Minnesota 2025-2026 Regular Session

Minnesota Senate Bill SF2673 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1.1 A bill for an act
2	2	1.2 relating to taxation; individual income; repealing advance payments of the child
3	3	1.3 tax credit; amending Minnesota Statutes 2024, section 289A.08, subdivision 1;
4	4	1.4 repealing Minnesota Statutes 2024, section 290.0661, subdivisions 8, 9.
5	5	1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
6	6	1.6 Section 1. Minnesota Statutes 2024, section 289A.08, subdivision 1, is amended to read:
7	7	1.7 Subdivision 1.Generally; individuals.(a) A taxpayer must file a return for each taxable
8	8	1.8year the taxpayer is required to file a return under section 6012 of the Internal Revenue
9	9	1.9Code or meets the requirements under paragraph (d) to file a return, except that:
10	10	1.10 (1) an individual who is not a Minnesota resident for any part of the year is not required
11	11	1.11to file a Minnesota income tax return if the individual's gross income derived from Minnesota
12	12	1.12sources as determined under sections 290.081, paragraph (a), and 290.17, is less than the
13	13	1.13filing requirements for a single individual who is a full year resident of Minnesota;
14	14	1.14 (2) an individual who is a Minnesota resident is not required to file a Minnesota income
15	15	1.15tax return if the individual's gross income derived from Minnesota sources as determined
16	16	1.16under section 290.17, less the subtractions allowed under section 290.0132, subdivisions
17	17	1.1712 and 15, is less than the filing requirements for a single individual who is a full-year
18	18	1.18resident of Minnesota.
19	19	1.19 (b) The decedent's final income tax return, and other income tax returns for prior years
20	20	1.20where the decedent had gross income in excess of the minimum amount at which an
21	21	1.21individual is required to file and did not file, must be filed by the decedent's personal
22	22	1.22representative, if any. If there is no personal representative, the return or returns must be
23	23	1Section 1.
24	24	25-04763 as introduced03/07/25 REVISOR EAP/DG
25	25	SENATE
26	26	STATE OF MINNESOTA
27	27	S.F. No. 2673NINETY-FOURTH SESSION
28	28	(SENATE AUTHORS: DRAZKOWSKI and Lucero)
29	29	OFFICIAL STATUSD-PGDATE
30	30	Introduction and first reading03/17/2025
31	31	Referred to Taxes 2.1filed by the transferees, as defined in section 270C.58, subdivision 3, who receive property
32	32	2.2of the decedent.
33	33	2.3 (c) The term "gross income," as it is used in this section, has the same meaning given it
34	34	2.4in section 290.01, subdivision 20.
35	35	2.5 (d) The commissioner of revenue must annually determine the gross income levels at
36	36	2.6which individuals are required to file a return for each taxable year based on the amounts
37	37	2.7allowed as a deduction under section 290.0123.
38	38	2.8 (e) Notwithstanding paragraph (a), an individual must file a Minnesota income tax return
39	39	2.9for each taxable year that the taxpayer has made an election to receive advance payments
40	40	2.10of the child tax credit under section 290.0661, subdivision 8.
41	41	2.11 EFFECTIVE DATE.This section is effective for taxable years beginning after December
42	42	2.1231, 2025.
43	43	2.13 Sec. 2. REPEALER.
44	44	2.14 Minnesota Statutes 2024, section 290.0661, subdivisions 8 and 9, are repealed.
45	45	2.15 EFFECTIVE DATE.This section is effective for taxable years beginning after December
46	46	2.1631, 2025.
47	47	2Sec. 2.
48	48	25-04763 as introduced03/07/25 REVISOR EAP/DG 290.0661 MINNESOTA CHILD TAX CREDIT.
49	49	Subd. 8.Advance payment of credits.(a) The commissioner of revenue must establish a
50	50	process to allow taxpayers to elect to receive one or more advance payments of the credit under
51	51	this section. The amount of advance payments must be based on the taxpayer and commissioner's
52	52	estimate of the amount of credits for which the taxpayer would be eligible in the taxable year
53	53	beginning in the calendar year in which the payments were made. The commissioner must not
54	54	distribute advance payments to a taxpayer who does not elect to receive advance payments.
55	55	(b) The amount of a taxpayer's credit under this section for the taxable year is reduced by the
56	56	amount of advance payments received by the taxpayer in the calendar year during which the taxable
57	57	year began. If a taxpayer's advance payments exceeded the credit the taxpayer was eligible to receive
58	58	for the taxable year, the taxpayer's liability for tax is increased by the difference between the amount
59	59	of advance payments received and the credit amount.
60	60	Subd. 9.Minimum credit.(a) An eligible taxpayer is allowed the greater of the credit allowed
61	61	under subdivision 2 or the minimum credit described in this subdivision. A taxpayer is eligible for
62	62	the minimum credit under this subdivision if:
63	63	(1) the taxpayer received an advance payment of the credit under subdivision 8; and
64	64	(2) the combined amount of the taxpayer's credits under subdivision 2 and section 290.0671,
65	65	after the phaseout in subdivision 4, is greater than $0.
66	66	(b) The credit allowed under this subdivision is equal to 50 percent of the credit received under
67	67	subdivision 2 in the prior taxable year, unless paragraph (c) applies.
68	68	(c) If a taxpayer is claiming fewer qualifying children in the current taxable year than in the
69	69	prior taxable year, the minimum credit allowed under this subdivision is equal to 50 percent of
70	70	credit received under this section in the prior taxable year multiplied by a fraction in which:
71	71	(1) the numerator is the number of qualifying children in the current taxable year; and
72	72	(2) the denominator is the number of qualifying children in the prior taxable year.
73	73	1R
74	74	APPENDIX
75	75	Repealed Minnesota Statutes: 25-04763