Minnesota Tax Credits for Workers and Families

Strong tax credits for lower-income Minnesotans can boost their incomes and get children off to a stronger start in life. They also contribute to a fairer tax system in Minnesota. Our work on tax credits particularly focuses on the Working Family Credit and the Renters' Credit property tax refund.

More information on our advocacy efforts to strengthen Minnesota's state tax credits is available on our Working Family Credit and Renters' Credit agenda pages.

Research

March 2018

Who receives the Renters' Credit? (TY 2015)

The Renters' Credit provides a property tax refund to low- and moderate-income renters whose property taxes are high in relation to their income. About 328,000 Minnesota households received the Renters’ Credit in 2015. Households including seniors and persons with disabilities make up 28 percent of all Renters’ Credit recipients, and in 12 Greater Minnesota counties, at least one-half of participating households included seniors and/or persons with disabilities. This issue brief includes information about the Renters' Credit for each Minnesota county.

January 2017

Prioritize working families by strengthening the Working Family Credit

Despite an overall economic recovery, many hard-working families across Minnesota still struggle to make ends meet. We also know that the state's future economic success depends on more Minnesotans participating in the workforce. A stronger Working Family Credit would support the work efforts of hundreds of thousands of working Minnesotans, get Minnesota children off to a stronger start, and make Minnesota taxes fairer.

April 2016

Dayton's FY 2016-17 supplemental budget proposal works to expand opportunity and close racial gaps

With a $900 million surplus, Governor Mark Dayton makes strategic investments that are focused on expanding opportunity for more Minnesotans, regardless of their race or where they live. The tax portion of Dayton’s supplemental budget prioritizes sustainable tax choices that move Minnesota toward a tax system that is more equitable across income levels. It is especially focused on supporting working families, particularly those with children.

March 2014

Minnesota should improve the Working Family Credit in 2014

The Working Family Credit encourages work, makes the tax system fairer, and helps working people meet basic needs and support their families. Updating the Working Family Credit to match changes in the federal Earned Income Tax Credit would benefit 53,7000 working Minnesota families.

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Tax Credits Blog Posts

May 12, 2023

2023 tax conference committee weighs similarities, differences in House, Senate, Walz tax plans

This year, policymakers are considering transformational changes and long-overdue investments to make Minnesota a state...

March 29, 2023

House Property Tax Division bill includes transformational changes to the Renters’ Credit

One of the highlights of last year’s tax discussion is moving forward again this session: a game-changing proposal to...

February 01, 2023

Governor Walz releases FY 2024-25 budget priorities

In his proposal for the two-year FY 2024-25 budget cycle, Governor Tim Walz proposes $11.2 billion in additional funding for public services, with the largest amount of new dollars going toward education, economic development, and health and human services. He also proposes $5.4 billion in tax reductions in FY 2024-25, with the biggest component being a one-time tax rebate. Read more in our blog.

January 25, 2023

Child poverty declines sharply thanks to federal Child Tax Credit expansion

Thanks in part to improvements policymakers made to the federal Child Tax Credit (CTC), recent U.S. Census data show that from 2019 to 2021, child poverty fell a remarkable 59 percent. Minnesota policymakers should build on that success and create a state Child Tax Credit.

More Tax Credits Blogs