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 cryptocurrencies. The bill empowers the State Board of Investment to invest in cryptocurrencies and modifies tax provisions to facilitate these changes. Key amendments include the definition of "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 provisions set to take effect on January 1, 2026.

Additionally, the bill amends the definition of "alternative minimum taxable income" to include specific adjustments and disallows certain federal depreciation deductions and tax preferences when calculating this income. It introduces a provision allowing cryptocurrency to be deducted in determining alternative minimum taxable income for taxable years beginning after December 31, 2025. The bill also updates investment options for retirement accounts and pension plans to include Bitcoin and other cryptocurrencies, while removing certain outdated investment options. These changes aim to modernize the state's financial practices and investment strategies, reflecting the increasing importance of digital currencies in the financial landscape.

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