This bill proposes a new tax provision in Minnesota that allows for an income tax subtraction for military members who were discharged due to the military's COVID-19 vaccination mandate. Specifically, it states that the amount of military back pay received by these service members will not be subject to state income tax. The bill defines "military back pay" as the amount authorized under a specific executive order from the President of the United States, dated January 27, 2025.

Additionally, the bill clarifies that the term "subtraction" will follow the definitions provided in existing Minnesota tax statutes. The effective date for this tax provision is set for taxable years beginning after December 31, 2024, ensuring that the new law will apply to future tax filings for eligible service members.