1.1 	A bill for an act
1.2 	relating to taxation; individual income; allowing a subtraction for certain 
1.3 	expenditures for medical care and health insurance;amending Minnesota Statutes 
1.4 	2024, section 290.0132, by adding a subdivision.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2024, section 290.0132, is amended by adding a subdivision 
1.7 	to read:
1.8 		Subd. 36.Expenditures for medical care and health insurance. (a) The amount paid 
1.9 	for medical care is a subtraction.
1.10 	(b) The subtraction under this subdivision does not include amounts:
1.11 	(1) compensated by insurance or paid or reimbursed by an employer or a plan under 
1.12 	sections 104 (health care reimbursement accounts), 105 (accident and health plans), 125 
1.13 	(cafeteria and flexible spending accounts), 223 (health care savings accounts), or other 
1.14 	similar provisions of the Internal Revenue Code; or
1.15 	(2) used to compute the credit under section 290.0672.
1.16 	(c) For purposes of this subdivision, "medical care" means:
1.17 	(1) amounts paid for services and goods for which a federal Medicaid match would be 
1.18 	available under chapter 256B, without regard to whether the provider received reimbursement 
1.19 	under chapter 256B; and
1.20 	(2) amounts paid for insurance, as defined in section 213(d)(1)(D) of the Internal Revenue 
1.21 	Code.

2.1 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
2.2 	31, 2024.