Bill > SF1332

This bill proposes to create a new tax subtraction for overtime pay in Minnesota's state income tax code. Specifically, the bill allows taxpayers to subtract the amount of overtime pay they receive from their taxable income. The bill defines "overtime pay" as wages, salaries, tips, and other compensation earned for hours worked beyond the standard maximum workweek as defined by state (chapter 177) or federal labor laws (29 U.S.C. § 207). This means that if an employee works more than the standard 40-hour workweek and receives additional compensation for those extra hours, they can reduce their state taxable income by the amount of that overtime pay. The tax provision would become effective for taxable years starting after December 31, 2024, providing a potential financial benefit for workers who regularly earn overtime compensation by effectively lowering their state tax liability on those additional earnings.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF1332&ssn=0&y=2025