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HF 1020

A bill for an act modifying the child and dependent care credit available against the individual income tax, and including retroactive applicability provisions.

2025-2026 Regular Session

Bill Summary: HF 1020 - Modifying the Child and Dependent Care Tax Credit OverviewHF 1020 is a bill that proposes to modify the existing child and dependent care tax credit availab

Subcommittee: Rowley, Bisignano, and Dawson.
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Bill Summary · HF 1020

Bill Summary: HF 1020 - Modifying the Child and Dependent Care Tax Credit

Overview

HF 1020 is a bill that proposes to modify the existing child and dependent care tax credit available to individual taxpayers under the Minnesota state income tax. The bill aims to expand eligibility and increase the credit amounts, providing greater financial support for families with child care and dependent care expenses.

Key Provisions

The main changes proposed by HF 1020 include:

  1. Increased Credit Amounts: The bill would raise the maximum credit amounts from $2,000 to $3,000 for one qualifying individual, and from $4,000 to $6,000 for two or more qualifying individuals.

  2. Expanded Income Eligibility: The bill would increase the income eligibility thresholds for the credit, allowing more middle-income families to claim the credit. The phaseout range would be raised from the current $15,000-$43,000 to $20,000-$60,000 in adjusted gross income.

  3. Retroactive Applicability: The bill includes a provision to make the changes retroactively applicable to the 2024 tax year, allowing taxpayers to claim the expanded credit when filing their 2024 state income tax returns.

Intended Impact

The primary goals of HF 1020 are to:

  • Provide greater financial assistance to families with child care and dependent care expenses, which can be a significant burden.
  • Expand access to the credit by increasing income eligibility, benefiting more middle-income households.
  • Offer retroactive relief to taxpayers who incurred eligible expenses in the 2024 tax year.

Procedural Details

HF 1020 has been referred to a subcommittee consisting of Representatives Rowley, Bisignano, and Dawson for initial consideration. The bill was introduced on April 17, 2025, and its current status is pending subcommittee review.

Compiled from official sources — confirm details with the bill’s official record.

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