SAINT PAUL, Minn. – Today, the House approved a package of new tax credits and rebates to help Minnesotans who are struggling with rising costs. The majority of the benefits in the House DFL tax bill go to families with young children, senior citizens living on fixed incomes, and people with student loan debt.
“While the large and wealthy corporations collect record profits, workers, families, and seniors are face rising costs,” said Rep. Tina Liebling (DFL – Rochester). “Unlike Senate Republicans who are passing tax breaks for millionaires and billionaires, House DFLers are focused on helping Minnesotans who are struggling with high health care costs, rent and mortgage payments, high out-of-pocket costs for health care, and increasing child care costs. The legislation we passed today takes bold action to remove these and other barriers to economic security for Minnesotans.”
The House DFL tax bill would reduce the cost of housing by making the biggest investment in property tax refunds and renter’s credits in decades. Democrats’ proposal expands eligibility and benefits, and makes it easier to apply. More than 150,000 additional renters will qualify, with an average benefit of $700. In addition, more than 1.3 million homesteads that currently qualify for the market value exclusion will see an increased exclusion. The bill also provides a “Great Start Child Care Credit” of up to $3,000 for each child under five years of age, capped at $7,500 in total tax credits, while also providing a one-time “Child Tax Credit Rebate” of $325 for each child under 17 years of age. The bill eliminates taxes on social security income for those earning less than $75,000 per year, increases the student loan tax credit to $1,400 per person, and more.
The House also approved legislation that helps working Minnesotans by funding training and workforce development, investing in struggling small businesses and economic corridors throughout the state, and keeping workers safe on the job. The Jobs and Workforce bill contains $207 million in investments to promote workforce and business development, including Paid Family & Medical Leave and Earned Sick & Safe Time legislation so all Minnesotans can take time to care for themselves or a loved one without facing economic disaster. The legislation also expands the unemployment insurance safety net to Minnesota’s hourly school workers, to give them the same economic security as their colleagues.
Video of today’s floor session will be available on House Public Information Services’ YouTube channel.