MN SF9

Renames and expands the dependent care credit to the "Great Start Child Care Credit" effective for taxable years beginning after December 31, 2022.

Increases eligible dependent care expense limits from $3,000/$6,000 to $10,000/$12,000 for taxpayers with young children (under age 5), with additional increases of $7,000, $14,000, or $19,000 depending on number of young children.

Establishes a 50% base credit percentage that reduces by one percentage point for each $2,000 of adjusted gross income above $125,000 until reaching 20%, with further reductions for income over $400,000.

Requires Minnesota family investment program grants or allowances to not be counted when determining if a child qualifies as a dependent for the credit purposes.

Adds dependent flexible spending account amounts as a taxable income addition for taxpayers claiming the credit, effective for taxable years beginning after December 31, 2022.