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 income tax purposes. This provision is set to take effect for taxable years beginning after December 31, 2028, but it is retroactively effective for taxable years starting after December 31, 2024.

The bill aims to align Minnesota's tax code with federal regulations regarding overtime compensation, providing taxpayers with a potential tax benefit for their qualified overtime earnings. By incorporating this deduction, the legislation seeks to support workers who earn overtime pay, thereby potentially easing their tax burden in future years.

Statutes affected:
Introduction: 290.0132