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SF2673 (Legislative Session 94 (2025-2026))

Child tax credit advance payments repeal

AI Generated Summary

Purpose of the Bill

The bill is designed to repeal the provisions allowing for advance payments of the child tax credit in Minnesota. It aims to amend the legal requirements for filing individual income tax returns by eliminating the option for taxpayers to receive advance payments of the child tax credit.

Main Provisions

  • Repeal of Advance Payments: This legislation seeks to eliminate the option for taxpayers to receive advance payments of the child tax credit. Individuals will no longer have the opportunity to receive parts of their child tax credit in advance installments.

  • Amendment to Tax Filing Requirements: The bill amends Minnesota's tax code to remove language related to the necessity of filing state income tax returns specifically when electing to receive advance child tax credit payments. This modifies the requirements under which individuals must file a Minnesota state income tax return.

  • Tax Return Conditions Clarification: It further clarifies conditions under which Minnesota residents and nonresidents must file income tax returns, aligning with federal standards but specifying certain exemptions based on income levels derived from Minnesota sources.

Significant Changes to Existing Law

  • The bill removes the subdivisions in the Minnesota Statutes that pertain to advance payments of the child tax credit (sections 290.0661, subdivisions 8 and 9), effectively ending this financial mechanism within the state.
  • It revises related statutory language to no longer mandate filing a Minnesota tax return due to receiving advance payments of the child tax credit, simplifying tax obligations for taxpayers who previously used or could have used this option.

Relevant Terms

  • Child Tax Credit
  • Advance Payments
  • Minnesota Income Tax Return
  • Filing Requirements
  • Gross Income

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 16, 2025SenateFloorActionIntroduction and first reading
March 16, 2025SenateFloorActionReferred toTaxes
March 19, 2025SenateFloorActionAuthor added

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [
        "Previous requirement for filing based on advance payments of the child tax credit."
      ],
      "summary": "Amends section 289A.08 concerning filing requirements for Minnesota income tax returns.",
      "modified": [
        "Clarifies gross income definition and filing requirements."
      ]
    },
    "citation": "289A.08"
  },
  {
    "analysis": {
      "added": [],
      "removed": [
        "Entire subdivision 8 and subdivision 9 concerning advance child tax credit payments."
      ],
      "summary": "Repeals subdivisions 8 and 9 of section 290.0661 related to advance payments of the child tax credit.",
      "modified": []
    },
    "citation": "290.0661"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References definition of gross income as used in section 289A.08.",
      "modified": [
        "Links gross income definition directly with section 289A.08 filing requirements."
      ]
    },
    "citation": "290.01"
  }
]

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