MN SF3629

Allows qualified employers a tax credit equal to 25 percent of wages paid to qualifying employees during parental leave, capped at $3,000 per employee per year or the actual wages paid for up to 6 weeks of leave.

Requires qualified employers to offer at least 2 weeks of annual paid parental leave to full-time employees and a prorated amount to part-time employees at 100 percent wage replacement.

Allows eligible employees not employed by a qualifying employer a tax credit equal to 25 percent of forgone wages for unpaid parental leave of at least 1 week, capped at 6 weeks per year, with credit amount calculated using county-indexed child care rates.

Employer tax credits can be carried forward for up to 5 taxable years if unused; employee tax credits in excess of tax liability are refunded to the employee with appropriation from the general fund.

Effective for taxable years beginning after December 31, 2015, with credits applying to wages paid or leave taken after June 30, 2016.