WeVote
Log In

Bill

Bill

SF 2103

Refundability removal of the child tax credit and working family credit

2025-2026 Regular Session Introduced by Steve Drazkowski and 3 co-sponsors

Eliminates refundable portions of Minnesota's child and working family tax credits, preventing low-income families from receiving payments exceeding taxes owed.

Referred to Taxes
#taxation #taxation-income
0
WeVote Research Nonpartisan
Bill Summary · SF 2103

Legislative bill overview

SF 2103 would eliminate the refundable portions of Minnesota's child tax credit and working family credit, converting them to non-refundable credits only. This means taxpayers could only use these credits to reduce their tax liability to zero, rather than receiving payments exceeding taxes owed. The bill was introduced in March 2025 and is currently in the tax committee.

Why is this important

Refundable credits function as direct payments to lower-income families who owe little or no state income tax, effectively serving as anti-poverty assistance. Removing refundability would reduce state spending on these programs and primarily affect low-to-moderate income households, potentially increasing child poverty and reducing resources for working families. The fiscal impact would depend on how many current beneficiaries rely on the refundable portion of these credits.

Potential points of contention

  • Impact on low-income families: Removing refundability would eliminate tax payments/credits for families earning below tax thresholds, directly reducing their income support
  • Budget trade-offs: The bill reduces state expenditures but diverts resources from families receiving these credits; legislators must weigh this against other budget priorities
  • Philosophical disagreement: Fundamental debate over whether tax credits should function as social assistance programs or purely as tax liability reductions

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

Sign in to ask a question.