HF4574
Individual income tax subtraction for firefighter pension income established.
Legislative Session 94 (2025-2026)
Related bill: SF4902
AI Generated Summary
Purpose
Create a new tax relief by allowing a subtraction from Minnesota individual income tax for firefighter pension income. The goal is to reduce the taxable income of retirees who receive pensions based on service as a firefighter.
Main Provisions
- Adds Subd. 40 to Minnesota Statutes 2024 section 290.0132.
- The subtraction applies to “firefighter pension income,” defined as annuity income or a lump-sum payment from a public retirement plan based on service as a firefighter.
- The term “firefighter” is defined as in section 299N.01 subdivision 3.
- The amount of firefighter pension income is itself the subtraction from a taxpayer’s taxable income for purposes of the individual income tax.
Significant Changes to Existing Law
- Introduces a new, explicit subtraction in the individual income tax for a specific type of retirement income—firefighter pensions.
- This represents tax relief targeted to retirees receiving pension benefits tied to firefighting service, altering how firefighter pension income is treated under Minnesota tax law.
Definitions and Key Terms (as referenced in the bill)
- firefighter pension income
- annuity income
- lump-sum payment
- public retirement plan
- service as a firefighter
- Minnesota Statutes 2024 section 290.0132
- Subd. 40
- section 299N.01 subdivision 3
- subtraction
- individual income tax
Relevant Terms - firefighter pension income - annuity income - lump-sum payment - public retirement plan - service as a firefighter - subtraction - individual income tax - Minnesota Statutes 2024 - 290.0132 - Subd. 40 - 299N.01 subdivision 3
Bill text versions
- Introduction PDF PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| March 23, 2026 | House | Action | Introduction and first reading, referred to | Taxes |
Citations
[
{
"analysis": {
"added": [
"Adds Subd. 40 (Firefighter pensions) to Minn. Stat. §290.0132 to establish a firefighter pension income subtraction.",
"Defines 'firefighter pension income' as annuity income or lump-sum payment from a public retirement plan based on service as a firefighter."
],
"removed": [],
"summary": "This bill adds Subd. 40 to Minnesota Statutes 2024, section 290.0132, creating a subtraction for firefighter pension income. The subtraction applies to annuity income or a lump-sum payment from a public retirement plan based on service as a firefighter, with the definition of 'firefighter' tied to section 299N.01, subdivision 3.",
"modified": []
},
"citation": "Minnesota Statutes 2024 section 290.0132",
"subdivision": "Subd. 40"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "The bill references Minnesota Statutes 2024, section 299N.01, subdivision 3 to define 'firefighter' for purposes of the new subtraction in §290.0132, Subd. 40.",
"modified": []
},
"citation": "Minnesota Statutes 2024 section 299N.01",
"subdivision": "Subd. 3"
}
]Progress through the legislative process
In Committee