House member moves to re-refer child care tax credit bill to taxes committee

Representative Katiza Vittoon moved that House File 1384 be re-referred to the committee on taxes, advancing a proposal she called the Great Start Child Care Tax Credit that would expand Minnesota's dependent care credit for children under age 6.

The proposal, introduced by Representative Vittoon, would increase the credit caps for families with young children and phase the benefit down for higher-income households. "The idea is that the existing limit is $3,000 and we would want to add $7,000 to that," Vittoon said, describing a $10,000 cap for a family with one child under 6. She said the credit phases down after $125,000 in household earned income and goes to zero at higher incomes, which she described as "over $400,000." Vittoon said a fiscal estimate from 2022 put the cost at about $200,000,000 a year.

Claire Sanford, chair of government relations for the Minnesota Child Care Association, testified in support of the bill. "We wholeheartedly believe that childcare needs to be made cheaper for families," Sanford said, adding that many licensed centers in Minnesota have unused capacity because families cannot afford care. "Families with young children are typically early in their earning cycle," she said, and "increasing the credits for kids under 5 really recognizes that."

Representative Nadeau asked for clarification about differences in the bill text between provisions that treat childcare as an employment-related expense and other dependent-care limits. Vittoon said the bill is designed to target the youngest children specifically and broaden the existing dependent care credit to better cover early-childhood costs. "We've termed it the Great Start Child Care Tax Credit and Dependent Care Credit because the dependent care credit is actually what's currently in state law," she said.

Representative Nolan voiced support for expanding the income range eligible for the credit, saying higher out-of-pocket childcare costs can be a barrier for families considering a second child.

With time expiring, Vittoon renewed her motion to re-refer. The chair called for the question; members responded "aye," and the motion prevailed by voice vote. The bill was placed on the taxes committee docket for further consideration.

Votes at a glance: House File 1384 — motion to re-refer to the committee on taxes; mover: Representative Katiza Vittoon; second: not specified; outcome: approved by voice vote (no roll-call tally recorded).