The proposed Minnesota Bitcoin Act seeks to incorporate cryptocurrency into the state's financial operations by permitting payments to the state using Bitcoin and other digital currencies. The bill empowers the State Board of Investment to invest in cryptocurrencies and modifies tax provisions to facilitate these changes. Key amendments include defining "cryptocurrency" in section 16A.278, allowing state agencies to accept cryptocurrency for government services, and enabling the payment of delinquent property taxes and special assessments with cryptocurrency. The act also introduces new subdivisions in tax-related statutes to clarify how cryptocurrency will be treated in tax calculations, with effective dates for these provisions starting January 1, 2026.

Additionally, the bill amends the definition of "alternative minimum taxable income" to include cryptocurrency, allowing for a subtraction as a deduction in determining this income for taxable years beginning after December 31, 2025. It also clarifies that certain federal tax preferences and deductions do not apply when calculating alternative minimum taxable income. Furthermore, the bill updates investment options for retirement accounts and pension plans to include cryptocurrencies, effective January 1, 2026, thereby modernizing investment strategies and expanding the range of permissible assets in these financial vehicles.

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