Bill > SF326

This bill creates a new income tax subtraction for certain medical care and health insurance expenditures in Minnesota, allowing taxpayers to reduce their taxable income by amounts paid for medical services and health insurance. The subtraction specifically includes payments for services and goods that would qualify for federal Medicaid matching funds, as well as health insurance costs as defined under the Internal Revenue Code. However, the subtraction does not apply to expenses that are already compensated by insurance, reimbursed by an employer, covered by health care accounts like flexible spending or health savings accounts, or used to calculate existing tax credits. The bill explicitly excludes amounts that have been paid through health care reimbursement accounts, accident and health plans, cafeteria plans, and similar Internal Revenue Code provisions. The new tax subtraction will take effect for taxable years beginning after December 31, 2024, providing potential tax relief for Minnesota residents who incur out-of-pocket medical expenses and insurance costs.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF0326&ssn=0&y=2025