HF323

Purpose

To create a new individual income tax subtraction for parking costs incurred at health facilities. The bill would allow Minnesota taxpayers to subtract parking expenses related to health care from their taxable income, starting from the amount over $100.

Main Provisions

• Establishes Subdivision 36 to Minnesota Statutes section 290.0132, adding a subtraction for "expenses related to parking at a health facility."
• The subtraction applies to the amount of eligible health facility parking expenses in excess of $100.
• Defines who can incur eligible health facility parking expenses (patients receiving care, visitors of eligible patients, and employees working at the facility) and who is an eligible patient.

Key Definitions

• eligible health facility: hospitals or outpatient surgical centers licensed under sections 144.50 to 144.56; physician offices; medical or dental clinics; or birth centers licensed under section 144.615.
• eligible patient: an individual receiving health care from an eligible health facility.
• eligible family member: a spouse or qualifying relative as defined in Internal Revenue Code section 152(d).
• eligible health facility parking expenses: cash parking payments made to park at an eligible health facility for the purpose of receiving health care, visiting an eligible patient (if the patient is an eligible family member), or for an employee of the facility working there.

How the Subtraction Works

• The subtraction equals the amount of eligible health facility parking expenses that exceed $100.
• Eligible expenses are those actually paid in cash to park at the facility for the described purposes.

Exclusions and Interactions with Other Provisions

• Excluded from the subtraction are:
  • amounts that have already been deducted as medical expenses under Minnesota Statutes 290.0122, subdivision 6;
  • amounts paid or reimbursed from a health savings account (HSA) or from a health flexible spending arrangement (FSA);
  • amounts for which the taxpayer was otherwise reimbursed (including reimbursements from an employer).

Significance and Changes to Law

• Creates a new, above-$100 subtraction for health facility parking expenses, adding to the existing individual income tax code.
• Aligns with broader tax concepts by tying the subtraction to specific health care-related parking costs and clarifying interactions with HSAs, FSAs, and other reimbursements.

Practical Considerations

• The deduction is limited to parking expenses actually paid in cash and to expenses at eligible health facilities as defined.
• Taxpayers who only have parking costs below $100 would not gain a subtraction.
• The bill explicitly prevents double-dipping with other health-related tax benefits or reimbursements.

Relevant Terms - subtraction - expenses related to parking at a health facility - eligible health facility - eligible patient - eligible family member - health facility parking expenses - health savings account (HSA) - health flexible spending arrangement (FSA) - Internal Revenue Code - Minnesota Statutes 290.0132 - subdivision - medical expenses deduction (Section 290.0122)