This 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.

The new legal language establishes that the amount of overtime pay will be subtracted from taxable income, thereby potentially reducing the tax burden for individuals who earn overtime. This provision is set to take effect for taxable years beginning after December 31, 2024.

Statutes affected:
Introduction: 290.0132