| 1 | 1 | | 1.1 A bill for an act |
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| 2 | 2 | | 1.2 relating to taxation; individual income; modifying the itemized deduction to exclude |
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| 3 | 3 | | 1.3 certain charitable contributions; amending Minnesota Statutes 2024, section |
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| 4 | 4 | | 1.4 290.0122, subdivision 2. |
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| 5 | 5 | | 1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: |
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| 6 | 6 | | 1.6 Section 1. Minnesota Statutes 2024, section 290.0122, subdivision 2, is amended to read: |
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| 7 | 7 | | 1.7 Subd. 2.Deductions limited; inflation adjustment.(a) The itemized deductions of a |
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| 8 | 8 | | 1.8taxpayer with adjusted gross income over $220,650 are reduced by the lesser of: |
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| 9 | 9 | | 1.9 (1) three percent of the excess of the taxpayer's adjusted gross income over $220,650 |
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| 10 | 10 | | 1.10but not over $304,970; plus ten percent of the taxpayer's adjusted gross income over |
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| 11 | 11 | | 1.11$304,970; or |
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| 12 | 12 | | 1.12 (2) 80 percent of the amount of the taxpayer's itemized deductions. |
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| 13 | 13 | | 1.13 (b) Notwithstanding paragraph (a), for a taxpayer with adjusted gross income over |
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| 14 | 14 | | 1.14$1,000,000, a taxpayer's itemized deductions are reduced by 80 percent. |
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| 15 | 15 | | 1.15 (c) For a married individual filing a separate return, the reduction under paragraph (a) |
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| 16 | 16 | | 1.16must be calculated using one-half of the adjusted gross income amounts specified in that |
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| 17 | 17 | | 1.17paragraph. |
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| 18 | 18 | | 1.18 (d) For the purposes of this subdivision, "itemized deductions" means the itemized |
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| 19 | 19 | | 1.19deductions otherwise allowable to the taxpayer under subdivision 1, except itemized |
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| 20 | 20 | | 1.20deductions excludes: |
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| 21 | 21 | | 1.21 (1) the portion of the deduction for interest under subdivision 5 that represents investment |
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| 22 | 22 | | 1.22interest; |
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| 23 | 23 | | 1Section 1. |
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| 24 | 24 | | 25-04550 as introduced03/03/25 REVISOR EAP/HL |
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| 25 | 25 | | SENATE |
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| 26 | 26 | | STATE OF MINNESOTA |
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| 27 | 27 | | S.F. No. 2469NINETY-FOURTH SESSION |
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| 28 | 28 | | (SENATE AUTHORS: KREUN, Weber and Nelson) |
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| 29 | 29 | | OFFICIAL STATUSD-PGDATE |
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| 30 | 30 | | Introduction and first reading03/13/2025 |
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| 31 | 31 | | Referred to Taxes 2.1 (2) the deduction for medical expenses under subdivision 6; and |
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| 32 | 32 | | 2.2 (3) the deduction for losses under subdivision 8.; and |
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| 33 | 33 | | 2.3 (4) the deduction for charitable contributions under subdivision 4. |
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| 34 | 34 | | 2.4 (e) For taxable years beginning after December 31, 2023, the commissioner must adjust |
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| 35 | 35 | | 2.5for inflation the adjusted gross income amounts under paragraphs (a) and (b) as provided |
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| 36 | 36 | | 2.6in section 270C.22. The statutory year is taxable year 2023. The amounts as adjusted must |
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| 37 | 37 | | 2.7be rounded down to the nearest $50 amount. The threshold amount for married individuals |
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| 38 | 38 | | 2.8filing separate returns must be one-half of the adjusted amount for married individuals filing |
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| 39 | 39 | | 2.9joint returns. |
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| 40 | 40 | | 2.10 EFFECTIVE DATE.This section is effective for taxable years beginning after December |
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| 41 | 41 | | 2.1131, 2024. |
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| 42 | 42 | | 2Section 1. |
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| 43 | 43 | | 25-04550 as introduced03/03/25 REVISOR EAP/HL |
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