HF385 (Legislative Session 94 (2025-2026))
Individual income tax subtraction provided for discharges of indebtedness, and certain discharges of indebtedness excluded from income.
Related bill: SF860
AI Generated Summary
This legislative bill aims to adjust the state of Minnesota's tax laws regarding individual income tax. Specifically, it introduces a provision where certain types of forgiven debts—referred to as "coerced debts"—are excluded from a person's taxable income. This means if someone's debt is classified under this category and is legally forgiven, they won't have to pay income tax on the amount of debt forgiven. Additionally, this bill also relates to property tax refunds and renters' income tax credits, ensuring that such discharges of indebtedness are not counted as income in these instances either.
Bill text versions
- Introduction PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| February 12, 2025 | House | Floor | Action | Introduction and first reading, referred to | Taxes |
Citations
[
{
"analysis": {
"added": [
"Introduces a subtraction for discharge of indebtedness awarded under section 332.74, subdivision 3."
],
"removed": [],
"summary": "This section of the bill adds a new subdivision to Minnesota Statutes 290.0132, dealing with discharges of indebtedness as taxable income.",
"modified": []
},
"citation": "290.0132"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Modifies existing statute 290.0693 related to income exclusions for property tax refund purposes.",
"modified": [
"Excludes certain types of discharged debts from taxable income."
]
},
"citation": "290.0693"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Amends Minnesota Statutes 290A.03 related to the definition of terms for property tax refunds.",
"modified": [
"Adjusts definitions to align with new provisions of discharges of indebtedness."
]
},
"citation": "290A.03"
}
]