This bill amends Minnesota Statutes 2024, section 290.0132, by adding a new subdivision that allows for a deduction of qualified overtime compensation from individual income taxes. Specifically, it states that the amount of qualified overtime compensation permitted as a deduction under section 225 of the Internal Revenue Code will be treated as a subtraction for Minnesota tax purposes. This provision is set to take effect for taxable years beginning after December 31, 2024, but the deduction itself will be applicable for taxable years starting after December 31, 2028.

Additionally, the bill clarifies that despite certain provisions in the Internal Revenue Code, the subtraction for qualified overtime compensation will be allowed in Minnesota. This change aims to align state tax law with federal tax provisions regarding overtime pay, potentially providing tax relief to individuals who earn overtime income.

Statutes affected:
Introduction: 290.0132