This bill amends Minnesota Statutes 2024, section 290.0132, by adding a new subdivision that provides a subtraction for gratuities paid to employees. Specifically, it defines "gratuities" in accordance with section 177.23, subdivision 9, and states that the amount of gratuities will be considered a subtraction for individual income tax purposes.

The new provision is set to take effect for taxable years beginning after December 31, 2024. This change aims to benefit employees who receive tips, allowing them to reduce their taxable income by the amount of gratuities they earn.

Statutes affected:
Introduction: 290.0132