Individual income tax; dependent care credit expanded, and Great Start child care credit established.

Minnesota's HF 1384 expands the state's dependent care credit and creates a new "Great Start child care credit" for families with young children. It directly affects Minnesota taxpayers with children under age six who pay for child care, including parents using family day care homes or not enrolled in employer-dependent care plans. The bill increases the credit amount for one qualifying child to a maximum of $600 and for two or more children to $1,200, with phaseouts for higher-income households. These changes apply to 2025 tax returns and reduce the tax liability for eligible families based on their child care expenses.