SAINT PAUL, Minn. – Today, Minnesota House DFLers announced a new plan to reduce the cost of Minnesotans’ biggest expenses, including child care, housing, and prescription medications. Democrats’ plan targets assistance to people who need it most, such as workers, families, senior citizens, and those with student loan debt.
“Minnesotans are navigating an economy increasingly tilted against them, and are struggling with rising costs of housing, child care, health care, food, gas, and other expenses. This session, we can’t miss this opportunity to make a big difference in people’s lives by advancing solutions to help them tackle these costs,” said Rep. Jen Schultz (DFL – Duluth), a member of the House Taxes Committee. “Meanwhile, Republicans in the Minnesota Senate are putting the future stability of our state budget at risk by pushing billions of dollars worth of tax breaks for the very wealthiest Minnesotans and large corporations. Over the past two years, while working families struggled, corporate profits soared. The Republican giveaways are not only reckless, but they’re unnecessary.”
The House DFL’s proposal reduces the cost of child care for Minnesota families by providing a tax credit of up to $3,000 for each child under five years of age, capped at $7,500 in total tax credits. It also provides a one-time “child tax credit rebate” of $325 for each child under 17 years of age. This means a family with three children under the age of five would receive nearly $7,000 in benefits.
House DFLers are also working to reduce the cost of housing by devoting more funding to the state’s Renter’s Credit and Homestead Credit Refund programs. Approximately 120,000 renters will save an average $700 on their housing costs. Statewide, 30% of renter’s credit recipients are seniors or people with disabilities. Nearly 400,000 homestead credit refund filers will receive on average $100 more. In addition, more than 1.3 million homesteads that currently qualify for the market value exclusion will see an increased exclusion, putting more dollars back into the pockets of workers and families. The bill also increases the student loan tax credit to $1,400 for each spouse.
Additionally, the legislation increases Local Government Aid and County Program Aid to improve the delivery of public services, makes construction materials exempt from sales taxes for projects in a variety of school districts, including Duluth, and eliminates taxes on social security income for those earning less than $75,000 for married joint filers or $58,600 for other filers.
The House Taxes Committee held an initial public hearing on the legislation today. Further information about the bill is available on the committee webpage.