Bill > SF722

This bill introduces a new tax subtraction for health insurance premiums in Minnesota state income tax calculations. Specifically, the bill allows taxpayers to subtract the amount paid for health insurance premiums as defined in section 213(d)(1)(D) of the Internal Revenue Code, with the caveat that this amount cannot have been already used to compute a separate health insurance tax credit. The bill amends Minnesota Statutes by adding a new subdivision to section 290.0132 that creates this subtraction, and also updates section 290.091 to incorporate this new subtraction into the state's alternative minimum tax calculations. The new tax provision will take effect for taxable years beginning after December 31, 2024, which means taxpayers can first claim this subtraction on their 2025 tax returns. By allowing this subtraction, the bill aims to provide some tax relief for individuals paying for their own health insurance, potentially making health coverage more affordable by reducing the tax burden on those premiums.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF0722&ssn=0&y=2025