This bill amends Minnesota Statutes 2024, section 290.0132, by adding a new subdivision that allows for the deduction of qualified tip income for individual income tax purposes. Specifically, it introduces a new provision that states the amount of qualified tips allowed as a deduction under section 224 of the Internal Revenue Code will be treated as a subtraction from taxable income. This deduction is applicable for taxable years beginning after December 31, 2028, despite the stipulations in section 224, paragraph (h), of the Internal Revenue Code.

Additionally, the bill specifies that this new deduction will be effective retroactively for taxable years starting after December 31, 2024. This means that individuals who qualify for this deduction will be able to benefit from it for the specified tax years, potentially reducing their taxable income and tax liability.

Statutes affected:
Introduction: 290.0132