MN SF2196

Establishes a Minnesota tax credit for employers equal to the federal credit claimed under Internal Revenue Code section 45F for qualified child care expenses and resource and referral expenditures.

Limits the credit to expenses paid or incurred in Minnesota; employers with expenses in multiple states claim only the portion of their federal credit attributable to Minnesota expenses.

Credits claimed by partnerships, limited liability companies taxed as partnerships, and S corporations pass through to partners, members, or shareholders pro rata based on their ownership share or special allocations.

Unused credit exceeding a taxpayer's annual tax liability carries forward to the next five succeeding taxable years, with carryover applied to the earliest available year first.

Effective for taxable years beginning after December 31, 2022.