Strengthening Minnesota's Working Family Credit

 

The purpose of this act is to reduce poverty, support working families, and promote financial stability across the State

of Minnesota by expanding and strengthening the Minnesota Working Family Credit (WFC). Strengthening this program will

help families meet essential needs, reduce the number of children living in poverty, and support long-term economic

growth throughout the state.

 

Minnesota's Working Family Credit is one of the state's most effective tools for assisting low- and moderate-income

households. Despite strong economic conditions, Minnesota's poverty rate was 9.3% in 2023, with approximately one in six

children living in poverty. Childhood poverty has long-lasting negative consequences for physical health, emotional

development, educational success, and future employment opportunities. Many working families still struggle with rising

costs of living, including housing, transportation, food, and childcare. Strengthening the Working Family Credit will

provide meaningful financial support, reduce reliance on other public assistance programs, and

3. Low-and Moderate-Income Household: A household whose income falls w also helps promote greater economic equity across

Minnesota's urban, suburban, and rural communities.

 

1.) Working Family Credit(WFC): A refundable Minnesota state tax credit intended to support low-and moderate-income

workers and their families by increasing their after-tax income

2.) Poverty: The condition in which households lacks sufficient financial resources to meet basic needs such as food,

housing, transportation, clothing, and childcare.

3.) Low-and Moderate- Income Household: A household whose income fall within the eligibility limits established by

Minnesota Department of Revenue for the Working Family Credit.

 

Funding for the expansion of the Working Family Credit shall be provided through the Minnesota state general fund, as

appropriated by the Minnesota Legislature during the annual budget process.

 

There shall be no penalties under this act. Administration and oversight shall be conducted by the Minnesota Department

of Revenue as part of its normal tax-processing operations.

 

January 1, 2027