Minnesota’s democratic state lawmakers prioritized during their legislative session a childcare tax credit for parents. The purpose of this prioritization is to encourage more parents to work in order to address their tight labor market. Parents can expect to receive tax credits given that they qualify for the program. Families will be helped in addressing their expenses for raising their children.
The lawmakers also passed a second bill that offers families pay and a medical leave program run by the government. Over a $17.6 billion budget surplus is under the care of the Democrats.
The childcare tax credit was their primary focus, said Hortman, one of the Senate democrats. But the top priority is to fully exempt Social Security income from state tax as endorsed by five Senate democrats.
Families with childcare expenses were sought out by the expanded credit giving them $1,500 to $3,000 credit for children aged 5 and older. Families with children under 5, will receive a larger credit worth $5,000 for each child with $12,500 as maximum.
According to democrats, parents without taxable income is also eligible to receive the credits since it is refundable. Married couples who are earning more than $125,000 are eligible for the credit. Partial credit will be given to couples with income of up to $400,000.