The bill amends Minnesota Statutes 2024, section 290.0132, by adding a new subdivision that provides a subtraction for gratuities paid to employees. Specifically, it introduces Subdivision 36, which defines "gratuities" in accordance with section 177.23, subdivision 9, and states that the amount of gratuities can be subtracted from individual income for tax purposes.

This new provision is set to take effect for taxable years beginning after December 31, 2024, allowing individuals to benefit from this subtraction in their income calculations starting in the 2025 tax year.

Statutes affected:
Introduction: 290.0132