Minnesota Senate Bill SF2493

Minnesota 2023-2024 Regular Session

• Introduced: 3/2/23
• Refer: 3/2/23

Caption

Refundable child credit establishment

Impact

Should the bill be enacted, it will directly affect Minnesota Statutes related to taxation, specifically individual income tax provisions. The proposed child credit aims to alleviate some of the financial burdens faced by families with children, thus potentially enhancing the state’s support system for parents and caregivers. Furthermore, this legislation is likely to lead to increased disposable income for eligible families, promoting economic stability and potentially stimulating local economies through increased spending.

Summary

SF2493 is a legislative proposal aimed at establishing a refundable child credit in Minnesota. The bill offers individual income taxpayers a refundable credit based on the number of qualifying children they claim on their tax returns. It specifies different credit amounts for young children, defined as those under the age of four, and older children, defined as those aged four to 17. The credit is set at $1,800 for each young child and $1,200 for each older child. Additionally, the credit will decrease based on the taxpayer's adjusted gross income above specified thresholds.

Contention

Discussions surrounding SF2493 may highlight notable points of contention, including concerns regarding the funding and fiscal implications of the refundable credit. Critics might argue about potential impacts on state revenue and whether the plan could create budgetary challenges. Moreover, some lawmakers may debate the thresholds for credit reduction, questioning if they adequately reflect the needs of lower-income families or if they overly restrict access to the credit.