This bill amends Minnesota Statutes 2024, section 290.0132, subdivision 35, to allow for a state subtraction in individual income tax for certain damage awards. Specifically, it introduces a provision that permits taxpayers to subtract damages received from qualifying claims, which include sexual harassment or abuse claims, as well as claims arising from injuries caused by federal immigration enforcement activities. The bill clarifies that these damages are not considered as received on account of personal physical injuries or physical sickness.

Additionally, the bill specifies that the term "qualifying claim" encompasses both sexual harassment or abuse claims and those related to federal immigration enforcement. The effective date for this amendment is set for taxable years beginning after December 31, 2025. The changes aim to provide tax relief for individuals receiving these types of damage awards, thereby acknowledging the unique circumstances surrounding such claims.

Statutes affected:
Introduction: 290.0132