Dependent care individual income tax credit expanded.

HF 310 expands Minnesota's dependent care tax credit by including amounts excluded from federal taxable income under Internal Revenue Code section 129 (dependent care flexible spending accounts) as eligible expenses for the state credit. This change directly affects Minnesota taxpayers who pay for dependent care (such as childcare) and claim the state credit, allowing them to count more of their childcare costs toward their credit amount. The bill amends Minnesota Statutes sections 290.0131 and 290.067 to clarify this eligibility, effective for tax years beginning after December 31, 2024. It does not change the credit percentage or maximum limits but broadens the types of qualifying expenses.