HF 756

as introduced - 94th Legislature (2025 - 2026) Posted on 02/19/2025 12:42pm

A bill for an act
relating to taxation; individual income; doubling the dependent exemption;
amending Minnesota Statutes 2024, section 290.0121, subdivisions 1, 3.

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

Section 1.

Minnesota Statutes 2024, section 290.0121, subdivision 1, is amended to read:

Subdivision 1.

Exemption amount.

(a) A taxpayer's dependent exemption equals:

(1) the exemption amount multiplied by the number of individuals who are dependents,
as defined in sections 151 and 152 of the Internal Revenue Code, of the taxpayer for the
taxable year; minus

(2) the disallowed exemption amount under subdivision 2, but the remainder may not
be less than zero.

(b) The exemption amount equals deleted text begin $4,250 deleted text end new text begin $10,400 new text end .

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2024, section 290.0121, subdivision 3, is amended to read:

Subd. 3.

Inflation adjustment.

For taxable years beginning after December 31, 2019,
the commissioner must adjust for inflation the exemption amount in subdivision 1, paragraph
(b), and the threshold amounts in subdivision 2, as provided in section 270C.22. The statutory
year is taxable year deleted text begin 2019 deleted text end new text begin 2025 new text end . The amounts as adjusted must be rounded down to the
nearest $50 amount. The threshold amount for married individuals filing separate returns
must be one-half of the adjusted amount for married individuals filing joint returns.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2025.
new text end