HF2254

Purpose of the Bill

The purpose of this bill is to amend Minnesota's tax laws to provide additional financial support to families with newborns through an enhanced child tax credit known as a "baby bonus."

Main Provisions

• Baby Bonus Introduction: The bill introduces a $400 increase in the existing child tax credit for each qualifying child born within the taxable year. This increase is referred to as the "baby bonus."
• Advance Payment: It allows the commissioner to set up a process to provide families with an option to receive this additional credit in advance, rather than waiting until they file their tax returns.

Significant Changes to Existing Law

• The bill adds a new section to the Minnesota Statutes 2024, specifically modifying section 290.0661, which pertains to the child tax credit.
• The enhanced credit is specifically for children born within the tax year and is separate from the computation of a taxpayer's minimum credit amount.

Relevant Terms

• Baby bonus
• Child tax credit
• Taxable year
• Advance payment