Individual income tax; child credit phaseout increased to eliminate the marriage penalty.

HF 2502 modifies Minnesota's child tax credit to reduce the "marriage penalty" by raising the income level at which the credit begins to phase out for married couples filing jointly. The bill increases the phaseout threshold from $35,000 to $63,900 for joint filers (while slightly raising the threshold for other filers to $31,950), meaning married couples will retain more of their child credit at lower income levels. This change directly affects married Minnesota taxpayers filing jointly who currently lose credit benefits at lower incomes than single filers. The adjustment takes effect for taxable years beginning after December 31, 2024, and includes automatic inflation adjustments starting in 2025.