This bill amends Minnesota Statutes 2024, section 290.0132, subdivision 30, to increase the subtraction for volunteer drivers' mileage reimbursement. The current law's language regarding the subtraction has been modified to remove specific limitations on the reimbursement amounts and instead allows for a subtraction equal to the total mileage reimbursement paid by a charitable organization for work as a volunteer driver. The bill establishes a new calculation method, which includes a base amount of two dollars per mile multiplied by the number of miles driven, while also ensuring that the reimbursement does not exceed the standard mileage rate for businesses.

Additionally, the bill mandates that the commissioner adjust the dollar amount specified in the new calculation for future tax years, starting with the taxable year 2025. The effective date for these changes is set for taxable years beginning after December 31, 2024. This legislation aims to provide greater financial support to volunteer drivers by increasing the allowable tax subtraction for their mileage expenses.

Statutes affected:
Introduction: 290.0132