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