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Bill Summary · SF 2673

Summary of Minnesota SF 2673 — Child Tax Credit Advance Payments Repeal

Overview

  • Bill number and title: SF 2673, “Child tax credit advance payments repeal”
  • Purpose (as indicated by title): Repeal the provision authorizing advance payments of the Minnesota Child Tax Credit.
  • Status and actions (as of provided information):
    • Introduced: March 17, 2025
    • First reading and introduction: March 17, 2025
    • Referred to: Taxes
    • Author added: Anderson (March 20, 2025)
  • Subject areas: Children and families; Children, Youth and Families Department; Taxation; Taxation-Income

What the bill would do

  • The bill would repeal the statutory authority that allows Minnesota to issue advance (preliminary) payments of the Minnesota Child Tax Credit.
  • By eliminating advance payments, eligible families would no longer receive periodic prepayments and would instead claim the credit when filing their state tax return, if the credit remains available under state law.

Key provisions and changes (as implied by the title)

  • Repeal of all statutes authorizing or governing advance payments of the Minnesota Child Tax Credit.
  • Removal of administrative processes related to issuing, delivering, or reconciling advance payments.
  • Clarification that any remaining credit, if applicable, would be claimed through the standard annual tax return process rather than through advance distributions.
  • Any accompanying changes to definitions, eligibility timing, or administrative guidelines would be addressed in the bill text (not detailed in the summary provided).

Who would be affected

  • Taxpayers: Minnesota residents who would have been eligible for the state Child Tax Credit and, under current law, would have received advance payments. The repeal changes the timing and delivery method of the credit.
  • State agencies: Minnesota Department of Revenue (and related tax administration entities) would discontinue programs and procedures tied to advance payments and would adjust claim processes to the standard annual filing method.
  • Families with children: The broader policy impact concerns cash-flow timing for families relying on state-level credits to support child-related costs.

Procedural and timeline aspects

  • Currently at an early stage in the legislative process:
    • Introduced and first reading on March 17, 2025
    • Referred to the Taxes committee
    • Author added (Anderson) on March 20, 2025
  • No committee hearing dates, fiscal notes, or companion bills are provided in the available information.

Potential impact and considerations

  • Budget and cash flow: Eliminating advance payments could simplify administration and budgeting for the state, but would shift the timing of benefits to annual tax filing.
  • Tax administration: Removes the need for prepay issuance systems, reconciliation processes, and related outreach.
  • Taxpayer experience: For families that relied on monthly/quarterly prepayments, timing of support would change to later in the year when filing returns (if the credit remains in statute).
  • Policy context: The bill’s fate will depend on broader conversations about the state Child Tax Credit, its overall value, eligibility, and interaction with other state and federal programs.

Next steps to monitor

  • Track referral status in the Taxes committee and any hearings.
  • Review the full bill text for the exact effective date, definitions, and any transitional provisions.
  • Monitor fiscal notes or impact statements for budgetary implications.

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

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