Bill > SF589

This bill proposes to create a new tax subtraction for overtime pay in Minnesota's income tax calculations. Specifically, the bill allows individuals to subtract overtime earnings from their taxable income. Overtime pay is defined as wages, salaries, tips, and other compensation earned for hours worked beyond the standard maximum workweek as defined by Minnesota labor laws (chapter 177) or federal labor standards (29 U.S.C. § 207). This means employees who work more than the standard 40-hour workweek can reduce their taxable income by the amount of overtime they earn. The tax subtraction would become effective for tax years starting after December 31, 2024, providing a potential financial benefit for workers who regularly work additional hours beyond their standard schedule. By allowing this subtraction, the bill aims to provide some tax relief for workers who take on extra hours, potentially making overtime work more financially attractive.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF0589&ssn=0&y=2025