SF 3738

Introduction - 94th Legislature (2025 - 2026)

Posted on 02/24/2026 09:41 a.m.

A bill for an act
relating to taxation; individual income; adopting the federal deduction for qualified
tip income; amending Minnesota Statutes 2024, section 290.0132, by adding a
subdivision.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2024, section 290.0132, is amended by adding a subdivision
to read:

new text begin Subd. 40. new text end

new text begin Tip income. new text end

new text begin (a) The amount of qualified tips allowed as a deduction under
section 224 of the Internal Revenue Code is a subtraction.
new text end

new text begin (b) Notwithstanding section 224, paragraph (h), of the Internal Revenue Code, the
subtraction under this subdivision is allowed for taxable years beginning after December
31, 2028.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for taxable years beginning
after December 31, 2024.
new text end