The bill amends Minnesota Statutes 2024, section 290.0132, by adding a new subdivision that provides a subtraction for overtime pay in the calculation of individual income tax. Specifically, it defines "overtime pay" as wages, salaries, tips, and other employee compensation earned for hours worked beyond the maximum workweek limits set forth in chapter 177 or the United States Code, title 29, section 207. This change aims to alleviate the tax burden on individuals who earn overtime compensation.

The new provision will take effect for taxable years beginning after December 31, 2024. This means that taxpayers will be able to subtract their overtime pay from their taxable income starting in the 2025 tax year, potentially resulting in lower tax liabilities for those who work overtime.

Statutes affected:
Introduction: 290.0132