MN HF3952

Qualified employers receive a 25 percent tax credit on wages paid to qualifying employees during parental leave, capped at $3,000 per employee per year or the product of hourly wage and hours of leave taken, not exceeding six weeks.

Eligible employees who are not employed by a qualified employer receive a 25 percent tax credit on forgone wages for unpaid parental leave of at least one week, calculated using either the greater of prior or current year total wages divided by 52, or $1,000 multiplied by a county index value, not exceeding six weeks.

Qualified employers must provide at least two weeks of annual paid parental leave to full-time employees and proportional amounts to part-time employees at 100 percent of normal wages; qualifying employees must have been employed for one year or more.

Employer tax credits may be carried forward for five succeeding taxable years if they exceed tax liability; employee tax credits in excess of tax liability are refunded by the commissioner with funds appropriated from the general fund.

Credits apply beginning June 30, 2016, for taxable years beginning after December 31, 2015.