Purpose of the Bill

This bill aims to introduce a new financial benefit called the "baby bonus" as part of the Minnesota child tax credit. This initiative is intended to provide additional financial support to families following the birth of a child.

Main Provisions

• Increased Child Tax Credit: The bill proposes an increase of $400 to the existing child tax credit for each child born during the taxable year. This increase is specifically designed to offer extra support to families with newborns.
• Advance Payment Option: The bill allows for the possibility of taxpayers requesting an advance payment of this additional credit amount. This means families can receive the bonus sooner, potentially easing the financial burdens associated with a new child's arrival.

Significant Changes to Existing Law

• The bill modifies Minnesota Statutes 2024, section 290.0661 by adding a new subdivision specifically for the baby bonus.
• The additional credit amount will not affect a taxpayer's minimum credit amount calculation, as per subdivision 9. This means the baby bonus is considered separately to ensure eligible taxpayers receive the full benefit without affecting other tax determinations.

Relevant Terms

baby bonus, child tax credit, newborn financial support, advance payment, tax benefit, financial support for families