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HF 2254

Income tax; baby bonus established within the Minnesota child credit.

2025-2026 Regular Session Introduced by Kaela Berg and 32 co-sponsors

Establish a baby bonus in Minnesota's child credit to give newborn families tax relief through the state income tax system.

Introduction and first reading, referred to Taxes
#childrenandminors #taxation-income
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Bill Summary · HF 2254

Summary of HF 2254 (Income tax; baby bonus established within the Minnesota child credit)

Overview

HF 2254 proposes to establish a “baby bonus” within Minnesota’s child credit. The bill is currently in the introduction stage and has been referred to the House Taxes Committee. It was introduced on March 12, 2025. A companion bill exists in the Senate, SF 2548.

Purpose and intent

  • The bill’s title indicates the goal of adding a new form of financial assistance for families with infants by creating a baby bonus as part of Minnesota’s child-related tax credits.
  • The policy objective is to provide additional support to families with newborns or young children through the state income tax system. Specific eligibility criteria, payment mechanics, and interaction with existing credits would be defined in the bill text.

Key provisions (to be confirmed in the enacted text)

Note: The exact text of HF 2254 is not provided here. The following outline reflects typical elements such a provision would address. The actual bill may differ in detail.

  • Establishment: Creation of a baby bonus program as part of the Minnesota child credit.
  • Eligibility: Who qualifies (e.g., taxpayers with a newborn, residency, income thresholds, filing status requirements).
  • Amount and timing: The payment amount(s), whether one-time or periodic, and the applicable tax year(s) for eligibility.
  • Interaction with existing credits: How the baby bonus interacts with the Minnesota child credit, federal credits, and other state benefits (e.g., any phase-outs or carryforward provisions).
  • Administration: Which agency administers the benefit (likely the Minnesota Department of Revenue) and any required documentation or verification.
  • Refundability: Whether the benefit is refundable or nonrefundable.
  • Funding and fiscal notes: Source of funds and estimated cost, along with any anticipated impact on state revenue.
  • Effective date: When the program would begin (e.g., for a specific tax year) and any applicable transition rules.
  • Reporting and oversight: annual reporting requirements or sunset provisions, if any.

Who would be affected

  • Minnesota residents who are new or expecting parents, specifically those with newborns and who file an income tax return.
  • Families benefiting from the Minnesota child credit, and potentially their broader tax filing status and income eligibility.
  • Tax preparers and the Minnesota Department of Revenue responsible for implementing and administering the baby bonus.

Procedural and timeline aspects

  • Introduced: March 12, 2025.
  • Status: Introduction and first reading; referred to the Taxes committee.
  • Next steps: The bill would need committee hearings, potential amendments, and votes in both chambers before any enactment. A companion Senate bill (SF 2548) may follow parallel committee consideration.

Related legislation

  • Companion: SF 2548 (Senate)

How to follow

  • To obtain the full details, review the bill text on the Minnesota Legislature’s website (HF 2254) and monitor committee hearings in the House Taxes Committee. Also check SF 2548 for comparable Senate language and potential differences. Fiscal notes, amendments, and the bill’s progress will be updated as it moves through the session.

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

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