For 2025, Minnesota offers several significant tax credits for individuals and businesses, with notable changes to the state’s Child Tax Credit and Research and Development (R&D) Tax Credit.
Tax credits for individuals
Minnesota Child Tax Credit
The Child Tax Credit (CTC) is a refundable credit that provides up to $1,750 per qualifying child aged 0 to 17. For tax year 2025, the Minnesota Department of Revenue offers these options:
- Advance payments: You can opt to receive a portion of your 2025 credit in three advance installments throughout the second half of 2025.
- Full credit at filing: You can choose to receive your full CTC when you file your 2025 income tax return in 2026.
- Impact on SNAP: If you receive SNAP benefits, be aware that choosing advance payments may reduce your SNAP benefit amount.