Purpose of the Bill

The purpose of this bill is to update the existing tax laws in Minnesota regarding the individual income tax, specifically focusing on the child tax credit. The bill aims to make the child tax credit available to a broader range of income earners by increasing the income threshold before the credit begins to phase out.

Main Provisions

• The bill proposes an increase in the income threshold at which the child tax credit begins to phase out.
• For married taxpayers filing a joint return, the income threshold is increased from $35,000 to $45,490.
• For all other filers, the income threshold is raised from $29,500 to $38,340.
• The reduction in credit is calculated as 12% of the greater of earned income or adjusted gross income that exceeds these thresholds.

Significant Changes

The bill changes the income thresholds for the phaseout of the child tax credit, which would allow more families with higher income levels to benefit, potentially increasing financial relief for those families.

Relevant Terms

• Child Tax Credit
• Income Threshold
• Phaseout
• Earned Income
• Adjusted Gross Income
• Joint Return