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SF2508 (Legislative Session 94 (2025-2026))

Income threshold increase for the child tax credit

Related bill: HF2339

AI Generated Summary

Purpose of the Bill

The purpose of this bill is to modify the income thresholds for the child tax credit under Minnesota law. This move aims to benefit taxpayers by expanding the eligibility for a full or partial child tax credit, thus potentially reducing their tax liability.

Main Provisions

  • The bill proposes an increase in the income level at which the child tax credit begins to phase out.
  • For married taxpayers filing a joint return, the threshold increases from $35,000 to $45,490.
  • For all other filers, the threshold is raised from $29,500 to $38,340.

Significant Changes

  • This legislation amends the phaseout mechanism for child tax credits by increasing the income limits, allowing more taxpayers to qualify for the full credit before it starts to reduce.
  • The phaseout of credits is still based on earned income or adjusted gross income, whichever is higher, but begins at the newly specified income levels.

Relevant Terms

child tax credit, income threshold, tax phaseout, adjusted gross income, earned income, taxpayer, joint return.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 12, 2025SenateFloorActionIntroduction and first reading
March 12, 2025SenateFloorActionReferred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill modifies the phaseout threshold for the child tax credit under section 290.0661.",
      "modified": [
        "Increases the phaseout threshold from $35,000 to $45,490 for married taxpayers filing jointly.",
        "Increases the phaseout threshold from $29,500 to $38,340 for all other filers."
      ]
    },
    "citation": "290.0661"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References section 290.0671 for phaseout in conjunction with 290.0661.",
      "modified": []
    },
    "citation": "290.0671"
  }
]

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