MN SF5186

Establishes a contingent 20 percent health insurance premium tax credit for taxable years 2026-2027 for taxpayers with household income exceeding 400 percent of federal poverty guidelines who purchase qualified health plans through MNsure.

Credit is refundable and available only if the Minnesota premium security plan under Minnesota Statutes section 62E.23 is not funded by the legislature for that taxable year.

Modifies the medical expense deduction to prohibit deductions for insurance premiums used to claim the new credit for taxable years 2026-2027.

MNsure must send outreach letters to interested taxpayers showing projected health insurance assessments and allow a 65-day special enrollment period to select qualified health plans or the public option, effective January 1, 2027, upon federal approval.

Appropriates necessary funds annually to the commissioner of revenue to pay refunds under the credit program.