Refundable individual income tax credit established for family members who provide child care.

HF 3299 establishes a $2,000 refundable Minnesota income tax credit for family members (like grandparents, aunts, uncles, or siblings) who provide unpaid child care for children under age six. To qualify, caregivers must provide at least 416 hours of care annually to enable a parent's employment, maintain specific family relationships, and not live with the child. The credit phases out for single filers earning over $50,000 or joint filers over $100,000. If the credit exceeds tax liability, Minnesota will refund the difference, effective for 2025 tax returns.