The bill amends Minnesota Statutes 2024, specifically section 290.0122, subdivision 2, to modify the itemized deductions for individual income tax. It introduces a new provision that excludes charitable contributions from the list of allowable itemized deductions. This means that taxpayers will no longer be able to deduct charitable contributions when calculating their itemized deductions, alongside existing exclusions for investment interest, medical expenses, and losses.

Additionally, the bill maintains the current structure for limiting itemized deductions based on adjusted gross income, with specific thresholds and percentages for reductions. It also mandates an inflation adjustment for these income thresholds starting from taxable years after December 31, 2023. The effective date for these changes is set for taxable years beginning after December 31, 2024.

Statutes affected:
Introduction: 290.0122