SF783 - Tax Provisions and Fire/Police State Aids Bill

• Composite return and pass-through entity tax changes: Simplifies income definitions for partnerships and qualifying entities filing composite returns or pass-through entity taxes, effective for taxable years beginning after December 31, 2022

• Earned income tax credit expansion: Allows taxpayers ages 19-64 without qualifying children and those exceeding federal income limits to claim the Minnesota earned income credit, effective immediately upon enactment

• Stillbirth tax credit: Creates a $2,000 tax credit for Minnesota residents for each stillbirth, effective for taxable years beginning after December 31, 2022

• Fire and police state aid reforms: Consolidates administrative requirements, updates definitions to include joint powers entities and fire protection special taxing districts, and establishes clearer penalty procedures for late certifications, effective for aids payable in calendar year 2024

• Technical and miscellaneous updates: Adjusts property tax credit timelines, contractor withholding requirements, health care provider definitions, tribal tax agreements, and fuel surcharge calculations