Minnesota families with children could soon receive thousands of dollars in additional tax breaks if a new proposal by Governor Tim Walz is approved. The Governor recently announced a $12 billion budget proposal that includes a series of measures focusing on children and families, one of which is an expansion of the child tax credit.
Under the proposal, the child tax credit would offer $1,000 per child, with a maximum credit of $3,000, to lower-income families in Minnesota. This credit would provide much-needed relief to families struggling with the rising cost of living, as well as help to reduce child poverty in the state.
The child tax credit is just one component of Governor Walz’s larger package of proposals, which he says would make Minnesota the “best” state in the country for kids. The package also includes measures to reduce the cost of childcare for middle-class families and improve access to affordable housing.
In addition, the child tax credit from Minnesota would lead to more than $1 billion in tax cuts in 2024-2025 and 2026-2027 and is expected to reduce child poverty by 25%, according to the Governor’s Office.
Governor Walz’s proposal is projected to lead to more than $1 billion in tax cuts over the next two bienniums and is expected to reduce child poverty by 25%. The Governor’s Office states that this is the largest investment in public education in Minnesota state history.
If approved, the child tax credit from Minnesota would provide much-needed support to families who are struggling to make ends meet in the face of rising prices and economic uncertainty. The proposal is currently being considered by the state legislature and it’s yet to be seen if it will be passed into law.