MN HF4725

Creates a tax credit for qualified employers who pay family leave benefits, limited to $3,000 per qualified employee per year or the actual amount paid, whichever is less.

Applies only to employers with 50 or fewer employees in Minnesota who have employed workers for at least one year.

Defines family leave as time off for caring for a family member with serious health conditions, bonding with a newborn or newly adopted/foster child within 12 months, or military family exigencies.

Commissioner allocates credits on first-come, first-served basis with a $50 million annual cap through December 31, 2025, with unused credits carried forward to the next five taxable years.

Unused credits exceeding tax liability in any year can be carried forward to the next five succeeding taxable years; credit is effective for taxable years beginning January 1, 2023 through December 31, 2025.