Senate committee hears proposal for property-tax credit to support in‑home family child care providers

Senate File 339, a bill to create a property-tax credit for licensed family child-care providers, was presented to the Minnesota Senate Taxes Committee. Sponsor Sen. Andrew Weber said the credit aims to support in‑home providers who convert part of their residence into a licensed childcare business and face extensive regulation and financial pressure.

Under the bill summary delivered to the committee, licensed family child-care providers would be eligible for a credit equal to 50% of net residential property tax owed after subtracting other applicable credits; sponsors described an effective year of 2026 with the state reimbursing the taxing entities so there is no local tax shift. Cindy Cunningham, public policy chair for LeadingCare (the state association for licensed family child care), testified remotely and described a long decline in program numbers and the financial and regulatory pressures on family providers. “Family child care is critical to the care of children and support of families in Minnesota. The industry is in crisis with the loss of programs over recent years,” Cunningham said.

Committee members from both rural and urban districts supported pursuing relief for family providers and noted that over‑regulation and paperwork have contributed to closures. Several senators—Sen. Zach Putnam and Sen. Haschold among them—expressed support and asked to sign on. Sponsors emphasized that the credit would be paid by the state rather than shifting property-tax burden to other taxpayers. The committee laid Senate File 339 over for possible inclusion.