This bill proposes a new exemption for certain nonresident employees regarding individual income taxation in Minnesota. Specifically, it allows qualifying nonresident individuals to exclude compensation received for employment duties performed in Minnesota from their gross income, provided they meet specific criteria, such as working in Minnesota for 30 days or fewer during the taxable year and performing employment duties in multiple states. The bill defines key terms, including "qualifying nonresident individual" and "employment duties," and outlines the conditions under which the withholding requirements and filing obligations are waived for these employees.

Additionally, the bill stipulates that employers will not face penalties for failing to withhold income taxes if they rely on a time and attendance system or maintain accurate records of employee locations. It also clarifies how to determine when an employee is considered to be performing duties in Minnesota and includes a severability clause to ensure that if any part of the law is deemed unconstitutional, the remaining provisions will still be valid. The effective date for this exemption is set for taxable years beginning after December 31, 2025.