The proposed Minnesota Bitcoin Act seeks to incorporate cryptocurrency into state financial operations by permitting payments to the state using Bitcoin and other cryptocurrencies. It empowers the State Board of Investment to invest in cryptocurrencies, thereby broadening the investment options available to the board. Key changes to existing statutes include the introduction of definitions for "cryptocurrency" and provisions for accepting cryptocurrency payments for government services, taxes, and other financial transactions. The act also revises tax provisions to address the treatment of cryptocurrency in tax calculations and allows for its use in settling delinquent property taxes. Most provisions are set to take effect on January 1, 2026, providing a transition period for implementation.

Additionally, the bill amends the definition of "alternative minimum taxable income" to include cryptocurrency, allowing for a subtraction as a deduction in its calculation, effective for taxable years beginning after December 31, 2025. It clarifies that certain federal tax preferences and deductions do not apply when determining alternative minimum taxable income, ensuring state tax calculations remain unaffected by federal benefits. The bill also updates investment options for retirement accounts and pension plans to include cryptocurrencies, modifying existing language to ensure compliance with federal regulations while expanding the range of investment products available to plan participants.

Statutes affected:
Introduction: 11A.24, 16A.626, 276.05, 279.025, 289A.02, 290.01, 290.0132, 290.0134, 290.033, 290.091, 290.0921, 354B.25, 356A.06