MN SF3637

Allows employers to offer optional family and medical leave savings accounts where employee contributions up to $6,750 annually are exempt from state withholding taxes and allowed as a tax subtraction.

Account funds may be withdrawn by employees to offset wages lost during absences for family or medical leave under the Family Medical Leave Act or Minnesota law, with unused funds withdrawable without penalty upon separation.

Unauthorized withdrawals from accounts are subject to a 20 percent penalty tax, and account assets are protected from execution, levy, attachment, and garnishment except in child support or alimony cases.

Provides a refundable state income tax credit equal to the federal tax savings from contributing to a family and medical leave savings account, effective for tax years beginning after December 31, 2015.

Appropriates unspecified funding in fiscal year 2017 to the Commissioner of Employment and Economic Development for grants to small business development centers to provide technical assistance to businesses implementing paid family, medical, pregnancy, or bonding leave programs.