Tax credit establishment for employer-provided child care expenses

This bill creates a state tax credit for Minnesota employers who provide child care expenses to their employees. The credit is based on a percentage of the federal tax credit these employers already receive for such expenses, but it only counts costs incurred within Minnesota. To claim the credit, employers must apply to the Department of Employment and Economic Development, which will issue certificates based on a limited annual funding cap distributed on a first-come, first-served basis. The bill also allows unused credits to be carried forward for up to five years and specifies how the credit is shared among partners or shareholders in certain business structures. This policy is set to take effect for tax years beginning after December 31, 2026.