This bill proposes amendments to Minnesota tax law to provide financial incentives for employer-supported child care. The key provisions include:

1. Income Subtraction for Employer-Provided Dependent Care Assistance:

   • Taxpayers can subtract employer-provided dependent care assistance from their taxable income.
     
   • The subtraction is limited to $10,000 for married couples filing jointly and $5,000 for all other filers.
     
   • The definition of "dependent care assistance" follows federal tax rules but only applies to amounts exceeding currently excluded income under federal law.
     

2. Establishment of a Tax Credit for Employer-Provided Child Care Expenses:

   • The bill aims to provide a tax incentive for businesses that offer child care benefits to employees.

This legislation is intended to encourage employers to support child care costs, easing the financial burden on working families in Minnesota.