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" in accordance with a specific executive order from the President of the United States, and clarifies that the term "subtraction" refers to the existing definition in Minnesota tax law.

The effective date for this new provision is set for taxable years beginning after December 31, 2024, meaning that it will apply to income earned in the year 2025 and beyond. This legislation aims to provide financial relief to service members affected by the vaccination mandate by ensuring that their back pay is not taxed at the state level.