Tax Credits

Higher tax credits have been linked to increased prenatal care, reduced maternal stress and better overall infant health.

Increased credits also have demonstrated improvement later in a child’s life through improved school performance, increased college enrollment, and increased earnings in adulthood. Children’s Defense Fund-Minnesota advocated for the creation of and continues to advocate for improvements to the Working Family Credit (the state version of the federal Earned Income Tax Credit) and protecting the Renter’s Credit. CDF-MN continually works to improve the Minnesota Child and Dependent Care Credit and supports a refundable state Child Tax Credit. In 2017, lawmakers passed an increased and expanded Child and Dependent Care Credit and modified Working Family Credit as part of their $650 million tax cut package. The new law expands eligibility for the Working Family Credit by lowering the age to qualify from 25 to 21 for adults without dependents and removes barriers to claiming the credit for Native Americans living and earning an income on reservations. The income eligibility threshold and the size of the maximum credit remains the same.

CDF-MN supports tax policy that improves economic stability for low- and moderate-income families and provides revenue for programs that allow children to thrive and produce a high return on investment for our state. We support a progressive tax code that ensures opportunities for Minnesota’s children, and we focus on state tax credits that recognize the additional costs of raising children, encourage work, and move families closer to economic stability.