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Bill Summary · HF 958

HF 958 — Summary (first engrossment text provided)

Note on discrepancy: the bill header you supplied names HF 958 as relating to "Medical assistance coverage of psychiatric collaborative care model services," but the legislative text provided and the enacted sections below establish a premarital counseling individual income tax credit. This summary is based on the bill text supplied (premarital counseling tax credit).

Main purpose

Create an individual income tax credit for the cost of premarital counseling (defined in the bill), up to a $500 cap, and make the change retroactive to January 1, 2025, for tax years beginning on or after that date.

Key provisions

  • Definition:
    • “Premarital counseling” is defined as the application of counseling techniques upon prospective spouses in preparation for marriage.
  • Credit amount:
    • A credit against Minnesota individual income tax equal to the cost of premarital counseling paid by the taxpayer, not to exceed $500.
  • Pass-through entities:
    • Individuals may claim credits that are allowed to partnerships, LLCs, S corporations, estates, or trusts that elect to pass income through to individuals. The credit claimed by an individual is based on their pro rata share of the entity’s earnings.
  • Refundability and carryforward:
    • The credit is nonrefundable (cannot produce a refund). Any excess credit beyond the taxpayer’s liability may be carried forward and applied to the next tax year’s liability.
  • Effective date / retroactivity:
    • The Act applies retroactively to January 1, 2025, for tax years beginning on or after that date.
  • Administration:
    • The bill does not specify reporting/documentation requirements in the text shown; administration would occur under standard Minnesota Department of Revenue procedures unless further guidance or statute is added later.

Who is affected

  • Primary beneficiaries:
    • Minnesota taxpayers who pay for premarital counseling (individuals and stakeholders in pass-through entities).
  • Secondary effects:
    • Premarital counseling providers may see increased demand.
    • Minnesota Department of Revenue will administer the credit and any associated reporting or guidance.
    • State general fund revenue could decrease depending on uptake; the bill does not include a fiscal estimate in the text provided.

Procedural status (from provided history)

  • Introduced: March 13, 2025; referred to Ways and Means.
  • Committee actions include a report (to adopt as amended and re-refer to Human Services Finance and Policy).
  • Multiple authors and co-authors were added through March 2025 (including Lee, Mahamoud, Fischer, Virnig, Zeleznikar, Pursell, Bahner, Elkins).
  • Primary sponsor: Jones.
  • Related/companion bill: SF 8.

Potential impacts and implementation considerations

  • Fiscal impact: Likely reduces state income tax revenue; fiscal effect depends on how many taxpayers claim up to $500. No fiscal note included in the text provided.
  • Equity and usage: The cap ($500) and nonrefundable nature mean lower-income taxpayers with little or no income tax liability may not benefit unless they have tax liability to offset.
  • Administrative details not specified: The bill does not detail documentation required to prove counseling costs or provider qualifications; the Department of Revenue would likely issue guidance.
  • Retroactive application: Taxpayers may claim the credit for qualifying premarital counseling paid in tax years beginning on or after Jan 1, 2025.

If you want, I can: (1) draft a short fiscal-impact checklist, (2) compare this text to the companion SF 8, or (3) prepare suggested questions for committee review (e.g., documentation standards, provider qualifications, fiscal estimate).

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

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