Individual income tax; dependent care credit expanded, and Great Start child care credit established.

2025-2026 Regular Session Introduced by Nathan Coulter and 3 co-sponsors

HF 1384 would expand Minnesota's dependent care credit and establish a new Great Start child care credit on the state income tax, helping families with child care costs.

Committee report, to adopt and re-refer to Taxes

#children-childcareandfacilities #taxation-income

Overview

HF 1384 is a Minnesota House bill that, if enacted, would make changes to individual income tax credits related to child care. Specifically, it aims to expand the dependent care credit and establish a new Great Start child care credit. The bill is categorized under Children-Child Care and Facilities and Taxation-Income.

Bill number: HF 1384

Title: Individual income tax; dependent care credit expanded, and Great Start child care credit established

Status: Committee report, to adopt and re-refer to Taxes

Introduced: February 24, 2025

Related bill (companion): SF 1852

Related actions:

2025-02-24: Introduced and referred to Children and Families Finance and Policy
2025-02-26: Authors added Smith and Norris
2025-03-10: Committee report to adopt and re-refer to Taxes

What the bill would do (high level)

Expand the dependent care credit available to Minnesota individual income taxpayers. The expansion would be implemented through changes to how the credit is calculated, its eligibility, or its scope.

Establish a new Great Start child care credit intended to support families with child care costs through a newly created credit on the state income tax.

Note: The specific mechanics (e.g., credit rate, income thresholds, refundable vs. nonrefundable status, phaseouts) are not provided in the summary available here. The exact provisions would be detailed in the bill text and any accompanying fiscal notes.

Key provisions and changes (as proposed)

Dependent care credit expansion: The bill modifies Minnesota’s existing dependent care credit to broaden eligibility or increase benefit for qualifying child care expenses.

Great Start child care credit: A new credit program intended to support child care costs, to be used under the state income tax calculation.

Administrative changes: The bill would affect how these credits interact with state tax filings and calculations, subject to the text of the bill and any fiscal notes.

Who would be affected

Individuals and families with child care expenses who file Minnesota individual income tax returns would be eligible for the expanded dependent care credit and, potentially, the new Great Start credit.

Tax filers across income levels potentially benefit, depending on the final eligibility rules and credit amounts contained in the enacted version.

State agencies and tax administrators would implement and administer the new/expanded credits, likely requiring forms updates and guidance.

Procedural and timeline notes

The bill originated in the House and has a companion Senate bill (SF 1852).

It moved from the Children and Families Finance and Policy committee to the Taxes committee, with a committee report dated March 10, 2025 indicating the committee recommended adoption and re-reference to Taxes.

Final enactment would require passage by both chambers and the governor, along with any required fiscal notes.

Next steps for readers

Review the full text of HF 1384 and any attached fiscal notes for precise credit amounts, eligibility, and interaction with other tax provisions.

Compare HF 1384 with its companion SF 1852 to understand differences (if any) between the House and Senate proposals.

Monitor subsequent committee actions and floor votes to track progress toward potential enactment.

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