Bill > SF3767

This bill allows individuals in Minnesota to subtract certain damage awards from their state income when calculating their taxable income, meaning they won't have to pay state income tax on these specific awards. Previously, Minnesota Statutes section 290.0132, subdivision 35, allowed a subtraction for damages related to sexual harassment or abuse that were not considered taxable income under federal law because they were not for physical injuries. This bill expands that subtraction to include damages received from claims arising from injuries caused by federal agencies conducting activities related to immigration enforcement, and it clarifies that "qualifying claim" now encompasses both sexual harassment or abuse claims and these new immigration enforcement-related injury claims. This change is effective for tax years beginning after December 31, 2025.

Budget and Finance

https://www.revisor.mn.gov/bills/94/2026/0/SF/3767/