Summary
Minnesota's Renter's Credit (MN Statute §290.0693) is not implemented in PE. This is a refundable credit based on rent paid, computed as the amount that "rent constituting property taxes" (17% of gross rent) exceeds a percentage of household income. It was moved from a separate M1PR filing to the income tax return (Schedule M1RENT) starting tax year 2024.
For a single filer with $50K wages and $10K rent paid (2025):
- PE: $0 renter's credit
- TaxAct: $575 renter's credit
Legal Basis
Minnesota Statute §290.0693 (link):
- Subd. 1(j): "Rent constituting property taxes" = 17% of gross rent paid
- Subd. 2: Credit = amount that rent-as-property-tax exceeds the applicable percentage of household income (from table in Subd. 3)
- Subd. 2(b): Refundable — excess over tax liability is refunded
- Subd. 3: Income-based table with ~20 brackets specifying percent of income, copay percentage, and maximum credit (e.g., $2,640 max for 2024, $2,720 for 2025 indexed per §270C.22)
Key Parameters from Statute (Subd. 3)
| Household Income |
% of Income |
Claimant Copay |
Max Credit |
| $0–$6,479 |
1.0% |
5% |
$2,640 |
| $6,480–$8,609 |
1.0% |
10% |
$2,640 |
| ... |
... |
... |
... |
| $45,230–$53,819 |
2.5% |
40% |
$1,700 |
| ... |
... |
... |
... |
| $75,390+ |
— |
— |
$0 |
(Full table in statute Subd. 3; amounts indexed annually per §270C.22)
History
- Pre-2024: Filed separately on Form M1PR under MN Statute §290A
- 2024+: Moved to income tax return as Schedule M1RENT under new §290.0693
- This is a newly enacted income tax credit for PE purposes (prior M1PR filing was separate from income tax)
Integration Test
- name: taxsim_801_mn_single_2025_renters_credit
absolute_error_margin: 10
period: 2025
input:
people:
person1:
age: 40
employment_income: 50_000
rent: 10_000
is_tax_unit_head: true
tax_units:
tax_unit:
members: [person1]
premium_tax_credit: 0
families:
family:
members: [person1]
spm_units:
spm_unit:
members: [person1]
snap: 0
tanf: 0
households:
household:
members: [person1]
state_fips: 27
output:
mn_renters_credit: 575Scope of Implementation
New variables needed:
mn_renters_credit — the main credit (refundable)mn_renters_credit_eligible — eligibility (household income < threshold, has CRP)mn_rent_constituting_property_taxes — 17% of gross rentmn_renters_household_income — AGI minus dependent/senior subtractions per Subd. 1(i)
New parameters needed:
- Income bracket table (Subd. 3): ~20 brackets with percent-of-income, copay rate, and max credit
- Indexed amounts per §270C.22 (statutory year 2023)
Also needs to be added to:
mn_refundable_credits adds liststate_property_tax_credits adds list (for TAXSIM v37 output)
References
Summary
Minnesota's Renter's Credit (MN Statute §290.0693) is not implemented in PE. This is a refundable credit based on rent paid, computed as the amount that "rent constituting property taxes" (17% of gross rent) exceeds a percentage of household income. It was moved from a separate M1PR filing to the income tax return (Schedule M1RENT) starting tax year 2024.
For a single filer with $50K wages and $10K rent paid (2025):
Legal Basis
Minnesota Statute §290.0693 (link):
Key Parameters from Statute (Subd. 3)
(Full table in statute Subd. 3; amounts indexed annually per §270C.22)
History
Integration Test
Scope of Implementation
New variables needed:
mn_renters_credit— the main credit (refundable)mn_renters_credit_eligible— eligibility (household income < threshold, has CRP)mn_rent_constituting_property_taxes— 17% of gross rentmn_renters_household_income— AGI minus dependent/senior subtractions per Subd. 1(i)New parameters needed:
Also needs to be added to:
mn_refundable_creditsadds liststate_property_tax_creditsadds list (for TAXSIM v37 output)References