1.1.................... moves to amend H.F. No. 2437, the second engrossment, as follows:
1.2Page 11, after line 2, insert:

1.3    "Sec. .... Minnesota Statutes 2024, section 290.0661, subdivision 1, is amended to read:
1.4    Subdivision 1. Definitions. (a) For the purposes of this section, "qualifying child" has
1.5the meaning given in section 32(c) of the Internal Revenue Code, except:
1.6(1) excluding individuals who attained the age of 18 or greater in the taxable year; and
1.7(2) section 32(m) of the Internal Revenue Code does not apply.
1.8(b) If the taxpayer and qualifying child are noncitizens, paragraph (a), clause (2), is
1.9applicable only if the taxpayer and qualifying child are documented and lawfully present
1.10in the United States.
1.11EFFECTIVE DATE.This section is effective for taxable years beginning after December
1.1231, 2024."
1.13Page 11, after line 12, insert:

1.14    "Sec. .... Minnesota Statutes 2024, section 290.0661, subdivision 4, is amended to read:
1.15    Subd. 4. Phaseout. The credits under subdivision 2 and section 290.0671 are phased
1.16down jointly. The combined amount of the credits is reduced by 12 percent of earned income
1.17or adjusted gross income, whichever is greater, in excess of the phaseout threshold. The
1.18phaseout threshold equals:
1.19(1) $35,000 $38,040 for a married taxpayer filing a joint return; or
1.20(2) $29,500 $32,060 for all other filers.
1.21EFFECTIVE DATE.This section is effective for taxable years beginning after December
1.2231, 2024.

2.1    Sec. .... Minnesota Statutes 2024, section 290.0661, subdivision 7, is amended to read:
2.2    Subd. 7. Inflation adjustment. (a) For taxable years beginning after December 31,
2.32025, the commissioner of revenue must annually adjust for inflation the credit amount in
2.4subdivision 3 as provided in section 270C.22. The adjusted amounts must be rounded to
2.5the nearest $60. The statutory year is taxable year 2025.
2.6(b) For taxable years beginning after December 31, 2023 2025, the commissioner of
2.7revenue must annually adjust for inflation the phaseout thresholds in subdivision 4, as
2.8provided in section 270C.22. The statutory year is taxable year 2023 2025.
2.9EFFECTIVE DATE.This section is effective for taxable years beginning after December
2.1031, 2024.

2.11    Sec. .... Minnesota Statutes 2024, section 290.0671, subdivision 1, is amended to read:
2.12    Subdivision 1. Credit allowed. (a) An individual who is a resident of Minnesota is
2.13allowed a credit against the tax imposed by this chapter equal to a percentage of earned
2.14income. To receive a credit, a taxpayer must be eligible for a credit under section 32 of the
2.15Internal Revenue Code, except that:
2.16(1) a taxpayer with no qualifying children who has attained the age of 19, but not attained
2.17age 65 before the close of the taxable year and is otherwise eligible for a credit under section
2.1832 of the Internal Revenue Code may also receive a credit;
2.19(2) a taxpayer who is otherwise eligible for a credit under section 32 of the Internal
2.20Revenue Code remains eligible for the credit even if the taxpayer's earned income or adjusted
2.21gross income exceeds the income limitation under section 32 of the Internal Revenue Code;
2.22and
2.23(3) section 32(m) of the Internal Revenue Code does not apply.
2.24(b) If the taxpayer and qualifying child are noncitizens, paragraph (a), clause (3), is
2.25applicable only if the taxpayer and qualifying child are documented and lawfully present
2.26in the United States.
2.27(c) A taxpayer's working family credit equals four percent of the first $8,750 of earned
2.28income.
2.29(c) (d) The credit under this section is increased by:
2.30(1) $925 for a taxpayer with one qualifying older child;
2.31(2) $2,100 for a taxpayer with two qualifying older children; or
3.1(3) $2,500 for a taxpayer with three or more qualifying older children.
3.2(d) (e) The credit under this section is phased out jointly with the credit under section
3.3290.0661, subdivision 4. For a taxpayer with one or more qualifying older children who
3.4did not qualify for the credit under section 290.0661, the phaseout rate equals nine percent.
3.5(e) (f) For a person who was a resident for the entire tax year and has earned income not
3.6subject to tax under this chapter, the credit must be allocated based on the ratio of federal
3.7adjusted gross income reduced by the earned income not subject to tax under this chapter
3.8over federal adjusted gross income. For purposes of this paragraph, the following clauses
3.9are not considered "earned income not subject to tax under this chapter":
3.10(1) the subtractions for military pay under section 290.0132, subdivisions 11 and 12;
3.11(2) the exclusion of combat pay under section 112 of the Internal Revenue Code; and
3.12(3) income derived from an Indian reservation by an enrolled member of the reservation
3.13while living on the reservation.
3.14EFFECTIVE DATE.This section is effective for taxable years beginning after December
3.1531, 2024."
3.16Page 40, after line 13, insert:

3.17    "Sec. .... Minnesota Statutes 2024, section 273.124, subdivision 13, is amended to read:
3.18    Subd. 13. Homestead application. (a) A person who meets the homestead requirements
3.19under subdivision 1 must file a homestead application with the county assessor to initially
3.20obtain homestead classification.
3.21(b) The commissioner shall prescribe the content, format, and manner of the homestead
3.22application required to be filed under this chapter pursuant to section 270C.30. The
3.23application must clearly inform the taxpayer that this application must be signed by all
3.24owners who occupy the property or by the qualifying relative and returned to the county
3.25assessor in order for the property to receive homestead treatment.
3.26(c) Every property owner applying for homestead classification must furnish to the
3.27county assessor the Social Security number or individual taxpayer identification number of
3.28each occupant who is listed as an owner of the property on the deed of record, the name
3.29and address of each owner who does not occupy the property, and the name and Social
3.30Security number or individual taxpayer identification number of the spouse of each occupying
3.31owner. The application must be signed by each owner who occupies the property and by
3.32each owner's spouse who occupies the property, or, in the case of property that qualifies as
4.1a homestead under subdivision 1, paragraph (c), by the qualifying relative. For purposes of
4.2this paragraph, an individual taxpayer identification number shall not be accepted by the
4.3county assessor if the individual taxpayer identification number is assigned to an individual
4.4who is a noncitizen of the United States who is either undocumented or otherwise not
4.5lawfully present in the United States.
4.6If a property owner occupies a homestead, the property owner's spouse may not claim
4.7another property as a homestead unless the property owner and the property owner's spouse
4.8file with the assessor an affidavit or other proof required by the assessor stating that the
4.9property qualifies as a homestead under subdivision 1, paragraph (e).
4.10Owners or spouses occupying residences owned by their spouses and previously occupied
4.11with the other spouse, either of whom fail to include the other spouse's name and Social
4.12Security number or individual taxpayer identification number on the homestead application
4.13or provide the affidavits or other proof requested, will be deemed to have elected to receive
4.14only partial homestead treatment of their residence. The remainder of the residence will be
4.15classified as nonhomestead residential. When an owner or spouse's name and Social Security
4.16number or individual taxpayer identification number appear on homestead applications for
4.17two separate residences and only one application is signed, the owner or spouse will be
4.18deemed to have elected to homestead the residence for which the application was signed.
4.19(d) If residential real estate is occupied and used for purposes of a homestead by a relative
4.20of the owner and qualifies for a homestead under subdivision 1, paragraph (c), in order for
4.21the property to receive homestead status, a homestead application must be filed with the
4.22assessor. The Social Security number or individual taxpayer identification number of each
4.23relative occupying the property and the name and Social Security number or individual
4.24taxpayer identification number of the spouse of a relative occupying the property shall be
4.25required on the homestead application filed under this subdivision. If a different relative of
4.26the owner subsequently occupies the property, the owner of the property must notify the
4.27assessor within 30 days of the change in occupancy. The Social Security number or individual
4.28taxpayer identification number of a relative occupying the property or the spouse of a relative
4.29occupying the property is private data on individuals as defined by section 13.02, subdivision
4.3012, but may be disclosed to the commissioner of revenue, or, for the purposes of proceeding
4.31under the Revenue Recapture Act to recover personal property taxes owing, to the county
4.32treasurer.
4.33(e) The homestead application shall also notify the property owners that if the property
4.34is granted homestead status for any assessment year, that same property shall remain
4.35classified as homestead until the property is sold or transferred to another person, or the
5.1owners, the spouse of the owner, or the relatives no longer use the property as their
5.2homestead. Upon the sale or transfer of the homestead property, a certificate of value must
5.3be timely filed with the county auditor as provided under section 272.115. Failure to notify
5.4the assessor within 30 days that the property has been sold, transferred, or that the owner,
5.5the spouse of the owner, or the relative is no longer occupying the property as a homestead,
5.6shall result in the penalty provided under this subdivision and the property will lose its
5.7current homestead status.
5.8(f) If a homestead application has not been filed with the county by December 31, the
5.9assessor shall classify the property as nonhomestead for the current assessment year for
5.10taxes payable in the following year, provided that the owner may be entitled to receive the
5.11homestead classification by proper application under section 375.192.
5.12EFFECTIVE DATE.This section is effective beginning with homestead applications
5.13filed in 2026."
5.14Renumber the sections in sequence and correct the internal references
5.15Amend the title accordingly