S.F. No. 1600 Summary

• Expands working family credit eligibility to include adults ages 19-64 without qualifying children who are otherwise eligible for federal earned income tax credit under Internal Revenue Code section 32.

• Removes federal income limitation restrictions, allowing taxpayers to remain eligible for Minnesota credit even if earned income or adjusted gross income exceeds federal IRC section 32 limits.

• Eliminates application of IRC section 32(m) requirements to Minnesota credit eligibility.

• Credits for individuals with no qualifying children equal 3.9 percent of first $7,150 of earned income, reduced by 2.0 percent for income exceeding phaseout thresholds ranging from $8,730 to $14,570 depending on filing status.

• Effective for taxable years beginning after December 31, 2022.