House tax panel hears overview, public testimony and lays over multiple child tax credit measures including $400 newborn bonus

The Minnesota House Tax Committee on March 20 heard a fiscal overview and public testimony on multiple child tax credit proposals and laid them over for possible inclusion in the 2025 omnibus tax bill.

Fiscal staffer Mr. Williams opened the committee with a technical overview of the state credit, saying, “the maximum credit based on earned income is $379 in 2025.” He reviewed how Minnesota’s child credit, the working family credit and an earned-income-based supplement combine and then phase out by income, with married-joint filers’ phase-out beginning at $37,910 and other filers’ phase-out beginning at $31,950 in 2025.

Committee members then heard from policy advocates and parents. Nan Madden, director of the Minnesota Budget Project, testified in support of expanding eligibility and said she has “never been more excited about a tax policy that I think is truly transformational for many Minnesota kids and families.” Alexandra Fitzsimmons of Children’s Defense Fund Minnesota testified in support of House File 2254, which would add a $400 baby bonus for newborns. Jason Adkins, executive director of the Minnesota Catholic Conference, testified in support of House File 2502 to raise the phase-out threshold for married joint filers. Parent and clinical social worker Alicia Donahue described the financial pressures of infant care and urged passage of the baby bonus bill.

Representative Hansen presented House File 2254, a $400 newborn bonus to be added to the child tax credit in the taxable year of a baby’s birth; Representative Reid presented House File 2502, which would increase the married-joint phase-out threshold to twice the other-filers threshold (statutory amounts to be annually adjusted for inflation beginning tax year 2026); and Representative Norris presented House File 2302, which would treat 18-year-olds the same as children ages 0–17 for the credit. All three bills were laid over for possible inclusion in the 2025 omnibus tax bill.

Committee members and testifiers emphasized that the child credit is refundable and targeted to lower-income households, noted upcoming advanced payments in 2025 for taxpayers who opt in, and described research linking income supplements early in life to improved child outcomes. Witnesses and members repeatedly framed the proposals as ways to reduce hardship and help families afford early-childhood expenses.

Next steps: the bills were laid over for possible inclusion in the committee’s omnibus tax package later in the session; no final votes on enactment were taken at the hearing.