This bill amends Minnesota Statutes 2024, section 290.0132, by adding a new subdivision that allows for the deduction of qualified tip income in accordance with federal law. Specifically, it introduces a new subdivision, Subd. 40, which states that the amount of qualified tips permitted as a deduction under section 224 of the Internal Revenue Code will be treated as a subtraction for state income tax purposes.

Additionally, the bill specifies that this subtraction will be applicable for taxable years beginning after December 31, 2028, despite the provisions of section 224, paragraph (h), of the Internal Revenue Code. Importantly, the effective date of this section is retroactive for taxable years starting after December 31, 2024, allowing taxpayers to benefit from this deduction in the specified timeframe.

Statutes affected:
Introduction: 290.0132