotans, particularly to just help with child care costs,\u201d said&nbsp;<a href=\"https:\/\/www.house.mn.gov\/members\/membersR.asp?id=Rep_Carlie_Kotyza-Witthuhn\">Rep. Carlie Kotyza-Witthuhn<\/a>&nbsp;(DFL-Eden Prairie), who sponsors&nbsp;<a href=\"https:\/\/www.house.mn.gov\/bills\/billnum.asp?Billnumber=HF1384&amp;ls_year=94&amp;session_year=2025&amp;session_number=0\">HF1384<\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The House Children and Families Finance and Policy Committee approved the bill Tuesday and referred it to the House Taxes Committee.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Besides increasing the maximum credit rate to 50% and raising the maximum amount of expenses eligible for the credit to $10,000, $20,000, or $25,000, for taxpayers with one, two, or three children younger than age 5, the bill is also income adjusted.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The bill would establish a two-tier phaseout of the credit, with the first tier beginning at $125,000 of adjusted gross income and the second tier beginning at $400,000.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The result, Kotyza-Witthuhn said, is more families in Minnesota would benefit.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cMiddle class families have gotten just about nothing in terms of help,\u201d said Clare Sanford, government relations chair for the Minnesota Child Care Association. \u201cWe can&#8217;t keep looking at helping families with child care expenses as only something we do for low-income families.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Although there isn\u2019t a current fiscal note, Kotyza-Witthuhn acknowledged that it&#8217;s a costly proposal but there&#8217;s a lot of families with children who need that support.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The bill would allow taxpayers who participate in a dependent care assistance program to claim the credit, but it would require an addition for dependent care contributions that were excluded from adjusted gross income.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Currently, the state credit is equal to the amount allowed under federal law, which would decouple Minnesota from the federal credit calculation.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Child care for the youngest children is usually the most expensive. Expanding the&nbsp;dependent care credit&nbsp;would assist with those child care expenses. \u201cWe have decided to target the youngest Minnesotans, particularly to just help with child care costs,\u201d said&nbsp;Rep. Carlie Kotyza-Witthuhn&nbsp;(DFL-Eden Prairie), who sponsors&nbsp;HF1384. The House Children and Families Finance and Policy Committee approved the bill [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":3845,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"off","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[3],"tags":[1690,1691,29,1692],"class_list":["post-2678","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-child-care","tag-dependent-care-credit","tag-minnesota","tag-rep-carlie-kotyza-witthuhn","et-has-post-format-content","et_post_format-et-post-format-standard"],"jetpack_featured_media_url":"https:\/\/apexsamplework.com\/insightnews\/wp-content\/uploads\/2025\/03\/Insight-News-Website-Images-36.jpg","_links":{"self":[{"href":"https:\/\/apexsamplework.com\/insightnews\/wp-json\/wp\/v2\/posts\/2678","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/apexsamplework.com\/insightnews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/apexsamplework.com\/insightnews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/apexsamplework.com\/insightnews\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/apexsamplework.com\/insightnews\/wp-json\/wp\/v2\/comments?post=2678"}],"version-history":[{"count":1,"href":"https:\/\/apexsamplework.com\/insightnews\/wp-json\/wp\/v2\/posts\/2678\/revisions"}],"predecessor-version":[{"id":2679,"href":"https:\/\/apexsamplework.com\/insightnews\/wp-json\/wp\/v2\/posts\/2678\/revisions\/2679"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/apexsamplework.com\/insightnews\/wp-json\/wp\/v2\/media\/3845"}],"wp:attachment":[{"href":"https:\/\/apexsamplework.com\/insightnews\/wp-json\/wp\/v2\/media?parent=2678"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/apexsamplework.com\/insightnews\/wp-json\/wp\/v2\/categories?post=2678"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/apexsamplework.com\/insightnews\/wp-json\/wp\/v2\/tags?post=2678"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}