HF310

HF310 (Legislative Session 94 (2025-2026))

Dependent care individual income tax credit expanded.

AI Generated Summary

This bill, proposed in Minnesota, aims to modify the state's tax code regarding the dependent care credit. Specifically, it intends to adjust how dependent care assistance, which is excluded from gross income under federal tax law, is treated for state tax purposes. The bill will add a new rule for taxpayers who are either claiming this credit themselves or whose spouse is claiming it. This change requires such instances of dependent care assistance to be added back into the taxpayer's gross income for state tax calculations. This essentially means that while this income is not taxed federally, it will be considered taxable state income in Minnesota if this bill is passed.

Bill text versions

Introduction PDF file

Actions

Date	Chamber	Where	Type	Name	Committee Name
February 12, 2025	House	Floor	Action	Introduction and first reading, referred to	Taxes
February 19, 2025	House	Floor	Action	Author added

Citations

[
  {
    "analysis": {
      "added": [
        "A new provision to include dependent flexible spending accounts in the credit calculation."
      ],
      "removed": [],
      "summary": "The bill expands the dependent care credit eligibility criteria.",
      "modified": [
        "The exclusion criteria for gross income calculation under section 129 of the IRC are adjusted."
      ]
    },
    "citation": "290.067"
  }
]