Minnesota 2023-2024 Regular Session

Minnesota House Bill HF2044

Introduced
2/20/23  

Caption

Individual income tax provisions modified, and refundable tax credit established for qualified child care professionals.

Impact

The bill establishes a credit of $1,000 for professionals with foundational qualifications, escalating to $3,000 for those with a bachelor’s degree or higher. This incremental approach to tax credits is designed not only to incentivize current professionals but also to attract new talent into the field, thereby improving the overall quality and availability of child care services. By adjusting these credit amounts for inflation over time, the legislation aims to ensure that these incentives remain relevant and effective in the changing economic landscape.

Summary

House File 2044, introduced by Author Pryor, proposes modifications to individual income tax provisions by establishing a refundable tax credit specifically aimed at qualifying child care professionals in Minnesota. The bill seeks to enhance the economic conditions for child care workers through a structured credit that varies based on their level of education and qualification, as designated by the Minnesota quality improvement and registry tool. This initiative is part of a broader effort to support the child care sector, which has faced challenges in staffing and retention, particularly in the wake of economic fluctuations brought on by the pandemic.

Conclusion

Overall, HF2044 is a significant step towards enhancing the economic landscape for child care professionals in Minnesota. By offering targeted tax credits that respond to qualifications and tenure in the field, the bill aims to foster a more robust child care workforce. As discussions progress, it will be essential to monitor how these provisions interact with existing state laws and the potential need for further reforms to sustain these efforts.

Contention

While there is general support for increasing support to child care professionals, some debate surrounds the nature and sustainability of such tax credits. Opponents could argue that while the immediate benefits of the bill are clear, there are concerns about the long-term fiscal implications on the state budget. Discussions may arise regarding the efficacy of tax credits versus direct funding increases for child care services or whether the current tax structures adequately address broader issues in the labor market.

Companion Bills

MN SF2357

Similar To Child Care Professional Supply and Retention Credit

Previously Filed As

MN SF2357

Child Care Professional Supply and Retention Credit

MN HF1369

Individual income tax provisions modified, and temporary refundable young child credit established.

MN HF1653

Property tax refunds and individual income tax provisions modified, and renter's credit converted to refundable income tax credit.

MN HF2731

Individual income tax provisions modified, and refundable income tax rebate credit for taxable year 2023 established.

MN HF3299

Refundable individual income tax credit established for family members who provide child care.

MN HF9

Individual income provisions modified, dependent care credit expanded, and great start child care credit established.

MN HF2976

Property taxes and individual income taxes modified, homestead property tax provisions modified, state general levy reduced, unlimited Social Security subtraction allowed, income tax rates decreased, temporary refundable child credit established, direct payments to individuals provided, and money appropriated.

MN HF167

Individual income tax provisions modified, and refundable tax credit proposed for tax years 2021 and 2022.

MN HF3201

Individual income tax provisions modified, and two-year income tax holiday established for direct support professionals.

MN HF494

Individual income and corporate franchise tax provisions modified, and tax credits for parental leave costs allowed.

Similar Bills

No similar bills found.