This bill provides a clarification for a change made in 2014 to the Working Family Credit (WFC).  The WFC rates were increased in 2000.  At that time, the refundable portion of the increase over the rates in effect in 1999 was paid for with federal Temporary Assistance for Needy Families (TANF) block grant funds.  The 2000 change also required the Commissioner of Revenue to determine the amount of the TANF-funded portion of the WFC rate increase and provide that information to Minnesota Management and Budget and the Department of Health and Human Services.

The 2014 WFC change increased the credit rates and removed the “second tier” structure for income of filers with children.  The language providing for TANF funding of the credit was not changed.  The bill clarifies that the TANF funding for the working family credit is the increase in the credit rates enacted in 2000 compared to 1999 law, and not the increase in the 2014 rates as compared to 1999 law.