MN SF463

Creates a tax credit for qualified employers against income and corporate franchise taxes equal to amounts paid directly for employee paid family leave benefits or to insurance companies providing such benefits.

Limits the annual credit to the lesser of $3,000 per qualified employee or the total amount of family leave benefits paid, excluding amounts deducted for federal tax purposes.

Restricts eligibility to employers with 50 or fewer employees in Minnesota who pay family leave benefits for at least one qualified employee, and requires employees to have been employed for one year or more.

Defines family leave to include care for serious health conditions, bonding with newborns or newly adopted/foster children within 12 months, and addressing military-related exigencies under federal law.

Allows unused credits to carry forward for five subsequent taxable years and permits pass-through to partners, members, and shareholders of partnerships, LLCs, and S corporations; effective for taxable years beginning after December 31, 2023, and before January 1, 2027.