HF3662

Purpose

This bill would modify Minnesota’s individual income tax rules to treat certain travel costs tied to immigration enforcement as income that must be added to a taxpayer’s taxable income.

Main Provisions

• Adds a new subdivision (Subdivision 21) to Minnesota Statutes 2024, section 290.0131.
• Defines “Traveling expenses” as travel fares, meals, lodging, and other expenses incident to travel.
• Specifies that these traveling expenses are an addition to income if:
  • they were paid for by the taxpayer’s employer, or
  • they were paid by the taxpayer and reimbursed by the employer,
  • and they were incurred while traveling in Minnesota to perform immigration enforcement activities or to provide material support to immigration enforcement activities.
• Limits the covered travel to activities conducted within the state of Minnesota.

Significant Changes / What the Bill Seeks to Accomplish

• Creates a new taxable-income addition specifically for travel expenses connected to immigration enforcement activities.
• Alters how certain employer-paid or reimbursed travel costs are treated for Minnesota individual income tax, potentially increasing taxable income for affected taxpayers.
• Applies only to travel occurring in Minnesota and related to immigration enforcement or providing material support to those activities.

Implications

• Taxpayers who perform immigration enforcement activities in Minnesota and have travel expenses paid by an employer or reimbursed by an employer may see those costs included as additional income for state tax purposes.
• The change narrows its scope to Minnesota-based travel and to activities related to immigration enforcement and material support.

Relevant Terms - traveling expenses - immigration enforcement activities - material support to immigration enforcement activities - Minnesota Statutes 2024 section 290.0131 - Subd. 21 (Subdivision 21) - addition to income - travel fares - meals - lodging - expenses incident to travel - Minnesota - employer reimbursement