Bill > HF415

This bill creates a new individual income tax subtraction specifically for overtime pay, allowing taxpayers to reduce their taxable income by the amount of wages earned for hours worked beyond standard full-time hours. The bill defines "overtime pay" as wages, salaries, tips, and other compensation earned for work hours that exceed the maximum workweek as defined by state labor law (chapter 177) or federal labor standards (29 U.S.C. § 207), which typically means hours worked beyond 40 hours in a week. By creating this tax subtraction, the legislation aims to provide a financial benefit to workers who perform additional hours beyond their standard work schedule, potentially incentivizing overtime work or providing some tax relief for workers who regularly work extended hours. The proposed tax subtraction would take effect for taxable years beginning after December 31, 2024, giving taxpayers a new option to reduce their state income tax liability starting in the 2025 tax year.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF0415&ssn=0&y=2025