1.1 	A bill for an act
1.2 	relating to taxation; individual income; modifying the
1.3 	dependent care credit; amending Minnesota Statutes
1.4 	2004, section 290.067, subdivision 2.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2004, section 290.067,
1.7 	subdivision 2, is amended to read:
1.8 		Subd. 2.Limitations.  The credit for expenses incurred
1.9 	for the care of each dependent shall not exceed $720 $1,050 in
1.10 	any taxable year, and the total credit for all dependents of a
1.11 	claimant shall not exceed $1,440 $2,100 in a taxable year.  The
1.12 	maximum total credit shall be reduced according to the amount of
1.13 	the income of the claimant and a spouse, if any, as follows:
1.14 	income up to $18,040, $720 $1,050 maximum for one
1.15 	dependent, $1,440 $2,100 for all dependents;
1.16 	income over $18,040, the maximum credit for one dependent
1.17 	shall be reduced by $18 for every $350 of additional income, $36
1.18 	for all dependents.
1.19 	The commissioner shall construct and make available to
1.20 	taxpayers tables showing the amount of the credit at various
1.21 	levels of income and expenses.  The tables shall follow the
1.22 	schedule contained in this subdivision, except that the
1.23 	commissioner may graduate the transitions between expenses and
1.24 	income brackets.
1.25 	
EFFECTIVE DATE. This section is effective for taxable
2.1 	years beginning after December 31, 2004.