Minnesota Gov. Walz proposes tax credit for 2.5 million families

Millions of Minnesota families would get checks totaling as much as $2,600 from the state’s huge surplus under the budget plan that Gov. Tim Walz announced Tuesday, saying it would give residents the largest package of tax cuts in state history.

The direct payments are the centerpiece of an overall $65 billion two-year budget plan he unveiled Tuesday, after rolling out other proposals over the past week for increased spending on education, families, health, public safety and housing.

“This is a fair budget that will continue to create growth, reducing taxes on Minnesotans while improving all aspects of their life,” Walz said.

MINNESOTA GOV. WALZ GIVES TAX RELIEF BILL 1ST SIGNATURE OF LEGISLATIVE SESSION

The checks would be structured as tax credits equal to $2,000 for families with incomes below $150,000, and $1,000 for single filers making less than $75,000. They would be exempt from federal taxes. Taxpayers could also get an additional $200 for each dependent — up to three. But those making more than the income caps would get nothing, Revenue Commissioner Paul Marquart acknowledged.

More than 2.5 million people in Minnesota would get the checks if lawmakers approve the plan, the administration said.

Walz’s proposed budget also includes expanded tax credits for families

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