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" and its acceptance for government services transactions, tax payments, and delinquent property taxes. The act introduces new subdivisions in existing statutes to clarify how cryptocurrency will be treated in tax calculations and investment strategies. Notably, the provisions will take effect on January 1, 2026, allowing the state time to prepare for this integration.

Additionally, the bill amends various sections of Minnesota law concerning the calculation of alternative minimum taxable income for corporations and expands investment options for retirement accounts and pension plans. It introduces a new provision allowing cryptocurrency to be subtracted as a deduction in determining alternative minimum taxable income, effective for taxable years beginning after December 31, 2025. The bill also updates permissible investment options for individual retirement accounts and pension plans to include Bitcoin and other cryptocurrencies, alongside traditional investment products. Furthermore, it removes outdated references to previous investment categories, broadening the scope of acceptable investments for these plans, with the effective date for these changes also set for January 1, 2026.

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