SF4902

Purpose

This bill creates a new tax subtraction for firefighter pension income under Minnesota’s individual income tax. It adds a new subdivision (Subd. 40) to Minnesota Statutes, section 290.0132, to allow taxpayers who receive certain firefighter pension payments to subtract that income from their taxable income.

Main Provisions

• Adds Subd. 40 Firefighter pensions to Minnesota Statutes 2024 section 290.0132.
• Establishes a subtraction from individual income equal to the amount of firefighter pension income.
• Defines “firefighter pension income” as annuity income or a lump-sum payment from a public retirement plan that is based on service as a firefighter.
• Ties this definition to service as a firefighter as defined in section 299N.01 subdivision 3.

What the bill seeks to accomplish

• Provides tax relief by reducing taxable income for individuals who receive firefighter pension income.
• Clarifies exactly what counts as firefighter pension income for the subtraction (annuity income or lump-sum payments from a public retirement plan tied to firefighting service).

Significant changes to existing law

• Creates a new subtraction amount specifically for firefighter pension income under the state’s individual income tax.
• Expands or specifies the categories of retirement income that qualify for tax subtraction by referencing “firefighter” service and the defined term “firefighter pension income”.

Definitions and references

• Subdivision added: Subd. 40 Firefighter pensions.
• Key terms from the bill include: firefighter pension income, annuity income, lumpsum payment, public retirement plan, service as a firefighter.
• Related statutory references: Minnesota Statutes 2024 section 290.0132, and section 299N.01 subdivision 3.

Relevant Terms

firefighter pension income, subtraction, annuity income, lumpsum payment, public retirement plan, service as a firefighter, Minnesota Statutes 2024 section 290.0132, Subd. 40, section 299N.01 subdivision 3