ST PAUL, Minn. — The Minnesota House of Representatives and Senate passed the 2023 Tax conference committee report, a move DFLers say is the largest tax cut in state history.
“The taxes conference committee has worked hard to craft a tax budget which invests in the Minnesotans who need it the most, while maintaining fiscal responsibility and sound management,” said Rep. Aisha Gomez (DFL - Minneapolis), Chair of the House Taxes Committee, in a release.
House Republicans meanwhile, argue Democrats are actually increasing taxes.
The legislation will create a new child tax credit of up to $1,750 per child for households making $35,000 a year and gradually phasing out on incomes up to $96,250. The bill would also expand the K-12 Education Credit to $1,500 per child.
Also included in the bill are one-time rebate checks in the form of an advance income tax credit of $520 for married joint filers and $260 for single, married separate, and head of household-filers.
Households with dependents will receive an additional $260 for each dependent up to three dependents, which will phase out at $75,000 for single and married separate filers, $150,000 for married joint, head of household, and qualifying widow filers.
The plan also includes $300 million for public safety assistance for communities and $160 million more in state aid for cities and counties.
The tax bill does not contain a House-backed fifth income tax bracket on incomes over $1 million, a hike that was dropped during the negotiations.
Click here to see the full legislation.
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