Minneslate Logo

SF3189 (Legislative Session 94 (2025-2026))

Volunteer drivers individual income subtraction increase provision

AI Generated Summary

Purpose of the Bill

The purpose of this bill is to amend current tax laws in Minnesota to increase financial support and incentives for volunteer drivers by allowing them to benefit from a more generous tax subtraction related to their mileage reimbursements.

Main Provisions

  • The bill proposes an amendment to the Minnesota Statutes, specifically to section 290.0132, subdivision 30.
  • Volunteer drivers who receive mileage reimbursement from charitable organizations will be eligible for a subtraction on their individual income taxes.
  • This subtraction will apply to the amount of mileage reimbursement that exceeds the standard mileage rate set for gratuitous services under federal law, minus the current standard rate established for business-related travel.
  • The definition of a "charitable organization" is specified as one eligible for charitable contributions under federal tax code section 170(c).

Significant Changes

  • The mileage reimbursement subtraction will be adjusted annually to reflect economic changes as determined by the commissioner, beginning with the taxable year 2025.
  • This adjustment aims to ensure that the subtraction remains relevant and beneficial for volunteer drivers over time.

Relevant Terms

  • Volunteer driver
  • Mileage reimbursement
  • Charitable organization
  • Internal Revenue Code
  • Standard mileage rate
  • Individual income tax subtraction

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 31, 2025SenateFloorActionIntroduction and first reading
March 31, 2025SenateFloorActionReferred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [
        "Clarifies that the subtraction is limited to mileage reimbursements in excess of the charitable mileage rate and two dollars per mile."
      ],
      "removed": [
        ""
      ],
      "summary": "This bill modifies the subtraction for mileage reimbursement for volunteer drivers under section 290.0132 subdivision 30.",
      "modified": [
        "Adjusts the subtraction for volunteer drivers to align with federal mileage standards."
      ]
    },
    "citation": "290.0132",
    "subdivision": "subdivision 30"
  }
]

Sponsors