Bill > SF3738

This bill allows individuals to subtract qualified tip income from their taxable income, mirroring a federal tax deduction. Specifically, it amends Minnesota Statutes by adding a new subdivision that permits the deduction of "qualified tips" as defined by section 224 of the Internal Revenue Code, which refers to tips received by employees in certain service industries that are reported to their employer. While the federal law allows this deduction, this bill makes it effective for Minnesota taxpayers retroactively for taxable years beginning after December 31, 2024, even though a specific provision in the federal code (paragraph (h) of section 224) would otherwise delay its allowance until taxable years beginning after December 31, 2028.

Budget and Finance

https://www.revisor.mn.gov/bills/94/2026/0/SF/3738/