Higher tax credits have been linked to increased prenatal care, reduced maternal stress and better overall infant health. Increased credits also have demonstrated improvement later in a child’s life through improved school performance, increased college enrollment and increased earnings in adulthood.
In 2017, lawmakers passed an increased and expanded Child and Dependent Care Credit and modified Working Family Credit as part of their $650 million tax cut package. The new law expands eligibility for the Working Family Credit by lowering the age to qualify from 25 to 21 for adults without dependents and removes barriers to claiming the credit for Native Americans living and earning an income on reservations. The income eligibility threshold and the size of the maximum credit remains the same.
CDF-MN supports tax policy that improves economic stability for low-to-moderate income families. Because we are dedicated to producing a high return on investment for our state, we help fund programs that allow children to thrive, support a progressive tax code that ensures opportunities for Minnesota’s children and focus on state tax credits that recognize the additional costs of raising children and support young adults striving to build their future.