SF3738 • 2026

Federal deduction for qualified tip income adoption

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Housley, Weber, Jasinski, Drazkowski, Coleman
Last action: 2026-02-23
Official status: Introduction and first reading
Effective date: Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

Federal deduction for qualified tip income adoption

What This Bill Does

Federal deduction for qualified tip income adoption

Limits and Unknowns

This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

2026-02-23 House
Introduction and first reading

Official Summary Text

Federal deduction for qualified tip income adoption

Current Bill Text

Read the full stored bill text

A bill for an act

relating to taxation; individual income; adopting the federal deduction for qualified

tip income; amending Minnesota Statutes 2024, section 290.0132, by adding a

subdivision.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2024, section 290.0132, is amended by adding a subdivision

to read:

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Subd. 40.

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Tip income.

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(a) The amount of qualified tips allowed as a deduction under

section 224 of the Internal Revenue Code is a subtraction.

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(b) Notwithstanding section 224, paragraph (h), of the Internal Revenue Code, the

subtraction under this subdivision is allowed for taxable years beginning after December

31, 2028.

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EFFECTIVE DATE.

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This section is effective retroactively for taxable years beginning

after December 31, 2024.

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